Types of Plans - Single Use Plans
Single use plans are plans made for handling particular non-recurring problems. These plans become obsolete after their purpose is achieved; hence they are also called specific plans. Single use plans are classified into Programmes and Budgets.
A programme is a sequence of activities designed to implement policies and to accomplish objectives. Programmes are designed to carry out a particular course of action and are a combination of Goals, Policies, Procedures, Rules and Budgets etc. The characteristics of programmes consists of a number of small plans, ensures coordination, and are comprehensive plans. There are two types of programmes:
• Major programmes are basic plans designed to accomplish specific objectives
• Minor programmes are derivative programmes which are designed to implement major programmes
Budgets are quantitative statements of business plans which indicate expected results and expenditure required to achieve the desired results. Characteristics of budgets are that it is based on past figures and future events and specific statements consisting of monetary information. Advantages of a budget:
• improves efficiency,
• facilitate coordination,
• economise operations and evaluate performances of employees and organisation. Helps in formulating future policies,
• act as controlling devices,
• ensure coordination among various departments,
• motivate employees.
Various types of budgets are:
• Master budget is an integration of various functional budgets and gives comprehensive picture of the proposed activities.
• Functional or operating budget relates different functions of an organisation and describes programmes and responsibilities undertaken by functional departments.
Commonly used budgets are sales budget, production budget, materials, labour budget, cash and production overheads budget, distribution overheads budget and administrative overheads budget.
• Capital expenditure budget gives estimated expenditures on fixed assets like buildings, plant and machinery, furnitures etc.
• Revenue budget gives estimate of income and expenses on routine operations.