ANS.1. Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.
Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Generally, strategic planning deals, on the whole business, rather than just an isolated unit, with at least one of following three key questions:
For example, the first and third questions are those that motivate an acquisition. Acquisitions are thus strategic choices. Typically strategic choices look at 3 to 5 years, although some extend their vision to 20 years (long term). Because of the time horizon and the nature of the questions dealt, mishaps potentially occurring during the execution of a strategic plan are afflicted by significant uncertainties and may lie very remotely out of the control of management (war, geopolitical shocks, etc.). Those mishaps, in conjunction to their potential consequences are called “strategic risks”. Untapped opportunities can also be seen as strategic risks, but in this post we will not analyze those upward-risks aspects.
Tactical planning is short range planning emphasizing the current operations of various parts of the organization. Short Range is generally defined as a period of time extending about one year or less in the future. Managers use tactical planning to outline what the various parts of the organization must do for the organization to be successful at some point one year or less into the future. Tactical plans are usually developed in the areas of production, marketing, personnel, finance and plant facilities. Because of the time horizon and the nature of the questions dealt, mishaps potentially occurring during the execution of a tactical plan should be covered by moderate uncertainties and may lie closer to the control of management (next year shipping prices, energy consumption, but not a catastrophic black-out, etc.) than strategic ones. Those mishaps, in conjunction to their potential consequences are called “tactical risks”.
Operational planning is the process of linking
strategic goals and objectives to tactical goals and objectives. It
describes milestones, conditions for success and explains how, or
what portion of, a strategic plan will be put into operation during
a given operational period.
An operational plan addresses four questions:
Operational risks are those arising from the people, systems and processes through which a company operates and can include other classes of risk, such as fraud, legal risks, physical or environmental risks. Operational risk are those resulting from inadequate or failed internal processes, people and systems, or from external events (man-made or natural hazards). A tailings dam failure, an open pit slide, a black-out (man-made or natural external hazard), and explosion in a processing plant are all operational hazards generating operational risks.
Strategic human resource management is key for the retention and development of quality staff. It’s likely that employees will feel valued and want to stay with a company that places a premium on employee retention and engagement. Before you implement strategic human resource management, you will need to create a strategic HR planning process using the steps below:
An effective leader is the first and foremost condition for a successful business. The hugely successful leaders adopt a combination of multiple leadership styles or just one selective style.
As a fluid practice, leadership is always changing and improving the way the company grows. There are different types of leadership styles exist in a work environment. The culture and vision of an organization determine which one is the most suitable style.
Types of Leadership Style
One of the most effective leadership styles is the transformational leadership style. Transformational leaders inspire their staff through effective communication and collaboration and thus initiating the path to success. They set challenging goals and higher expectation from each employee eventually achieving a greater result.
These individuals are often blue-sky thinkers. For the successful implementation of their strategic visions, the organization might need more detail-oriented managers.
Democratic leadership is another highly effective leadership style. Often known as Participative leadership, in this style the leaders often ask help and collaboration from their subordinates.
This leadership usually reports higher levels of job satisfaction and the company can benefit from individualistic creativity. However, this style involves more than one individual in the decision-making process which makes the process slower.
Role of corporate social responsibility include:
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