Essay On The Role Of Strategic Planning In Business
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Strategic planning is vital to business accomplishment. It is, therefore, a systematic, formally documented process for deciding what key decision that an organization must get accurate in order to thrive in prospect. The strategic planning describes where the business may go to, however not necessarily how it is going to get there. It involves a variety of strategies which include mission, vision and thinking outside the box. Strategic planning has its role in defining where the company is heading. In addition, the two other fundamental questions about the strategic planning are where the firm is at the flash and how to get there.
The adoption of a meaningful vision inspires the business performance and makes the idea real. In order to get employees passionate in the organization, the leader have create high energy in concept creation so that they can spark excitements and achieve better performance in the enterprise. Manager in an organization should focus on the values of a building team, the group and even themselves. Meaningful vision in a strategic plan also ensures that the organization engages processes in which people explore their personal values as well as the team’s value.
In the question of where the company is at the moment, the business has to examine them first. The company has to look at their strength, weaknesses, opportunities, and threats. A standard method to obtain answers to this question is by polling employees, customers, owners, and dealers. It is to ensure that all interior and exterior stakeholders offer feedback and making them part of the business. In most companies, the preference to engaging outside service providers to perform SWOT analysis is high so that theory gets anonymous response and more honest feedback. The findings on how people feel about the business highlights the essential facts helps learn how others perceive the market hence assist in making and shaping future sales and marketing.
The aspect of where the company wants to be identifying the changes that they need to make a success thrive. The SWOT analysis serves as the answer. However, there is need to create plans even if the company has limited resources. Therefore, every task and project requires priority to ensure a systematic and realistic approach. The time frame for strategic planning is usually three to five years. It may seem hard to envision change in the business if the change has no plans before. The role of strategic planning ensures that the vision created becomes long range, until a three to five year time frame, is at ease to all the participants. The long term plan is also a risk mitigation tool as it provides a clear articulated vision for success.
Strategic planning as its roles in business involves the management functions. They include planning which involves deciding where to take the company and selection of the steps to get there (Morden, 2007). The challenges that face the business have to point out, it then require managers to forecast future enterprises and the economic conditions. Objectives need then formulation which may require a set of deadlines and various steps to which the organization can reach them. In planning re-evaluation of ideas, is made possible and any change in condition that require adjustment. Therefore, Planning helps allocate resources and reduce wastes as well.
Secondly, a management function that will enable strategic planning is organizing. It is achieved by bringing together physical, financial and human resources to achieve the objectives. Here activities to be accomplished, classified, assignment to groups, creation of responsibility and delegation of authority. The manager, in this case, coordinates relationships of accountability and authority (Morden, 2007). Organizing plays an important role as it affects the motivation and development of employees, the ability of the organization to respond to changes in the environment, among other aspects. In addition leading is incorporated in the management function; it involves motivation of employees by the managers so as to achieve the business goals and objectives. It also requires the use of authority and effective communication in order to achieve the ends. In addition leading involves supervision of employees and their work.
Controlling is another bit of the management function that incorporates in strategic planning. It involves measuring achievement against the established objectives and goals. The task requires managers to identify the sources of deviation from successful accomplishment and provide a corrective course of action (Morden, 2007). Once the objective and the goals establish, they are measured then identify anything that may keep the company from achieving them then correct the necessary. There is that perception that controlling may involve Monterey goal. However, the management also focuses on intangible goals. For instance, meeting production quota and reducing the client’s complaint by a definite amount. Controlling is key to ensuring the organization is in the right direction towards the attainment of its corporate goals and hence the success in realizing its vision. Controlling is necessary at all levels of management. In the operating core, controlling ensures that employees use resources efficiently and that the products meet the set quality standards (Morden, 2007).
Human resource management, which concerns the development of individual and organization, is as important as strategic planning in a business (Lussier and Hendon, 2013). It engages in securing and developing the talents of individual workers. In addition, human resource management involves implementing programs that enhance communication and collaboration between the workers in order to nurture organizational development. The primary responsibility includes job analysis, staffing, measurement and appraisal of workforce performance. It also requires the implementation of rewards system for the employee and professional development of workers. No company can achieve its strategic goals and vision without a competent, motivated and committed workforce (Lussier and Hendon, 2013). Human resource management aids to this end by ensuring the organization has the right number and right quality of employees.
