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Monday, July 27, 2009

Organizational Management - Organizational Planning

In this installment of our guide to organizational management we look at organizational planning...

There is no substitute for proper planning within an organization. The initial plan will generally be a broad organization-wide plan that sets out high-level goals. These can then be made more specific to address different levels of the organization in order to provide clear expectations for each department and employee.

The top management layer of a company must assess the current status of the entity, as well as where the company needs to be. It needs to look at things such as what level of growth, programs, and work will be required to achieve the desired status, and should set out a realistic time frame for doing so, whether it is six months, one or five years, or some other time measurement.

Each division within an organization (e.g. sales, finance, human resources, etc.) is then looked at separately and split into sub-divisions if appropriate (e.g. international sales, payroll, recruitment, etc.). Clear goals are set for each, based on past performance, natural growth, external trends, and comparisons with other, similar organizations. For example, Increase sales by 15%, Reduce 4th quarter costs, Improve employee retention, etc.

After goals have been decided on, the tasks that need to be done to achieve those goals are set, along with the order in which theyll be carried out, and a schedule for when they need to be started on and completed by. Departments, teams or people are then assigned the tasks and made responsible for their completion, dates are set for review, and performance management procedures and put in place.

Done thoroughly, this should result in each member of an organization essentially having a to-do list that represents their needed contributions (directly and indirectly) to the organizations objectives. The goal being to make sure everyone has enough responsibility to challenge them, without so much work that they'll feel overwhelmed and become demoralized. Its not a guarantee of success, but it reduces the odds of failure.

Mark_Thomas_Walters

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