Planning - Compare & Contrast between Strategic and Tactical Plans

Compare and contrast between strategic and tactical plans.

Answer:

Strategic plans are longer-term plans that set broad and comprehensive directions for an organization and create a framework for allocating resources for maximum long term performance impact. Strategic planning begins with a vision that clarifies the purpose of the organization and expresses what it hopes to be in the future. It involves determining the goals and objectives that will be pursued in order to accomplish that vision. Also, it specifies how the organization will be positioned for competitive advantage in its external environment to accomplish those goals and objectives.

Tactical plans are developed and used to implement strategic plans. They tend to be intermediate term plans that specify step-by-step means for using the organization’s resources to put strategies into action. In business, tactical plans often take the form of functional plans that indicate how different components of the enterprise will contribute to the overall strategy. Such functional plans might include:

•       Production plans—dealing with the methods and technologies needed bypeople in their work;

•       Financial plans—dealing with money and capital investments;

•       Facilities plans—dealing with facilities and work layouts;

•       Logistics plans—dealing with suppliers and the flow of raw materials and other product inputs.

Source: Management, 11th Edition - John R. Schermerhorn

Control | Controlling, 3 Approaches to design control system, and effectiveness

Define controlling within an organization. In a brief essay, list and describe characteristics of the three approaches to designing control systems that have been identified. What determines the effectiveness of any control system?

Answer

Control is the process of monitoring, comparing, and correcting work performance. 

Three different types of control systems have been identified:  market control, bureaucratic control, and clan control. Market control emphasizes the use of external market mechanisms, such as price competition and relative market share, to establish the standards used in the control system. Bureaucratic control systems emphasize organizational authority and rely on administrative rules, regulations, procedures, and policies. Under clan control, employee behaviors are regulated by shared values, norms, traditions, rituals, beliefs and other aspects of the organization’s culture.  Regardless of the design, the effectiveness of any control systems is determined by how well it facilitates goal achievement.

Source: Management, 11e (Robbins/Coulter)