Operational Plan
Introduction
Charion Millers Company is a sugar producing company, which has been in existence for 30 years. Its mission is to be the best sugar producing company in the world and its vision is to be a leader in the quality sugar production. The company also has some core values upon which it operates. These values include excellence, environmental friendliness, and quality sugar production. The management of the company is split into 3 levels of management, namely: the top management level, the middle level management, and the low level management. All these classes of management have an important role to play. Planning is important when dealing with huge companies like Charion Millers Limited. Planning entails coming up with values and objectives of the company and the best ways how the resources may be used. The kind of management, which is suitable to this kind of organization, is one where the chief executive officer is a leader rather than a politician. This assists employees in feeling motivated since they are a part of the leadership. Workers feel motivated as they are able to speak to supervisors, heads of departments, and the top management.
The mission, vision, and long-term statements are very clear and have kept the company consistent over years. The top management of the company has been guided by these values and has stood out as forward looking, thus giving an appraisal to the company in terms of coping with competition. Some hard decisions they have had to make include giving back redundancy fee during retrenchment. With its high expansion rate in the most remote parts of the world, Charion Millers Company has been able to create employment for many people in the world and it is no doubt that it would have a great impact should it become bankrupt.
Leadership of the company has been stable for many years. It has continually been answerable for its actions and inactions and has strived to manage product regulations to offer standard products. Thanks to this, Charion Millers has been able to maintain the lead in the sugar sector and open a vast number of branches across the world.
The sugar industry is governed by both environmental and technological regulations. Charion Millers Company is required to adhere to food and drug administration regulations. They specifically control contents of sugar produced. The company is also to comply with intellectual property regulations more so when it comes to labelling of products. The company has its own self-operating requirements, which guide the quality of products to be produced. Concerning such regulations, companies in the sugar sector have no choice, but to comply with them if they want to compete effectively.
Most lawsuits in this sector have arisen out of infringement of intellectual property rights and noncompliance with the food and drug administration requirements. This arise out of both national and international biosafety regulatory framework. The company is also supposed to provide insurance covers to its employees in case an accident occurs in the line of duty for them to be compensated. This increases confidence of workers in the company and reduces the amount of lawsuits against it.
Charion Millers’s products have had their own share of economic difficulties when scientists chastise products because of tooth decay, impotence, and diabetes. This has gotten attention of the media, which have been quick to spread reports. However, Charion Millers is engaging in research to reduce these negative effects. This is necessary if it wants to keep abreast with competition on the market. Societal, technological, economical, market, and regulatory frameworks have a role to play in sustaining its products on the market.
Charion Millers Company has to appreciate beliefs of the societies it serves by educating them on products, have highly qualified marketers and suppliers of products in all branches across the world, keep up constant research on products, and ensure that it complies with the market and product regulations at all times in order to win competition from other companies
This paper examines Charion Millers Company’s organizational structure, planning, and different theories that inspire its leadership today.
The Organizational Structure of Charion Millers
The organizational structure of Charion Millers Company is split into various management levels. These include the top management, middle level management positions, and low level management positions.
The Upper Management
This class of managers is composed of the Board of Directors, the managing director, the chief executive officer, or the president of the organization. Usually, the Board of Directors consists of representatives of shareholders. The Board of Directors appoints the chief executive officer. Main roles of this senior management is to set aims, regulations, and policies of the company and to plan for resources of the organization. The top management is always responsible for accounting resources owned by the organization. They have to mobilize, bring them together, and channel them to good use for the better of the company.
Being in the senior management positions calls for one to use a lot of reasoning and thinking. This is because a lot of planning is involved and, if it is done irrationaly, then the whole company will be negatively affected. This is why, sometimes the top management is referred to as administrators and organizational friends. Much of the time spent by this team is devoted to organizing activities of the organization. They come up with long-term goals and structures. These mainly include strategic plans. Long-term goals and objectives usually require between 15 and 20 years for accomplishment.
