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nature of organisations
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Organisations have to develop a strategic plan by creating a mission statement, establish their goals and business values, develop strategies to carry out their goals and values and then develop specific action plans to implement each of the strategies set. Finally these have to be communicated to all staff in order for them to be implemented. MISSION STATEMENT The mission statement outlines the direction that an organisation intends to follow and briefly summarises the reasoning and values that lie behind it. The purpose of a mission statement is to communicate to all stakeholders inside and outwith an organisation what the company stands for and where it is headed. ORGANISATIONAL GOALS In order to achieve the desired end results of a mission statement it is essential to set organisational goals. A goal is a future expectation. It is something that an organisation is striving to accomplish. To be effective goals have to be clearly communicated to and understood by all members of the organisation. Primary goals are commonly held to be survival, profit and growth. The secondary goal could be to improve the level of employee engagement by developing, retaining and recruiting the human talent necessary to achieve the desired results of their mission statement. STRATEGIC GOALS This represents a systematic attempt to influence the medium and long term future of an organisation by defining overall company objectives; by appraising those major factors within the company and the environment which will affect the achievement of the objectives; and by establishing sufficiently detailed action plans, which can be amended if necessary, and which will therefore help ensure that the overall objectives are achieved. In general the period of the plans will involve looking ahead between 5 to 10 years. Boards of directors and very senior specialist staff tend to carry out strategic planning. Four Key Goals Customer service excellence / Consumer Goals In order to achieve customer service excellence an organisation must improve customer satisfaction ratings to 95% “Fully Satisfied” in each industry group. Efficiency & effectiveness / Product & Service Goals Segmented sales and service delivery Review business processes to improve efficiency. Installation of new computer software, DBSi. Employee engagement Monthly divisional briefings Training and development plans More segment meetings Less emails, more people contact Ability to do the job – More resources More team actions Profitable growth Revenue growth Margin growth Reducing costs TACTICAL GOALS This represents a lower level of planning and might be termed intermediate range planning. Management plans tend to be thought of as more concerned with such matters as, determining the structure of the organisation, establishing functional and departmental objectives in accordance with the overall policies laid down by the board of directors, deciding product sales mixes, formulating financial budgets, planning staff requirements. Functional directors and senior managers are usually responsible for developing tactical goals. OPERATIONAL GOALS This represents the lower level of planning and involves line managers down to supervisory and foreman level in the setting of specific tasks. Operational planning takes place within the context of management plans, the focus of operational plans is upon individual tasks, for example scheduling individual works orders through a production planning system An appraisal system where each year line managers and employees will meet on a one to one basis. It is during these meetings that each employee is given several objectives that they must meet in order to achieve their grade by the end of the year. It is by issuing these objectives to all employees that organisations will eventually achieve all of their organisational goals. e.g. Myra Carragher’s objectives are: Liase with customer service salesmen to produce top ten spend customers. Reports to be prepared on a monthly basis. Liase with customer service salesmen to produce commodity reports, by customer. Reports to be prepared on a monthly basis. Monitor call pick up in all departments to ensure customer satisfaction. STAKEHOLDERS AND THEIR INFLUENCE ON THE ORGANISATION A stakeholder is any individual or group which can affect or is affected by an organisation’s activities, whether they are a local community who want to know that a factory will not be releasing harmful pollutants, consumers who want product information or investors who wish to see a company prosper. An organisation’s objectives should take into account the interests of the various stakeholders. However, different stakeholders will have different and often conflicting objectives eg. New technology may reduce costs, increase profits but could result in redundancies Higher wages will lead to lower profits It is up to senior management to decide how much these conflicts can be worked out and dealt with. This will involve placing greater emphasis on the objectives of each stakeholder group. How this is done will be dependent on three main factors. The ownership of the organisation Eg.
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