Time frame for planning

Regardless of the kind of plan a manager is developing recognition of the importance of time is essential. Plans either fall under long range, intermediate or short range plans.

Long range planning: Covers several time periods, from five years to as long as several decades. Long range plans are mainly associated with activities such as major expansion of products or facilities, development of top managers, large issues of stocks or change of manufacturing systems. Top managers are responsible for long range planning in most organizations.

Intermediate planning: range in time from one year to five years. Because of the uncertainties associated with long range plans, intermediate plans are the primary concern of most organizations. They are usually developed by both top and middle management. They are the building blocks in the pursuit of long range plans.

Short range planning: covers time periods of one year or less. They focus on day to day activities and provide a concrete base for evaluating progress towards the achievement of intermediate and long range plans.