Advanced Organizational Management

1. Advanced Organizational Management Chapter 2: Strategic Planning—Mission and Values

2. Types of Planning • Strategic planning • Formal process of planning to fit the mission and values of the organization • Tactical planning • Intermediate plans to help achieve the broad objectives in a strategic plan • Operational planning • Specific plans to conduct day-to-day activities • Contingency planning • Created to help an organization cope with unforeseen events

3. Strategic Planning Process • Structured to involve every level of an organization • May include outside consultants • First step is to clarify a vision and mission of the organization • Mission is the broad objective, purpose of existence • Strategy describes the plan to achieve the objectives • Corporate-level, business-level, or functional

4. Data Collection and Analysis • SWOT analysis • Strengths, weaknesses, opportunities, threats • Scan the environment and understand factors • Every aspect of the business is included • Internal and external audits • GAP analysis • Analyzing the gap between the organization and broader business environment • Other analyses • Government, business associations, research

5. Current Trends Influencing Strategic Planning • Broadest social, economic, and technological trends change and evolve at their own pace • Currently, strongest factors include • Globalization of the marketplace • Technology innovation • Security • Employment

6. Managing the Strategic Plan • Objectives are established for all activities that are necessary to achieve mission • Multiple objectives set: short-term, intermediate, and long-term objectives • Necessary objectives • Action guidelines include how the work is to be performed, policy and procedures, rules • Duration of plans varies depending on the type of plan • Strategic, tactical, operational, contingency

7. Managing the Strategic Plan (continued) • Types of plans based on repetitive use • Standing-use or single-use plans • Evaluation of plans based on measurable objectives • Success is determined by degree to which objective was reached • Plans are adjusted according to factors that determine the plan

8. Communicating Mission and Values • Process of sharing ideas in a way that others will understand and be able to use the transmitted information • Process improved with changes in technology • Process that links all managerial functions

9. Managerial Role in Communicating Policy statements are developed to convert mission statements into action • Crucial for guiding change and maintaining focus on mission and values • Control interaction by specifying how management and employees will work together • Clarify policy with associated procedure • Policy coverage cannot be expanded to all situations; meant to be guidelines

10. Policies and Procedures Guide Communication • Provide clear guidelines to employees • Address relationships with the public • Standardize the practice of the organization • Formal vs. informal policies and procedures • Standardization of organizational practices • Public and employee relations • Support of formal authority system

11. Management by Objective • Systematic approach to planning and controlling activities through superior-subordinate collaboration • Popular management approach • Mutual setting of objectives • Measurable objectives • Regular monitoring and performance evaluation • Effectiveness of MBO • Time-consuming, management support, short-term objectives, motivation

12. Ethics • Standards of right and wrong behavior that guide people • Honesty, fairness, respect for others, nonviolence, and helpfulness • Corporate social responsibility • Skeptical because of recent experiences • Stakeholders • Internally to employees • Externally to stockholders, community, society