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Standing plans are plans made for situations that occur repeatedly.

They are created to be used again and again since they address organizational problems that occur over and over again.

Standing plans provide direction for activities to recurring activities in the organization.

A standing plan is also called a multi-use plan or repeated-use plan.

Types of standing plans

There are six types of standing plans, namely; policies, rules, methods, procedures, objectives and strategies.

1. Policies: These are general statements that guide and direct managerial decision-making.

Policies defined how decisions are to be made in the organization in line with the overall objective of the business.

Policies ensure that decisions, thinking, and actions are focused in a specific direction and objective.

Making decisions about issues before they become problems is made simple by policies.

If there is a policy in place regarding a particular situation, the manager will swiftly make a decision based on the policy decision adopted by the organization, saving time and effort that would have been expended on evaluating the same situation  repeatedly

Examples of policies include a company policy of only recruiting internally. A company can also have a policy of selling only on a cash basis.

2. Objectives: The first step in the planning process is setting objectives. 

Everything and anything that the organization hopes to accomplish in the near future is outlined in its objectives.

Objectives are the primary reasons for the existence of an organization.

Every organization has objectives that it aspires to accomplish, and objectives are thought of as the primary focus of managerial activities.

Other managerial functions like organizing, staffing, directing, and controlling are focused on attaining the organization's objectives, thus objectives don't just represent the culmination of planning

Objectives give an organization an overall sense of where it is going.

An objective could be anything, from something straightforward like growing sales by 10% to something difficult like increasing profits by over 120% in one year.

In any case, all objectives should always be specific, measurable, achievable, relevant and more importantly, time-bound (SMART).

3. Strategies: A strategy can be defined as the process of figuring out what the company's long-term objectives are, choosing the best course of action to get there, and allocating resources accordingly.

Strategies are typically adopted for a company's long-run operations. As such, A company have to consider the ever-changing business environment when making a strategy.

Potential changes in the political, legal, economic and social environment must be considered when making a strategy.

Whether or not a company will continue selling its current line of product or switch to another in the future. Do we expand business operations in the future or reduce business operations? These are all strategic business decisions that a business can make.

4. Procedures: These are plans that established how routine activities are to be carried out moving forward.

Procedures are collection of steps that must be taken in a specific order to address to deal with a situation 

For example, an organization may have procedures for buying inventory.

Procedures are often intended for use by insiders of the organization, although they may apply to outsiders too.

Procedures and policies are generally interlinked, and the procedures adopted by a organization usually arises from its policies.

While procedures are mostly guided to action, policies are mostly guided by decisions.

5. Rules: In the simplest terms, rules outline what is acceptable and unacceptable in any organization.

Rules are very specific and they usually specified what should be done and what should not be done.

Rules are the result of managerial decisions on what actions are required or not required.

Everyone in the company is expected to abide by the company's rules. Non-compliance with the rules of a company usually attract punishment.

"No smoking here," and "No parking here" are two examples of rules

6. Methods: These are standardized ways and manners in which a task must be performed in line with the objectives of the organization.

There may be different methods of performing a task, but it is expected that a manager will select the method that is most efficient.

That is, the manager must select the best method that will save time, money and energy. 

As an illustration, there are different methods by which an organization can train its staff such as orientation training, on-the-job training, vestibule training etc.

However, it is expected that the organization will select the most appropriate and most efficient method.


Voila, we just learned the six types of standing plans. To recap, we said that standing plans are plans made for recurring situation.

We discussed six types of standing plans: Policies, objectives, methods, rules, procedures and strategies.

Policies can be defined as general statements that guide managerial action and thinking.

Objectives can be defined as the things that an organization seeks to achieve in the short-term and in the long term.

Rules can be defined as the do's and don'ts in an organization.

Strategies can be defined as the process of determining the long-term objectives of the business and deciding on how best to achieve them.

Methods are prescribe ways and manners of performing a particular task.

Procedures are plans describing specific routine activities are to be done in the organization.

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