chapter 13 planning and organizing 1 chapter 13 planning and organizing ©2008 thomson/south-western

Chapter 13 Planning and Organizing1

Chapter 13Planning and Organizing

©2008 Thomson/South-Western


Lesson 13.1 The Planning Function

Goals Recognize the importance of planning to

business success. Differentiate between strategic and

operational planning.


Importance of Planning


Business Puzzle


Levels of Planning

Strategic planning — long-term planning that provides broad goals and direction for the entire business


Levels of Planning

Operational planning — short-term planning that identifies specific activities for each area of the business


Strategic Planning


From Vision to Mission


Vision vs Mission

a vision statement seeks to communicate the core values and purpose of an organization and looks to the future, to “what is possible” rather than “what is.”

It’s more about inspiration than perspiration, while the mission statement says exactly what you do now.


Who is this about?

“We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.”

Harley-Davidson


Who is this about?

“People love our clothes and trust our company. We will market the most appealing and widely worn casual clothing in the world. We will clothe the world.”

Levi Strauss


Mission Statement

Mission statement help clarify what business you are in, your goals and your objectives, in a few succinct sentences.

Use "radiant words." Once you have the basic idea in writing, polish the language of your mission statement. "Every word counts," says Abrams. The statement should create dynamic, visual images and inspire action. Use offbeat, colorful verbs and adjectives to spice up your statements. Don't hesitate to drop in words like "kaleidoscope," "sizzle," "cheer," "outrageous" and "marvel" to add zest. If you want customers to boast about your goods and services, say so--along with the reasons why. Some businesses include a glossary that defines the terms used in the statement.


Mission Statement II

The mission statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community.

Why are you in business? Who are your customers? What image of your business do you want to convey? What is the nature of your products and services?


Lesson 13.2 Using Planning Tools

Goals Identify the characteristics of effective goals. Describe several planning tools and how they

are used.


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


2 Sec. Quiz questions Ch 13 #1-2

1. Which of the following would NOT be a part of strategic planning? (a) mission statement (b) goals, (c) strategies, (d) department work assignments

2. To be effective, goals should be (a) general rather than specific (b) slightly higher than can be realistically achieved, (c) independent from all other goals, (d) meaningful.


Planning Tools

Budget — specific financial plan

Schedule — time plan for reaching objectives

Standard — specific measure against which something is judged


Planning Tools

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



3. One type of financial planning tool is a

(a) goal, (b) budget, (c) standard, (d) schedule.

4. Guidelines used in making decisions regarding

specific, recurring situations are know as

(a) policies, (b) procedures, (c) standards, (d) goals.



5. The management function responsible for arranging resources and relationships between departments and employees and defining the responsibility each has for

accomplishing the job is (a) planning, (b) organizing, (c) implementing, (d) controlling.

6. A visual device that shows the structure of an organization and the relationships among workers and divisions of work is (a) a schedule, (b) a strategic plan, (c) an organization chart, (d) an operational plan.


Answers to 2 second quiz 1,2,3,4

1. Which of the following would NOT be a part of strategic planning? (d) department work assignments.

2. To be effective, goals should be (d) meaningful.

3. One type of financial planning tool is a (b) budget.

4. Guidelines used in making decisions regarding specific, recurring situations are know as (a) policies.


Answers to 2 second quiz 5-6

5. The management function responsible for arranging resources and relationships between departments and employees and defining the responsibility each has for accomplishing the job is (b) organizing.

6. A visual device that shows the structure of an organization and the relationships among workers and divisions of work is (c) an organization chart.


Writing procedures - Steps

Have each student write a procedure about making a cell phone call

A - B - C - D - E - Tell it to their partner and have them question each

other about whether all the steps are there.


Does the light work?


Flow chart samples

Samples of flow charts

Student’s flow chart the steps “Procedure” about whether to wear Sandals on a Saturday morning.


Lesson 13.3 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.


Organization Chart

General Manager

VP Purchasing VP Merchandising VP Finance

Advertising and Promotion Manager

Customer ServiceManager

Sales Manager

Delivery Service and Repairs


Organizational Chart

From whom does Ching Pang Tam receive orders? To whom is Carmen Andres directly held accountable? Who are Mrs. Smith’s two assistants? If Lucia leaves the company, who will likely be Mrs. Smith’s sole assistant?

Roberta Smith

Ching Pang Tam Lucia Lopez

Antonio Romero

Carmen Andres


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


Lesson 13.4 Developing Effective Organizations

Goals Describe the strengths and weaknesses of

four types of organizational structures. Make recommendations for improving

business organization.


Types of Organizational Structures

Line organization __________________

Teacher

Student A Student B Line-and-staff organization_____ & _ _ _

Teacher

Student A Student B

_L_i_b_r_a_r_i_a_n _C_a_t_a_p_u_l_t_

Specialist Specialist


Types of Organizational Structures

Matrix organization - Country teams in this class

Team organization – Permanent teams– Self-directed work teamsTechnical job skills

Interpersonal skills, such as writing, speaking, discussing and negotiating

Administrative skills, such as leading meetings, thinking analytically and maintaining records.


Improving Business Organization

Centralized organization — traditional structure in which a few top managers do all major planning and decision making

NY Office

NJ PA CA Texas



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

NJ Office

PA Office



Flattened organization — structure with fewer levels of management than traditional structures. It should have improved communication because it has to flow through fewer levels.

36 Chapter 13

Planning and Organizing

Study guide line and staff assignment

37 Chapter 13

Planning and Organizing

Organizational chart answer key

chapter 13 planning and organizing 1 chapter 13 planning and organizing ©2008 thomson/south-western

Documents

shortterm planning

operational planning

longterm planning

planning toolsgoalsidentify

mission statement b

broad goals

achieveeffective goals

business success