Strategic Management-3
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BPSM-3 J.K.OKE
CORPORATE PLANNING PROCESS:
THE ELEMENTS OF THE CORPORATE PLANNING PROCESS ARE AS FOLLOWS: STRATEGIES VISION / MISSION OBJECTIVES, GOALS, PROCEDURES, PROGRAMMES, BUDGETS
CORPORATE PLANNING PROCESS: BEING CONSCIOUS OF OPPORTUNITY V ESTABLISHING OBJECTIVES V DECISION-MAKING PROCESS V DETERMINING ALTERNATIVE IDEAS & COURSES OF ACTION V EVALUATING ALTERNATIVE VIEWS & IDEAS V SELECTING THE FINAL PLAN & COURSE OF ACTION V FORMULATION OF A DERIVATIVE PLANS
OBJECTIVES
TO FORMULATE CLEAR OBJECTIVES IT IS ESSENTIAL TO GET DEFINITE ANSWERS TO CERTAIN QUESTIONS: WHAT BUSUINESS THE COMPANY IS IN? WHAT SHOULD BE THE COMPANY’S BUSINESS BE? WHAT WILL THE COMPANY BUSINESS BE?
OBJECTIVES
OBJECTIVES FORM THE BASIS FOR THE FUNCTIONING OF AN ORGANIZATION. OBJECTIVES ARE THOSE ENDS WHICH THE ORGANISATION SEEKS TO ACHIEVE BY ITS EXISTENCE & OPERATIONS. BROADLY, OBJECTIVES COVER “LONG RANGE COMPANY AIMS, MORE SPECIFIC DEPARTMENT GOALS & EVEN INDIVIDUAL ASSIGNMENTS.”
OBJECTIVES OBJECTIVES
MAY BE TANGIBLE, INTANGIBLE, OBJECTIVES MAY PERTAIN TO A WIDE OR NARROW PART OF AN ENTERPRISE, & THEY MAY BE EITHER LONG OR SHORT RANGE. THEY ARE LONG TERM RESULTS THAT AN ORGANISATION SEEKS TO ACHIEVE IN PURSUING ITS BASIC MISSION
OBJECTIVES OBJECTIVE
IS MORE LIKELY TO BE CONCRETE, QUANTIFIED OR AT LEAST A MORE PRECISE STATEMENT IN-LINE WITH CORPORATE GOAL THEY SHOULD NOT BE STATIC BUT DYNAMIC TO REFLECT THE DYNAMICS OF THE OPERATING ENVIRONMENT
HIERRCHY OF OBJECTIVES PROMOTER’S VISION & VALUES STOCK-HOLDERS’ ENVIRONMENTAL EXPECTATIONS FACTORS MISSION CORPORATE OBJECTIVES SBU OBJECTIVES DEPARTMENTAL OBJECTIVES DIVISIONAL OBJECTIVES INDIVIDUAL OBJECTIVES
WHY OBJECTIVES?
JUSTIFY THE ORGANISATION
HELP DEFINE ORGANISATIONAL ROLE IN THE LARGER ENVIRONMENTAL CONTEXT
BASIS FOR MANAGEMENT BY OBJECTIVES
PROVIDE / SET THE STANDARD OF PERFORMANCE, MONITORING & REMEDIAL / COURSE-CORRECTIVE ACTIONS
WHY OBJECTIVES?
PROVIDE DIRECTION & HELP STRATEGIC PLANNING / MANAGEMENT ACT AS A LINK BETWEEN THE VISION, MISSION & GOALS ON THE ONE HAND AND POLICIES, PROCEDURES & RULES ON THE OTHER
WHY OBJECTIVES?
