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Question
Define and describe Mission, Objectives, Goals, and Strategy in organizational context. Briefly explain the strategy formulation process in an organization you have worked for or familiar with. Briefly describe the organization you are referring to.

Answer
2.    Define and describe Mission, Objectives, Goals, and Strategy in organizational context. Briefly explain the strategy formulation process in an organization you have worked for or familiar with. Briefly describe the organization you are referring to.


Vision
Members of the organization often have some image in their minds about how the organization should be working, how it should appear when things are going well.
Mission
An organization operates according to an overall purpose, or mission.
A mission statement sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.
What is a Mission Statement?
You should think of a mission statement as a cross between a slogan and an executive summary.
Just as slogans and executive summaries can be used in many ways so too can a mission statement. An effective mission statement should be able to tell your organization  story and ideals in less than 30 seconds.

Here are some basic guidelines in writing a mission statement:
1   A mission statement should say who your organization  is, what you do, what you stand for and why you do it. .
2   The best mission statements tend to be 3-4 sentences long.
3   Avoid saying how great you are, what great quality and what great service you provide.
4   Make sure you actually believe in your mission statement, if you don't, it's a lie, and your customers will soon realize it.

Strategic Goals
Organizational members often work to achieve several overall accomplishments, or goals, as they work toward their mission.
Business Objectives
Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated aims.
The most effective business objectives meet the following criteria:
S – Specific – objectives are aimed at what the business does, e.g. a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business.
M - Measurable – the business can put a value to the objective, e.g. €10,000 in sales in the next half year of trading.
A - Agreed by all those concerned in trying to achieve the objective.
R - Realistic – the objective should be challenging, but it should also be able to be achieved by the resources available.
T- Time specific – they have a time limit of when the objective should be achieved, e.g. by the end of the year.
The main objectives that a business might have are:
Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.
Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.
Profit satisficing – try to make enough profit to keep the owners comfortable – probably the aim of smaller businesses whose owners do not want to work longer hours.
Sales growth – where the business tries to make as many sales as possible. This may be because the managers believe that the survival of the business depends on being large. Large businesses can also benefit from economies of scale.


Strategies
Organizations usually follow several overall general approaches to reach their goals.
Systems and Processes that (Hopefully) Are Aligned With Achieving the Goals
Organizations have major subsystems, such as departments, programs, divisions, teams, etc. Each of these subsystems has a way of doing things to, along with other subsystems, achieve the overall goals of the organization. Often, these systems and processes are define by plans, policies and procedures.
How you interpret each of the above major parts of an organization depends very much on your values and your nature. People can view organizations as machines, organisms, families, groups, etc.
=================================
Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. The process of strategy formulation basically involves six main steps. Though these steps do not follow a rigid chronological order, however they are very rational and can be easily followed in this order.
1.   Setting Organizations’ objectives - The key component of any strategy statement is to set the long-term objectives of the organization. It is known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives.   
While fixing the organizational objectives, it is essential that the factors which influence the selection of objectives must be analyzed before the selection of objectives. Once the objectives and the factors influencing strategic decisions have been determined, it is easy to take strategic decisions.
2.   Evaluating the Organizational Environment - The next step is to evaluate the general economic and industrial environment in which the organization operates. This includes a review of the organizations competitive position. It is essential to conduct a qualitative and quantitative review of an organizations existing product line. The purpose of such a review is to make sure that the factors important for competitive success in the market can be discovered so that the management can identify their own strengths and weaknesses as well as their competitors’ strengths and weaknesses.
After identifying its strengths and weaknesses, an organization must keep a track of competitors’ moves and actions so as to discover probable opportunities of threats to its market or supply sources.
3.   Setting Quantitative Targets - In this step, an organization must practically fix the quantitative target values for some of the organizational objectives. The idea behind this is to compare with long term customers, so as to evaluate the contribution that might be made by various product zones or operating departments.
4.   Aiming in context with the divisional plans - In this step, the contributions made by each department or division or product category within the organization is identified and accordingly strategic planning is done for each sub-unit. This requires a careful analysis of macroeconomic trends.
5.   Performance Analysis - Performance analysis includes discovering and analyzing the gap between the planned or desired performance. A critical evaluation of the organizations past performance, present condition and the desired future conditions must be done by the organization. This critical evaluation identifies the degree of gap that persists between the actual reality and the long-term aspirations of the organization. An attempt is made by the organization to estimate its probable future condition if the current trends persist.
6.   Choice of Strategy - This is the ultimate step in Strategy Formulation. The best course of action is actually chosen after considering organizational goals, organizational strengths, potential and limitations as well as the external opportunities.


