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The relationship between organizational goals, objectives and policies

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Organizational goal is a broad statement of where the organization wants to be in the future. Goals are long terms and they are established for the whole business in the areas such as,

 Innovations
 Market standing
 Productivity
 Profitability
 Physical and finance resources
 Managerial performance and development

An objective represents outcomes or targets that the business wants to gain in the order to achieve its aims. Objectives of a business are derived from its aims. They will help the business to be clear about what it wants to achieve. The performance of a business could be assessed by how effectively it achieves its objectives.

Policies are statements of practices of management and administration of the organization. The organization can set their policies in different ways. They are many advantages by using policies such as,

 Provide rules and guidelines
 Provide employees with skills and knowledge
 Provide a means of communicating information to new workers
 Show the good faith that workers will be treated fairly

In the organization must ensure that as a minimum well-developed policies and procedures in the following areas,
 Workplace Health and Safety Policy
 Drug and Alcohol Policy
 Workplace Bullying policy
 Social Media Policy
 Safety planning and objectives procedures
 Risk control procedures
 Safety management procedure

In the case of Joy of Chocolate Company, Suzy Campbell the owner of the company targeted luxury restaurants and hotels with gourmet chocolate for their guests. Her aim was to create the gourmet chocolates that would be enhanced with local produce such as heather honey, whisky and locally grown fruit.

This company had achieved the dual objectives of securing sales and developing new products was being met. Suzy decided to limit the number of suppliers so that she could develop a very close relationship as she did not want to run the business with price as the key factor.

02. Identify the main differences between the formal organization and informal organization.

• Formal Organization

Formal organization is a well-defined structure of authority and responsibility that defines delegation of authority and relationships amongst various organizational members. In another term an organization type in which the job of each member is clearly defined, whose authority, responsibility and accountability are fixed is formal organization. It works along pre-defined sets of policies, plans, procedures, schedules. Formal organization is a deliberately designed structure with formal authority, responsibility, rules, regulations and channels of communication. The control mechanism of formal organizations is rules and regulations. The members are bound by hierarchical structure. This is focus on work performance. The purpose of this is to fulfill the ultimate objective of the organization.

Features of a Formal Organization

 Deliberately created structure
 Job-oriented
 Division of work
 Departmentation
 Formal authority
 Delegation
 Coordination
 Based on principles of organizing

• Informal Organization

Informal organizations arise because of inevitable social and personal needs of individuals which cannot be satisfied by the principles of formal organizations. In another way informal organization may be defined as such organization in which authority, responsibility and account-ability of each member are not clearly defined. They represent non-planned, unofficial, social interactions amongst people working in formal structures. They arise out of common interests of people. These organizations are not governed by formal set of principles but nevertheless, are an important part of formal organizations. This is mainly based on norms, values and beliefs. All members are equal in this type of organizations. This is focus on interpersonal relationship. The purpose of this organization is to satisfy their social and psychological needs.

Features of an Informal Organization

 Unplanned structure
 Fulfillment of social needs
 No formal structure
 Informal leaders
 Informal communication system
 No rules and regulations
 No fixed tenure

“An open system theory assumes permeable boundaries and an interactive two way relationship between organizations, and their environments. Open system concept highlights the vulnerability and interdependence of organizations and their environments.” (Hoy and Miskle, 1987, pg 29)-

A stakeholder is any individual or group who can affect or is affected by the actions decisions, policies and practices or goals of the organization. We can identify them in two types.

 Internal stakeholders
 External stakeholders

• Internal Stakeholders

 ¬ Includes the elements within the organization’s boundaries,

 Owners
 Share holders
 Current employees
 Management
 Corporate culture
 Structure
 Resources
 Processes
 Leadership

• External Stakeholders

 All elements existing outside the boundary of the organization that have the potential to affect the organization ,

 Competitors
 Suppliers
 Customers
 Labor Market
 Government

In the Joy of Chocolate have many stakeholders. There are stakeholders in the company and their influence and interest in below.

Stakeholders Stakeholder Interest Influence
Owner – Suzy Campbell To increase their profit and market share Recruitment of employee, Election of directors
Investors – Leon Houmond,
Hafiz Shah To get higher profit to their invest Give extra capital to the company
Employee – Amina Zan
Mary Taylor
Adrian Buchanan To have job security
Welfare satisfaction
To increase salary Perform their productivity and efficiency in the job, duties and for success of a business


Suppliers To be treated fairly and get their charges on time Suppliers can decide whether to raise prices for orders which can obviously affect a firm’s profits.
Competitors To find our strategies and attract our customers by their own way Invent new technologies and more promotion to attract customers
Customers To receive quality goods in fair prices Customers can influence a business by deciding to continue to purchase goods and services from the organization. They can choose to take their custom elsewhere.
Table 1: Influence and Interest of Stakeholders in a Business

The manager is the person who getting things done through other people. The manager should have below characteristics to be an excellent and to achieve their goals.

 To be creative
 Know the structure intimately
 A thorough knowledge is essential
 To be commitment
 To be flexible and versatile
 Respect and connect with others

Every manager has managerial roles. That means a set of expectation for a manager’s behavior. Henry Mintzberg suggested that there are ten managerial roles which can be grouped into three areas.

• Informational roles (Managing by information)

 Monitor – Seeks and receives a wide variety of special information to develop thorough understanding of organization and environment

 Disseminator – Transmits information received from outsiders or from subordinates to members of organization

 Spokesperson – Transmit information to outsiders through speeches, reports, memos Convey information to stakeholders external to the organization

• Interpersonal roles (Managing through people)

 Figurehead – Perform ceremonial and symbolic duties

 Leader – Direct and motivate and encourage employees

 Liaison – Maintain information links both inside and outside organization

• Decisional roles (Managing through action)

 Entrepreneur – Searches organization and its environment for opportunities and initiate improvement projects to bring about changes.

 Disturbance Handler – Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises.

 Resource Allocator – Responsible for the allocation of organizational resources.

 Negotiator – Responsible for representing the organization in major negotiations, a technical expert.

In the case study, we can see some managerial roles. Suzy created the Joy of Chocolate company and she was innovate new chocolates as an Entrepreneur. Suzy had spent six months gaining valuable work experience with various chocolate firms in Europe and she quickly realized that there was a niche in the market supplying a wider range of gourmet chocolates to business customers as a Monitor. Suzy invested in the latest equipment for the business’s specialist chocolate making factory as a Resource allocator. Suzy fostered good relationships with her main suppliers of chocolate and cocoa from the Dominican Republic and Ivory Coast as a Liaison. She supported the all staff in developing their skills, and training for the production staff ensured a high level of expertise throughout the business as a Leader. Suzy called a meeting with Hafiz, Leon and Amina to discuss her proposal as a Disseminator.

In the case Hafiz did his task as a Negotiator. Hafiz and Suzy met on Monday morning to discuss the weekly production programme, following which, Hafiz met with the team leaders to discuss and assign tasks and discuss any potential problems.

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