Among the responsibility of human resource management, there is job analysis which consists of determining the nature and accountability of various employment positions. It is the cornerstone of HRM practice since it provides valid information about the jobs that is used to hire and promote individuals (Lussier and Hendon, 2013). Establishing of wages, determining training needs and other important decision are part of the roles of human resource management. On the other hand, staffing as another role involves managing the flow of personnel into, within or out of the organization. Selection then accomplishes through job posting, interview, testing and reference checks.
Another role of human resource management that encompasses strategic planning is an organization, utilization and maintenance of a company’s work. The responsibility involves designing an organizational framework that make use of the business’ human resource .in addition it also involves establishing a system of communication that assists the organization operates in an integrated manner (Lussier and Hendon, 2013). Other than this responsibility, worker management relation, safety and health are included. The latter usually entail compliance with federal laws that protect the employee from vulnerability at the workplace. On the other hand worker-management relations primarily involve working with labor unions, handling accusations related to misconduct and devising systems that fosters cooperation and shared mission among the employees. Performance appraisal is another practice and involves accessing job performance and providing feedback to the employee. The feedback may either be positive or negative depending on the aspects of employee’s performance. These measurements are important in an organization and individual as well, since, at this point is where determination of promotion, salary increase and at times dismissal occurs.
The responsibility for human resource development extends to reward systems. It is a crucial aspect of in entails a mechanism by which business provides their workers with rewards for their achievement and also incentive for higher performance in the future. Here the organizations are also able to addresses issues within the workforce through the disciplinary measures in the institution (Samson and Daft, 2012). Employee development and training anther essential responsibility entails researching organizational, unique needs for evaluating employee development programs designed to address the needs. The range is from orientation to acclimate new hires to the organization.
Moreover, meaningful contributions to business processes get increasingly predictable as within the purview of the performances in the human management practices. Most of their contribution involves disseminating guidelines for and monitoring employee’s behavior (Samson and Daft, 2012). Strategic planning comes in as there are increasing numbers of businesses that are integrating the human resource managers into the business process as well.
Strategic planning plays a significant role in different companies at various stages of the company’s lifecycle. It is uncomplicated to get fixed up in the day to day growth of an enterprise and postpone the strategic planning (Samson and Daft, 2012). However without strategic planning business will thrash. Strategic planning also provides a focus and helps the team move in a consistent direction. It all involves the planning process, identification of value proposition and core competencies. In addition feedback from the team and commitment and followed up measurement are essential. There are leading four principles of strategic planning that addresses these concepts.
The first principles, states that the clearer the value propositions, the more likely the business is to be successful. Creation of value is the foundation of the offered to the marketplaces; it is the charge that the markets pick out in the offering by the business. The value proposition is also the foundation for planning and direction of the company and the unifying theme that keeps the owner and staff going in the same direction. Treating every customer is not a value proposition (Samson and Daft, 2012). For instance providing cyclist with avid road they may make the right choice in selecting high quality and functionality, it gives a clear defined value proposition.
The second principle in strategic planning is that a merchant business must have a strong core in the trading competency; however they can learn more of other necessary skill. The necessary proposition should get support by skills set for the business. The competitive advantage usually created, to ensure that the skills are unique .there are examples of companies that have developed distinctive competencies and has used them satisfactory, they include apple which has user-centric innovation. In addition, Dell has supply chain and logistics excellences, protector and gamble with brand management. The competencies can vary. However, the businesses have to begin with merchandising and product offering. There are many other skills that enable direct companies to develop competitive advantage, while others do nice job marketing and presenting their products to the market, hence providing competitive advantage (Griffin, 2007, p. 76). The latter gained by a business that focuses on its distinguishing competencies and doesn’t redirect attention to activities that outsource effectively.
The third principle is that a strategic plan is of no value if not first challenged. It is then developed and finally committed to by the management team. The strategic plan and management in identifying value proposition, distinctive competencies and core capabilities are the groundwork of the tactical plan for a business. Setting up a vision of where the business ought to be in three years, supported by the value proportion, drives the development of the strategic plan. The program sets the goals and identifies the major steps necessary to get there. Going from side to side a strategic planning procedure is an excellent way to create a team and gain agreement on objectives (Griffin, 2007). Various challenges arise with this principle for instance business with a strong leader and passive management and also with high independent thinking managers. The solution to go through strategic planning process is to start with a green light which entails the key management from all disciplines. The process of review and challenge refine the plan. The result of the accurate outcomes will they require responsibility by the manager. When these principle successes the strategic plan results in bringing the management team into the same chapter.
