Chapter 4 Flashcards
(33 cards)
the process by which top management
determines overall organizational purposes and
objectives and how they are achieved.
STRATEGIC PLANNING
STRATEGIC PLANNING AT LEVELS OF THE ORGANIZATION INTO FOUR STEPS
- Determination of the organizational mission.
- Assessment of the organization and it’s environment
- Setting specific objectives or direction.
- Determination of strategies to accomplish the objectives.
*The first step in the strategic planning process
Mission Determination
> The organization should assess its strengths and weaknesses in internal environment and the threats and opportunities from external environment as referred (SWOT analysis).
ENVIRONMENTAL ASSESSMENT
Objectives are the desired end results of any activity.
Objective Setting
Objectives should have Four basic characteristics.
They should be expressed in writing
They should be measurable
They should be specific as to me
They should be challenging but attainable
Two strategic options
Lowest-Cost Strategy
Differentiation strategies
focuses on gaining competitive advantage by being the lowest cost producer or service within the marketplace.
Lowest-Cost Strategy
focus on developing products or services that are unique from those of their competitors.
Differentiation strategies
Strategy Implementation
-Leaders
-Organizational Structure
-Information and Control Systems
-Technology
-Human Resource
Matching the internal and external supply of candidates with job openings anticipated in the organization over a specific period of time.
HUMAN RESOURCE PLANNING (WORKFORCE PLANNING)
REQUIREMENTS FORECAST
DETERMINING:
> NUMBER
> SKILLS
> LOCATION OF EMPLOYEES
the organization will need at future dates in order to meet goals.
LOCATION OF EMPLOYEES
TECHNIQUES FOR FORECASTING HUMAN RESOURCE REQUIREMENTS
- ZERO BASE FORECAST
- BOTTOM-UP FORECAST
- RELATIONSHIP BETWEEN VOLUME OF SALES AND NUMBER OF WORKERS REQUIRED
Uses current level of staffing as starting point for determining future staffing needs.
ZERO BASE FORECAST
each successive level in the organization, starting with the lowest, forecasts its requirements, ultimately providing an aggregate forecast of employees needed.
BOTTOM-UP FORECAST
The most useful predictors of employment levels is sales volume. The relationship between demand and the number of employees needed is a positive one.
RELATIONSHIP BETWEEN VOLUME OF SALES
AND NUMBER OF WORKERS REQUIRED.
Whether firm will be able to secure employees with necessary skills.
Sources from which to obtain employees.
Availability Forecast Determination
Shortage of Workers Forecasted
Innovative Recruiting
Compensation incentives
Training Programs
Modified Selection standard.
When a comparison of requirements and availability indicates a worker surplus will result, most companies look to alternative to layoffs, but downsizing may ultimately be required
SURPLUS OF EMPLOYEES
ALTERNATIVE TO LAYOFFS
• Although layoffs can be necessary cost cutting measure, alternatives include:
• Restricted Hiring Policy
• Early Retirement
• Encourage workers to use vacation time/leave
• Swapping employees
• Moving employees from full time to 30hrs without reducing health benefits
The process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant.
SUCCESSION PLANNING
Job Analysis Systematic process of determining
Skills
Abilities
Duties
Knowledge
required for performing jobs in an organization
Knowledge