The  organization, I am  familiar  with  is  a
-a  large  manufacturer/ marketer of  safety products
-the products  are  used  as  [personal  protection safety] [ industrial  safety]
-the products  are  distributed through  the distributors as well as  sold directly
-the  products  are  sold  to various  industries like  mining/fireservices/defence/
as  well  as  to  various  manufacturing  companies.
-the  company employs  about  235  people.
-the  company  has  the following  functional   departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer  service
*distribution
*warehousing/  transportation
*TQM  
============================================
THE  COMPANY  USES   THE  RATIONAL  APPROACH.
in   Decision Making
1. Define the problem
This is often where people struggle. They react to what they think the problem is. Instead, seek to understand more about why you think there's a problem.
Defining the problem: (with input from yourself and others)
Ask yourself and others, the following questions:
a. What can you see that causes you to think there's a problem?
b. Where is it happening?
c. How is it happening?
d. When is it happening?
e. With whom is it happening? (HINT: Don't jump to "Who is causing the problem?" When we're stressed, blaming is often one of our first reactions. To be an effective manager, you need to address issues more than people.)
f. Why is it happening?
g. Write down a five-sentence description of the problem in terms of "The following should be happening, but isn't ..." or "The following is happening and should be: ..." As much as possible, be specific in your description, including what is happening, where, how, with whom and why. (It may be helpful at this point to use a variety of research methods.
---------------------------------------------------
Defining complex problems:
a. If the problem still seems overwhelming, break it down by repeating steps a-f until you have descriptions of several related problems.
Verifying your understanding of the problems:
a. It helps a great deal to verify your problem analysis for conferring with a peer or someone else.
Prioritize the problems:
a. If you discover that you are looking at several related problems, then prioritize which ones you should address first.
b. Note the difference between "important" and "urgent" problems. Often, what we consider to be important problems to consider are really just urgent problems. Important problems deserve more attention. For example, if you're continually answering "urgent" phone calls, then you've probably got a more "important" problem and that's to design a system that screens and prioritizes your phone calls.
Understand your role in the problem:
a. Your role in the problem can greatly influence how you perceive the role of others. For example, if you're very stressed out, it'll probably look like others are, too, or, you may resort too quickly to blaming and reprimanding others. Or, you are feel very guilty about your role in the problem, you may ignore the accountabilities of others.
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2. Look at potential causes for the problem
a. It's amazing how much you don't know about what you don't know. Therefore, in this phase, it's critical to get input from other people who notice the problem and who are effected by it.
b. It's often useful to collect input from other individuals one at a time (at least at first). Otherwise, people tend to be inhibited about offering their impressions of the real causes of problems.
c. Write down what your opinions and what you've heard from others.
d. Regarding what you think might be performance problems associated with an employee, it's often useful to seek advice from a peer or your supervisor in order to verify your impression of the problem.
e.Write down a description of the cause of the problem and in terms of what is happening, where, when, how, with whom and why.
----------------------------------------------------
3.Define the Goal or Objective