The last principle of the strategic planning is to choose the right metric to monitor and maintaining focus. The part of strategic planning that makes everything work is the measuring of progress and comparing it to the plan. The step is critical since it involves two effects; giving management feedback on how it is going and how the attainable method. If there are any refinement needed the feedback serves (Griffin, 2007). The planning process, therefore, begins with planning, execution, reporting of the results, improvement plan and re-allocation of resources. Measurements extend to the choice of metrics that regularly views, and, therefore, should have the following roles. Actionable, monitor the performance of core and distinctive competencies and support value proposition.
The role of strategic planning is important in group development and team functioning in an organization. In strategic planning organizations have realized that the transition from individual to team management approach is a priority. The teams usually train a group rather than a person to the decision-making. The psychology of teamwork and management and how they applied in the business environment are subjects that need exploration before the team function (Pettinger, 2007). Organization are implementing group as a way of increasing effectiveness and efficiency. Group conflicts directly impact the choice of team member selection and the required results. In strategic planning organization are increasingly using groups to oversee various undertakings and project in the anticipation that the creativity and presentation of the team will far outperform any individual performance.
In strategic planning, a team is defined as a group of people who have harmonizing skills, a higher obligation to ordinary goals and have a greater scale of interdependency and interface. Building an effective team starts by choosing assorted members that are on the ball and possess skills needed to carry out the task. The setup usually comprises of workers and managers on the same side so as to attain the common objectives that improve productivity. With this formation of the team, the member can help motivate and improve the organization as a whole (Pettinger, 2007). The task to which the team is set up and the roles and duties of the individual team members play a significant role in ensuring the success of the team. Every member of the team should work jointly, towards maximum profit for the product. Organization usually spends money and countless hours in informing the management team in the group process, the role of leadership and conflict that can arise with teamwork.
There are various theories that strategic planning plays a significant role. They help in evaluating the resources as one sets the goals. They include the assets such as cash, machinery vehicles and facilities firstly to determine the use of them to reach the financial objectives (Pettinger, 2007). The approach here involves considering the employees and the customers. For instance, setting a goal of shipping 8000 units per day, humanistic approach is used to determine if the worker can do the work physically. In selling many items, one should also ask themselves if the customers are satisfied with the needs.
Secondly, in engaging in strategic planning, the short-term goals are created that will lead to the specific objectives. For example, when setting the goal of increasing salesperson’s cold calls by 20%. The nature of improvement would reflect the purpose one has set for the business. In addition, strategic planning requires control that one can ensure the strategy implementation is on. The latter should be correctly configured to ensure employees are reaching the goals and the objectives. For the growth of the company, the business should ensure that there is financial growth and measuring the progress in terms of the percentage in the market share.
The principles and theories of management are essential to all organization processes all over the world. The use of quantitative analysis, examination of data in management improves the efficiency and effectiveness of the business operations. The goals here are to reduce waste, increase the process and methods of production and create a just distribution of goods. The goals serve the common interest of employers, employees, and the society. For instances among the theories summarized by Taylors four principles, managers should gather information analyze it and reduce it to law and rules, they should scientifically select and train workers for others (Pettinger, 2007). The development of team and group in an organization is important because it’s a typical arrangement within the today’s businesses. For this reason, managers need to understand the behavior of groups and the team concepts. The development of an organization requires systematic planning and implementation processes that access whether the team can improve organizational goal attainment. In addition, the managers would have a task to remove barriers to team building through the training empowerment and feedback. A team is therefore merely a tool that an organization accomplishes a project or a goal.
Griffin, R., 2007. Principles of management. Boston, MA: Houghton Mifflin.
Lussier, R. and Hendon, J., 2013. Human resource management. Thousand Oaks: SAGE Publications.
Morden, T., 2007. Principles of strategic management. Aldershot, England: Ashgate.
Pettinger, R., 2007. Introduction to management (4th ed.). Basingstoke [England: Palgrave Macmillan.
Samson, D. and Daft, R., 2012. Fundamentals of management. 4th ed. South Melbourne, Vic.: Cengage Learning Australia.
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