Management and operationsplanning & Organising Leading

and controlDr Manil De Mel

Strategic & operational planning

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Introduction to planning

A plan is a blueprint for goal achievement and specifies the necessary

resource allocations, schedules, tasks and other actions.

Planning involves determining the organisational goals and defining the

means of achieving them.

Goal is a desired future state that the organisation attempts to realize.

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Levels of Goals

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Benefits of goals and plans

Legitimacy

Source of motivation and commitment

Resource allocation

Guides to action

Rationale for decisions

Standards of performance

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Mission statement

Mission statement emphasizes the organisation’s reason for existence.

Mission statement outlines the organisational values, aspiration and reasons for being.

Mission statement would distinguish the organisation from others of a similar type.Coca Cola Mission

Our mission is:

To refresh the world in mind, body and spirit

To inspire moments of optimism and happiness through our brands and actions

To create value and make a difference

BMS is committed to creating an intellectually stimulating learningenvironment through inspirational teaching and research within an inclusiveacademic culture that benefits the learner, community, country, and the region.

Ford Motor CompanyWe are a global family with a proud heritage passionately committed to providing personal mobility forpeople around the world.

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Areas to be addressed in an effectivemission statement

Product and business priorities

Market and specific requirement of its customers

Technology and operational capabilities

Core values of an organization

Interest of key stakeholders

Core purpose of existence

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Types of goals and plans Strategic goals

Official goals, broad statements about the organisation.

Strategic plans

Define the action steps the company intends to attain.

The blue print that defines activities and resource allocation.

Tactical goals and plans

Tactical plans are designed to help execute major strategic plans and to accomplish specific part of the company’s strategy.

Plans of the divisions and departments

Operational goals

Results expected from departments, work groups and individuals.

Operational plans

Develop at the lower levels of the organisation to specify action steps towards achieving operational goals.

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Criteria for effective goal setting

Specific and measurable

Defined time period

Cover key result areas

Choice and clarity

Challenging but realistic

Linked to rewards

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Planning approaches

Management by Objectives

(MBO)

Single use plans

Standing plans

Contingency plans

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01. Management by objective

MBO is a system whereby managers and employees define goals for every

department, project, and person and use them to monitor subsequent

performance.

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MBO benefits & challenges

Benefits CHALLENGES

Manager and employee efforts are focused on

activities that will lead

to goal attainment.

Performance can be improved at all company

levels

Employees are motivated

Departmental and individual goals are aligned

with company goals

Constant change prevents MBO from

taking hold.

Poor employer-employee relations

reduces MBO effectiveness.

Strategic goals may be displaced by operational goals.

Mechanistic organisational values that discourage participation, can

harm the

MBO process.

Too much paper work saps MBO energy.

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02. Single use plans

Single use plans are developed to achieve a set of goals that are not likely tobe repeated in the future.

Help to carryout a course of action that is not likely to be repeated in the

future

A programme is a complex set of objectives and plans to achieve an important,

one-time organisational goal

A project is similar to a programme, but generally smaller in scope and complexity

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03. Standing plans Standing plans are ongoing plans that provide guidance for tasks or situations that

occur repeatedly within the organisation.

Developed to carry out the activities that recur regularly over the period of time

A policy is a general guide to action and provides direction for people within the

organisation

Procedures define a precise series of steps to be used in achieving a specific job

Rules describe how a specific action is to be performed

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04. Contingency planning

Contingency plans define company responses to be taken in

the case of emergencies, setbacks or unexpected conditions.

To develop contingency plans managers identify important

factors in the environment such as possible economic

downturns, declining markets, increases in cost of supplies,

new technological developments or safety accidents.

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Strategic planning

Is a formal process designed to help an organisation identify and maintain an

optimal alignment with the most important elements of the environment

within which the organisation resides.

Is a complex and ongoing process of organisational change.

How will weget there?

Where do wewant to be?

Where are wenow?

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Levels of strategy

Corporate-Level Strategy

The level of strategy concerned with the question, “What business are we in?” Pertainsto the organisation as a whole and the combination of business units and product linesthat make it up.

Business-Level Strategy

The level of strategy concerned with the question, “How do we compete?” Pertains toeach business unit or product line within the organisation.

Functional-Level Strategy

The level of strategy concerned with the question, “How do we support the business-level strategy?”. Pertains to all of the organisation’s major departments.

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Benefits & limitations of planning

Benefits

Goals and plans provide a source of

motivation and commitment

Goals and plans guide resource

allocation

Goals and plans are a guide to action

Goals and plans set a standard of

performance

Limitations

Goals and plans can create a false

sense of certainty

Goals and plans may cause rigidity in a

turbulent environment

Goals and plans can get in the way of

intuition and creativity

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Fundamentals of organising

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Introduction to organising

Organizing is the deployment of organizational resources to achieve strategic

goals.

