Chapter 4 Flashcards
the process by which top management determines overall organizational purposes and objectives and how they are achieved.
Strategic Planning
Strategic Planning Process
- Determination of the organizational mission.
- Assessment of the organization and its environment
- Setting specific objectives or direction.
- Determination of strategies to accomplish the objectives.
- Strategy Implementation
Decide what is to be accomplished (purpose). Determine principles that will guide the effort.
Mission Determination
The first step in the strategic planning process is to
determine the corporate mission
is a company’s continuing purpose or reason for being.
Mission
is the sum total of the organization’s ongoing purpose.
corporate mission
The organization should assess its strengths and weaknesses in internal environment and the threats and opportunities from external environment as referred (SWOT analysis).
Environmental Assessment
SWOT
strengths, weaknesses, opportunities, and threats
Specifying corporate-level objectives that are:
- Challenging but attainable
- Measurable
- Time-specific
- Documented (written)
specifying and documenting corporate-level strategies and planning
Strategy Setting
Two STRATEGY Options
1, Lowest-Cost Strategy
2. Differentiation Strategies
focuses on gaining competitive advantage by being the lowest cost producer or service within the marketplace. It requires aggressive construction of efficient- scale facilities and vigorous pursuit of cost minimization in such areas as operations, marketing and HR.
Lowest-Cost Strategy
focus on developing products or services that are unique from those of their competitors. It can take many forms, including design or brand image, technology, features, customer service and price.
Differentiation Strategies
Strategy Implementation
- Organizational Structure
- Information and Control Systems
- Technology
- Human Resource
Matching the internal and external supply of candidates with job openings anticipated in the organization over a specific period of time.
Human Resource Planning (Workplace Planning)
TECHNIQUES FOR FORECASTING HUMAN RESOURCE REQUIREMENTS
- ZERO BASE FORECAST
- BOTTOM-UP FORECAST
- RELATIONSHIP BETWEEN VOLUME OF SALES AND NUMBER OF WORKERS REQUIRED
Uses current level of staffing as starting point for determining future staffing needs.
Zero Base Forecast
each successive level in the organization, starting with the lowest, forecasts its requirements, ultimately providing an aggregate forecast of employees needed.
Bottom-Up Forecast
The most useful predictors of employment levels is sales volume. The relationship between demand and the number of employees needed is a positive one.
RELATIONSHIP BETWEEN VOLUME OF SALES AND NUMBER OF WORKERS REQUIRED
➢ Whether firm will be able to secure employees with necessary skills.
➢ Sources from which to obtain employees.
Availability Forecast
When a comparison of requirements and availability indicates a worker surplus will result, most companies look to alternative to layoffs, but downsizing may ultimately be required
Surplus of Employees
Alternative to Layoffs
- Restricted Hiring Policy
- Early Retirement
- Encourage workers to use vacation time/leave
- Swapping employees
- Moving employees from full time to 30hrs without reducing health benefits
The process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant. The goal is to help ensure a smooth transition and operational efficiency.
Succession Planning
Provides information regarding the essential tasks, duties, and responsibilities of the job.
Job Description
Minimum acceptable qualifications a person needs to perform a particular job
Job Specificaation
Job Analysis Methods
- Questionnaire
- Observation
- Interviews
- Employee Recording
- Combination Methods
Used primarily to gather information emphasizing manual skills
Observation
Potential Problem
➢ Employees might lack verbal skills
➢ Employees might to exaggerate the significance of their task.
Questionnaire
Potential Problem:
➢ Often insufficient when used alone
➢ Difficult when mental skills are dominant in a job.
Observation
Potential Problem
➢Employees might exaggerate job importance
Employee Recording
Questionnaire supported by interviews and limited observation
clerical and administrative job:
Interviews supplemented by extensive work observation.
Production jobs
Group of tasks that must be performed for an organization to achieve its goals.
Job
Collection of tasks and responsibilities performed by one person
Position
