Depending on how repetitive they are, plans may be either standing plans, which are made to be used over and over again to ensure repeated behavior for handling routine issues, or single-use plans, which are made to be used only once. Most strategic plans are single use, whereas operational plans are standing plans. Operational objectives may be accomplished by following standing plans, which save planning and decision-making time.
Standing plans are policies, procedures, and rules developed for handling repetitive situations. Their purpose is to guide employees’ actions in day-to-day decision making. Policies provide general guidelines to be followed when making decisions. Companies should develop formal policies, as they serve as guides for employee behavior in their relationships with stakeholders. A procedure is a sequence of actions to be followed in order to achieve an objective. Procedures may also be called standard operating procedures (SOPs) or methods.
Procedures can be formal or informal and are more specific than policies, as they establish routine ways of doing things consistently. Rules state exactly what should or should not be done. Policy routines can lead to establishing rules for greater consistency of behavior, as employees have no discretion on how to implement rules and regulations designed to govern their behaviors.