HELP BETTER CO-ORDINATION & REDUCE CONFLICT
HELP GOAL CONGRUENCE & COHERENCE
ACKNOWLEDGE CONSTRAINTS
FACILITATE DECENTRALISATION
OBJECTIVES: CHARACTERISTICS
PARTICIPATION CLARITY REALISM FLEXIBILITY CONSISTENCY RANKING
OBJECTIVES: CHARACTERISTICS
VERIFIABILTY BALANCE MULTIPLICITY PERIODICITY / SPECIFICITY MEASURABILITY QUALITY
OBJECTIVES COULD BE:
ECONOMIC & SOCIAL
PRIMARY & SECONDARY
SHORT RUN & LONG RUN
OBJECTIVES: ACCORDING TO PETER DRUCKER,
MARKETING INNOVATION HUMAN ORGANISATION PHYSICAL RESOURCES FINANCIAL RESOURCES PRODUCTIVITY SOCIAL RESPONSIBILITY PROFIT REQUIREMENTS
GOALS
IT IS A GENERAL STATEMENT OF DIRECTION, IN LINE WITH THE MISSION STATEMENT IT IS AN ATTEMPT TO MAKE THE MISSION STATEMENT MORE TANGIBLE, MORE CONCRETE IT IS AN INTERMEDIATE RESULT TO BE ACHIEVED BY A CERTAIN TIME AS PART OF A GRAND PLAN IT CAN BE QUANTITATIVE IN NATURE A PLAN CAN HAVE MANY GOALS
GOALS COULD BE:
OFFICIAL GOALS
OPERATIVE GOALS
OPERATIONAL GOALS
GOALS : FEATURES
GOALS ADDRESS BOTH FINANCIAL & NON-FINANCIAL ISSUES GOALS FACILITATE REASONED TRADE-OFFS GOALS CALL FOR STRETCHING TIME LIMITS & ALSO CUT ACROSS FUNCTIONAL AREAS MEASURABLE / QUANTITATIVE CHALLENGING BUT REALISTIC CONSISTENT PRIORITISED
GOALS :
GOALS SHOULD BE STATED AS REGARDS ACCOMPLISHMENTS IN: MANAGEMENT MARKETING FINANCE PRODUCTION RESEARCH
& DEVELOPMENT
POLICIES
THEY ARE GUIDE TO THINKING IN DECISION MAKING A POLICY INVOLVES METHOD THEY ARE GENERAL STATEMENTS INDICATING THE RULES, REGULATIONS THAT ARE FRAMED BY THE CORPORATE AUTHORITIES AS NORMS, PRINCIPLES & GUIDES TO BE FOLLOWED IN EXECUTION OF PLANNING
PROCEDURES
THEY ARE THE WAYS & METHODS IN WHICH THE OBJECTIVES WOULD BE REALISED & POLICIES IMPLEMENTED THEY ARE THE SERIES OF STEPS TO BE TAKEN IN EXECUTION OF ANY PLAN WHICH HELP THE ORGANISATION IN GETTING THE JOB DONE AS PER EXTANT NORMS & ESTABLISHED SYSTEMS
RULES
RULES SPELL OUT SPECIFIC COURSE OF ACTION TO BE TAKEN WHEN A PARTICULAR EVENT OCCURS OR WHEN A PARTICULAR SITUATION ARISES RULES ARE NOT TIME-BOUND & SERVE AS GUIDES BUT GENERALLY DO NOT ALLOW DISCRETION
PROGRAMMES
THEY ARE THE SEQUENTIAL SCHEDULES WHICH INDICATE THE PRINCIPAL OPERATIONS TO BE CARRIED OUT TO ACCOMPLISH THE OBJECTIVES A PROGRAMME CAN BE DEFINED AS THE OUTLINE OR PLAN OF WORK IN AN ORDERLY MANNER IT IS AN UMBRELLA TERM ENCOMPASSING A COMPLEX WHOLE OF POLICIES, PROCEDURES, GOALS, RULES, TASKS, ASSIGNMENTS, ETC. A PLAN CAN BE IMPLEMENTED THROUGH ONE OR MORE PROGRAMME
BUDGETS
BUDGETS MAY BE EXPRESSED IN TERMS OF TIME, MONEY, MATERIALS OR OTHER SUITABLE UNITS CAPABLE OF NUMERICAL EXPRESSIONS IT IS A PLAN, A STATEMENT OF EXPECTED RESULTS EXPRESSED IN QTY/NUMERICAL TERMS WITH REFERENCE TO A SPECIFIC TIME SPAN, DEPARTMENT OR FUNCTION
BUDGETS
BUDGETS TRANSLATE THE REQUIREMENTS INTO FINANCIAL TERMS & HELP IN FIXING THE STANDARD OR PARAMETER OF PERFORMANCE SERVES AS A TOOL FOR PERFORMANCE MONITORING, COMPARATIVE ANALYSIS OR VARIANCE ANALYSIS IT FORCES A SYSTEMATIC RATIONAL ADVANCE THINKING & A WELL-DEFINED APPROACH TO THE (MOSTLY) IMMEDIATE FUTURE IT MAKES PEOPLE THINK & PLAN
?
