Diploma in Management & Leadership Level 5

Week- 1Resource management

5004By

Anjum Sattar

14/1

1/20

11

Water Only

Aims and Objectives.

Aim (s) 1.1 Identify those resources required to achieve objectives1.2 Explain the process of planning resource use to achieve objectives1.3 Identify the costs associated with the resources required to achieve objectives

Learner will be able to…. • Define what is meant by objective• Discuss planning process• Explain cost associated with resources to achieve objectives

14/1

1120

11

What is meant of objectivesDEFINITION OF OBJECTIVES • An organizational objective is a

target or goal toward which the organization directs its efforts and resources.

“Objectives” are desired outcome and can be defined as specific results that an organization seeks to achieve in pursuing its basic mission. As a managerial objective is the intended goal that prescribes definite scope and suggests direction to the planning efforts of a manager.

Need for objectives • Objectives are used:

- as guide in decision making- for increasing organizational efficiency- for performance appraisal

Types of objectives: • Short-term objectives;

- Goals to be achieved within one year- Goals are more specific

Long term objectives:• Goals to be achieved within 3 to 5

years- Goals are more broader in nature.

Effective planning must begin with a set of objectives that are to be achieved by carrying out plans. To be worthwhile and workable, objectives should be: • Clear and specific.• Stated in writing.• Ambitious, but realistic.• Consistent with one another.• Quantitatively measurable wherever possible.• Tied to a particular time period. In business, a strategy is a broad plan of action by which an organization intends to reach its objectives. The relationship between objectives and strategies may be illustrated as follows:

CHARACTERISTICS OF OBJECTIVES

 

•Objectives should be specific, attainable, flexible, measurable, consistent in the long term/short term periods.

Objectives

Increase sales net year by 10%over this year’s figure.

Possible strategies

1. Intensify marketing efforts in domestic markets.

2. Expand into foreign markets

What is meant of objectives (Cont.…)

•

Two organizations might have the same objective but use different strategies to reach it. For instance both firms might aim to increase their market share by 20 percent over the next 3 years. To do that, one firm might intensify its efforts in marketing, while the other might concentrate on expanding into institutional development. Conversely, two organizations might have different objectives but select the same strategy to reach them.

ImplementationTargets

General

All embracing

Stimulates

Stimulates

Stimulates

Stimulates

Stimulates

MISSION

OBJECTIVES

OPERATIONALPLANS

TACTICS

STRATEGY

GOALS

HIERARCHY OFOBJECTIVES

Specific

Detailedtargets

Actiontargets

What is meant of objectives (Cont.…)

Resource ManagementResource

Managing the transformation of resources into outputs is generally referred to as ‘operations management’.

Operations management is the management of a system which provides goods or services to or for a customer, and involves the design, planning and control of the system Harris

(1989)All organisations transform inputs, or resources, into outputs. Take, for example the transformation process in a company that makes ice cream, as shown in Fig. 1.1.

Inputs (resources)Milk, cream, sugar,people, equipment,

packagingProcesses

Making ice cream,packaging, cleaning,

deliveryOutputs

Satisfied customerseating ice cream

Fig. 1.1 Transformation process in an ice cream company (Reproduced withpermission from Elsevier, Pergamon Flexible Learning, Maximizing Resources

Resources in the transformation process

The wider planning process• Alice: Which way should I go?• Cat: That depends on where you’re going?• Alice: I don’t know where I’m going!• Cat: Then it doesn’t matter which way you go!• Lewis Carroll, Through the Looking Glass• In everyday life, if we make plans we can exert some influence over what happens. Things may

not turn out exactly as we had expected, but we are likely to have more control than if we simply react to events. In business, spontaneity is not an option. There are several reasons for this. First, the consequences of a lack of planning are likely to be much more serious for an organisation than they are for an individual. For example, if you fail to plan your income for when you are retired, you will probably find yourself severely financially restricted when you stop work, but you are unlikely to starve. A business that does not plan where its income will come from in future years faces extinction. Second, it usually takes much longer for an organisation to adapt resources to match events than it does an individual. If a business is going to take a major change of direction, it needs time to buy premises, design new products, offer new services, and recruit and train new staff. Third, an organisation’s stakeholders (all the people who have a vested interest in the organisation) expect it to plan for the future. You would not take a job with an organisation that you thought would go out of business next month. As a supplier, you would not deliver goods to an organisation that you thought would be unable to pay your invoice. An investor would not buy shares in a company — and the bank would not give credit — unless the business appeared to be a going concern. In order to maintain their credibility, organisations have to demonstrate a commitment to the future for their stakeholders.

Strategic Planning Process.

Activity 1

Break Time ! • 20 Min Break time allowed … Back in Class

Planning process

External Factors

• Activity 2

• Strategic plans,

Activity 3

Summary . Q & A

Next Session.

In Next Session we are going to Learn …… • Review of Previous session and Q/A. • Remaining will be in next session

Tuesday 15/11/2011 9:30 – 15:00