Middle Level Management
This level of management entails heads of departments of the organization. They also include managers of different branches of the organization and subordinate officers. Heads of organizations include: stores manager, finance manager, sales director, marketing manager, agricultural services manager, and factory manager. All these employees have a special role to play in the management of the company. They deal with specific sections of the organization and are in charge of handling supervisors on the ground. These heads of department are required to file daily, weekly, and monthly reports to the managing director and the board of directors. The aim of such reports is to ensure that the senior management is briefed on the day-to-day activities of the organization. The managing director can only be able to plan resources of the company in an efficient manner by having a look at ongoing activities of the organization. Through this, he/she will then be in a position of making a decision as to whether to release more funds or not. Heads of departments therefore act as intermediaries between the senior management and the low level management. It is the role of senior managers to appoint heads of departments based on merit and considering that they will be heads in their areas of academic specialty.
Other roles of heads of departments include giving recommendations pertaining to matters within their specialty. These recommendations may either be acted upon by the senior management or rejected with reasons. They also have a task of executing policies made by the top management. They are responsible for planning on the ground. The top management gives plans, which are then to be executed by heads of various departments. They are in charge of coordinating activities of departments and between the senior management and the lower management level. Heads of departments are tasked with making short-term plans that usually take from 1 to 5 years and forwarding them for execution to the top management. One of the peculiar characteristics of heads of departments is the fact that they are limited in authority and their role is an intermediary one as they assist the top management in running of affairs of the company by coordinating with the low level management, which is in charge of events on the ground. In summary, roles of heads of departments are two-fold as they perform an organizing role and provide for coordination of activities
Low Level Management
This management rank is composed of overseers and foremen. They are chosen by heads of departments to assist them in implementation of policies given by the top management. This rank comprises other specialists in areas like agriculture, engineering, finance, marketing, sales, clinical services, and other sectors. These supervisors are in charge of drivers, plumbers, cane cutters, weighbridge technicians, warehouse experts, and factory employees. These supervisors take necessary steps for informing middle level managers of the progress within their dockets to be taken to the top management for consideration. If workers were left to deal with heads of departments and the managing director directly, then less time would be spent on the planning process, which would be fatal for an organization. Instructions flow from these supervisors to workers on the ground. They are representatives of the top management for workers on the ground.
Supervisors also play a big role in building of the working morale among workers. Workers feel motivated and devote much of their time to their work to ensure prosperity of the company. They also ensure that the link between workers and the top management is not broken. These supervisors act as agents in delivering decisions of the management to workers while, at the same time, acting as their advocates by channeling their grievances to the top management. Some of the issues affecting sugarcane plantation workers include lack of safety clothing, poor remuneration, poor working conditions, lack of security, poor housing, and poor medical healthcare provision. These factors affect workers negatively if supervisors do not take upon themselves to address the above grievances. Supervisors are also in charge of developing daily, weekly, and monthly plans and reports to be read by the managing director.Unlike other management positions, supervisors must have experience, professionalism, and technical skills necessary to perform their duties.
The Products Offered
The main product produced by Charion Millers is sugar. Other products like molasses are however available. Main cash crop used in the production of sugar is sugar cane. For a higher production of the sugar, sugarcane must be healthy and contain a lot of sucrose. Cane grows well in hot and wet climates. The company has its own nuclear estate while a larger percentage of cane crashed is also gotten from external growers. Cane is ready for harvesting if it has attained the age of 18 months. Waste products like molasses are used in many activities like production of alcohol and biscuits. The company also produces drinking water in bottles. Sugar is cheap at the factory and, therefore, consumers prefer the company’s discount rates.
The Basic Principles of Planning
Planning helps an organization in management of its resources. It assists workers in managing their resources more effectively. This leads to an organized way of running the organization. An organized company gives room for better management and better profits. Planning involves the following aspects.
Planning entails setting objectives of the organization and defining values that guide it. In this case, Charion Millers Company has the objective of producing quality sugar and being the leading company in the sugar industry sector. It is also aimed at making maximum profits by having high sales. Objectives act as a guide for the management as they remind them of expansion of the company and make them remain alert.
Planning enables teamwork within the organization. This is because all workers have a common objective that they have to fulfil. It is helpful because it eventually leads to profit maximization of the company. Both natural and financial resources are put to good use as urgent needs are attended to first before any other needs.
Planning assists in identification of the organization’s milestones and weaknesses. This is important as it assists in predicting financial situation of the company. Planning places managers in a situation where they can project position of the company.
