Corporate planning and management by objectives (MBO) were discussed. Corporate planning involves creating strategies to meet goals through strategy definition, direction, decision-making and resource allocation. It ensures orderly operations and teamwork towards shared goals. MBO is a strategic approach where organizational goals are defined and conveyed to employees to achieve each objective. The process involves defining organizational and employee objectives, continuous monitoring of performance, evaluation, feedback, and performance appraisals.
2. Cooperate Planning
Corporate planning is the process by which businesses create
strategies for meeting business goals and achieving
objectives. It involves strategy definition, strategy direction,
decision-making and resource allocation. Corporate planning
ensures that business operations are orderly and that the
team works towards the same goals. It can also help you
identify potential challenges in meeting goals, so you can
provide methods to overcome them. Corporate planning is a
continuous and dynamic process that lasts throughout the life
of the business.
4. Process of Corporate Planning
(i) Environmental Analysis and Diagnosis: The first steps (which is,
in fact, the background step), involved in corporate planning is
environmental analysis and diagnosis. (A detailed account of this step is
attempted subsequently, in the discussion about corporate planning).
(ii) Determination of Objectives: All planning starts with a
determination of the objectives for the plan; and corporate planning is no
exception to this generality. In corporate planning, after environmental
analysis and diagnosis, the planners determine objectives for the company
as a whole and for each department of it; which become the beginning
point of corporate planning.
(iii) Strategy Formulation: Strategy formulation is the core aspect of
corporate planning. Strategy is, in fact, the weapon of the planner devised
for attaining objectives of corporate planning.
5. (iv) Development of Tactical Plans: Strategies are translated into
action plans called tactical plans or operational plans. Tactical plans are
necessary for implementation of strategies leading to the attainment of
corporate planning objectives.
(v) Implementation of Tactical Plans: Mere paper planning is no
planning; unless and until it is put into practice. As such, tactical plans are
put into a process of implementation, just at the right time, as decided by
management.
(vi) Follow-Up-Action: After the tactical plans have been put into practice;
a review of progress is done i.e. an examination of what results are
following from the implementation of the plan and what feedback action
is necessary, for the betterment of the corporate planning process.
6. Management by objective
• Management by Objectives (MBO) is a strategic approach to
enhance the performance of an organization. It is a process
where the goals of the organization are defined and conveyed
by the management to the members of the organization with
the intention to achieve each objective.
7. Steps in Management by Objectives Process
1. Define organization goals-
Setting objectives is not only critical to the success of any company, but it
also serves a variety of purposes. It needs to include several different
types of managers in setting goals. The objectives set by the supervisors
are provisional, based on an interpretation and evaluation of what the
company can and should achieve within a specified time.
2. Define employee objectives-
Once the employees are briefed about the general objectives,
plan, and the strategies to follow, the managers can start
working with their subordinates on establishing their personal
objectives.
8. 3. Continuous monitoring performance and progress-
Though the management by objectives approach is necessary for
increasing the effectiveness of managers, it is equally essential for
monitoring the performance and progress of each employee in the
organization.
4. Performance evaluation-
Within the MBO framework, the performance review is achieved by
the participation of the managers concerned.
5. Providing feedback-
In the management by objectives approach, the most essential step is the
continuous feedback on the results and objectives, as it enables the
employees to track and make corrections to their actions.
6. Performance appraisal-
Performance reviews are a routine review of the success of employees
within MBO organizations.
