organisational direction : planning process
TRANSCRIPT
“An organization comprise of 2 or more
persons engaged in a systematic and
co - ordinate effort , persistently over a
period of time, in pursuit of goals which
convert resources into goods or services
which are needed by the consumers”
Composed of individuals and groups
Exist in order to try to achieve certain goals
Involves specialisation, & require rational co-ordination & control
Some degree of permanence
A mission is basically the purpose of a Company,organisation or person.
It is the basic purpose of the existence of anything.
A written declaration of an organizations core purpose and focus that normally remains unchanged over time
“It provides the framework or
context within which the
companies strategies are
formulated”
The mission statement should be a clear and succinct representation of the enterprise`s purpose for existence
Mission statement represents the broadest perspective of enterprises mission
The mission statement encapsulates the vision of what the organisation is, or intends to become
It should be flexible enough to accommodate change, although mission statements rarely change frequently.
“ A better world through kindness to animals.”
-Best friends animal society
“ To inspire lifelong learning, advance knowledge, and strengthen our communities.”
-New York public library
“To bring inspiration and innovation
to every athlete in the world”
- Nike
Whole of the main idea, corporate purpose and drivers
behind a corporation.
Mission statements take considerable time and effort
to prepare, particularly because they are likely to
remain in place for the long term.
What ?
Set up a project team.
Carry out an attitude survey throughout the organisation, to check the validity and usefulness of the current mission statement.
A revised mission statement can then be drafted, and sent for consultation to representatives of the workforce and a selection of customers. Further comments
This process of involvement must be communicated throughout the company in an appropriate way. Newsletters, workshops or meetings are commonly used
Finally it is important to monitor and review the process to ensure that the mission remains relevant and supported, and takes into account stakeholder views.
How ?
It is a desired result that a person or a system envisions, plans and commits to achieve.
Many people endeavor to reach goals within a finite time by setting deadlines
Goals are frequently used to give substance to the mission statement and may be included as part of it or alongside it
“To be the first choice for business management education worldwide.”
-ABE
Mission
•A mission may be narrow or broad in scope.
Goal
•Open ended statements, typically not quantified or given time limits
Strategy
•A plan of action designed to achieve a long-term or overall aim.
Objectives
•Expression of agreed strategy in terms of exactly what is to be accomplished & by when
Tactical plans
•To draw up tactical plans which set out the major steps necessary to achieve the tactical objectives
Operational plan
•This means that they are aimed at achieving a specific objective which, once reached, is not likely to recur in the future
Performance
•Each individual or team works to achieve their objectives through implementation of the plans
Different views
Rational approach
It is the systematic step by step method in “Hard” (quantitative data) obtained through observation or mathematical (statistical) analysis or modeling is used for making long term decisions.
The rational approach to planning which has been described in this section has been criticised by different management theorists on the grounds that when applied in practice to organisations, it can stifle creative thinking, and that it is not an accurate
The growing professionalism of the planner's job, with a consequent reduction in the
involvement of line managers in the planning process and hence in their commitments
to its outcomes.
An over-emphasis on quantification, resulting in important qualitative information,
such as emerging societal values or new directions in technology, getting lost in the
process, thereby biasing the scope and character of the information used to plan.
Requirements of administrative efficiency, such as the introduction of standardised
data inputs and planning documents, making the planning process more routine and
less open to a wide range of information or fresh insight into emerging strategic issues.
Misapplication of analytical techniques constraining management thinking, so that
emerging strategic issues which may later prove decisive are not identified because they
do not fall within the scope of the model or complex problems become over-
simplified.
Instead of applying highly formalised methods to long-term
planning, managers use instead a mixture of formal analysis,
behavioural techniques and power politics
Then Move forward in incremental steps towards their ultimate
objectives, constantly checking and refining their actions in the
light of incoming information.
Checking and refining their actions in the light of incoming
information. Thus, starting out with a plan which is not fully
detailed, management tries out its application and waits for
responses and criticism from others in order to modify and
refine it.
The thinking behind this view is that rational behaviour can stifle creativity and that in solving problems there is room for both types of behaviour.
Those who are able to visualise future change have much to offer to an organisation's strategic management.
strategic management. Such a method provides a general direction for the organisation to take, rather than a totally planned approach, so it can be readily adapted to cope with changes in the environment.
It is even possible for the 'vision' to be changed, since it is the brainchild of one person and does not need to be reconsidered through a complex layer of committees.
This approach considers that strategy evolves from
a number of actions by different decision-makers.
The main difference between this and other
approaches described above is that its the result of
actions rather than of a collective intention to
pursue a particular goal.
Objectives are quantified statements of what the
organisation intends to achieve.
They should focus the mission of the organisation
onto specific targets which direct the activities of the
organisation, and can also be used for measuring
performance.
Objectives should set out exactly what is being aimed
for and, wherever possible, they should be quantified
Objectives should set out exactly what is being aimed for
and, wherever possible, they should be quantified. Their desirable
characteristics are often represented through the acronym `SMART`.
S – Specific
The objective states quite clearly what is to be achieved.
An objective has to be unambiguous; otherwise it will cause
confusion and be open to misrepresentation
In contemporary organisations two other Ss are desirable:
objectives should be significant and stretching.
