1. Planning and Organizing
Chapter 13
Planning and Organizing
Chapter 13
Planning and Organizing
©2008 Thomson/South-Western

2. Planning and Organizing
Levels of Planning
Strategic planning — long-term planning that provides broad goals and direction for the entire business
Operational planning — short-term planning that identifies specific activities for each area of the business
Chapter 13
Planning and Organizing

3. Planning and Organizing
Strategic Planning
Chapter 13
Planning and Organizing

4. Establishing Direction
Goal — specific statement of a result the business expects to achieve
Effective goals:
must be specific and meaningful
must be achievable
should be clearly communicated
should be consistent with each other and with overall company goals
Chapter 13
Planning and Organizing

5. Planning and Organizing
Planning Tools
Budget — specific financial plan
Schedule — time plan for reaching objectives
Standard — specific measure against which something is judged
Policies — guidelines for making decisions regarding specific, recurring situations
Procedures — steps to be followed for performing certain work
Research — carefully collected information on the way jobs are performed
Chapter 13
Planning and Organizing

6. Planning and Organizing
Organization Chart
Chapter 13
Planning and Organizing

7. Characteristics of Good Organization
Responsibility (obligation to do an assigned task) and authority (right to make decisions about assigned work and make assignments to others)
Accountability — obligation to accept responsibility for outcomes of assigned tasks
Unity of command — principle that no employee reports to more than one supervisor at a time or for a particular task
Span of control — number of employees any one manager supervises directly
Chapter 13
Planning and Organizing

8. Types of Organizational Structures
Line organization
Line-and-staff organization
Matrix organization
Team organization
Self-directed work teams
Chapter 13
Planning and Organizing

9. Improving Business Organization
Centralized organization — traditional structure in which a few top managers do all major planning and decision making
Decentralized organization — structure in which a business is divided into smaller operating units and unit managers have almost total responsibility and authority for the operation of their units
Flattened organization — structure with fewer levels of management than traditional structures
Chapter 13
Planning and Organizing