CORPORATE PLANNING PROCESS:
THE ELEMENTS OF THE CORPORATE PLANNING PROCESS ARE AS FOLLOWS: STRATEGIES VISION / MISSION OBJECTIVES, GOALS, PROCEDURES, PROGRAMMES, BUDGETS
CORPORATE PLANNING PROCESS: BEING CONSCIOUS OF OPPORTUNITY V ESTABLISHING OBJECTIVES V DECISION-MAKING PROCESS V DETERMINING ALTERNATIVE IDEAS & COURSES OF ACTION V EVALUATING ALTERNATIVE VIEWS & IDEAS V SELECTING THE FINAL PLAN & COURSE OF ACTION V FORMULATION OF A DERIVATIVE PLANS
OBJECTIVES
TO FORMULATE CLEAR OBJECTIVES IT IS ESSENTIAL TO GET DEFINITE ANSWERS TO CERTAIN QUESTIONS: WHAT BUSUINESS THE COMPANY IS IN? WHAT SHOULD BE THE COMPANY’S BUSINESS BE? WHAT WILL THE COMPANY BUSINESS BE?
OBJECTIVES
OBJECTIVES FORM THE BASIS FOR THE FUNCTIONING OF AN ORGANIZATION. OBJECTIVES ARE THOSE ENDS WHICH THE ORGANISATION SEEKS TO ACHIEVE BY ITS EXISTENCE & OPERATIONS. BROADLY, OBJECTIVES COVER “LONG RANGE COMPANY AIMS, MORE SPECIFIC DEPARTMENT GOALS & EVEN INDIVIDUAL ASSIGNMENTS.”
OBJECTIVES OBJECTIVES
MAY BE TANGIBLE, INTANGIBLE, OBJECTIVES MAY PERTAIN TO A WIDE OR NARROW PART OF AN ENTERPRISE, & THEY MAY BE EITHER LONG OR SHORT RANGE. THEY ARE LONG TERM RESULTS THAT AN ORGANISATION SEEKS TO ACHIEVE IN PURSUING ITS BASIC MISSION
OBJECTIVES OBJECTIVE
IS MORE LIKELY TO BE CONCRETE, QUANTIFIED OR AT LEAST A MORE PRECISE STATEMENT IN-LINE WITH CORPORATE GOAL THEY SHOULD NOT BE STATIC BUT DYNAMIC TO REFLECT THE DYNAMICS OF THE OPERATING ENVIRONMENT
HIERRCHY OF OBJECTIVES PROMOTER’S VISION & VALUES STOCK-HOLDERS’ ENVIRONMENTAL EXPECTATIONS FACTORS MISSION CORPORATE OBJECTIVES SBU OBJECTIVES DEPARTMENTAL OBJECTIVES DIVISIONAL OBJECTIVES INDIVIDUAL OBJECTIVES
WHY OBJECTIVES?
JUSTIFY THE ORGANISATION
HELP DEFINE ORGANISATIONAL ROLE IN THE LARGER ENVIRONMENTAL CONTEXT
BASIS FOR MANAGEMENT BY OBJECTIVES
PROVIDE / SET THE STANDARD OF PERFORMANCE, MONITORING & REMEDIAL / COURSE-CORRECTIVE ACTIONS
WHY OBJECTIVES?
PROVIDE DIRECTION & HELP STRATEGIC PLANNING / MANAGEMENT ACT AS A LINK BETWEEN THE VISION, MISSION & GOALS ON THE ONE HAND AND POLICIES, PROCEDURES & RULES ON THE OTHER
WHY OBJECTIVES?
