Asset management is the process of maximizing the assets of the company to provide the best returns to stakeholders. More often than not, it involves asset recovery as well. Businesses have a wide range of assets that include fixed and liquid assets. It is important for a business to be able to manage its assets, and use them to get the maximum possible returns.
June 25, by Kasia Mikoluk Planning is the part of management concerned with creating procedures, rules and guidelines for achieving a stated objective.
Planning is carried out at both the macro and micro level. Managers need to create broad objectives and mission statements as well as look after the day to day running of the company. Below, we take a look at the three types of plans in management and how they are used within an organizational framework: Strategic Plan A strategic plan is a high-level overview of the entire business, its vision, objectives, and value.
This plan is the foundational basis of the organization and will dictate decisions in the long-term. The scope of the plan can be two, three, five, or even ten years. Managers at every level will turn to the strategic plan to guide their decisions.
It will also influence the culture within an organization and how it interacts with customers and the media. Thus, the strategic plan must be forward looking, robust but flexible, with a keen focus on accommodating future growth. The crucial components of a strategic plan are: Vision Where does the organization want to be five years from now?
How does it want to influence the world? If there is any room to wax poetic within a plan, it is here. Why does the company exist?
What does it aim to achieve through its existence? Like Fab, each organization has its own values. These values will guide managers and influence the kind of employees you hire. There is no template to follow when jotting down the values.
As you can see, there are really no rules to writing the perfect strategic plan. This is an open-ended, living document that grows with the organization. You can write whatever you want in it, as long as it dictates the future of your organization.
Tactical Plan The tactical plan describes the tactics the organization plans to use to achieve the ambitions outlined in the strategic plan. It is a short range i. Creating tactical plans is usually handled by mid-level managers.
That said, there are some components shared by most tactical plans: The tactical plan will break down this broad ambition into smaller, actionable goals. Budgets The tactical plan should list budgetary requirements to achieve the aims specified in the strategic plan.
This should include the budget for hiring personnel, marketing, sourcing, manufacturing, and running the day-to-day operations of the company. This should include human resources, IP, cash resources, etc.
Again, being highly specific is encouraged. Their scope should be aligned with the goals outlined above. Operational Plan The operational plan describes the day to day running of the company.
The operational plan charts out a roadmap to achieve the tactical goals within a realistic timeframe. This plan is highly specific with an emphasis on short-term objectives. Creating the operational plan is the responsibility of low-level managers and supervisors.
Operational plans can be either single use, or ongoing, as described below: This can be a one-time sales program, a marketing campaign, a recruitment drive, etc. Single use plans tend to be highly specific. Ongoing Plans These plans can be used in multiple settings on an ongoing basis.
Ongoing plans can be of different types, such as: A policy is a general document that dictates how managers should approach a problem.
It influences decision making at the micro level.A mission is important to an organization because it synthesizes and distills the overarching idea linking its practical strategies, enabling management and employees to align the specifics of their actions and decisions with a clearly defined vision and direction.
As per Hussey () operations management helps organizations to maintain an effective and functional operation that help the organization to grow. This is important for all organization be it an IT firm, a service firm or a restraint like McDonalds. Aug 10, · Operations management.
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Management is indispensable in all organizations whether a business firm, a government, a hospital, a college, a club, etc.
Management is a creative force which helps in the optimum utilization of resources. Operations management is a fundamental part of any organization. In fact, Forbes magazine reported in that about three quarters of all CEOs came from an operations background.
Not all these CEOs studied operations in school; only some of them did. Many majored in finance, marketing, information. They then need to evaluate the success of operations management in meeting their chosen organisation’s strategic management objectives.
For AC and , learners need to explain the importance of effective quality management in achieving their chosen organisation’s objectives.