Human Resources/ms 01
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.
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.
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.
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.
Organizational members often work to achieve several overall accomplishments, or goals, as they work toward their mission.
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.
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
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.
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.
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?
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 ]
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 ]
[ is the government encouraging skilled immigrants with temp. permits]
-Government organization / attitude
[ does the government have a very positive attitude towards this industry]
[ are there regulation for limiting competition]
[ politically , does the government have a very stable government ]
[ has the government adopted some of the modern safety regulations]
[ 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]
[is government spending is significant and is it under control ]
[what is the employment / unemployment policies of the government ]
[ has the taxation encouraged the industry ]
[ is there well managed exchange controls and is it helping the industry]
[ is the inflation well under control ]
-Stage of the business cycle
[ is your industry is on the growth pattern]
[ is the consumer confidence is high/ strong and if not, why ]
[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]
[ 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]
[ what are the education policies / is it successful ]
[are the people becoming fashion conscious ]
-Health consciousness & welfare, feelings on safety
[ are the people becoming health consciousness]
[ is the living conditions improving fast and spreading rapidly]
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]
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 ]
CONDUCT A ''SWOT'' ANALYSIS OF THE COMPANY'S RESOURCES.
Areas for strengths, weaknesses, and barriers to success
*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
NOW THE CO. KNOWS WHERE IT STANDS.
FROM THE ABOVE , DETERMINE THE CORE ISSUES
WHICH NEEDS TO SOLVED WITH YOUR INVESTMENT.
FROM THE ABOVE CORE ISSUES , DETERMINE YOUR
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.
[ 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]
The arena of products, services, customers, technologies, distribution methods, and geography in which you'll compete to get results.
WHERE DOES THE CO. WANTS TO GO
THE COMPANY ARRIVES AT THE FOLLOWING
DECISIONS AT THE END OF THE SESSIONS:
[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]
[over the next 3 years---3% annually]
[over the next 3 years -----5%]
10. RETURN ON INVESTMENT.
[constant 6% over the next 3 years]
PLANS ARE MADE DURING [SEPT/ OCT/NOV]
IMPLEMENTATION --FINANCIAL YEAR [ JAN - DEC]
-quarterly audit of the programs/ plans/targets.
-monthly reviews of the plans/ targets.
INFORMATION USED IN MARKETING DEPARTMENT
-market potential / size
-geographical spread of the market
-promotional spending analysis
INFORMATION USED IN SALES DEPARTMENT
-distributors sales analysis
INFORMATION USED IN MANUFACTURING DEPARTMENT
-production cost analysis
-R&D cost analysis
-inventory cost analysis
-transport cost analysis
-warehousing cost analysis
INFORMATION USED IN FINANCE DEPARTMENT
-profit / analysis
-product cost analysis
-break even analysis
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