STRATEGIC PLANNING Strategic planning is the primary step in the process of strategic management [Strategic management is a comprehensive topic that covers almost all the functional aspects of the organization] which can be outlined from at least two perspectives: First, strategy is the “broad programme for defining and achieving the objectives of an organization and implementing its mission”. Secondly, “It is the pattern of the organization’s response to the external environment over a period of time”. A strategy that takes a broad and typically long range focus is called strategic planning. MBA Application Strategies for Top Business Schools Strategic planning is the process that classifies the long range goals of the organization and opts for the precise means (strategies and polices) for achieving these goals, allocates resources, and develops long range plans to reach the destination.  Watch this Video to Understand the Overview of Strategic Planning Process Time-Horizon: Strategic planning takes into account the extended time horizon. There may not be any immediate impact out of strategic planning, but the consequences in the long-run prove to be gradual and significant as well. It provides with the necessary action plans to make a difference in vital areas concerning development. You can always associate innovativeness with strategy since it explores new paradigms and tries to enhance the impact. When the size of organizations expands, they are broken down into strategic business units (SBU’S) for the purpose of functional excellence. These units are expected to operate as if they were relatively independent businesses. WHY STRATEGIC LEADERSHIP IS IMPORTANT A Tailor Made Approach:  A tailor made approach is essential when it comes to strategy development the systematic analysis of the factors associated with customers and competitors (the external environment) helps the organization to meet the challenges of modern society. More and more organizations are focusing on formal approaches and concepts for planning their long range process. Specifically these challenges are a result of increasing rate of change, the complexity of manager’s jobs, the increasing importance of fitting the organization into external environment, and the increasing lag between the preparation of plans and their implementation in future. Resource Allocation: Strategic planning is an organization’s process of defining its strategy or course, and making decisions on resource allocations to pursue this strategy. Managers must be adequately geared up for strategic planning. The goals of the organization must be made plain and not unclear. Each business unit should be categorized based on its performance level to decide on the resource share to be allocated. You need to infuse cash flow into ineffectual units and divest funds from dying units into other profitable ones. The ultimate aim is to build up star performers that will be the perennial source of income or revenue generation. There should be a strong linkage between planning and control. The assessment of strategic plans of the business units must be made periodically and effectively. TOP FIVE REASONS WHY STRATEGIC PLANS FAIL SWOT Analysis: SWOT analysis is a strategic planning technique used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats. Planning is the primary step for control as it provides several standards and benchmarks of control. Planning extracts commitment. Some times planning highlights the objectives only and the planning premises may not be fully reliable. Threats are to be considered as challenges and must be converted into opportunities. Two heads are better than one is the philosophy of brain storming where a group of people with knowledge and expertise assemble to lay out clear plans that will steer the organization smoothly even in times of rough...

How to create an effective and Sustainable Model for Training and Development? The term “change” is synonymous with competitiveness in modern world and thus corporate firms are in a position to evolve unique, sustainable and strategic training model for employees that will facilitate the following: On one hand the training process motivates the suitable employees to perform well and makes them perceive their role properly in order to accomplish the enterprise objectives. On the other hand the organisation keeps itself abreast by constantly updating and understanding the training needs through Assessment of the external environment and Expectations of the employees in terms of rewards whether intrinsic or extrinsic. Porter and Lawler Model: The Expectancy Motivation Model of Porter and Lawler serves as an inspiration for effective training. The stress is on The value placed on performance outcome by the individual. The degree to which the individual believes that his efforts will lead to attainment of these rewards. Psychological aspect of this model: Almost all individuals are motivated by money ( by the way, Who doesn’t want money!). But money alone does not serve the purpose of motivation. Job satisfaction is a relative term in that different people find different things or elements motivating them in their work environment leading to job satisfaction. It might be Challenge Good inter personal relationship Pay Perks Culture Excellent leader Pressure Stress and the like… Assessment of training need: The training needs must be assessed by the respective organisations considering the following aspects: To transform the individual from the capacity of learner to executor Instil in him confidence to do the job well Relate his job to rewards so that he will try to excel Give your employees scope for career advancement Incorporate technical and technological innovations as part of your training process Physical, emotional and social elements in the internal as well as the external environment must be taken into consideration while training the workforce. Physical– relates to the physical fitness needed to perform the technical skills Psychological– relates to keeping the morale of the employees high at all points and maintaining an amiable work atmosphere Social– relates to the friendly relationship that should exist between the trainer and the trainees and among the trainees. Usefulness of the model: This model lends its support to the training and development process through three steps or stages. Diagnosis stage- Need analysis Formulation stage- Programme planning Evaluation Diagnosis stage: The interplay of ability and role perception Training brings out EFFICIENT as well as DEFICIENT performers. That is one good thing and also making the employee understand the role he is about to play as part of the organisation. Training through learning is one aspect which imparts knowledge and training is considered to be effective if one’s behaviour is modified as per the expectations and demands of the job. Role perception can be misunderstood by some individuals when they might try to exercise undue authority or overlook their duties and responsibilities. Confinement of authority Superior-Subordinate appraisal procedures Clear HR policy formulations are needed to avoid confusion and chaos in role playing. Formulation stage: The effected change through learning is expected to be retained by the employees throughout the career span in the organisation followed by constant grooming. The stress is on the value of the activity to be learnt Giving feedback  on the progress of employees towards final training objectives Relate the learning activity to increasing, meaningful materials already studied outside the training programme. Evaluation stage: Training evaluation is particularly necessary when the organisation wants to encourage the competitive spirit amongst the trainers and evaluation is considered as a challenge by itself. If the training provided eliminates obstacles...