The stretching factor is to ensure that some areas of the tasks
will need additional effort, since an objective should not be so
easy so as to demotivate an individual
M – Measurable
Objectives are either quantifiable or qualitative.
Objectives are either quantifiable or qualitative.
So that those who are fulfilling the tasks know exactly what is
required of them
And also person(s) measuring their efficiency and effectiveness
will know what the measurement outcomes are in practical
terms.
Meaningful and motivational should also be included as
desirable Ms, because of their relevance to the self-worth of the
individual
A – Achievable
Objectives should always be achievable, with training and
support given by the immediate manager where required.
In setting individual objectives as part of the organisational
performance management and feedback process, objectives
should be jointly set by the member of staff and his or her
manager.
So acceptable objectives are more likely to be achieved, as the
individual will have been part of the decision-making process
regarding the outcomes of their job role
All objectives must be action-orientated: that is, there must be
outcomes measurable either quantitatively or qualitatively.
R – Realistic
The targets/aims/objectives must be realistic, which is aligned
to them being achievable.
achievable. They must be relevant to the job role, reasonable,
reviewable and rewarding.
. Rewarding in this sense here does not necessarily refer to
monetary rewards but intrinsic in that the individual's job
satisfaction and worth (self-esteem), is also recognised.
Kanter believes that there are 50 ways to reward individuals, one
of which is money and the other 49 recognition for a job well
done and personal commendations and public
acknowledgement of the individual's achievements.
T – Timed
A definite date must be decided upon by which the objectives have to be achieved, which means they have to be time-based.
It is appropriate too that they are timely in so far as the time set for achievement of the objective must be in line with other objectives of the team.
Objectives of the team (or the entire workforce). Objectives should be tangible, in that they can be assessed and are meaningful to the organisation and to the individual.
Trackable objectives are vital: monitoring and review must take place on a regular basis and, where necessary, remedial action taken.
It might well be that either the internal or external environment has made an impact on the objectives, in which case they should either be rewritten or amended to meet the new circumstances.
Quantitative objectives are
those in which outcomes are expressed in terms of
numbers, relating to money, percentages, periods
of time, output figures, etc. Examples are:
'To achieve 5% year-on-year growth in profit after tax for
the next five years.‘
'To achieve 15% return on investment in the next tax year.‘
Qualitative objectives can relate to service levels to be achieved, image, position, ethics, or learning and development.
some of the main examples will be ;
“To be the leading innovative company within 5 years”
“serve the whole world within 2 years”
Corporate objectives
Unit / Divisional objectives
Departmental objectives
Individual / Team objectives
They are those which are associated with the
overall direction of the organisation. Thus they develop the
organisation's mission in relation to the key areas
Profitability
Market share
Cash flow
Growth
Customer satisfaction
Industrial relations
Added value
The product and/or service.
Unit or divisional objectives translate the overall
objectives of the organisation into objectives for specific units
or divisions of the organisation, according to that division or
unit's areas of responsibility or function. They are then broken
down into
Departmental objectives
Individual / Team objectives
• This is where top management sets the objectives for the whole organisation and passes them down to lower levels of management to see that they are adopted and achieved
• It is claimed that this approach ensures greater co-ordination of objectives and structural fit within the hierarchy. However, it tends to be inflexible and authoritarian,
Top down objective
setting
• This allows greater autonomy to the lower levels of the hierarchy. Staff are consulted and agree with management the objectives which they themselves see as necessary to achieve the overall goals.
• This approach is claimed to be more flexible and allows for flows of information and ideas to be drawn up from all levels of the organisation.
Bottom up objective
setting
Some objectives may be more important than others or may be achieved only at the expense of others.
Objectives can be set for the short term or long term; and even if the overall aim is still consistent, there may well be conflict between long-term and short-term objectives.
Main 4 way through which these are dealing are
Satisficing
Priority setting
Sequential attention
Barganing
SatisficingIt is the term used to describe where an organisation compromises
to some extent on the degree to which an objective is met.
Priority setting
It is where objectives are ranked in order of priority and efforts concentrated on achieving each objective in order of priority.
Sequential attentionIt involves dealing with individual objectives
before moving on to another. Unlike priority setting, however, sequential attention does not attempt to rank objectives, but gives attention to each as if in sequence.
Bargaining
It is probably the most common form of dealing with conflicts. Individual managers will negotiate or co-operate with other managers to achieve their own objectives.
The term 'stakeholder' can be used to describe any individual or
group which has an interest (not necessarily financial) in the
future of the organisation.
Each of the stakeholders will have different expectations of an
organisation.
The stakeholder approach recognises that businesses can make
strategic gains from recognising stakeholder interests and
responding to them through the strategic management process.
Trying to reconcile these different expectations in order to set
agreed objectives for the organisation.
The tools of scanning and trend analysis are useful in
environments which are relatively stable, and forecasts of the
future can be based on what has happened in the past.
The basic approach of scenario planning is to identify existing
trends and key uncertainties and then combine them in a
number of scenarios that are internally consistent and within
the realm of the possible.
Consistent and within the realm of the possible. The purpose
of the scenarios is not to cover all future eventualities, but to
identify the boundaries of future outcomes.