Chap 4 Planning and Organising (Class)

PLANNING & ORGANISING
2015 Flat World Education
CHAPTER 4
LEARNING OBJECTIVES
1.Explain the concept of organizational mission and vision goal

2. Define goals and plans and explain the relationship between them
3. Describe the types of goals and characteristics of effective goals.
4. Define the characteristics of effective goals.
5. Describe the four essential steps in the management by objectives (MBO)
process
6. Explain the benefit and problem of MBO .
LEARNING OBJECTIVES
7. Define organisation management

8. Explain the function of Organizing
9. Define organisation structure
10. Explain how elements the organization design contribute to achieve
organisaiton goals
MISSION & VISION

.
MISSION
Mission statements are longer than vision statements, often

because they
convey the organizations core values.
4
A statement of the overall purpose of an organization. It describes

what
you
do,
for
whom
you
do
it
and
the
benefit,
e.g.
"To
provide
.
consumers with high-quality, price-competitive widgets to meet
their personal, business and recreational needs.
MISSION & VISION

.
A picture of the "preferred future;" a statement that

describes how the future will look if the organization
achieves its ultimate aims, e.g. "The widgets of choice
for a value-focused world.
Answer the question Where is this organization going?
5
VISION
MISSION AND VISION
.
Example
: The Starbucks mission statement also communicate the
organizations values:
1. Provide a great work environment and treat each other with respect
. and dignity
2. Apply the highest standards of excellence to the purchasing,
roasting and fresh delivery of our coffee.
3. Contribute positively to our communities and our environment.
4. Recognize that profitability is essential to our future success
MISSION AND VISION
These interdependent, cascading roles, and the relationships among

them, are summarized
in the figure 1.0
7
.
Mission
and vision statements play three critical roles:
(1) communicate the purpose and value of the organization to
stakeholders
(2)
inform strategy development,
.
(3) develop the measurable goals and objectives to implement
strategy.
KEY ROLE OF MISSION AND VISION

.
Figure 1.0
GOAL /OBJECTIVE/STRATEGY
1.Goals : Broad, long-term aims that define accomplishment of mission

e.g Grown profitability. Maximize net income by increasing revenues
and controlling cost.
2. Objectives: Specific, quantifiable, realistic targets that measure the

accomplishment of a goal over a specified period of time, e.g. "Increase revenues
by 10% in 2004.
9
3. Strategies: Broad activities required to achieve an objective, control a
critical success factor, or overcome a barrier, e.g. Implement a program
to widely promote our success as a quality producer
GOAL AND PLAN
10
1. Plan is a blueprint for goal achievement and specifies the necessary

resource allocations, schedules, tasks, and other actions.
2. Goals specify future ends; plans specify todays means.
3. The concept of planning usually incorporates both ideas; it means
determining the organizations goals and defining the means for achieving
them.
LEVEL OF GOALS AND PLANS
11
1. The planning process starts with a formal mission that defines

the basic purpose of the organization,
2. The mission is the basis for the strategic of goals and plans to
shape the tactical level and the operational level.
LEVEL OF GOALS/PLANS
THREE LEVEL OF GOALS/PLANS :-
2. Tactical goals/plans are the responsibility of middle

managers , specific steps to be taken by whom, how, when,
what cost and to implement a strategy.
Shorter time frames for one year or less
12
1. Strategic goals/plans establish by top managers for efficiency

and effectiveness. It describe the roadmap to grow the business.
3) Operational plans/goal
Develop by Supervisors, team leaders to support tactical plans .
Two types :a) Single-use plans - apply to activities that do not recur or repeat.
A one-time occurrence, such as a special sales program
b) Standing plans - are usually made once and retain their value
over a period of years while undergoing periodic revisions and
updates. e.g Policy, procedures
13
LEVEL OF GOALS AND PLANS
14
PURPOSE OF GOAL AND PLAN

. 1. Source of motivation and commitment.
2. Resource allocation. Goals help managers decide where

they need to allocate resources, such as employees, money, and
15
equipment.
Goals and plans enhance employees motivation and

commitment by reducing uncertainty and clarifying what they
should accomplish. A plan lets employees know what actions to
undertake to achieve the goal.
PURPOSE OF GOAL AND PLAN