Zero defect achievement – Striving towards perfection! What is TQM: Quality management is all about being proactive and concepts like total quality management and six sigma of recent origin reiterate the fact that hundred percent error free performance is possible the first time and every time. This is what is called as zero defect achievement which most of the companies at corporate level are headed for. The intention is to strive for perfection in work, the way an archer aims for the bull’s eye on a target. It is time for people to cast off their conservative and archaic business practices and think out of the box to enjoy a sustainable competitive advantage driven by quality. Zero defects seek top performance standards the first time and every time. Management scholars offer several suggestions to improve the zero defects programme: The idea of zero defects programme has to be communicated through out the organization right from the top to the bottom level including managers, supervisors and workers. This would harmonize the functions of line and staff. Prerequisites needed for the programme have to be determined and made available. The culture and climate of the firm should be conducive to accomplish the programme. Explain in simple terms about the functions to be accomplished. Design some solid system of recognition. Set up a time schedule as time lines are very important when it comes to product delivery. Spot all the bottlenecks and remove them. Training is absolutely essential– the skill set and mind set of the employees have to be attuned to the goals of the venture. Mock training and rehearsals are helpful. Standardization is the key to the success of this programme. Bench Marking: Total quality management is a process contributing towards quality and bench marking is a means to achieve high quality performance by setting some top notch industry performers as reference points or standards. It is a continuous systematic process employed by a business enterprise to develop business and working processes that integrate the best practices available in the industry. Bench marking is a crucial element in the process of quality management. Quality is one field of production, which reflects the ethical viewpoint and approach of business firms towards the society and other investors or stakeholders. Bench marking is a modus operandi used to: Identify and define customer requirements Plan and establish effective goals and objectives Develop time measures of productivity Become more competitive Determine industry’s best practice The initial step is to decide what is to be bench marked-the product, services, customers or business processes in various departments. The second phase of action is to identify and select your competitors who will set the necessary precedence. With that as reference, decide on your company’s strategies by making meaningful and valid comparisons. Judge the competitor strengths and weaknesses and compare them with that of your own to get a clear picture of your current performance levels and capabilities. This will give you a clear indication on the action plans to be developed and implemented in a phased manner by your organization. Quality management is likely to happen only when all the employees of the organization work as a team with unified principles. Quality demands deep commitment and responsibility from the members of organizations. It calls for intense training to imprint the perception of quality in the minds of...

