The Organizational Planning Process

The Organizational planning Process Organizational planning Is a well thought out and practical process Involving all levels of management: top-level (strategic managers), middle-level (tactical managers), and frontline (operational managers), as well as their departments, and the individuals that make up those departments. This process begins with upper management creating a mission statement that sets clearly defined reasons for the company’s existence, as well as goals for the company.

Strategic goals are then retreated to outline the future direction of the company as a whole, as well as defining the logistic needed to meet these goals. Tactical goals are then set on a departmental level, which aids In determining what work Is needed to accomplish the goals set by the company.

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Finally operational goals are set to enable lower levels of the company to assist in meeting tactical goals. All levels of management assign the necessary tasks to appropriate departments, divisions and to individuals, arranging those individuals into the decision making structure.

This process results in an organization that consists of several integrated parts acting as one cohesive unit, accomplishing tasks to efficiently achieve company goals. A well-executed organizing process would result in a work environment in which all levels of management, and all team members are fully aware of their responsibilities. If the organizing process is not executed well, the result will likely be frustration, confusion, and a loss of efficiency, leading to minimized effectiveness.

Of course strict planning doesn’t allow for much room to make changes and adapt as environments change and evolve.

This an cause a well-organized company to fall If an openness to contingency plans Is nonexistent. Scenario building Is visualizing future possibilities based on current trends in an effort to forecast future environments and minimize risks. This enables companies to be better prepared for multiple eventualities. Crisis planning is another technique used to prepare for the unexpected risk that could emerge very quickly, causing damage to the organization.

This type of exercise is a lot like conducting a fire drill and It works to better prepare the organization to quickly deal with unexpected changes and threats.

How well a company Is able to recover can often depend on how the company responds In the event of a disaster. The STOW analysis is a tool that can be used in an organization’s strategic planning process for the purpose of looking over and assessing external environments.

This allows the organization to better evaluate the risk of new competitors entering the market, the degree of rivalry between existing competitors, as well as the negotiating power of buyers and suppliers. STOW stands for strengths, Weaknesses, Opportunities, and Threats. This Implies the order that organizational planners should follow during the tragic planning process. However, the STOW analysis is neither the first nor the last step.

The first step in the strategic planning process should be a thorough analysis of the organization’s mission statement.

This statement should serve as a foundation for future planning activities. If the organization does not have a mission statement, the creation of that statement should precede any further development In the planning process. Once this Is accomplished then Internal resources need to be a STOW analysis. The last step in the strategic planning process deals with generating resources, managing organizational structure, and handling strategic adjustments. STOW analysis is an important step in assessing external environments, which is an important step in the overall planning process.

Decision making is a fundamental part of management and there are many models when it comes to managerial decision making. The goal in this type of decision making is not necessarily to make the best decision possible, but to make a good decision based on the information at hand, and the ability or inability to budge one direction or another when it comes to alternatives. The goals and objectives of the many may very well effect how decisions can be made, and complex interacting relationships within the company can make this process even more difficult.

Management decision-making is highly subjective by nature and whether a decision is seen as good or acceptable can depend on many variables. Managerial decisions can be broken down into two basic categories, programmed and nonprogrammer decisions. Programmed decisions are those that have come up so often that there are set instructions and rules on how to go about handling these decisions.

Nonprogrammer decisions are those that are made in response to situations that are UT of the ordinary.

All of this information is relevant to my future employment as I intend to open my own business. Knowing what is expected, and what is necessary when it comes to the organizational planning and managerial decision making processes will greatly increase my odds of success and I take pride in having a basic understanding of these processes. I understand that by undertaking the development of a company I am taking on the risks involved such a venture. This information will aid me, my managers, and employees in minimizing that risk and maximizing our potential for success.