Through vision and goals, the company stands in a position to plan for the future and put its resources to good use. This is done by formulating tasks and vision statements. Planning also provides evaluation of the manner how the organization achieves its future goals.
Elements of an Organization Plan
An effective organizational plan must contain objectives of an enterprise. These act as a reflection of what the company wants to be in future. The mission depicts aims of the organization in a nutshell. The mission statement acts as inspiration for all decisions in the organization.
The organizational plan must also contain values of the organization. These values set out principles that should be respected in all actions of the company. Besides, the plan must contain aims and objectives. These goals highlight aims of the company.
It should also entail an action plan. This plan assists in fulfillment of the organization’s goals. This action plan sets out approaches to be used in the accomplishment of goals and aims. There also must be a way of measuring if objectives have been met. Thus, there should must be a well-established action plan.
How the Three Levels of Management Influnce the Planning Process
Organizational goals, aims, values, and mission statements are set by the top management. They form a part of the long-term plan for the company. It is left to the top management to devise them as much of their work consists in planning. Middle level managers assist in implementation of policies given by the top management. This sector consists of heads of departments who pass policies to supervisors. Supervisors play an essential role in ensuring that the plan set by the top management is implemented .
Why Quality, Productivity, and Profitability are Important Elements of a Plan
Quality, productivity, and profitability are important elements of planning because they are the guiding force behind the management engaging in the planning process. The ultimate aim of any plan is to reach results, which are profitable for the organization. The whole process of planning is thus driven by the urge of getting profit. Material resources are also planned in order to achieve productivity. Productivity means using less resources to come up with unique quality products. Productivity can only however be achieved when quality is ensured. If quality of materials used for production of a product is improved, then productivity of materials will be achieved. Increased sales always improve productivity of the commodity.
Steps and Types of Control
The control process involves collection of information about a system, process, or person in order to make a right decision. Some of the key procedures include: setting up standards for assessing performance, measuring real performance, comparing performance with standards, and adopting corrective standards.
Setting Standards for Measuring Performance
After looking at the strategic plan, managers set objectives and standards of performance for various departments.
Measuring Actual Performance
Actual performance of the organization is based on reports prepared by various departments. Reports have to be submitted either on a daily basis or weekly and yearly basis. These standards show real performance of the company at a given time. This however depends on the accuracy of reports.
Comparison between Standards and Performance
This involves comparison of actual activities with standards of performance. Performance reports simplify this comparison by giving the required amount of data, which is necessary to link real performance with performance standards.
Corrective Actions
If performance does not meet standards set, managers must look at the origin of such discrepancy and try to remedy errors. In some cases, workers are trained to do assessment on their own.
Relationship between Resource Planning and Overall Organizational Strategy
Planning of resources assists the company in meeting its objectives, mission, and vision. Through this mode of planning, resources will be used in a way that does not compromise future needs. The company is able to prioritize its needs according to urgency of matters. This therefore enables the company to concentrate on one thing at a time. Resources invested are channeled to few, but very productive sectors. This assists the company in management of its assets because resources are only channeled to the right places. Planning aids in management of resources and people.
Management Philosophies Applicable
According to Billy Turchins’ philosophy of management, managers who are prosperous are those that are leaders. They are very innovative and focus on development of their employees. A manager should be able to provide an opportunity to workers to increase their capabilities as a way of motivating and encouraging them. The manager should also try hard to treat employees in a fair way. He/sheshould be aware of the powers bestowed upon him/her and manage those powers in the required manner. The manager should be quality-oriented and ensure that, no matter what, quality of products is not compromised in any way.
The management structure will foster productivity and motivation because there are three levels of management. Employees act through supervisors. Orders do not directly come from the senior management. This creates confidence in leaders. The leadership is brought close to workers. The split of roles into 3 levels also enhances inclusivity in leadership. Employees feel better when having an opportunity to express their opinions and being sure that the top management will be informed thereof.
Conclusion
From the above discourse it is plausible to conclude that an operation plan plays a central role in the growth of an organization. It sets out the future aspirations of the company which are necessary for panning the resources to meet the company’s needs. It is through this planning that the organization eventually expands leading to higher profits. The plan also sets out the management structure of the organization by defining the roles and ranks of various officers. The operational plan is therefore an inevitable aspect of the organization.