In a sense, every problem is a situation that prevents us from achieving previously determined goals. If a personal goal is to lead a pleasant and meaningful life, then any situation that would prevent it is viewed as a problem. Similarly, in a business situation, if a company objective is to operate profitably, then problems are those occurrences which prevent the company from achieving its previously defined profit objective. But an objective need not be a grand, overall goal of a business or an individual. It may be quite narrow and specific. "I want to pay off the loan on my car by May," or "The plant must produce 300 golf carts in the next two weeks," are more limited objectives. Thus, defining the objective is the act of exactly describing the task or goal.
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4. Identify alternatives for approaches to resolve the problem
a. At this point, it's useful to keep others involved (unless you're facing a personal and/or employee performance problem). Brainstorm for solutions to the problem. Very simply put, brainstorming is collecting as many ideas as possible, then screening them to find the best idea. It's critical when collecting the ideas to not pass any judgment on the ideas -- just write them down as you hear them.
-------------------------------------------------------------
5. Select an approach to resolve the problem
When selecting the best approach, consider:
a. Which approach is the most likely to solve the problem for the long term?
b. Which approach is the most realistic to accomplish for now? Do you have the resources? Are they affordable? Do you have enough time to implement the approach?
c. What is the extent of risk associated with each alternative?
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6. Plan the implementation of the best alternative (this is your action plan)
a. Carefully consider "What will the situation look like when the problem is solved?"
b. What steps should be taken to implement the best alternative to solving the problem? What systems or processes should be changed in your organization, for example, a new policy or procedure? Don't resort to solutions where someone is "just going to try harder".
c. How will you know if the steps are being followed or not? (these are your indicators of the success of your plan)
d. What resources will you need in terms of people, money and facilities?
e. How much time will you need to implement the solution? Write a schedule that includes the start and stop times, and when you expect to see certain indicators of success.
f. Who will primarily be responsible for ensuring implementation of the plan?
g. Write down the answers to the above questions and consider this as your action plan.
h. Communicate the plan to those who will involved in implementing it and, at least, to your immediate supervisor.
(An important aspect of this step in the problem-solving process is continually observation and feedback.)
--------------------------------------------------------------------------------------------
7. Monitor implementation of the plan
Monitor the indicators of success:
a. Are you seeing what you would expect from the indicators?
b. Will the plan be done according to schedule?
c. If the plan is not being followed as expected, then consider: Was the plan realistic? Are there sufficient resources to accomplish the plan on schedule? Should more priority be placed on various aspects of the plan? Should the plan be changed?
-------------------------------------------------------------------------------------
8. Verify if the problem has been resolved or not
One of the best ways to verify if a problem has been solved or not is to resume normal operations in the organization. Still, you should consider:
a. What changes should be made to avoid this type of problem in the future? Consider changes to policies and procedures, training, etc.
b. Lastly, consider "What did you learn from this problem solving?" Consider new knowledge, understanding and/or skills.
c. Consider writing a brief memo that highlights the success of the problem solving effort, and what you learned as a result. Share it with your supervisor, peers and subordinates
=======================================================
FOR  STRATEGIC  DECISIONS,  THE  APPROACH  IS AS  FOLLOWS:

THE  COMPANY  ANALYSES  THE  FOLLOWING   DATABASE
AND  APPLYS   THE  PROBELM  SOLVING/ DECISION
MAKING   APPROACH   /   FINALIZES   THE  PLAN.

-apply  the  pestel  analysis with  respect  TO ITS BUSINESS

1.Political (incl. Legal)   

-Environmental regulations and protection
[what  are  the  government regualtions/ protection laws  that  must be  observed ]

-Tax policies
what tax  hinder the business and what  taxes  incentives  are available]

-International trade regulations and restrictions
[ does  the  government    encourage  exports / with  high tariffs  on  imports]

-Contract enforcement law/Consumer protection
[does  the  government  enforce  on  consumer  protection ]

-Employment laws]
[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

-Government organization / attitude
[ does  the  government  have  a   very  positive  attitude  towards  this   industry]

-Competition regulation
[ are  there   regulation  for  limiting  competition]

-Political Stability
[ politically ,  does the   government    have   a  very   stable  government ]

-Safety regulations
[ has  the  government      adopted  some  of  the  modern  safety regulations]
=================================================================
2.Economic     

-Economic growth
[  what  is  the economic growth rate  /  what  are  the  reasons ]

-Interest rates & monetary policies
[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

-Government spending
[is  government  spending  is  significant   and  is it   under control ]

-Unemployment policy
[what  is  the  employment / unemployment  policies  of the government ]

-Taxation
[  has  the  taxation    encouraged  the  industry ]

-Exchange rates
[ is   there  well  managed   exchange  controls  and  is it  helping  the  industry]

-Inflation rates
[ is  the  inflation  well   under  control ]

-Stage of the business cycle
[ is  your    industry  is  on  the   growth  pattern]

