Risk Management Case Study: Petrosa

Strategic planning is the set of decisions and actions that result in the design and activation of strategies to achieve the objectives of an organization.

Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery

Having organizational structure also entails having what is called an organization chart. An organization chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. Sherill believes you need an organization chart so that you are aware of who to report to. Where Sherill is currently employed, has not had anything set up this way in a few years. People are not sure who they are to report to and often report to whoever they feel like. She has seen a few employees leave the company for other jobs because they felt that their job lacked structure and it was difficult for them to work in a place like that.

Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.

Strategic planning is the management activity of an organization to achieve the organization’s goals through setting priorities, focusing activities and resources, working of employees and stakeholders, agreement establishment, and evaluation of the organization’s direction (Balanced Scorecard Institute, 2015).

It is the execution of strategies and policies through programs, budgets and procedures to reach its goals. In this process plans are assigned, costs are allocated to tasks for better measurement of return on investment. The firm’s resources are used and a detailed system is given on how to perform specific jobs. This strategy turns strategies into concrete results and helps implement changes that are documented for future references. It also provides good measurements of projects with a time frame. It gives employees a clear step by step on how to perform their day-to-day tasks that will improve overall efficiency and sets the tone for quality work in all levels of management.

Execution of a strategy allows an organization to identify a strategic manager or management team who will be responsible for five key components: people, resources, structure, systems and culture. The role of the strategic manager or management team is to implement and monitor performance and report to company stakeholders on the status. Because strategy drives an organization’s success, the team should select managers who can aggressively drive the objectives to achieve desired results through three actions:

According to study.com strategy describes how the objective of a plan can be achieved, it’s the action plan (2014) Strategy Implementation: Plan, Process & Examples. “Strategic planning involves preparing for the strategic planning session, analyzing internal and external information, formulating or refining the organizations strategic intent and goals, deciding on a course of action likely to lead to the organization’s realizing its strategic intent and achieving its goals and taking other actions during the strategic planning session to increase the likelihood of the resulting plan being successfully executed, and assessing progress and the overall success of execution to determine how to improve the next strategic planning cycle and further position the organization for optimal success”(2011) Strategic planning: A practical guide to strategy formulation and execution. This is important because to strategically plan is to understand the goal and to think through all the steps of the process this is always important to have a strategic plan. None of the steps in the plan can be

Strategic planning involves making decisions about the organization’s long-term goals and strategies and how the organization decides to implement their goals (Bateman, Snell, Konopaske, pg. 113). Strategies help organizations to have a clear perspective on how to go about accomplishing the goals they have in place. All organizations have a clear vision of what their mission and purpose as a company is, they know how to fulfill the mission, vision, and purpose and they know how to ensure that they accomplish all their goals. However, the route the organization takes to define these things determines how effective they will be.

Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure:

Risk management framework is decided based on the organization rules and requirements and also the project. Risk management is primary requirement to fulfill the needs of the project and reduce the vulnerabilities in various aspects

• Measure and manage the “soft” skills as well as the hard skills. In addition to rewarding output, profit, and sales etc., provide recognition and reward for ‘how’ the work gets done, the people skills that contribute to a better climate and greater satisfaction.

Finally, we will discuss the utilization of the organizational chart as a management tool. "Structure is an entity made up of elements or parts (such as people, resources) that impact each other by the relationship they create. A structural relationship is one in which the various parts act upon each other, and consequently generate particular types of behavior." (Fritz, 1996:4)

One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is

We used organizational chart to illustrates the organizational structure in showing the different levels of management.