MGT4042EF Business Organization

and Management

Topic 2
(2.3-2.4)

Levels of Management
2.3 The various types and levels of planning
undertaken by organizations
Planning – Identifying and
selecting appropriate goals and
courses of action for an
organization.

- The organizational plan that

results from the planning
process details the goals and
specifies how managers will
attain those goals.

MKT4042EF Business Organization and Management

Planning and Strategy

Strategy 策略

• The cluster of decisions and

actions that managers take to
help an organization reach its
goals.

MKT4042EF Business Organization and Management

Strategic Planning Foundations
Understanding the principles of strategic planning
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foundations/understanding-the-principles-of-strategic-
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MKT4042EF Business Organization and Management
Three Steps in Planning

Determine the organization’s mission and goals. 確定使命和目標

Formulating strategy 制定策略

Implementing strategy 實施策略

MKT4042EF Business Organization and Management

Three Steps in Planning

MKT4042EF Business Organization and Management

Step 1 - Determining the Organization’s Mission and Goals

• Establishing Major Goals

(01) Goals provide the organization with a sense
of direction.
(02) Goals stretch the organization to higher
levels of performance. motivation
(03) Goals must be challenging but realistic with
a definite period in which they are to be
achieved.
S pecific SMART Goals
M measurable
A chievable
R elevant
T MKT4042EF
ime-bounded
Business Organization and Management
Quiz
Which of the following would be an appropriate goal
setting for managers?

A) Cut manufacturing costs from the current level of

$27 per unit within one year.
B) Maintain positive consumer perceptions of the
brand.
C) Reduce turnaround time between order
placement and product shipment.
D) Raise customer satisfaction levels by 10% after
the first quarter.

MKT4042EF Business Organization and Management

SWOT Analysis

External Analysis
PEST SDCC
Scanning general and task environments
changes
-> Opportunities – positive trends
-> Threats – negative trends

Internal Analysis ownership

Assessing an organization’s skills, abilities, resources
e.g. financial and physical assets,
-> Strengths employee’s skills, management, culture,
-> Weaknesses corporate reputation, etc.
MKT4042EF Business Organization and Management
Forces in the Global Environment

Figure 4.1
All organizations are affected

PEST SDCC

S=Suppliers
P=Political and Legal
D=Distributors
E=Economics
C=Customers
S=Sociocultural
C=Competitors
T=Technological
Specific and close to your organization

MKT4042EF Business Organization and Management

The Nature of the Planning Process
To perform the planning task, Establish where an
managers: organization is at the present
time

Determine its desired future

state

Decide how to move it

forward to reach that future
state

MKT4042EF Business Organization and Management

Strategic planning process: Overview

Why Planning is Important?

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planning-foundations/strategic-planning-process-
overview?u=2105428

MKT4042EF Business Organization and Management

Why Planning is Important

Necessary to give the organization a sense of direction and purpose

Useful way of getting managers to participate in decision making

Helps coordinate managers of the different functions and divisions of an

organization

Can be used as a device for controlling managers

MKT4042EF Business Organization and Management

Example - Levels of Planning at General Electric

MKT4042EF Business Organization and Management

Example -Levels and Types of Planning

MKT4042EF Business Organization and Management

Time Horizons of Plans
Time Horizon

Period of time over which they are intended

to apply or endure.

 Long-term plans are usually 5 years or more

 Intermediate-term plans are 1 to 5 years
 Short-term plans are less than 1 year.

MKT4042EF Business Organization and Management

Types of Plans
Standing Plans 長期計畫

• Use in programmed decision situations

• Policies are general guides to action.
• Rules are formal written specific guides to action.
• Standard operating procedures (SOP) specify an exact
series of actions to follow.

MKT4042EF Business Organization and Management

Types of Plans

Single-Use Plans 單次計畫

• Developed for a one-time, nonprogrammed issue.
• Programs: integrated plans achieving specific goals.
• Project: specific action plans to complete programs.

