Chapter 9 - Setting And Measuring Objectives Flashcards
Business strategy is concerned with areas such as…
3 points
Profitability - achieving greater profit levels from existing business areas, reduction of expenses, rates of growth.
Market share - taking a greater share of a market by developing w products or developing joint ventures with other companies.
Organisational structure - perhaps by reducing the number of layers of management.
Once general strategy has been developed, the next stage is to formulate plans to enable general strategy to be archived via refining these plans as they move down through management.
3 types of planning
Strategic planning - typically 1 to 10 years, preserve of top managements.
Tactical planning - this typically has a timescale of between 6 month to 2 years and would usually be the preserve of middle management (department heads).
Operational planning - day to day basis, between 1 week to 1 year details and focuses and where the supervisor is likely to be involved.
A balanced scorecard could be based on 4 criteria as follows…
Financial
Internal quality
Customer perspective
Learning and growth perspective.
As part of TCF the FCA suggested management information should be…
5 parts
Relevant - how useful is it and who needs it
Accurate - to make the right decisions
Timely - being applied consistently
Acted upon - key triggers need to be identified
Recorded - document data and the actions that will improve
Performance review and appraisals, benefits to individuals
4 points
Receive constructive feedback
Find out if the are doing the job in the way as expected
Individual can discuss future plans
Individual can agree future training
Performance review and appraisal, benefits to company
5 points
Check the effectiveness of the company’s recruitment
Evidence how well the training and development programs achieved their stated aims.
Obtain some idea for overall training demand in future.
Succession planning
Two way process, manager receives comments from individual
Corporate objectives
Senior management must formulate more detailed strategic objectives usually in terms of:
3 points
The markets in which the firm will operate
The nature and quality of service it will provide
Attitudes to customers and staff
Career planning and development.
Chartered institute of personal development (CIPD) has 5 components of career management…
Career planning and support activities - help individuals identify what is possible.
Career information and advice - encouraging individuals to take responsibility for their career development.
Developmental assignments - cross functional moves, secondments and external projects as a way of providing wider experience.
Internal markets and job posting systems - systems for advertising vacancies.
Initiatives aimed at specific populations - manage the talent carefully.
