CLEP Principles of Management 1

First is the mission statement second is setting of

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First is the mission statement , second is setting of goals, and next is strategic planning, in the hierarchy of plans. Strategic planning comes after setting the goals. In this stage is where a broad idea of how to achieve the set goals is determined. Strategic planning is also known as long-range planning, and comes after goals in the hierarchy of plans. Strategic planning is the responsibility of the highest levels of management. The strategic plans are broad, and fairly general. There is no set time duration for strategic plans; rather, how long such plans are applicable is determined by how accurate the forecast of the future environment is considered to be. Strategic plans, which are long-term plans, do not have a standard time-frame, although they generally cover a period of more than one year into the future. The length of the period depends on how accurate the forecasting of the future business environment proves to be. Strategic planning is usually most affected by factors in the external business environment, because these are things usually beyond the control of the organization. 92. Operational planning (also known as action planning) comes after Strategic Planning and involves building on them. An, organizational policy or retail sales manager instructs each salesperson to sell at least 12 cell phone plans each day are examples. This is where the detailed plans are made on how to execute the strategic plans. It describes short-term ways of achieving milestones and explains how, or what portion of, a strategic plan will be put into operation during a given operational period, in the case of commercial application, a fiscal year or another given budgetary term. An operational plan is the basis for, and justification of an annual operating budget request. Therefore, a 5-year strategic plan would need 5 operational plans funded by five operating budgets. Operational plans should establish the activities and budgets for each part of the organization for the next 1 – 3 years. They link the strategic plan with the activities the organization will deliver and the resources required to deliver them. An operational plan draws directly from agency and program strategic plans to describe agency and program missions and goals, program objectives, and program activities. Like a strategic plan, an operational plan addresses four questions: 1. Where are we now? 2. Where do we want to be? 3. How do we get there? 4. How do we measure our progress? The OP is both the first and the last step in preparing an operating budget request. As the first step, the OP provides a plan for resource allocation; as the last step, the OP
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may be modified to reflect policy decisions or financial changes made during the budget development process. Operational plans should be prepared by the people who will be involved in
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First is the mission statement second is setting of goals...

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