.
4. Standard of performance. Because goals define desired

outcomes for the organization, they also serve as
performance criteria. They provide a standard of assessment
16
3. Goals and plans provide a sense of direction. They focus

attention on specific targets and direct employee efforts toward
important
outcomes.
.
CRITERIA EFFECTIVE GOAL

.
1. Specific and Measurable it will state exactly what the

organization intends to accomplish. Eg increase profit 5%
2. Attainable - There should be a realistic chance that a goal can
be accomplished. Provide appropriate skills, time, resources
4. Relevant - Goals should be appropriate to and consistent with
.
the mission and vision of the organization
5. Time-bound - it must have a starting and ending point.
Helps17to focus effort toward its achievement.
CRITERIA EFFECTIVE GOAL

.
1. Specific and Measurable it will state exactly what the

organization intends to accomplish. Eg increase profit 5%
2. Attainable - There should be a realistic chance that a goal can
be accomplished. Provide appropriate skills, time, resources
4. Relevant - Goals should be appropriate to and consistent with
.
the mission and vision of the organization
5. Time-bound - it must have a starting and ending point.
Helps18to focus effort toward its achievement.
MANAGEMENT BY OBJECTIVES
.
2. Four major activities make MBO successful :19

i) Set goals.
Setting goals involves employees at all levels
and looks beyond day- to-day activities to answer the question
What are we trying to accomplish?
1. Management by objectives (MBO) is a system whereby

managers and employees define goals for every
department, project, and person and use them to monitor
subsequent performance or comparing performance against
objectives.
MANAGEMENT BY OBJECTIVES
.
20 overall performance. Carefully evaluate whether

4. Appraise
annual goals have been achieved for both individuals and
departments.
2. Develop action plans. An action plan defines the course of action

needed to achieve the stated goals. Action plans are made for both
individuals and departments
3. Review progress. A periodic progress review is important to
ensure that action plans are working. Three, six, nine month
.
reviews
during the year.
BENEFITS MANAGEMENT BY OBJECTIVES

.
1. Manager and employee efforts are focused on activities that will

lead to goal attainment.
2. Performance can be improved at all company levels.
3. with MBO, the subordinates feel proud of being involved in the
organizational goals and will improves their morale and commitment
. Departmental and individual goals are aligned with company
4.
goals
21
5. The system
of periodic evaluation lets the subordinates know how
well they are doing.
PROBLEM MANAGEMENT BY OBJECTIVES

.
22
1. Constant change prevents MBO from taking hold.

2. Strategic goals may be displaced by operational goals.
3. Too much paperwork
4 Employees may be under pressure when setting goals and
objectives and these goals may be set unrealistically high. This
.
may lower their morale and motivation
ORGANISING
.
Oganising in Management defines :
23
The process of identifying and grouping the work to be performed

defining and delegating responsibility and authority and
.
establishing
relationship for the purpose of enabling people to
work most effectively together in accomplishing objectives
PURPOSE OF ORGANISING
.
1) Divides work to be done into specific jobs and departments
3) Coordinates diverse organizational tasks

4) Establishes relationships among individuals, groups, and
departments
5) Establishes formal lines of authority
6) Allocates
and deploys organizational resources
24
2) Assigns tasks and responsibilities associated with individual jobs
ORGANISATION STRUCTURE
25
26
ORGANISATION
CHART
27
BASIC ELEMENTS OF
ORGANISATION DESIGN
Work specialization
Departmentalization
Unity of command
Span of control
Authority
Centralization and decentralization
Formalization
Organizational design is engaged when managers develop or

change an organization's structure. Organizational Design is a
process that involves decisions about the following seven key
elements.
28
BASIC ELEMENTS ORGANISATION DESIGN
1) Work Specialization
tasks in the organization are divided into separate jobs
with each step completed by a different person
29
2) Five types of departmentalization :a) Functional - Grouping jobs by functions performed

b) Product - Grouping jobs by product line
c) Geographical - Grouping jobs on the basis of geography
d) Process - Grouping jobs on the basis of product or
customer flow
e) Customer - Grouping jobs by type of customer and needs
30
BASIC ELEMENTS ORGANISATION D ESIGN

