Managers must continue to plan in order to ensure that its operations meet all long – term, medium- term and short- term goals.
Long- term plans are made for 3 to 5 year periods. Long-term plans determine the direction of the company. These plans set out the firm’s overall strategy to move from its present position to where it intends to be. Long-term plans include expansion plans and plans to create new products and services. Long-term plans are made by the directors or persons in senior management positions of a company.
Medium-term plans range from 1 to 2 years. They are made by department managers or persons in middle management positions. Medium term plans include increasing the efficiency of a department in order to increase the quality and quantity of output. This would involve implementing training programmes for staff and identifying equipment that would increase efficiency.
Short-term plans are made daily, weekly and monthly by supervisors or persons in lower level management positions. These plans are centred on meeting daily, weekly and monthly production targets.