Management Leadership : Performing Job Management

Describe about the Management Leadership for Performing Job Management.

 

Introduction

This study has been commenced with the purpose of putting the light on the management and planning function of the business operational plan.

Purpose of operational plan with reference to its relationship with strategic planning

Operational plan’s purpose is to show a proper direction to the organisational members in performing the allocated job-related responsibilities daily. The operational plan plays a predominant role in the implementation of the strategic plan formulated by the management of business entities. Operational plan plays important role in harmonising the activities of different functions of business entities so that they can be aligned with the formulated strategic plan’s targets.

Differentiation between operational plan and strategic plan

The predominant difference between an operational plan and strategic plan is former works on the vision statement of the business entities and latter works on the mission statement of the business entities. Strategic plan centres around long term goal of an organisations and operational plan’s focal point are short term goal of an organisation. Top management personnel and middle management personnel respectively orchestrate the strategic plan and operational plan (Slack, 2015, p.59).

Information associated in operational plan

Fundamentally, the operational plan provides four kinds of information. They are:

Strategies to be espoused for achieving the long-term goal of the organisations.

The members of the organisations who will be entrusted with the authority of completing jobs.

The stipulated time within which the delegated tasks are surmised to be completed.

The requirement of the resources in terms of finance for completing the jobs.

Purpose of budget

The fundamental purpose of a budget is to make the forecast on what the business entities will earn and what they will spend for achieving the goals and objectives. In addition to this, the budget serves the purpose of providing with a financial framework for facilitating the decision-making the process by the management body of the business entities. It also fulfils the purpose of keeping track of the performance of the business processes through measurement of the gap between the actual and desired results of the performance of the businesses.

Benefits of business budget

There are some benefits pertaining to the budgets and they are as follows:

• The budget gives clear outline of the long-term goal of an organisation in terms of financial performance.
• The budget gives an idea of how much resources are required to support the operational and strategic plans of the organisations.
• The budget gives clear view about the different aspects of reinforcing profitability and revenue generation of the business entities.

Budget variance

Budget variance is the difference between the amount of genuine revenue generation and amount of desired revenue generation. For instance, if a business organisation estimates that the estimated volume of the sales will be 100,000 Australian Dollar, but in reality, the sales volume is 150,000 Australian Dollar, then the variance of the budget will be 50,000 Australian dollars.

Variance of Budget= Actual budget - Estimated budget

Steps in the budgeting process

The steps associated with the process of budgeting are:

Putting efforts in a collection of relevant data before making up the budget.

Formulation of strategies for reaching the goal and objectives of the organisations.

A collection of company’s past relevant information pertaining to the sales and expenses.

Projection of budgetary performance through effective utilisation of some important methods of budgeting such as Zero Based Budgeting, Incremental Budgeting etc. and relevant data related to the economic performance of the current market.

The last step includes detecting and having the in-depth understanding of the break-even analysis of the budget (Adafint et al. 2016, p.200).

Definition of key performance indicators

Key performance indicators are useful in measuring the effectiveness of a business entity to achieve the predominant goals objectives of any of the businesses and for effective measurement of the performance of all the functions of the business organisations (Wu, 2012, p.315).

SMART- its objectives

SMART signifies Specific, Measurable, Achievable, Realistic, Time bound.

Specific	The objective of the business should be specific. For example, King Edward VII college management wants to build campuses for enhancing their presence. That is specific objective.
Measurable	The objective of the business goals should be measurable in terms of quantity. For example, each campus will consist of approximately fifty students.
Achievable	The business goals should be achievable. For example, it was decided that each campus would be putting efforts in employing approximately fifty students within twelve months of the commencement of the business.
Realistic	The business objective should be realistic. For example, King Edward VII should set up realistic targets of opening up two campuses with fifty students in each of them, within 12 months of the commencement of the business.
Time-bound	The business objective should be completed within stipulated time. For example, it was decided by the management that the two campuses will be open in Brisbane and Sydney in the month of January and April respectively of the year 2016.

Approaches for developing key performance indicators (61/60)

The four approaches for developing key performance indicators are:

Making an in-depth assessment of the current condition of the organisational members’ performance.

Setting up business targets to achieve the goals related with businesses.

Monitoring and measuring the progress of the performance of the organisational members in terms of productivity.

Making a comparative analysis of the desired outcome and actual outcome of the performance.

Balanced scorecard

Balance scorecard is a sort of tool for measuring the performance in terms of productivity and output and to what extent the performance of the organisational members can be helpful in achieving the long-term strategic goals of the business entities (Wu, 2012, p.309).

Intellectual property

Every organisation has intangible assets such as business innovation, unique selling price, knowledge related to the businesses, organisational resources etc. These things are supposed to be protected as per the legislations as they carry value in terms of commerce. These are altogether called intellectual property.

Key points of intellectual property

The key points of the intellectual property are copyrights of the businesses, trademarks of the businesses, secrets related to the industrial trades and business performances, the design of the industrial plants and factories, patent of the companies etc. (Kinsella, 2013).

Aim and scope of Fair Work Act 2009

Fair Work Act was formulated in the year 2009 with aim of providing the employers and employees alike with the assistance in terms of legal matters. It deals with the matters of industrial disputes, wage, and salary related matters, workplace related issues etc.

Conclusion

Throughout the entire study, different aspects of the business operation plan have been revealed and it has been helpful in getting the detailed idea of the business operational plan along with the legislative framework.

Reference List

Slack, N., (2015). Operations strategy. John Wiley & Sons, Ltd.

Adafin, J., Rotimi, J.O. and Wilkinson, S., (2016). Risk impact assessments in project budget development: architects’ perspectives. Architectural Engineering and Design Management, 12(3), pp.189-204.

Wu, H.Y., (2012). Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard. Evaluation and Program Planning, 35(3), pp.303-320.

Kinsella, S., (2013). Law and intellectual property in a stateless society.Libertarian Papers, 5, p.1.