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Ch05

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Published in: Business, Spiritual
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  • 1. Organizational PlanningMultiMedia by 2002 South-
  • 2. When Planning, Managers Construct, review, and/or rewrite their organization’s mission. Identify and analyze their opportunities. Establish the goals they wish to achieve. Identify, analyze, and select the course or courses of action. Determine resources they will need to achieve their goals. MultiMedia by 2002 South-
  • 3. Mission Statement References to core values. Serves as an operational and ethical guide. Foundation and coordinating device for the execution of management functions.MultiMedia by 2002 South-
  • 4. Peter Drucker and a Mission Statement: Two Questions• What is our business?• What should it be?• These two questions must be raised and answered periodically. MultiMedia by 2002 South-
  • 5. Six Rules for Writing and Implementing Mission Statements Rule #1: Keep the statement simple; not necessarily short, but simple. Rule #1: Keep the statement simple; not necessarily short, but simple. Rule #2: Allow company-wide input. Rule #2: Allow company-wide input. Rule #3: Involve outsiders. They can bring clarity and aafresh perspective to Rule #3: Involve outsiders. They can bring clarity and fresh perspective to the statement-writing process. the statement-writing process. Rule #4: Develop the wording and the tone to reflect the company’s Rule #4: Develop the wording and the tone to reflect the company’s personality or what the company would like to be. personality or what the company would like to be. Rule #5: Share the mission statement in as many creative ways as possible Rule #5: Share the mission statement in as many creative ways as possible and in as many languages as necessary. Keep it in front of people constantly. and in as many languages as necessary. Keep it in front of people constantly. Rule #6: Rely on the mission statement for guidance. Challenge it Rule #6: Rely on the mission statement for guidance. Challenge it continually, and judge employees by how well they adhere to its tenets. continually, and judge employees by how well they adhere to its tenets. Management must say it and live it. Management must say it and live it.Source: From Say it and Live It by Patricia Jones and Larry Kahaner. Copyright © 1995 by Kane Associates International, Inc. Used by permission ofDoubleday, a division of Bantam Doubleday Dell Publishing Group, Inc. MultiMedia by 2002 South-
  • 6. Characteristics of Effective Goals and ObjectivesCharacteristicCharacteristic Explanation ExplanationSpecific and measurable Specific and measurable Not all objectives can expressed in numeric Not all objectives can expressed in numeric terms, but they should be quantified when possible. terms, but they should be quantified when possible.Realistic and challengingRealistic and challenging Impossibly difficult objectives demotivate people. Impossibly difficult objectives demotivate people. Objectives should be challenging but attainable, given Objectives should be challenging but attainable, given the resources and skills available. the resources and skills available.Focused on key result areasFocused on key result areas Goals should focus on key results--sales, profits, Goals should focus on key results--sales, profits, production, or quality. production, or quality.Cover aaspecific periodCover specific period A measurable objective is stated in terms of the time in A measurable objective is stated in terms of the time in which it is to be completed. Short-term goals should which it is to be completed. Short-term goals should complement long-term goals. complement long-term goals.Reward performanceReward performance Objectives are meaningless if they are not directly Objectives are meaningless if they are not directly related to rewards for performance. related to rewards for performance. MultiMedia by 2002 South-
  • 7. Plans Answer Six Basic Questionsa. What identifies the specific goals to be accomplished.b. When answers a question of timing.c. Where concerns the place or places where the plan will be executed.d. Who identifies specific people who will perform specific tasks.e. How involves the specific actions to be taken to reach the goals.f. How much is concerned with the expenditure of resources needed to reach the goals–both long- and short-term. MultiMedia by 2002 South-
  • 8. Stretch Goals Require Great Leaps Forward on • Product development time • Return on investment • Sales growth • Quality improvement • Reduction of manufacturing cycle timesMultiMedia by 2002 South-
  • 9. Strategy A course of action created to achieve a long-term goal. Exists for an entire organization or for its autonomous units or functional areas.MultiMedia by 2002 South-
  • 10. Plans Need Resources •• People People •• Money Money •• Facilities Facilities •• Equipment Equipment •• Supplies Supplies •• Information InformationMultiMedia by 2002 South-
  • 11. Types of Plans Strategic Plan Contains the answers to who, what, when, where, and how. Concerned with the entire organization’s direction and purpose. How the organization intends to grow, compete, and meet its customers’ needs. MultiMedia by 2002 South-
  • 12. Types of Plans Tactical Plan Is concerned with major organizational subsystems: -what they must do -how they must do it -when things must be done -where activities will be performed -what resources are to be utilized -who will have the authority Has more details Shorter time frames Narrower scope than strategic plans Usually one year or less MultiMedia by 2002 South-
  • 13. Types of Plans Operational Plan Operational Plan Support of tactical plans. Support of tactical plans. First-line manager’s tool for executing daily, weekly, First-line manager’s tool for executing daily, weekly, and monthly activities. and monthly activities. MultiMedia by 2002 South-
  • 14. Strategic Plan Deals With Future Events What will be the situation in our industry with regard to local, state, and federal regulations? Will inflationWill there be a What will the continue at its present recession? competition do? rates? MultiMedia by 2002 South-
  • 15. An Organization’s Mission and Levels of GoalsMultiMedia by 2002 South-
  • 16. Operational Plans Single-Use Plan Single-Use Plan Once the activity is completed, the plan is no longer Once the activity is completed, the plan is no longer needed. needed. Examples are programs and budgets. Examples are programs and budgets. Standing Plan Standing Plan Specifies how to handle continuing or recurring activities. Specifies how to handle continuing or recurring activities. Continues to be useful over many years. Continues to be useful over many years. Examples include policies, procedures, and rules. Examples include policies, procedures, and rules. MultiMedia by 2002 South-
  • 17. Hierarchy of Unified Goals and ObjectivesMultiMedia by 2002 South-
  • 18. Assessing theInternal Environment Considerations  Human resources  Material resources  Financial resources  Time  Informational resources  Needs of internal customersMultiMedia by 2002 South-
  • 19. Assessing the External Environment Considerations Strengths and weaknesses of suppliers. Availability of additional labor and technology. Needs of external customers.MultiMedia by 2002 South-
  • 20. Implementing the Plan Who will do what By what date What resourcesMultiMedia by 2002 South-
  • 21. Planning is Based On Assumptions … what planners believe to be true and real. Forecasts … predictions about the probable state of relevant conditions over the span of time covered in their plans.MultiMedia by 2002 South-
  • 22. Planning Tools Management by Objectives (MBO) -a technique that emphasizes collaborative objective setting by managers and their subordinates. Linear Programming -a planning tool that can be used to determine the optimum combination of resources and activities. MultiMedia by 2002 South-
  • 23. Barriers to Effective Planning Lack of commitment Fear of failure Out-of-date or inaccurate information Failure to consider the long term Overreliance on the planning department Overemphasis on controllable variablesMultiMedia by 2002 South-

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