Administrative plans are plans which determine the basis of action for the whole organization as well as for the various segments of the organization for a particular period. Administrative plans are done by the middle- level management, and they provide guidelines for operative plans.

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Operative plans are plans which are concerned with the actual execution of day-to-day operations of the concern. Operative plans are, generally, for a short period. They are prepared by the lower level of management who put the administrative plans into action. Operative or operating plans cover aspects, such as preparation of sales programme, planning of production activities, etc.

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