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

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

Planning and Organizing Strategic Planning Chapter 13 Planning and Organizing

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

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

Planning and Organizing Organization Chart Chapter 13 Planning and Organizing

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

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

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