1. Planning and Organizing
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Planning and Organizing
4.1 The Planning Function
4.2 Using Planning Tools
4.3 The Organizing Function
4.4 Developing Effective Organizations

2. 4.1 The Planning Function GOALS
Recognize the importance of planning to business success.
Differentiate between strategic and operational planning.
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3. Why Plan? The value of a business plan The importance of planning
A written description of the nature of the business, its goals objectives, and how they will be achieved.
Includes a detailed financial analysis showing potential profitability that should result from the planned operation
The importance of planning
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4. Elements of a Business Plan
Nature of the business
Goals and objectives
Marketing plan
Financial plan
Organizational plan
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5. Checkpoint
How is planning in a large organization similar to assembling a jigsaw puzzle?
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6. Checkpoint
How is planning in a large organization similar to assembling a jigsaw puzzle?
Each piece must mesh with the others around it to create the entire puzzle.
One missing or broken piece affects the look of the entire puzzle.
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7. Levels of Planning Strategic planning Operational planning
Long-term and provides broad goals and direction for entire business
SWOT
External and Internal factors
Operational planning
Short- term and identifies specific goals and activities for each part of the business
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8. Checkpoint
What is the difference between strategic and operational planning?
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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9. 4.2 Using Planning Tools GOALS
Identify the characteristics of effective goals.
Describe several business planning tools and how they are used.
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10. Establishing Direction
GOALS
Characteristics of effective goals
Specific and meaningful
Achievable
Clearly communicated
Consistent with each other and with overall company goals
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11. Checkpoint Identify the four characteristics of effective goals?
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12. Checkpoint Identify the four characteristics of effective goals?
Goals should be specific and meaningful, achievable, clearly communicated, and consistent with each other and with overall company goals
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13. Planning Tools Budgets Schedules Standards
A written financial plan for business operations developed for a specific period of time.
Schedules
A time plan for reaching objectives
Standards
A specific measure against which something is judged
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14. Planning Tools Policies Procedures Research
Guidelines used in making decisions regarding specific, recurring situations
Procedures
Sequence of steps to be followed for performing a specific task
Research
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15. Procedure for Admitting Employees and Visitors
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16. Checkpoint What is the difference between a policy and a standard?
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17. Checkpoint What is the difference between a policy and a standard?
Policies are guidelines used in making decisions regarding specific, recurring situations.
Standard is a specific measure against which something is judged.
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18. 4.3 The Organizing Function
GOALS
Describe factors that managers should consider when organizing work.
Discuss how the characteristics of good organization contribute to a more effective work environment.
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19. Organizing Work The role of organization charts
An illustration of the structure of an organization , major job classifications, and the reporting relationships among the organization’s personnel
The purpose of an organization chart
Show the major work units that make up the business
Allow employees to identify which unit they are affiliated with.
Identify lines of authority and formal communication within the organization
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20. Organizing Work The process of organizing work Division of work
The total work to be done must be divided into units, such as departments.
Grouping activities in broad, natural divisions.
Facilities and working conditions
The business must provide the necessary equipment and materials for employees to be able to complete their work.
Employees
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21. Organization Chart For Part of a Retail Business
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22. Organization Chart for Ingram Company
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23. Organization Chart for Ingram & Kerr
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24. Organization Chart for Ingram Kerr, Inc.
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25. Checkpoint
What are the three elements that should be considered when organizing work?
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26. Checkpoint
What are the three elements that should be considered when organizing work?
The division of work
The facilities and working conditions
The employees
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27. Characteristics of Good Organization
Responsibility and authority
The obligation to do an assigned task
The right to make decisions about work assignments and to require other employees to perform assigned tasks
Each employee and manager should know:
The description and duties of each job
What authority accompanies the job
The manager in charge
Who reports to the manager
What is considered satisfactory performance
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28. Characteristics of Good Organization
Accountability
Obligation to accept responsibility for the outcomes of assigned tasks
Unity of command
No employee reports to more than one supervisor at a time or for a particular task
Span of control
The number of employees that any one manager supervises directly
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29. Checkpoint
What is most likely to happen if employees are assigned responsibility for work tasks but are not given the needed authority?
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30. Checkpoint
What is most likely to happen if employees are assigned responsibility for work tasks but are not given the needed authority?
If problems occur or the employees need help, they will be unable to resolve the problem in a timely fashion and do not have the authority to get others to help them.
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31. 4.4 Developing Effective Organizations
GOALS
Describe the strengths and weaknesses of four types of organizational structures.
Make recommendations for improving business organization.
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32. Types of Organizational Structures
Line organization
All authority and responsibility can be traced in a direct line from top executive down to the lowest employee level in the organization.
Line-and-staff organization
Managers have direct control over the units and employees they supervise but have access to staff specialists for assistance.
Matrix organization
Team organization
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33. Types of Organizational Structures
Matrix organization (Project Organization)
Organizes employees into temporary work teams to complete specific projects
Used successfully in research firms, advertising agencies, and construction companies.
Provides flexibility and allows for rapid change.
Team organization
Divides employees into permanent work teams.
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34. Line Organization
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35. Line-and-Staff Organization
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36. Checkpoint
Who is responsible for traditional management functions in a team organization?
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37. Checkpoint
Who is responsible for traditional management functions in a team organization?
Work teams have a team leader, self-directed work teams work together to make decisions
They can call on a manager for help
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38. Improving Business Organization
Centralized organization
A few top mangers do all major planning and decision making.
Decentralized organization
A large business is divided into smaller operating units, and managers who head the units have almost total responsibility and authority for operations
Flattened organization (Flattening)
One with fewer levels of management than traditional structures
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39. Checkpoint How can a business organization be made more effective?
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40. Checkpoint How can a business organization be made more effective?
Organizations can be decentralized and flattened to improve communication and collaboration
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