IT ELEC 3

• Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority, and establishing relationships to enable people to work effectively together in accomplishing objectives
• Internal organization is the structural framework of duties and responsibilities required of personnel in performing various functions within the company
• Organization is the establishment of authority relationships with provision for coordination both vertically and horizontally in the enterprise structure
• Organization is a harmonious adjustment of specialized parts for the accomplishment of common purposes
• Organization is a collection of people working together to achieve a common purpose
• Concept of Organization:

  • Viewed as a basic management process that serves as a tool for successful execution of managerial tasks
  • Most frequently seen as consisting of charts or boxes with titles inscribed
  • In popular usage, organization is held to refer to the relationships between similar functions
  • At times, organization is held to refer to the actual behavior of persons grouped together in the business enterprise
• Characteristics of a Good Organization:

  • Rapid flow of information
  • Fewest number of managers
  • Venture management attitude
  • Minimum reliance on committees
  • Job rotation is encouraged
  • Ready acceptance of criticism
  • Structure that deals with conflict constructively
  • Structure changes slowly
  • Link-pin job ties the organization together
  • People have fun (satisfaction)
• Principles of Organization:

  • Consideration of unity of objectives
  • Specialization
  • Co-ordination
  • Delegation
  • Clear unbroken line of authority
  • Responsibility
  • Efficiency
  • Unity of command
  • Span of management
  • Communication
  • Flexibility
• Policy is a deliberate system of principles to guide decisions and achieve rational outcomes
• Characteristics of Good Policy:

  • Should help in achieving the enterprise's objectives
  • Should provide a broad outline and leave scope for subordinates for interpretation
  • Should not be mutually contradictory
  • Should be sound, logical, flexible, and provide a guide for future planning
  • Should reflect the internal and external business environment
  • Should be in writing and intelligible to those who implement and are affected by them
• Business Policy is the study of functions and responsibilities of management, the problems, and decisions that
• Business policy is the study of functions and responsibilities of management, determining the direction of the organization
• The history of business policy can be traced through various stages of economic and management thought
• Early to Mid-20th Century:

  • Management theories and practices emerged
  • Scholars like Frederick Winslow Taylor and Henri Fayol laid the groundwork for principles of management and organizational structure
  • Emphasis on functional areas of management, with strategic considerations often within operational and tactical decision-making
• 1950s - 1960s:

  • Business policy as a distinct field began to take shape
  • Scholars like Igor Ansoff, Alfred Chandler, and Peter Drucker explored strategic management as a systematic approach to decision-making
  • Ansoff contributed to understanding corporate strategy and diversification
• 1970s - 1980s:

  • Proliferation of literature and academic programs focused on business policy and strategic management
  • Michael Porter's work on competitive strategy became influential, introducing concepts like industry analysis, generic strategies, and competitive advantage
  • Strategic planning gained popularity for structured long-term decision-making
• 1990s Onward:

  • Evolution of strategic management with globalization, technological advancements, and changes in competitive dynamics
  • Concepts like core competencies, strategic alliances, and innovation became important in strategic planning
• Contemporary Era:

  • Business policy and strategic management respond to challenges of the digital age, sustainability concerns, and global market interconnectivity
  • Concepts like corporate social responsibility, digital strategy, and agile methodologies gained prominence
• Business policy deals with decisions regarding the future of an ongoing enterprise
• Policy decisions are taken at the top level after evaluating organizational strengths and weaknesses in relation to the environment
• Policy decisions shape the future of a company, channel available resources, and direct energies towards predetermined goals
• Objectives of Business Policy:

  1. Integrate knowledge and methods learned

  2. Develop analytical skills and decision-making capabilities

  3. Promote positive attitude, ethical values, and healthy ways of thinking
• Scope of Business Policy:

  1. Business policy is broad

  2. Classified into organizational and functional policies

  3. Organizational policies relate to organizational level objectives, procedures, and control

  4. Functional policies relate to day-to-day decisions by departmental heads
• Essentials of Business Policy:

  1. Objective-based

  2. Clarity and simplification

  3. Put in black and white

  4. Stable yet flexible
• Features of Business Policy:

  1. Specific

  2. Clear

  3. Uniform

  4. Appropriate

  5. Simple

  6. Inclusive

  7. Stable
• Strategy refers to a high-level plan designed to achieve specific goals or objectives under conditions of uncertainty
• Strategy involves making choices about resource allocation, positioning in relation to competitors, and adapting to changing circumstances
• Importance of Strategy:

