Question

What are the various types of planning on the basis of function ?

Hint:

To remember the types of functional plans, simply think of the main departments in a typical company: Production, Marketing, Finance, and Human Resources (HR). Each department needs its own plan.

Answer 1

On the basis of business functions, planning can be categorized into various types that correspond to the major operational areas of an organization. These functional plans are developed to support the overall corporate plan. The main types are:

Production Planning: This involves planning the entire production process. It includes decisions on what to produce, how to produce, where to produce, and in what quantity. It covers aspects like plant layout, production scheduling, quality control, and inventory management.

Marketing Planning: This focuses on how to market and sell the company's products or services. It involves market research, setting marketing objectives, developing strategies for the marketing mix (Product, Price, Place, Promotion), and creating a marketing budget.

Financial Planning: This deals with estimating the fund requirements of the business and determining the sources of funds. It includes preparing budgets, managing cash flow, and making capital investment decisions to ensure the financial health of the organization.

Human Resource (Personnel) Planning: This involves forecasting the organization's future manpower needs and planning how to meet them. It includes activities like recruitment, selection, training and development, performance appraisal, and compensation planning.

Purchasing Planning: This focuses on the procurement of raw materials, components, and other supplies needed for production. It aims to ensure that the right quality and quantity of materials are available at the right time and at the right price.

These functional plans are interdependent and must be coordinated to ensure the smooth functioning and success of the entire organization.