similar situations

Statements of organizational purpose usually include references to owners, customers, employees, profit, growth and survival considerations. Examples of objectives relating to survival and growth could include: • reducing dependence on certain suppliers; • closing unprofitable lines. Productivity objectives usually refer to the number of items sold or service calculated for a unit input like the occupancy rate for hotels. Due to fierce competition, the nature of objectives nowadays refers to improvements in the quality of a product or service. An increase in market share is a common objective. Another area for objectives is to decide whether a company wishes to be a leader in technology or a follower. Objectives of public responsibility have become more common and refer to customers as well as society in general. Objectives are those ends that must be achieved in order to carry out a mission. Strategies are broad programs of activity to achieve organizational objectives. They function as guides in the deployment of resources to achieve the objectives. Strategies are carried out by plans, which can be used for one purpose or a single use plan like the construction of a bridge, or by standards plans for repeated actions like a credit policy. Plans for a single use are of the following types: 1. Programs which cover a larger set of activities like developing management skills in all supervisors; 2. Projects which cover a smaller range of activities than a program and are specifically defined like developing financial skills in supervisors; 3. Budgets which are statements of financial resources needed and are used to control most activities. The process of budgeting is a key planning activity. They can be regarded as single use plans. 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All managers plan, no matter at what level. Risk and uncertainly is minimized by planning and this is needed more today than before as social and economic conditions change very quickly and careful planning prepares an organization for change. Planning helps the organization to define its purpose and activities. It sets performance standards and results and can, therefore, be compared with the standard to make managers see how the organization is proceeding towards its goals.