Plans are classified by their area of function; such as administration, personnel, and operation, time factor, characteristics, functional level and action requisite. From the above criteria, there are four types of planning which are commonly used in day to day operations. They include, strategic, tactical, and operational and contingence plans.
Strategic plans are made by the top management. They are concerned with general mission of the organization. They define the entire goals and objectives of the organization. Strategic plans are long term plans which take about 3-5 years to accomplish. These plans provide then future image of the organization in terms of profitability and productivity. Strategic plans are proactive in nature. Strategic plans provide an outline for other lower-level planning.
Tactical plans are made by departmental managers who are in the middle level of management. Tactical plans implements the plans made by the top management. These plans are concerned with the functionality and responsibility of the departmental level to accomplish their parts in strategic plan. Tactical are short term and are proactive in nature.
Operational plans are made at the low level of management by the front line managers. They implements day to day operations of the organization. Operational plans focus on particular process and procedure that take place within the lowest level of then organization, approximately the individual level of the organization. Operational plans proactive.
Contingency plans are alternative plans made by managers to allow them to be more flexible by providing an alternative strategy that can be used where the original plan fails to generate anticipated outcome. Contingency plans can either be proactive or reactive.