1. Managing Organization
ABE Graduate Diploma (QCF Level -6)
Prepared & Presented
By
Pyi Kyaw Lynn
B.A (English), Yangon University
M.B.A (Finance), Assumption University of Thailand
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2. CHAPTER [III]
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Organizational Direction
The Planning Process
TODAY’S AGENDA
A. Missions, Goals &
Policies
B. Strategic & Operational
Planning
C. Objectives
D. Influences on Strategy &
Planning
E. Unitary & Pluralistic
Perspectives

3. [A] DEFINING OVERARCHING INTENT:
MISSION, GOALS & POLICIES
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4. Mission Statements
 State the direction the firm is
going.
 Communicate the principles of
firms in corporate publicity.
 Objectives can be communicated
through MS
 Viewed as public relations tool
with no real commitment.
 If not effectively communicated,
staff will not be engaged.
 MS take time & effort to prepare.
 Once MS established , action
plans & objectives can be set.
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 Clarify “ Why does the firm exist?”
 Keeps staff focus on the
realistic goals of the firm.
 Describe main activities & the
position it wish to get in the
industry.
 “To refresh the world - in mind,
body and spirit”
 State the key values of the firm :
attitudes & commitment
towards stakeholders.
 “To offer a high quality with
reasonable prices.”
CONTENT & MEANING VALUE

5. Goals & Policies
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 Missions set parameters in
which goals, strategies &
objectives are defined.
 Operational goals : expressed
in quantified form & measured.
 E.g., 5% increase in market
share.
 Non-operational goals :
 qualitative & not specific.
 E.g., To meet the needs of
customers.
 To focus the after sales
services & quality
 Laid down formally the ways thing
are done in biz.
 Specify “HOW” managers should
behave & related to the culture.
 Act as guidelines within which
decisions taken procedures set up.
 Ensure consistency of decision
making. E.g., travel policy of staff
for taking standard class on trips of
less than two hours.
 Ensure compliance with
regulations. E.g., wearing hats at
work place by safety policy.
GOALS POLICIES

6. Strategic Management by Wheelen & Hunger
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7. Strategic Planning
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6
Identify
current
mission
and
strategic
goals
Conduct
competitive
analysis:
•strengths
•weakness
•opportunity
•threats
Develop
specific
strategies:
•corporate
•business
•functional
carry out
strategic
plans
maintain
strategic
control
assess
organisational
factors
assess
environmental
factors
Strategy implementationStrategy formulation

8. [B] STRATEGIC & OPERATIONAL PLANNING
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FEEDBACK
MISSION
GOALS
STRATEG
Y
OBJECTI
VES
TACTICAL
PLANS
OPERATION
AL PLANS
PERFOR
MANCE
Wheelen & Hunger’s
The Planning Process
 Decisions at the top
 Missions & goals
are translated into
strategies & objectives
 Cascaded via
downward
communications
channels to the lowest
level of the staff.

9. Planning Process by Whellen & Hunger
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Mission
 Narrow or Wide Scope
 E.g., Bank with only savings & loan facilities for a location
& Bank providing world wide financial services.
 Too narrow > limit the scope & restrict for growth.
 Effective MS : to have unique purpose, to identify the
scope of operations, to provide a unifying theme to its
activities
 E.g., To produce superior financial returns for our
shareholders as we serve our customers with the highest
quality transportation, logistics, and e-commerce
Goals
 Different from objectives
 Open-ended statements
 Not quantifiable or no time limits/timescales.
 E.g., Achieve excellence in the delivery of service in
banking industry to gain customer’s satisfaction .

10. Planning Process (Cont’d)
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Strategy
 Chandler’s definition
 “ The determination of basic long –term goals &
objectives of an enterprise, and the adoption of action,
and the allocation of resources necessary for carrying out
these goals”
Tactical
Plans
 Derive from objectives & drawn up by department managers
 Different from strategic planning in terms of scope & time.
 More specific than SP & focus on measurable outcome.
 Shorter timescale [1~ 5 years], flexible for resource
allocations.
Objectives
 An expression of agreed strategy in terms of exactly
“what is to be accomplished & by when”
 Quantitative or Qualitative & to be synchronized objectives
of all levels.
 By June 30, 2015, achieve 75% rating on the Service
Evaluation Index from all stakeholders.

11. 18/1/2015 PKL 11
Planning Process (Cont’d)
Operational
Plans
Performance
Feedback
 Derive from tactical plans & drawn up by managers at
functional level [unit or section] for actions taken. Single
use plan & controlled by budget for type of operation.
 Different from tactical plan in terms of scope & time scale.
[< 1year]
 The performance of team or individual regularly monitored
through supervision arrangements, if necessary, followed
by progress or follow up meeting.
 Evaluation may be measured in quantitative & qualitative.
 E.g., staff of call center > evaluated by no of calls answered.
 Top-down : decisions cascaded down to managers & staffs
at lower level & role of feedback > evaluation & control.
 Bottom-up : greater autonomy for setting objectives at
lower level of management > fed back up to the top for
decisions.