-Consumer confidence
[ is  the  consumer  confidence   is   high/ strong and  if  not, why ]

==================================================
3.Social  

-Income distribution
[is there   balanced   income  distribution   policy ]

-Demographics, Population growth rates, Age distribution
[ what  is   population   growth  and  why ]

-Labor / social mobility
[ what   are the  labor  policies  and  is  there  labor  mobility]

-Lifestyle changes
[ are  there  significant  lifestyle   changes     taking  place--more  modernization/ why  ]

-Work/career and leisure attitudes
[ are  the  population      career  minded  and  are  seeking  better  lifestyle]

-Education
[ what  are  the  education  policies /  is  it  successful ]

-Fashion, hypes
[are  the   people    becoming  fashion  conscious ]

-Health consciousness & welfare, feelings on safety
[ are  the  people     becoming  health  consciousness]

-Living conditions
[ is the  living  conditions   improving  fast  and  spreading  rapidly]

=========================================================
4.Technological  

Government research spending
[is  the  government    spending  on research  and  development]

Industry focus on technological effort
[are  the   industries    focused  on  using  improved  technology]

New inventions and development
[ are  new  inventions     being   encouraged  for  developments]

Rate of technology transfer
[ is  the  rate  of  technology  transfer  is  speeding  up ]

(Changes in) Information Technology
[ is  the   information  technology    rapidly  moving  and  is  there  government  support]

(Changes in) Internet
[ is the   internet  usage    rapidly  increasing   and  why]

(Changes in) Mobile Technology
[is  the   Mobile   technology    rapidly developing  and  is there  government  support]
-------------------------------------------------------------------------------------
5.External Assessment---

Areas for opportunities and threats

* Markets [ what  is  the market  situation, which is forcing the change requirements
*Customers [ how can service the customer -internal / external -better .          
* Industry  [ is  the  industry  trend ]
* Competition [ is  it the  competitive situation      
*Factors of  business [ causing  the change]
* Technology [ is  it  technology  change ]
===========================================================
STEP  6

CONDUCT  A   ''SWOT''   ANALYSIS  OF   THE   COMPANY'S  RESOURCES.
Internal Assessment

Areas  for strengths, weaknesses, and barriers to success

ORGANIZATION DIMENSIONS
*Culture  [ is the  working  culture  change ]
* Organization [  is the  organization  demanding  change ]
* Systems  [ is it  the  systems change ]
* Management practices  [ change in  managemement process]


OTHER KEY DIMENSIONS

*Cost efficiency[  is it for  cost efficiency ]
* Financial  performance  [ is  it for  financial  performance improvement ]
* Quality [ is  it for  quality  performance improvement
*Service [ is  it for  service   performance improvement
*Technology[ is  it for  technology   performance improvement
* Market segments [ is  it for  sales  performance improvement
* Innovation[ is  it for    performance improvement
*new products[ is  it for new product   performance improvement
*Asset condition[ is  it for  financial  performance improvement
*productivity[ is  it for  financial  performance improvement


=====================================================
STEP 7

NOW  THE  CO.  KNOWS    WHERE   IT  STANDS.
PRIORITY   ISSUES

FROM  THE  ABOVE , DETERMINE   THE  CORE  ISSUES
WHICH  NEEDS  TO  SOLVED  WITH  YOUR  INVESTMENT.

STRATEGIC  PROGRAMS

FROM  THE  ABOVE  CORE  ISSUES , DETERMINE  YOUR
STRATEGIC  PROGRAMS.
==================================
CORE  ISSUES  WERE
-change  the organization  structure  to  a  matrix  format,
to  enable  the product managers  to concentrate  on
product development/ planning/ product marketing.

-change  the distribution systems  to introduce
more channels  to  widen  the  market  coverage.


 Mission  STATEMENT
[ to  stay close to  the  customers and  provide  extended service]

  Your CORE  PURPOSE  
[ to  bring  maximum  satisfaction  to  the customers]

   Your   CORE   OBJECTIVES
[to extend  the  market  coverage  and gain  sales ]

   Your   Core markets;
[defence -major customers like  mines-medium  industries]

  Your  CORE  strategic thrusts.
[ productline  extension - extended market coverage-channel  exploitation]

BUSINESS DEFINITION:

The arena of products, services, customers, technologies, distribution methods, and geography in which you'll compete to get results.


