Strategic Planning - Sociology of Organizations

Strategic Planning

The process of strategic planning in an organization includes several stages (Figure 7.1).

Stages of Strategic Planning in an Organization

Fig. 7.1. Stages of strategic planning in the organization

When creating a new organization, this process begins with an analysis of its external and internal environments, in an organization that already has a history, from the comparison of the state of these environments with the current strategy. If the ego mapping finds a match, proceed to the current planning or to refine the current plans. In case of non-compliance, you have to re-formulate the mission, strategic goals and strategy of the organization.

Analyzing the external environment of an organization is to find and assess the opportunities and threats that exist in its macro and microenvironment. The state of the macroenvironment is determined by international, scientific, technical, economic, politico-legal, sociocultural and natural factors. The microenvironment (immediate environment) of the organization consists of competitors, partners, suppliers, customers, target audiences, potential employees, local administrations. Analysis of the internal environment of the organization is carried out in order to determine the strengths and weaknesses of its main structural elements - finance, technology, marketing, personnel, organizational culture. There are several methods for processing data on the state of the organization's environment (environments), but the most common method is the SWOT or SWOT -analysis, with which we will get acquainted in paragraph 8.1.

Mission - is the organization's main goal, showing the meaning of its existence. Typically, the mission combines the organization's philosophy, expressed through its core values, and the organization's mission, expressed through the basic actions necessary for the realization of values. The mission presents the organization of the external and internal public and shows its difference from other similar organizations, integrates personnel, thereby fulfilling the administrative and regulatory function. Strategic goals, detailing the mission, indicate the desired state of the specific characteristics of the above structural elements of the organization. For example, for staff planning, such characteristics can be the ratio of the types of executive and executive positions, qualifications, age, etc.

Strategy is a high-quality scenario for changing an organization, the pursuit of which achieves its strategic goals. There are three main strategic scenarios: limited (moderate) growth, intensive growth and reduction.

The limited growth strategy is used in mature organizations with established structure and stable external environment. Limited growth implies, first of all, an increase in the quantitative indicators (scales) of the organization's activities. This is the least risky way of development, because it allows you to keep functional links within the organization and its connection with the external environment.

The Strong Growth Strategy assumes qualitative changes in the organization related to setting and solving non-traditional tasks for it. The strategy is applied in dynamically developing areas of activity with rapidly developing technologies, as well as in unstable areas. Qualitative changes can be achieved by expanding: the range of products, activities (re-profiling), organizations (including through mergers and acquisitions), the scope of activities (up to the global). Planning in accordance with these alternatives requires the mastery of new technologies, retraining and additional recruitment, and sometimes the release of personnel, the creation of new units and infrastructural elements of activities, and the promotion of products. Expanding the size and scope of activities, in addition, suggest their legal support, minimize the resistance of shareholders, staff and managers, special programs for combining various dominant, professional and organizational cultures.

The reduction strategy is most often provoked by abrupt changes in the external environment of the organization or a crisis that pushes it to partial or complete cessation of certain activities. In some cases, the reduction may mean a rational way of reorienting the functioning of the organizational system. The strategy has three options - liquidation, "cut-off excess" and re-profiling with a reduction in the volume of activity. Elimination is used when the organization has no prospects because of a fundamental change in technology, moral obsolescence of products, changes in consumer preferences. Liquidation can and should be planned, so that if you sacrifice a part, do not lose everything. Another alternative to abbreviation is the "cut-off". It consists in the fact that the organization reduces the number of activities, the most unprofitable or the least promising, and this allows it to survive. Another option for the reduction strategy is a re-profiling with a reduction in the volume of activity. When it is impossible to retain leadership positions in its field, the organization, having carried out a number of reforms, occupies several small niches in various fields of activity.

Anyway, the reduction strategy always involves the release of personnel. In this regard, the organization faces two problems. The first is to maintain a positive image of the organization, so that if conditions change for the better, do not have difficulties with recruitment. The second problem is the preservation of the workable part of the collective. These problems are mainly solved by applying the most "fair" criteria for reduction of employees, as experience and qualifications (personal competence). The work experience - though not always the most fair criterion, however the most objective and therefore the least controversial. The reduction on the basis of the criterion of competence implies the certification of employees, the procedure of which already becomes a conflict factor in itself. There are other ways to reduce the negative effects of the release of personnel.

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