12. HAX’s 6 Different Dimensions on Strategy
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A coherent,
unifying &
integrative
pattern of
decisions for the
organization as
a whole
A means of
establishing an
organization’s
purpose in
terms of its long
term goals
 Large organizations
have explicit
strategies set out
formally.
 E.g., merger &
acquisitions of new
product lines.
 Strategy to be
linked between
goals & objectives.
 To take necessary
actions to ensure
that purposes are
fulfilled.
 Small organization are implicit
& not always articulated apart
from top level management.
 Implicit strategies to be
identified via actions taken. E.g.,
approval of projects and source
of financing.
 Resource allocation : how
resources : labor & capital to
be allocated during a
timescale for implementation.
 Timescale for strategic
planning : 5 years or longer

13. Cont’d
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 To have clear understanding
of the external environment,
identifying opportunities &
threats from changing
conditions
 The key purpose of
STRATEGY : To achieve
long term competitive
advantage over
competitors.
A definition of
an
organization’s
competitive
domain
 Strategic Planning
 [what biz are we in or
intends to be in]
 Strategic
Implementation
 [taking actions step by
step].
 Strategy to address :
 Growth : extension of current
capacity & diversification
into new product lines.
 Divestment : shut down of
production facilities &
downsizing or laid off
A means of
maximizing
competitive
advantage &
minimizing
competitive
disadvantage

14. Cont’d
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A logical system
for
differentiating
managerial tasks
at corporate,
business &
functional levels
A definition of
the contribution
the organization
intends to make
to its
stakeholders
 The stakeholder
concept’s been
important as an
element of
implementing strategy
because of increasing
emphasize on CSR
 Corporate : defining overall mission, goals & objectives.
Highest decisions making. E.g. merger & acquisition
 Business level : planning within department.
 E.g., new product development
 Functional level : operational planning & implementation.
 E.g. setting production targets.
 Strategy formulation process
determine the direction of the
organization.
 Strategic planning to be
focused on external
conditions & internal context
of the firm, such as resources,
policies & practices.

15. [C] OBJECTIVES
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SPECIFIC
 SIGNIFICANT
 STRETCHING
MEASURABLE
 MEANINGFUL
 MOTIVATIONAL
ACHIEVABLE
 ACCEPTABLE
 ACTION-
ORIENTED
REALISTIC
 RELEVANT
 REASONABLE
 REVIEWABLE
 REWARDING
TIMED
 TIMELY
 TANGIBLE
 TRACKABLE
Characteristics of Objectives : SMART

16. SMART
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SPECIFIC
MEASUR
ABLE
ACHIEV
ABLE
REALISTIC
TIMED
 Objectives has to be unambiguous confusion & misinterpretation
 Significant  for staff’s motivation in terms of their contribution.
 Stretching  some areas of the tasks need additional efforts.
 Objectives to be quanti/quallifiable for measuring efficiency & effectiveness.
 Meaningful & motivational : for self-worth of staffs role in the department
 Training & support of manager for achievements.
 Performance management & feedback process to be set up.
 To be acceptable & action-oriented for decision making process & for
measurement of outcomes.
 Objectives to be relevant to the job role.
 Rewarding to be intrinsic in a sense that the staff’s job satisfaction & self-
esteem to be recognized.
 Definite date to be decided & to be time-based.
 Timely to be in line with other objectives of the team.
 Tangible in a sense that they can be assessed and meaningful.
 Monitoring & review must be carried out on a regular basis and remedial
action to be taken, rewritten or amended to meet new circumstances.

17. [D] INFLUENCES ON STRATEGY & PLANNING
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Factors interacting
with Strategies &
Goals
Shareholders interest :
quick ROI
 Director interest :
market growth
 staff : long term
employment
 Strategy to
reconcile different
interests !!
External
Environment
 PESTL
 5 forces
 Internal
Environment
 Structure
 Culture
 Resources
 SWOT
7s Framework
 Structure
 Systems
 Style
 Staff
 Skills
 Strategy
 Super
ordinate
Goals
Environmental
analysisStakeholder
analysis

18. SWOT ANALYSIS [ consumer goods firm ]
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 STRENGTHS
 High level of staff
competence.
 Positive public image
 Good customer
service
 Strong research
 Good financial
control systems
 WEAKNESSES
 High wage levels
 Old building &
equipment
 Strong trade unions
 Slow decision making
 Slow implementing
for change
 OPPORTUNITIES
 Rising consumer
prosperity
 Expanding marketing
worldwide
 Diversify into other
products
 THREATS
 Low-cost
competitors
 Demographic
changes
 Changing consumer
tastes
 New legislative
requirement.

