Planning and Organization Fundamentals: Concepts, Strategies, Structure and Management Principles

Planning: Basic Concepts and Elements

1. Mention the basic elements and concepts of planning. The basic concepts of planning are definitions that are presented below:

• Objectives: They are the starting point of planning. They answer the question of where we want to go and how we will know when we have arrived.
• Plan: It is the course of action anticipated to achieve the objectives.
• Decision making: The measure of selecting among different courses of future action. It determines what will be done, when, how, and who will act when the need arises.
• Forecasting: Visualizing the future and identifying limitations and factors that can influence or unfavorably or favorably affect the future of the company.

2. What is the company mission?

The mission is the reason the company exists. It is the basic function the company will perform in a given environment to achieve such a mission. It defines the need to satisfy, the clients to reach, and the products and services to offer.

3. What are the objectives?

Objectives are the starting point of planning. They answer the question of where we want to go and how we will know when we have arrived.

4. What are strategies?

Strategy, basically, is the administrative understanding of the adaptation of resources and organizational abilities to a changing environment, evaluating and taking advantage of opportunities, depending on the objectives and goals.

5. Mention and explain the different types of strategies.

Alternative strategies can be classified into four important groups:

• Intensive: Market penetration, market development, and product development.
• Integrative: Forward integration, backward integration, and horizontal integration.
• Diversified: Concentric diversification and horizontal conglomerate diversification.
• Other: Associations, reduction, divestment, liquidation, and combination.

6. Are the policies enunciated by an organization?

Policies, in a sense, are general understandings or statements that guide or channel thinking in decision making. Not all policies are "statements"; often they are simply deduced from the actions taken.

7. Is there an important difference between a program and a project manager?

Programs are a set of goals, policies, procedures, rules, task assignments, sequential steps, resources to employ, and other necessary elements to carry out a course of action; they normally have the support of a budget.

Organization: Definitions and Principles

8. Provide the first definition of organization using two elements of the concept.

"Organization is the relationship of the structure and the functions that should exist, and the levels of material elements, sports activities, and human social organization, in order to achieve maximum efficiency within the plans and objectives set."

9. In principle, what is the objective of an organization?

Each and every one of the activities established in organizing should be related to the objectives and purposes of the company. A position exists only if it serves a justifiable purpose in helping to achieve the objectives.

10. Mention what the continuity principle consists of.

Once the organizational structure is established, it must be maintained, improved, and conditioned to adjust to the changing environment.

11. What is hierarchization?

It is necessary for authority to establish centers of command and the necessary communication to make the plans, in which authority and responsibility flow from the executive level down to the low level.

12. What does departmentalization consist of?

It is the division and grouping of functions and sports activities into specific units, based on their similarity or relationship.

13. Mention the usual types of departmentalization.

• Functional
• By product
• Geographic or by territories
• By clients
• By processes and equipment
• By sequence

14. Concept of the different types of organization charts.

Organization charts or graphs, also known as organigrams, are representations of the structure of a formal organization. They show the interrelationships, functions, levels, hierarchies, authority, and existing obligations.

• Vertical organization chart
• Horizontal organization chart
• Mixed organization chart
• Circular organization chart

15. What is delegation of authority and responsibility?

Delegation is the granting of authority and part of the responsibility by a superior to a subordinate.

16. Difference between centralized and decentralized administration.

Centralized administration keeps little authority in lower levels and maintains maximum control at the top, reserving to itself the largest possible number of decisions.

Decentralized administration gives greater decision-making authority and control to lower levels, keeping only the necessary controls at high levels.