Strategic planning is probably one of the most important processes in any organization. In order to accomplish it effectively, the firm has to focus on such aspects as decision making steps, personal qualities of managers as well as employees, environmental concerns, and the quality-productivity-profitability link. This paper stresses the importance as well as discusses the details related to each of these managerial phenomena.
The Basic Steps in the Management Planning Process
In order to achieve adequate management planning, organizational goals have to be analyzed realistically by the senior management. Afterwards, long as well as short term strategies of the business have to be considered. Only after such a thorough analysis strategic planning can take place. The most basic steps of the strategic planning process include coming up with a roadmap that involves every specific step when it comes to achieving more general objectives (McQuerrey, 2016). After the goals have been determined, the managers can begin to ponder upon identifying resources. Afterwards, they go on to establishing specific tasks related to the organizational goals (McQuerrey, 2016). Then, the tasks have to be grouped and prioritized. After the subsequent creation of assignments as well as timelines, valuation methods can be effectively established (McQuerrey, 2016). Lastly, it is always necessary to find alternative courses of action in case the main plain fails to be efficacious.
Steps in Decision Making and Managers’ Attributes
When it comes to the first step of establishing long-term goals, it is necessary for the management to consider both the antecedents and the precedents of the chosen objectives (Plunkett, Allen, & Attner, 2013, p. 108). More specifically, they need to establish reasons as well as expected outcomes for each of the goals (Plunkett et al., 2013, p. 108). Goals have to be specific and numerical. The second step of identifying resources encompasses human as well as financial input needed to achieve the set objective (Plunkett et al., 2013, p. 109). Again, at this stage it is necessary to be specific in order to determine how much capital is expected to be put in action. Goal-related tasks mean that every small objective has to be related to the general strategy of the firm (Plunkett et al., 2013, p. 111). In addition, this connection has to be shared with both the grassroots as well as the senior managers. Prioritization simply means giving immediate attention to the most important matters before going on to the less urgent matters (McQuerrey, 2016). In order to plan effectively, it is also necessary to create a schedule, which would include specific tasks and assignments divided among the team members (McQuerrey, 2016). After the tasks have been divided, the team members need to act upon specific benchmarks in order to figure out whether they are meeting the goals or not (McQuerrey, 2016). Lastly, if the plan fails, there should always be a backup (McQuerrey, 2016). In such a way, the workers will feel safe and relaxed.
When it comes to the managers’ attributes, prejudice and cognitive constraints can be attributed to the most challenging features (Chand, 2015). Most people feel insecure whenever a change is introduced (Chand, 2015). Therefore, effective change managers need to be adaptable and open-minded. When it comes to the possibility of losses, managers usually avoid serious risks even if the payoff is worth it. Therefore, efficacious decision making involves taking risks as long as the managers see prospects.
Quality-Productivity-Profitability Link
In order to correctly comprehend the link among the organization’s quality, productivity and profitability, it is necessary to define each term. To begin with, productivity is the relationship between the input and output that is required for the production (Productivity, quality, profitability and the role of managers, 2016). On the other hand, quality encompasses excellence and flawlessness of the final product (Productivity, quality, profitability and the role of managers, 2016). Obviously, profitability is a simple accounting term that captures the income left after the taxes and expenses have been covered (Productivity, quality, profitability and the role of managers, 2016). Profitability is negatively affected whenever production, costs of capital and labor, and quality do not meet the expectations of the management (Productivity, quality, profitability and the role of managers, 2016). Both external as well as internal factor affect the overall profitability of the firm. Therefore, environmental factors influence decision making and impact the quality-productivity-profitability link. Draught or flood can have negative consequences for the crops, for example. As a result, costs as well as prices will increase making the product less affordable. Otherwise, the profitability of the company will suffer. At this stage, managers have some serious decisions to consider. On the other hand, internal factors that impact the quality-productivity-profitability link usually encompass the personality and decisions of the manager. As it has already been mentioned, prejudice and cognitive constraints affect the performance of teams negatively. On the other hand, smart risk-taking as well as patience allow teams to prosper and act beyond their capacities.
All thing considered, the company is a mechanism which has to be fine-tuned from time to time. Change managers are responsible for introducing novel alterations that will increase either quality or productivity, leading to enhanced profitability. However, on the path to success, they need to consider environmental as well as internal specifics of the company. Moreover, every strategy consists of smaller objectives, which have to be planned carefully and communicated to the grassroots well.
References
McQuerrey, L. (2016). The basic steps in the management planning process. Small Business Chron. Retrieved from http://smallbusiness.chron.com/basic-steps-management-planning-process-17646.html
Plunkett, W. R., Allen, G. S., & Attner, R. F. (2013). Management: Meeting and exceeding customer expectations (10th ed.). Mason, OH: South-Western Cengage Learning
“Productivity, quality, profitability and the role of managers”. (2016). Business 101: Principles of management [Video]. Retrieved from http://study.com/academy/lesson/productivity-quality-profitability-and-the-role-of-managers.html
