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Figure 1.1a Flowchart of policy management (page 8) Unit 1 - Chief Executive Officer: Managing Policy 6 A Roadmap to Quality UNIDO unit 1.qxd 3/10/05 12:42 PM Page 7 Discussion
This text gives an introductory overview of policy management. The following questions ask
you to think about how the ideas in the text relate to your company. Some of the ideas may
not be relevant to you. Concentrate on those that are relevant. Where appropriate ask
yourself the RADAR questions.
Note: Always include in your discussion any figures referred to in the text, if you feel these
are relevant to your company.
a. Parag. 1 gives a definition of policy management. How would you describe policy
management in your own words? What could it mean in your company?
b. Parag. 2a: How would you describe your company’s business philosophy? What is
the value of having a business philosophy? What could be a better business
philosophy for your company?
c. Parag. 2b: Give one or two examples of possible annual management policies for
the current or coming fiscal year in your company.
d. Parags. 2c and 2d: How could you imagine this system working in your company?
Give one or two examples of targets and implementation plans that you, as a
manager, might decide on. What problems might you have to take into account in
relation to these policies?
e. Parag. 2e: What abnormalities could possibly arise with implementing the plans that
you considered in the previous question?
f. Parag. 2f: How would you go about making a diagnosis of these points in your
g. Parag. 2g: How useful do you feel it would be to review, at the end of each fiscal
year, what has been implemented during that year? What specific benefits could this
h. Look at Figure 1.1a. This is quite a complex flowchart of policy deployment. Identify
the steps that have been referred to in this text. Which of the other steps could you
relate to your company? Action plan
This text gives an overview of policy management. As you read and discuss each of the
following texts in this unit, you will build up the parts of an action plan – a written proposal
for introducing policy management in your company. As a first step, write a short report
a. Why your company needs a business philosophy.
b. A proposed business philosophy for your company. A Roadmap to Quality 7 Unit 1 - Chief Executive Officer: Managing Policy UNIDO unit 1.qxd 3/10/05 12:42 PM Page 8 Figure 1.1a Flowchart of policy management Business Philosophy Long- and Mid-Term
Management Plans Functional
Committees Past Records
Problems Social Trends
Reflection on the
Previous Fiscal Year
for the Fiscal Year Management Plans
for the Fiscal Year Policies of
and Section Managers Targets for the
Sectional) Establishment of
Policies Targets for the
Policy Deployment Control Items for
each Position Implementation Plans Table of Individual
Progress Control Graphs Implementation of
on Policies) Appraisal Countermeasures
Disposal of Policies
Written Reports of
Status Reflection on Policies Source: Textbook for Policy Management Seminars (in Japanese) (JUSE) Unit 1 - Chief Executive Officer: Managing Policy 8 A Roadmap to Quality UNIDO unit 1.qxd 3/10/05 12:42 PM Page 9 1.2 Prepare mid-term and long-term
1. Your mid-term and long-term management plans are the basis for your annual
management policies. Long-term plans are normally for five years, and mid-term plans
for three years. They are essential if your company is to achieve all that it is capable of
achieving. They should be based on your business philosophy, on a good understanding
of your management strategies, and on a sound grasp of your corporate strengths.
2. The long-term plans should show your major strategies, with control items such as:
b. Ordinary profits.
c. Per-capita sales.
d. Break-even ratios.
e. Target values.
(Control items are measurable items used to judge whether or not tasks assigned to
departments or sections or individuals have been carried out; if not appropriate action
should be taken. See 1.5.8.)
3. Your company may choose to prepare only long-term plans, or only mid-term plans, or
both. If it chooses to prepare both, then the long-term plans will present only the basic
targets for sales, production volume, plant and equipment investment, and personnel
costs etc. It will focus on providing long-term vision and guidelines. Examples are:
a. Assume leadership in the XX market by the year YY.
b. Develop the capacity to export to country XX in a profitable manner by the year YY.
c. Develop the capacity to develop new, marketable products without external
assistance by the year YY.
These basic policies are realized through shorter-term concrete policies.
4. The following example from a computer company will show how these basic policies can
be achieved through concrete p...
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