Crucial Aspects of a Successful Training Plan Training should be aimed at improving the individual’s skill set as well mind set to gain knowledge about the work environment he will be exposed to, as well as to exhibit the right kind of attitude and behavior towards his peers and superiors. What is the need to train people? It is like molding raw clay into the desired shape and structure to suit our needs. An untrained individual, how well qualified he may be cannot fill the bill. Pros and Cons of Training: Corporate training methods include cognitive as well as behavioral type of training. But the crux of the whole thing is that the trainer must keep in mind the trainee’s present skill set or background and to train him in areas where he lacks verve. Also the pros and cons of each and every method should be analysed before training is imparted. Cognitive training is to theoretically teach trainees the concept of work and how to go about it. This is equally important as learning induces changes in behavior of individuals. Virtual Reality Training: Virtual reality training method is gaining momentum in areas of medicine, engineering and aeronautics where the trainee is exposed to situations artificially recreated for the purpose of simulation. Introduction to QuickBooks 2017 The trainee is benefited by the near perfect exposure he gets through these types of training methods. Simulations in the field of medicine are a real boon to students doing their internship and also to the surgeons performing complicated surgeries. On the job training: On the job training makes the trainees incorporate conceptual learning to be put into effective use. The experience adds value to their career and it is a good way to grow. The trainee also has to understand the significance of being trained that gives him an edge over others. Business games are popular in corporate setup where the members of a team are asked to don different roles or positions of the firm and solve a particular problem situation. This develops sound reasoning skills and instills confidence to handle crisis situations. Concept of training: The very concept of training is to make the individual tailor made for the job he is about to perform; not only the physical aspects but also psychological and social aspects have to be included in the package that will etch a comprehensive pattern in the process of management development techniques. Training improves the effectiveness and efficiency of performance, oriented towards goal setting, develops inter personal relationship and helps in the exercise of knowledge building providing room for improvement. Soft skill training: Soft skill training is a must as communication is the most important aspect that binds any organization for the purpose of delegation, clarification and development. Trainers have to be suitably trained and the common objective for both trainers and trainees would be to satisfy the objectives of the organization and work towards it. Evaluation of training gives you an idea whether your training design has been successful and the implementation satisfactory. Employee Feedback: Feedback from the employees and the ratio of performance standard achieved against the established standards sets the benchmark for the next mile of achievement to be covered. Blogging and Podcasting for Beginners Workshops, seminars, lectures, discussions aid not only the trainees but also the employers of the company to periodically refresh themselves with the ongoing changes and developments in the industry. The bottom line is, training has to bring in not only transitions but also transformations in individuals in terms of improved personality, attitude, behavior and adaptability to better their future...

Assessment centers Some companies run a series of prolonged selection procedures (assessment centers) each lasting one or two days, and sometimes longer. Usually these are after the first round of interviews and before making the final selection, but they can be used as an initial selection process. They are usually held either on company premises or in a nearby hotel, and are measured by many employers to be the fairest and most accurate method of selecting staff. This is because they give a number of different selectors a chance to see you over a longer period of time than is possible with a single interview, and the chance to see what you can do, rather than what you say you can do, in a variety of situations. Assessment Centers typically include a number of elements. Social/informal events, where you get a chance to meet variety of people, including other candidates, the selectors, recent graduates and senior management. This is an excellent opportunity for you to find out more about the organization and to ask questions in a more informal or social setting. Information sessions, which provide more details about the organization and the roles available. Listen carefully, as it is likely to be more up-to date than your previous research. If you are unclear about anything, ask. It is often good to have a question prepared for these sessions, but make sure it is a sensible question and not one that has already been covered. Asking inappropriate questions just to get noticed does not impress the selectors. Tests and exercises designed to exhibit your potential. Selectors at assessment centers measure you against a set of competencies, and each exercise is carefully designed to assess one or more of these areas. Do not worry if you think that you have performed badly at any stage; it is more than likely that you will have the chance to compensate later on. It is also worth remembering that you are being assessed against these competencies and not against the other candidates, so rather than trying to compete against them, make sure that you demonstrate the qualities the organization is looking for. Remember that assessment centers are extremely expensive to run and that you have already come a long way to be invited – you may have as much as a one in six chance of being selected. Vestibule Training Vestibule training creates a miniature of the department for which the training program is carried on. It utilizes machinery similar to that in operation on the production floor. Qualified instructors, usually highly skilled operators or supervisors, are provided to conduct the program in this special section. Here the new employees are given a course of training in the particular machines they will be required to use and on the exact work they will do when they become a part of the regular production force. {In the early 1800s, factory schools were created, due to the industrial revolution, in which workers were trained in classrooms within the factory walls. The apprentice system was inadequate due to the number of learners that had to be trained as the machines of the Industrial Revolution increased the ability of the factory to produce goods. The factory owners needed trained workers quickly because there was a large demand for the produced goods. Towards the end of the 1800s, a method that combined the benefits of the classroom with the benefits of on-the-job training, called vestibule training, became a popular form of training. The classroom was located as close as conditions allowed to  the department for which the workers were being trained. It was furnished with the same machines...