Types of Planning: Strategic, Tactical, Operational - Research Paper Example

Planning is one of the essential aspects of the policy formulation and implementation process; effective planning is essential for the success of organizations in pursuit of organizational goals and objectives. There are various types of organizational plans and the main types of planning include operational, tactical, strategic and contingency planning (Education-portal.com, n.d); the synergic relationship between all the above types of planning is essential for the attainment of organizational goals and objectives.

In this respect, each subsequent type of planning paves way for the next from operational planning to strategic planning. Strategic planning encompasses the whole organization and it offers the blueprint for the desired future and organization long-term goals. Designed by top-level management, strategic plans provide a framework/guideline for lower level organizational planning; in other words, strategic plans outline the organization’s future direction. Tactical planning entails a systematic translation of the strategic plans into specific plans that can be implemented at departmental levels within the organizational structure.

In this respect, tactical plans are department specific as opposed to strategic plans. Operational planning involves the organization of the day-to-day activities at the lowest level of the organization; operational plans are developed by low-level managers and they outline routine departmental procedures and processes within the organization. Finally, contingency planning provides alternative courses of action for the organizations, especially in the event of unforeseen eventualities that might impede successful implementation of initial plans.

Various sources of government funds go towards government operations, for instance, governments fund their operations through taxes, licensing, fees and borrowing, among other sources (Lutzenberger, n.d). Taxes are the most common source of government funds and they range from direct taxes, such as deductions on paychecks or contributions to Social Security and Medicare insurance schemes, to indirect taxes paid on commodities such as Value Added Taxes (VAT) and sales taxes. Governments also generate income through fees charged in licensing programs such as the issuance of Driving Licenses, business/ trade licenses among other programs.

Governments can earn extra funding for its operations through borrowing from external sources such as the World Bank, IMF and donor countries; this money is normally borrowed to meet budget deficits for capital projects, and is paid back with interest. Bonds and treasury bonds are effective ways of generating long term borrowing that provides governments with ready cash for long-term projects; this also establishes favorable conditions for investors. Some of the different types of taxes that governments use to raise revenues include but are not limited to the following: Personal Income tax, Corporate Income Tax, Sales Tax, Property Tax, Value Added Tax, Import Duty and Fuel Levy (Karl, n.d). Personal income and corporate income taxes are charged on annual personal incomes of individuals and annual corporate incomes respectively; sales tax or VAT is charged on all the products that are purchased.

Property tax is charged on real estate (homes, factories, malls) motor vehicles and airplanes; import duty is imposed on all goods entering a country while fuel levy is charged at pump stations and is used for road maintenance and other services.References“Types of Planning: Strategic, Tactical, Operational & Contingency Planning”. (n.d). Education-portal.com. Retrieved from http://education-portal.com/academy/lesson/types-of-planning-strategic-tactical-operational-contingency-planning.htmlLutzenberger, T. (n.d).

“Sources of Government Funds”. eHow.com. Retrieved fromhttp://www.ehow.com/about_5501659_sources-government-funds.htmlKarl, B. (n.d). “What Are the Different Types of Government Taxes?” eHow.com. Retrieved from http://www.ehow.com/list_7314244_different-types-government-taxes_.html#ixzz2LhshAlsh