HELP BETTER CO-ORDINATION & REDUCE CONFLICT
HELP GOAL CONGRUENCE & COHERENCE
ACKNOWLEDGE CONSTRAINTS
FACILITATE DECENTRALISATION
OBJECTIVES: CHARACTERISTICS
PARTICIPATION CLARITY REALISM FLEXIBILITY CONSISTENCY RANKING
OBJECTIVES: CHARACTERISTICS
VERIFIABILTY BALANCE MULTIPLICITY PERIODICITY / SPECIFICITY MEASURABILITY QUALITY
OBJECTIVES COULD BE:
ECONOMIC & SOCIAL
PRIMARY & SECONDARY
SHORT RUN & LONG RUN
OBJECTIVES: ACCORDING TO PETER DRUCKER,
MARKETING INNOVATION HUMAN ORGANISATION PHYSICAL RESOURCES FINANCIAL RESOURCES PRODUCTIVITY SOCIAL RESPONSIBILITY PROFIT REQUIREMENTS
GOALS
IT IS A GENERAL STATEMENT OF DIRECTION, IN LINE WITH THE MISSION STATEMENT IT IS AN ATTEMPT TO MAKE THE MISSION STATEMENT MORE TANGIBLE, MORE CONCRETE IT IS AN INTERMEDIATE RESULT TO BE ACHIEVED BY A CERTAIN TIME AS PART OF A GRAND PLAN IT CAN BE QUANTITATIVE IN NATURE A PLAN CAN HAVE MANY GOALS
GOALS COULD BE:
OFFICIAL GOALS
OPERATIVE GOALS
OPERATIONAL GOALS
GOALS : FEATURES
GOALS ADDRESS BOTH FINANCIAL & NON-FINANCIAL ISSUES GOALS FACILITATE REASONED TRADE-OFFS GOALS CALL FOR STRETCHING TIME LIMITS & ALSO CUT ACROSS FUNCTIONAL AREAS MEASURABLE / QUANTITATIVE CHALLENGING BUT REALISTIC CONSISTENT PRIORITISED
GOALS :
GOALS SHOULD BE STATED AS REGARDS ACCOMPLISHMENTS IN: MANAGEMENT MARKETING FINANCE PRODUCTION RESEARCH
& DEVELOPMENT
POLICIES
THEY ARE GUIDE TO THINKING IN DECISION MAKING A POLICY INVOLVES METHOD THEY ARE GENERAL STATEMENTS INDICATING THE RULES, REGULATIONS THAT ARE FRAMED BY THE CORPORATE AUTHORITIES AS NORMS, PRINCIPLES & GUIDES TO BE FOLLOWED IN EXECUTION OF PLANNING
PROCEDURES
THEY ARE THE WAYS & METHODS IN WHICH THE OBJECTIVES WOULD BE REALISED & POLICIES IMPLEMENTED THEY ARE THE SERIES OF STEPS TO BE TAKEN IN EXECUTION OF ANY PLAN WHICH HELP THE ORGANISATION IN GETTING THE JOB DONE AS PER EXTANT NORMS & ESTABLISHED SYSTEMS
RULES
RULES SPELL OUT SPECIFIC COURSE OF ACTION TO BE TAKEN WHEN A PARTICULAR EVENT OCCURS OR WHEN A PARTICULAR SITUATION ARISES RULES ARE NOT TIME-BOUND & SERVE AS GUIDES BUT GENERALLY DO NOT ALLOW DISCRETION
PROGRAMMES
THEY ARE THE SEQUENTIAL SCHEDULES WHICH INDICATE THE PRINCIPAL OPERATIONS TO BE CARRIED OUT TO ACCOMPLISH THE OBJECTIVES A PROGRAMME CAN BE DEFINED AS THE OUTLINE OR PLAN OF WORK IN AN ORDERLY MANNER IT IS AN UMBRELLA TERM ENCOMPASSING A COMPLEX WHOLE OF POLICIES, PROCEDURES, GOALS, RULES, TASKS, ASSIGNMENTS, ETC. A PLAN CAN BE IMPLEMENTED THROUGH ONE OR MORE PROGRAMME
BUDGETS
BUDGETS MAY BE EXPRESSED IN TERMS OF TIME, MONEY, MATERIALS OR OTHER SUITABLE UNITS CAPABLE OF NUMERICAL EXPRESSIONS IT IS A PLAN, A STATEMENT OF EXPECTED RESULTS EXPRESSED IN QTY/NUMERICAL TERMS WITH REFERENCE TO A SPECIFIC TIME SPAN, DEPARTMENT OR FUNCTION
BUDGETS
BUDGETS TRANSLATE THE REQUIREMENTS INTO FINANCIAL TERMS & HELP IN FIXING THE STANDARD OR PARAMETER OF PERFORMANCE SERVES AS A TOOL FOR PERFORMANCE MONITORING, COMPARATIVE ANALYSIS OR VARIANCE ANALYSIS IT FORCES A SYSTEMATIC RATIONAL ADVANCE THINKING & A WELL-DEFINED APPROACH TO THE (MOSTLY) IMMEDIATE FUTURE IT MAKES PEOPLE THINK & PLAN
?
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