  1. Goal Alignment

  • Provides a roadmap for aligning actions with overarching goals
  • Ensures efforts are directed towards a shared vision

  2. Resource Optimization

  • Helps in effective allocation of resources
  • Minimizes waste and enhances efficiency

  3. Competitive Advantage

  • Vital for gaining a competitive edge through differentiation, innovation, and positioning

  4. Risk Management

  • Involves identifying and mitigating risks
  • Allows proactive planning to address challenges

  5. Adaptability

  • Enables organizations to adapt to changing environments
• • Encourages a proactive response to emerging trends

  6. Informed Decision-Making

  • Provides a framework for making informed decisions
  • Involves evaluating alternatives and choosing effective courses of action

  7. Long-Term Vision

  • Promotes a long-term perspective and sustained success

  8. Organizational Alignment

  • Ensures all levels of an organization are aligned with its vision and goals
  • Fosters a cohesive effort towards shared objectives

  9. Customer Focus

  • Centers around understanding and meeting customer needs
• • Helps in creating products or services that resonate with the target audience

  10. Innovation and Creativity

  • Fosters a culture of innovation and continuous improvement
  • Encourages exploring new ideas and approaches

  11. Performance Measurement

  • Strategic goals are often accompanied by key performance indicators
  • Allows for measuring performance and progress towards goals
• Performance Measurement:

  • Strategic goals are often accompanied by key performance indicators (KPIs)
  • Allows for the measurement of success and performance evaluation
• Global Considerations:

  • Strategy helps in addressing global challenges and opportunities in an interconnected world
  • Guides international expansion and collaboration efforts
• Personal Development:

  • Personal development strategies contribute to career growth on an individual level
  • Involves setting and achieving personal goals for continuous improvement
• Crisis Response:

  • A well-crafted strategy includes provisions for crisis management
  • Provides a structured approach for handling unexpected challenges
• The Nature of Strategy:

  • Strategy is purposeful, driven by specific goals and objectives
  • Provides a direction for actions and decisions, ensuring they are aligned with desired outcomes
  • Involves planning for the future and anticipating challenges, opportunities, and trends for long-term success
  • Context-dependent, varying across different domains such as business, military, and personal development
  • Recognizes the dynamic nature of environments and emphasizes adaptability
  • Strategic thinking is holistic, considering the interconnectedness of various factors
• • Involves assessing and managing risks, acknowledging uncertainties, and including plans to mitigate potential challenges
  • Essential aspect is the effective allocation of resources, optimizing the use of financial, human, and technological resources to achieve goals
  • Often revolves around gaining a competitive advantage and positioning an entity favorably relative to competitors or adversaries
  • Provides a framework for making informed decisions through analysis, evaluation, and selection of suitable courses of action
  • Encourages a long-term perspective for sustained success and longevity
• • Draws from various disciplines such as economics, psychology, and sociology, recognizing the interconnectedness of factors influencing decision-making
  • Often involves leadership and a clear vision, requiring leaders to articulate a compelling vision and guide the organization towards its realization
  • Integral to strategic decision-making, making choices that align with ethical principles and values
  • Includes mechanisms for measuring success using key performance indicators (KPIs) and evaluation criteria
• 5 P's of Strategy:

  • Consciously and purposefully developed plan
  • A ploy to outmaneuver a competitor
  • A pattern in a stream of actions, whether intended or not
  • A position defined either with respect to a competitor in the context of a number of competitors, or with respect to the market
  • A perspective – a certain mindset of how to perceive the world
• Strategy vs. Policy:

  • Policy is a blueprint of organizational activities that are repetitive/routine, while strategy deals with decisions that have not been faced before in the same form
  • Policy formulation is the responsibility of top-level management, while strategy implementation is done by middle-level management
  • Policy deals with routine/daily activities essential for effective and efficient running of an organization, while strategy deals with strategic decisions
  • Policy is concerned with both thought and actions, while strategy is concerned mostly with actions
• • A policy is what is or what is not done, while strategy is the methodology used to achieve a target as prescribed by a policy