Management of Business Organizations

Management of Business Organizations

The first step in effective management is to set goals (goal) - goal (objective) expected and planned to achieve a business.

Target is a goal that is expected and planned to achieve a business. Strategy is a corporate program to achieve the goals and objectives that have been defined.

The mission statement is a statement of an organization on how the organization will reach the point in a business environment it is run.

The purpose of goal setting is

A. Provide direction and guidance for managers at all levels.

2. Help the company allocate its resources.

3. Helping to establish the corporate culture.

4. Help managers assess their performance.

Various kinds of objectives:

A. Long-term goal, is the target set for the period of time, generally five years or more.

2. Medium-term target is the target set for a period of one to five years.

3. Short-term goals are goals set for the near future is usually less than one year.

Formulation of strategy is the creation of an extensive program to set and meet an organization's goals.

The stages are carried out in formulating the strategy is

A. Set a strategic goal, a long-term goal straight from a corporate mission statement.

2. Analyze the organization and its environment, which is conducting the observation and environmental assessment of the threats and opportunities (SWOT analysis).

3. Adapt the organization to its environment

Analysis of organizational goal is to better understand the strengths and weaknesses of a company and use it to overcome threats and exploit opportunities. Companies adjust to its environment is the basis for successful planning and implementation of the business.

Environmental analysis is the process of scanning the business environment for threats and opportunities. Organisasioal analysis is the process of analyzing the strengths and weaknesses of a company.

Planning hierarchy can be viewed at three levels, namely: strategic, tactical and operational. Managerial responsibilities assigned to each level. Levels that form a hierarchy for the implementation of these plans can only be run if there are logical flow from one level to the next.

A. Strategic Plan is a plan that reflects decisions about resource allocation, corporate priorities and the steps needed to meet strategic objectives. These plans are always set by the board of directors and top management.

2. Tactical plans are short-term plans related to apply the specific aspects of a company's strategic plan.

3. Operational Plan, a plan which sets short-term targets for the performance of daily, weekly or monthly and prepared by mid-level managers and lower level.

Because sometimes unpredictable business environment, and because unexpected events can cause major problems, to cope with those things necessary alternative plans and contingency plans of management are critical.

Contingency plan is planning to change where the plan from the beginning the company identifies the important aspects of the business or market that may change and identify ways to use the company respond to the changes.

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