-===================================================
STEP  8

WHERE  DOES  THE  CO.   WANTS    TO  GO  
¬
THE  COMPANY  ARRIVES  AT  THE  FOLLOWING
DECISIONS   AT  THE  END  OF   THE  SESSIONS:

1.REVENUE BUDGET.
[280 million  dollars--maintain a  growth  rate of  20% over  3  successive years.]

2.GROSS  PROFIT  BUDGET.
[ aim  for  35%  of   sales]

3.NET PROFIT  BUDGET.
[aim  for  10%  of  sales ]

4.SALES  TOTAL  FORECAST.
5.SALES  BY  PRODUCTS.

6.OPERATIONAL  EXPENSES  BUDGET.
[22%  constant for  next   3  years ]

7.FIXED  EXPENSES  BUDGET.
[13 % constant  for  next   3 years]

8.PRODUCTIVITY  IMPROVEMENT
[over   the  next  3  years---3%  annually]

9.PROFITABILITY  INCREMENT  
[over   the  next  3  years -----5%]

10. RETURN  ON  INVESTMENT.
[constant  6%  over  the  next  3  years]
===========================================
IMPLEMENTATION.

PLANS  ARE MADE  DURING  [SEPT/ OCT/NOV]

IMPLEMENTATION --FINANCIAL  YEAR  [ JAN - DEC]

MONITORING

-quarterly  audit  of  the  programs/ plans/targets.

-monthly  reviews  of  the  plans/ targets.

INFORMATION  USED  IN  MARKETING  DEPARTMENT
-CUSTOMER   behaviors
-CUSTOMER   spending
-CUSTOMER    usage
-pricing  analysis
-distribution points
-market potential / size
-geographical  spread  of   the  market
-promotional  spending  analysis
-market analysis
etc etc
================================================
INFORMATION  USED  IN  SALES   DEPARTMENT
-sales  analysis
-territory  analysis
-customer analysis
-distributors  sales  analysis
etc etc

=======================================================
INFORMATION  USED  IN  MANUFACTURING   DEPARTMENT
-procurement  analysis
-production  cost  analysis
-production  planning
-material  analysis
-R&D  cost  analysis
-inventory  holding
-inventory  cost analysis
-transport  cost  analysis
-warehousing  cost analysis
etc etc
===================================================
INFORMATION  USED  IN  FINANCE  DEPARTMENT
-budgetory  control
-expenses  analysis
-profit /  analysis
-balance sheet
-wages  analysis
-product  cost  analysis
-break even analysis
etc etc
====================================================
INFORMATION  USED  IN  HR  DEPARTMENT


1.ABSENTEEISM  PER EMPLOYEES  [DAYS]

2.AVERAGE  RECRUITMENT TIME  [DAYS]

3.EMPLOYEE TURNOVER  [ % ]

4.EMPLOYEE SATISFACTION  [ LEVELS ]

5.AVERAGE  EMPLOYEE  TENURE [ YEARS]

6.INDUCTION  TRAINING  [ % OF NEW EMPLOYEES]

7. TRAINING  WORKSHOP  [ % ] CONDUCTED/PLANNED

8. TRAINING  AT EXTERNAL COURSES [ %]  ACTUAL  / PLANNED

9.PERFORMANCE  APPRAISALS  [ NOS.]  AGAINST  TOTAL  EMPLOYEES.
==============================================================
INFORMATION  USED  IN  QA/OHS  DEPARTMENT
-production  rejects  analysis
-customer  rejects  analysis
-rejection   cost  analysis
-customer complaints analysis
etc etc
=====================================================
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Human Resources

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Leo Lingham

Expertise

human resource management, human resource planning, strategic planning in resource, management development, training, business coaching, management training, coaching, counseling, recruitment, selection, performance management.

Experience

18 years of managerial working exercise which covers business planning , strategic planning, marketing, sales management,
management service, organization development

PLUS

24 years of management consulting which includes business planning, corporate planning, strategic planning, business development, product management, human resource management/ development,training,
business coaching, etc

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Principal---BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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