Organizing is deciding how best to group organizational activities and

resources so that the organization will achieve its goals.

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Purpose of organising

Divides work to be done into specific jobs and departments

Assigns tasks and responsibilities associated with individual jobs

Establishes relationships among individuals, groups and departments

Establishes formal lines of authority

Allocates and deploys organisational resources

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Organisational structure

Organizational structure is the formal arrangement of jobs within an organisation.

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Organisational chart

The organization chart shows departments and job titles , with lines linking senior

executives to the departments of people for whose work they are responsible.

This shows who people report to, and clarifies four features of the formal structure:

Tasks – the major activities of the organization

Subdivisions – how they are divided

Levels – the position of each post within the hierarchy

Lines of authority – these link the boxes to show who people report to

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5/25/2017 GDM 401 PB: HDM

Organisational design

A process that involves decisions about six key elements

Work specialization

Departmentalization

Chain of command

Span of control

Centralization and decentralization

Formalization

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Work specialization

Dividing work activities into separate job tasks.

Also known as division of labour

People become more expert in one task than they could be in several and are

more likely to come up with improved ideas or methods.

01

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Chain of command

The lines of authority show the links between people – who they report to and

who reports to them.

In particular chain of command shows who they can ask to do work, who they

can ask for help and who will be expecting results from them.

02

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The span of control

The span of control is the number of subordinates reporting directly to theperson above them in the hierarchy.

03

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Tall vs. flat organisational structure

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Tall vs. flat organisational structure

Many layers of management between

lowest and highest levels

Small span of control

Close supervision

Better communication

Reduce delegation

Fewer levels in hierarchy

Wider span of control

Subordinates greater decision making

authority

Few management cost

Greater employee motivation but less

control

Characteristics of tall structure Characteristics of flat structure

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Centralization and decentralization

Centralization is when a relatively large number of decisions are taken bymanagement at the top of the organization.

Decentralization is when a relatively large number of decisions are takenlower down the organization in the operating units.

04

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Formalization

Formalization refers to how standardized an organization’s jobs are and theextent to which employee behavior is guided by rules and procedures

These include rules, procedures, instruction manuals, job descriptions (thingswhich people must do)

05

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Departmentalization

Process of grouping jobs together to ensure coordination of tasks in known asdepartmentalization.

Departmentalization identifies what job tasks will be done by whom?

Common work activities

Common form of departmentalization: Functional departmentalization

Geographical departmentalization

Product departmentalization

Process departmentalization

Customer departmentalization

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Departmentalization

Basis for grouping positions into departments

Choices regarding chain of command

Traditional approaches:

Vertical Functional

Divisional

Matrix

Innovative approaches:

Teams

Virtual Networks

06

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Functional and divisional

Vertical Functional Approach

Grouping of positions into departments based on skills, expertise, work activities,

and resource use

Divisional Approach

Grouping based on organisational output

Product, Program, Business (self-contained unit)

Geographic or Customer-Based Divisions

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5/25/2017 GDM 401 PB: HDM

Geographic-Based Global OrganisationStructure

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Matrix and team approach

Matrix approach combines functional and divisional approaches

Improve coordination and information

Dual lines of authority

Team approach is a very widespread trend

Allows managers to delegate authority

Flexible, responsive

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Dual-Authority Structure in a MatrixOrganisation

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Global Matrix Structure

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Virtual network approach

Extends idea of horizontal coordination and collaboration

Partnerships

Alliances

Could be a loose interconnected group

i.e., outsourcing

Virtual network structure means that the firm subcontracts most of its major

functions to separate companies

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Network approach

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Authority

Authority is the formal and legitimate right to make decisions and issues orders

Power that has been legitimized by an organisation

Authority is vested in organisational positions, not in people

Authority is received from mainly legal sources but managers can develop authority by

acceptance as well.

Authority is accepted by subordinates

Authority flows down the vertical hierarchy

Authority can be transferred from one to another

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responsibility

Responsibility is the duty to perform the task or activity

assigned

Requirements of assigned task to be done

It should be match with the responsibility

Ultimate responsibility cannot be transferred

Responsibility is highly connected to accountability

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accountability

The obligation to demonstrate and take responsibility

for performance in light of agreed expectations.

There is a difference between responsibility and

accountability:

responsibility is the obligation to act

accountability is the obligation to answer for an action

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delegation

Is the process whereby superior gives

subordinate authority over a defined area

which falls within the scope of superior’s

authority.

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Benefits of delegation

Increases associate responsibility and ownership.

Builds team environment

Associates gain knowledge and skills.

Allows for flexibility in scheduling.

Trains individuals for the next level

Allows to meet deadlines

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Barriers to delegation

Lack of abilities to carry out the delegated tasks

Fear of subordinates

Fear of losing control

Fear that subordinates might do a better job

Some employees do not accept the delegated tasks

Concern about what to do with extra time

Feeling of indispensability

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Thank you!

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