19. The 7S Framework by Waterman, Peters & Philips
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Strategy Skills
SystemsStaff
Super
ordinate
Goals
Structure
Style
Strategy A set of actions that you start
with and must maintain
Structure How people and tasks / work
are organised
Systems All the processes and
information flows that link the
organization together
Style How managers behave
Staff How you develop managers
(current and future)
Superordin
ate Goals
Longer-term vision, and all
that values stuff, that shapes
the destiny of the organization
Skills Dominant attributes or
capabilities that exist in the
organization

20. 7S
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Style
Structure
Staff
Strategy
Systems
Skills
Shared
values
The way managers
collectively behave with
respect to use of time,
attention & actions
Capabilities possessed by the
organization as a whole as
distinct from the individuals.
Some companies perform
extraordinary with ordinary
people
Those ideas of what is right
and desirable (in corporate
and/or individual behavior)
which are typical of the
organization and common
to most of its members
The processes &
procedures through
which things get done
from day-to-dayThe organization chart
that show who reports to
whom and how tasks are
both divided up and
integrated
The people in the
organization, considered
in terms of corporate
demographics, not
individual personalities
A coherent set of
actions aimed at gaining
a sustainable advantage
over competition

21. 7S Framework
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 Structure follow strategy
 Diversified activities call for decentralized structures
 Changes in strategy create mgt difficulties
 E.g., The current structure not inline with the new strategies.
 Functional structures : finance, production, marketing
 When firms diversify into other Bizs, SBUs are created
 Purpose : to assign strategic goals to each SBU
 3 Characteristics of SBUs by Kotler !!
 single biz or group of related biz units
 each belongs to own competitors
 each unit has manager for strategic planning & performance
 All the procedures within an organization [formal & informal]
 Important for strategy development & implementation
 e.g., Budgetary systems, financial control systems, rewards
systems, MIS, SOP [ Standard Operation Procedures ]
 Portfolio management require current SBUs analysis of a firm.
Structure
Systems

22. Cont’d
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 Culture of an organization : values, beliefs & norms shared by
its members.
 Culture shaped by Top management – through formal
statements & via their actions for particular events.
 Conflicts occur  when firms with traditionally dominant
culture [risk- averse]  difficult for significant change.
 Organizational Paradigm by Johnson & Scholes :
 “ take it for granted” long tradition manner in which firms
sees itself & its environment , creating a particular cultural
frame of reference.
 e.g., banks & financial institutions.
 Manager may be locked by firm’s history and accepted beliefs
to introduce strategic change.
 Strategic Drift : Small & incremental changes are more
suitable for staffs rather than immediate or outright change.
 Strategic change : to be accompanied by culture change.
 Cultural change at individual level : by Salancik
 Least effective way : to attack the attitudes & behavior directly
 More effective way : to encourage & reward for new behaviors.
Style

23. Cont’d
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Skills
 Strong links between Staffs & Skills
 Staff’s skills but also the distinctive competences & capabilities
of a firm. E.g., project management skills, after sales service.
 Specific skills acquired  recruitment or equipping current
staffs with new skills.
 Performance mgt  continuous development of the core
competences of the firm & capabilities of staffs & teams.
 Managers need to know  strengths, triggers of the strengths
& learning style of each member of staff.
 Strong links between Staff & Style
 In the past  employees regarded as factors of production,
managing through rewards & appraisal systems.
 Nowadays, HRM developed & staffs recognized as important
contribution for organizational success.
 Strategic HRM  to be linked to Corporate Strategy by
implementing policies & procedures , such as P Mgt.
 Recruitment & rewards systems  strong impact on attitudes
& behaviors of staffs
Staff

24. [E] UNITARY & PLURALISTIC PERSPECTIVES BY
Robbins & Fox
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• Organizations are harmonious in
that there is cooperation between
the employer & employee.
• Only one single source of authority :
management
Teamwork
• It is expected that no conflict
would occur because of same goals
from employer & staffs.
No conflict
•Ignore the potential conflict between
employer and staffs.
•E.g., employer expectation is highest
profit or service whereas staff expect
personal gain [pay, career
development, work-life balance]
Weakness
• Goals & Mission
will be accepted
because of team
is harmonious.
• Resistance to
mission only due
to
misunderstanding
or poor
communication
• Cause of the
resistance will be
searched &
eliminated.
Unitary Perspective Impact on Goals &
Strategy

25. Cont’d
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• Conflict occur in organizations .
• It is natural & inevitable and it has
to be accepted.
• Some level of conflict is healthy & it
can lead to debate, challenge & to
change.
Conflict
of Interests
• Management responsible for
harnessing the differences between
groups.
Different
Interests
•Conflicts can be resolved through
compromise.
•Acceptable & workable solution can
be found for everyone.
Compromise
& Solution
• Different
departments
have different
interests.
• So missions &
goals will be
interpreted
differently.
• Management
responsible for
conflicts &
compromise.
• Conflict create
performance &
drive for change.
Pluralistic Perspective
Impact on Goals &
Strategy

26. 18/1/2015 26PKL
Thank You !!

27. Q & A
 1. The establishment and achievement of objectives at all levels is critical
to organizational success.
Analyze the ways in which an organization can ensure it achieves its
objectives. [15 marks]
 2. For organizations to be successfully they need to develop strategies.
Explain what is meant by “strategy” and explain what organizations need
to consider in making these strategies successful. Use relevant theory
and workplace examples to support your answer. [15 marks]
 3. Define and discuss the term “organizational goals”, and explain how
organizations set them. Refer to relevant theory and give examples from
the workplace to support your answer. [9 marks]
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