Planing in the New Organization

planing

1. PLANNING IN THE NEW WORKPLACE

* Planning in the new workplace differs from traditional approaches to planning. The process of planning is changing and becoming a part of everyday work of all employees.

* Traditional strategy and planning process have been only in the domain and control of top managers.

* In today´s workplace everyone becomes involved in the planning, which is becoming a part of everyday work throughout the whole organization.

* We are discussing about two different types of approach to planning process :

- Traditional (top – down) approaches and - New workplace (bottom – up) approaches to planning.

TRADITIONAL APPROACHES TO PLANNING

KEY PRINCIPLES:

* Traditionaly corporate planning is entirely done top-down by top executives, consulting firms or central planning departments.

* Definition: CENTRAL PLANNING DEPARTMENTS (CPD):

- are groups of planning specialists,

- they develop plans for the whole organization, divisions or departments,

- typically report directly to the president or CEO (Daft, 2004, p. 161).

* Negative aspects of traditional approach (-):

- Traditional planning is criticized as inappropriate for fast-paced and changeable environment.

- Changing realities faced by front-line workers makes employees struggling to follow a plan that no longer fits to environment and customer needs.

- Dictated plans by top managers inhibit creativity and learning.

NEW WORKPLACE APPROACHES TO PLANNING

KEY PRINCIPLES:

* Involves everyone in organization in the decentralized planning process.

* Definition: DECENTRALIZED PLANNING PROCESS

- Planning experts work with managers in major divisions and departments to develop their own goals and plans (Daft, 2004, p.162).

* Example: ex-CEO of Johnson&Johnson Ralph S. Larsen started with decentralized management through the whole organization.

* Managers...