Chapter 13 Planning and Organizing

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Chapter 13Planning and Organizing
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Levels of Planning

• Managers plan on 2 levels
• Strategic planning is long term and provides
  broad goals and direction for the entire
  business.
• Operational planning is short term and
  identifies specific activities for each area of
  the business.

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Strategic Planning

• Long term planning
• It provides the needed information and procedures
  for making effective decisions because it uses
  long term planning.
• Strategic planning uses SWOT analysis.
• SWOT is the examination of the organizations
  internal Strengths and Weaknesses as well as the
  Opportunities and Threats from its external
  environment.

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Strategic Planning

• Managers develop a mission statement.
• Mission statement is a short, specific statement
  of the businesss purpose and direction.
• The mission comes from the companys vision.
• Vision is the companys reason for existing.
• Top executives in a business are responsible for
  strategic planning.

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Operational Planning

• Determines how work will be done, who will do it,
  and what resources will be needed to get the work
  done in a specific area of business.
• Operational planning for the most part is the
  responsibility of middle-level managers and
  supervisors.

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Planning Tools

• Goals are a specific statement of a result the
  business expects to achieve.
• All types and sizes of businesses need to have
  goals.
• Goals help keep the business focused.
• Goals need to be clearly stated.

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Characteristics of Effective Goals

• Goals must be specific and meaningful.
• The goal needs to relate to the activities and
  operations of the business.
• Managers must consider the economic environment,
  past sales and profits, demand for the product
  and/or services, reactions of current and
  prospective customers, the resources of the
  business, the actions of competitors before they
  can set their realistic goals.

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Characteristics of Effective Goals

• Goals must be achievable
• Goals must be realistic
• Goals should be clearly communicated
• Company and departmental goals should be
  communicated to all employees.
• Employees will work harder to achieve goals they
  understand
• Goals should be consistent with each other and
  with overall company goals
• Managers need to work together so that their
  goals will complement each other and the overall
  company goals.

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Budgets

• Budgets are the most widely used planning tool.
• A budget is a specific financial plan
• Financial budgets assists managers in determining
  the best way to use available money to reach
  goals.

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Schedules

• Schedules are valuable in planning for the most
  effective use of time.
• A schedule is a time plan for reaching
  objectives.
• They identify the tasks to be completed by a
  department or individual and the approximate time
  required to complete each task.

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Standards

• A standard is a specific measure against which
  something is judged.
• Businesses set quality standards for the good and
  services they produce.
• Standards are used to judge employee performance.
• Managers must set realistic standards.

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Policies

• Policies are guidelines used in making decisions
  regarding specific, recurring situations.
• They are often a general rule to be followed by
  the entire business or by specific departments.
• Ex every employee must get a review twice a year.

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Procedures

• A procedure is a list of steps to be followed
  for performing certain work.
• Procedures improve business efficiency and are of
  special help to employees who are learning a new
  job.

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Research

• To do a good job of planning, managers need a
  great deal of information.
• Businesses need to complete research and provide
  results of research to managers to improve
  planning.

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Organizing Function

• Organizational Chart is a drawing that shows the
  structure of an organization, major job
  classifications, and the reporting relationships
  among the organization's personnel.
• Purpose of the Organizational Chart are
• Show the departments that make up the business.
• Indicate each employees department and to whom
  each reports.
• Indentify lines of authority and formal
  communication with in the organization.

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Elements of Organization

• There are 3 elements of organization
• Division of work
• Facilities and working conditions
• Employees
• Division of Work
• The total work that needs to be done needs to be
  divided among departments evenly.
• Departments should be composed of related tasks,
  work should flow smoothly within and among
  departments, and all tasks should have specific
  employees assigned to each to complete.

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Elements of Organization

• Facilities and Working Conditions
• A company must provide necessary equipment and
  material for employees to be able to complete
  their work.
• Arrange the layout of the facility so that all
  work flows smoothly and provides the best working
  conditions possible.
• Work should move efficiently through the company.
• Job satisfaction is affected by the lighting,
  temperature, ventilation, and cleanliness of the
  work environment.

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Elements of Organization

• Employees
• Employees should be assigned to work that they
  enjoy.
• Establish good relationships with employees.
• Employees should be assigned to work that they
  can do, and have knowledge in.

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Characteristics of Good Organizations

• Responsibility and Authority
• Responsibility is the obligation to do an
  assigned task.
• In a good organization tasks are assigned
  clearly.
• Authority is the right to make decisions about
  assigned work and to make assignments to others
  concerning that work.
• One of the greatest mistakes in business is to
  assign responsibilities without giving the
  employee the authority to carry out those
  responsibilities.

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Characteristics of Good Organizations

• Each employee and manager should know
• Description and duties of each job
• What authority accompanies the job
• Manager in charge
• Who reports to the manager
• What is considered satisfactory performance

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Characteristics of Good Organizations

• Empowerment is the authority given to individual
  employees to solve problems they encounter on
  their jobs with the resources available to them.
• Accountability is the obligation to accept
  responsibility for the outcomes of assigned tasks.

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Characteristics of Good Organizations

• Unity of Command means that no employee repots
  to more that one supervisor at a time.
• It helps the employee to know exactly what they
  need to do and who to go to if they need help.
• Span of Control is the number of employees that
  any one manager supervises directly.
• Each manager should not have to many or to few
  employees to supervise. If they have to many or
  to few they are not as effective as they could be.

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Types of Organizational Structure

• Line Organization all authority and
  responsibility can be traced in a direct line
  from the top executive down to the lowest
  employee level in the organization.
• The President of the company has direct control
  over all units of the business, but
  responsibility, authority, and accountability are
  passed along from one person to another.
• Line and Staff Organization managers have direct
  control over the units and employees they
  supervise but have access to staff specialists
  for assistance.
• Staff specialists are there to help the employees
  get their jobs done, but are not there as an
  authority figure.

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Types of Organizational Structure

• Matrix Organization combines workers into
  temporary work teams to complete specific
  projects.
• Employees report to a project manager for
  authority and responsibilities, but when that
  project is done the may have a different project
  manager to report to for the next project.
• Team Organization (newest type of organizational
  structure) divides employees into permanent work
  teams.
• The teams have responsibility and authority for
  important business activities with limited
  management control over their daily work.

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Improving Business Organization

• Decentralized Organization in this structure a
  very large business is divided into smaller
  operating units, and unit managers have almost
  total responsibility and authority for the
  operation of their units.
• Centralized Organization (Most common form) a
  few top managers do all major planning and
  decision making.
• Flattened Organization has fewer levels or
  management and as a result many employees take on
  tasks that managers would typically do.