MKT4042EF Business Organization and Management

Scenario Planning 方案規劃

Scenario Planning 方案規劃

(Contingency Planning) 應急方案

The generation of multiple

forecasts of future conditions
followed by an analysis of how to
effectively respond to those
conditions.

MKT4042EF Business Organization and Management

Planning and Strategy Formulation

Strategic Formulation
策略制定
Managers work to develop the
set of strategies (corporate,
divisional, and functional) that
will allow an organization to
accomplish its mission and
achieve its goals.

MKT4042EF Business Organization and Management

2.4 The concepts of authority, accountability and
responsibility
Authority
• Legitimate right to use assigned resources, including
personnel, to accomplish a task or objective; the right to give
orders and expect compliance.
• Denotes certain rights granted to a position in an institution
• It is a willing & unconditional compliance of people, resting
upon their belief that it is legitimate for superior to impose his
will on them

MKT4042EF Business Organization and Management

Elements of Authority

• Right to authority given by superior

• Legitimate 合法
• Leads to right of decision making
• Is given to influence the behavior of
subordinates 下屬
• Subjective

MKT4042EF Business Organization and Management

Authority to Execute 執行權限

• Authority is control or power to act on one’s responsibility

• Delegation enhances one’s likelihood of success
• Failure to achieve mission may indicate failure to delegate
• Increasing subordinate Authority will likely improve
subordinate performance

MKT4042EF Business Organization and Management

Responsibility 職責

The obligation to complete a task or perform a mission.

Responsibility exists individually and at all levels of an
organization.
Once held, Responsibility cannot be transferred.
Others may be assigned tasks oriented to the obligation but
overall responsibility remains with person assigning the tasks.

MKT4042EF Business Organization and Management

Responsibility 職責

Outcomes when employees are uncertain about task

responsibility:
1. One of the two may perform the job
2. Both employees may perform the job
3. Neither employee may perform the job
4. Employees may spend valuable time negotiating

MKT4042EF Business Organization and Management

Accountability 問責

Process by which a subordinate reports the outcome of an assigned

task or mission and accepts the consequences, good or bad.

Ultimate accountability can never be delegated even though

authority may be delegated.

MKT4042EF Business Organization and Management

Accountability for Results
Emphasizes results, not intentions

- Serves as basis for accounting for one’s actions or

failure to act
- Does not imply that the bottom line is more important
than the process
- Emphasizes necessity to consider all possible
consequences in the execution of duties associated
with Responsibility

MKT4042EF Business Organization and Management

Leadership Triad 領導力三元素

 Fulfilling responsibilities
Authority Responsibility through the appropriate
權力 責任 application of Authority and
acceptance of Accountability
Accountability enables “Special Trust and
問責 Confidence” of one’s superiors
and subordinates.
MKT4042EF Business Organization and Management
 Leadership Triad Interrelationship

Responsibility is assigned, Authority can be

Accountability is extant to
assumed or conferred: delegated. It is the critical
Responsibility:
component of the triad:
• Once held, Responsibility • Accountability is being • Authority is the power or
cannot be transferred answerable to how the control to act on the
Responsibility is handled Responsibility

MKT4042EF Business Organization and Management

Leadership Triad and the Chain of Command
Responsibilities are Assignment of
Lines of Authority are
defined by the Responsibility
established by the
structure of the Chain engenders
Chain of Command:
of Command: Accountability

- Chain of - This facilitates

Command delegation of
identifies those Authority

entrusted with
decision-
making
MKT4042EF Business Organization and Management
Delegation 授權
Delegation is an administrative process of getting things done by
others by giving them responsibility.

It refers to a manager’s ability to share his burden with others. It

consists of granting authority or the right to decision making in certain
defined areas & charging subordinates with responsibility for carrying
through an assigned task

MKT4042EF Business Organization and Management

Characteristics of delegation 授權

Takes place when a manager grants some of his power to subordinates

Manager must possess what he wants to delegate
Only a part of authority can be delegated
Manager delegating authority can reduce, enhance or take it back
Authority can be delegated not responsibility

MKT4042EF Business Organization and Management