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Definition of Hierarchy plan

Hierarchy of plan

Definition of Hierarchy  plan
Plans from a hierarchy, they flow down from higher levels to lower levels. Higher-level plans are represented by mission, goals, strategies, policies. Lower-level plans are represented by procedures, rules, programmers, and budgets.

Hierarchy of plan

1. Mission:

The mission is the reason for the existence of an organization. It reflects long-term commitment & provides justification for being of an organization. It is developed by top-level management. It defines the fundamental unique purpose apart from a similar type of organization.

2. Goals/Objectives:

Goals are developed to achieve the mission. It provides direction to the activities of an organization. They state how the mission will be accomplished over the year. Hence, goals are the targets or end the management wants to reach.

3. Strategies:

A strategy is a comprehensive plan starting with how an organization will achieve its mission and goals. Strategies plans are made in the light of plans of the competitors. Thus, they are dynamic in nature.

4. Policies:

policies are guidelines for decision-making to achieve goals within the members of an organization act. Managers develop policies to make sure that employers of the organization make decisions and take actions that support the mission, goals, and strategies.

5. Procedures:

A procedure is a list of systematic steps for handling regular events. procedures indicate how it should be done. They are the guides to action in which certain activities must be accomplished.

6. Rules:

Rules are prescribed guides to action. They are rigid and definite. They demand strict compliance. The violation of rules is associated with disciplinary action.

7. Programs:

The program is formulated for a complete and orderly course of action. They are integrated action plans for a large set of activities. They are supported by budgets.

8. Budgets:

Budgets are financial plans for a set of activities. They are normally prepared annually. They are the most widely used instrument of planning as well as control. 

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