a) Functional
In-depth specialization
Poor communication across functional areas
b) Geographical
More effective and efficient handling of specific regional
issues that arise
Serve needs of customers in the same regional
E.g Southern region
Efficiencies put together people similar skills and

knowledge in different department
31
c) . Product
Allows
specialization in particular products and services
Managers
to customers. E.g. Housing Loan, Vehicle Loan
d) Process
More
Can
E.g
e)
efficient flow of work activities
only be used with certain types of products
Closer
can become experts in their industry
. Inspection & Shipping Dept
Customer
Customers
E.g.
needs and problems can be met by specialists

32
ORGANISATION DESIGN
3) Authority - The rights in a managerial position to tell what

to do and to expect them to do it. Three types authority :a) Line authority is direct supervisory authority that flows
downward in an organization from superior to subordinate .
b) Staff authority is advisory in nature. It does not provide
any basis for direct control over the subordinates or activities
of other departments
c) Functional authority is authority delegated to an individual
or department over specific activities undertaken by
personnel in other departments
33
ORGANISATION DESIGN
5) Span of control
4) Unity of command: The management principle that each

person should report to only one manager
The number of employees who can be effectively and efficiently

supervised by a manager
34
6) Centralization - Decision making is concentrated at a single point

in the organization
Decentralization - lower-level employees provide input or actually
make decisions
7) Formalization
Jobs are standardized and employee behaviour is guided by
rules and procedures
Highly formalized jobs offer little discretion over what is to be
done
Low formalization means fewer constraints on how employees do
35
their

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PLANNING & ORGANISING

2015 Flat World Education

2015 Flat World Education

2015 Flat World Education

1.Explain the concept of organizational mission and vision goal

2015 Flat World Education

7. Define organisation management

MISSION & VISION

Mission statements are longer than vision statements, often

2015 Flat World Education

A statement of the overall purpose of an organization. It describes

MISSION & VISION

A picture of the "preferred future;" a statement that

2015 Flat World Education

MISSION AND VISION

2015 Flat World Education

MISSION AND VISION

These interdependent, cascading roles, and the relationships among

2015 Flat World Education

KEY ROLE OF MISSION AND VISION

2015 Flat World Education

1.Goals : Broad, long-term aims that define accomplishment of mission

2. Objectives: Specific, quantifiable, realistic targets that measure the

GOAL AND PLAN

2015 Flat World Education

1. Plan is a blueprint for goal achievement and specifies the necessary

LEVEL OF GOALS AND PLANS

2015 Flat World Education

1. The planning process starts with a formal mission that defines

2. Tactical goals/plans are the responsibility of middle

2015 Flat World Education

1. Strategic goals/plans establish by top managers for efficiency

2015 Flat World Education

LEVEL OF GOALS AND PLANS

2015 Flat World Education

PURPOSE OF GOAL AND PLAN

2. Resource allocation. Goals help managers decide where

2015 Flat World Education

Goals and plans enhance employees motivation and

PURPOSE OF GOAL AND PLAN

4. Standard of performance. Because goals define desired

2015 Flat World Education

3. Goals and plans provide a sense of direction. They focus

CRITERIA EFFECTIVE GOAL

2015 Flat World Education

1. Specific and Measurable it will state exactly what the

CRITERIA EFFECTIVE GOAL

2015 Flat World Education

1. Specific and Measurable it will state exactly what the

2. Four major activities make MBO successful :19

2015 Flat World Education

1. Management by objectives (MBO) is a system whereby

20 overall performance. Carefully evaluate whether

2015 Flat World Education

2. Develop action plans. An action plan defines the course of action

BENEFITS MANAGEMENT BY OBJECTIVES

1. Manager and employee efforts are focused on activities that will

PROBLEM MANAGEMENT BY OBJECTIVES

2015 Flat World Education

1. Constant change prevents MBO from taking hold.

Oganising in Management defines :

2015 Flat World Education

The process of identifying and grouping the work to be performed

1) Divides work to be done into specific jobs and departments