A goal without a plan is just a wish. This statement applies to the context of business planning. In business world, there are two types of organization: for-profit organizations and non-profit organizations. There are differences between these two. They are different in many aspects including goals, mission, source capital, etc. They are different from each other. For-profit organizations focus on earning profit and sales. Non-profit organizations focus on giving back to the community. Thus, how organizations plan and operate the businesses will be different because the goals and the purpose are different. In addition, the best way to learn about planning is to learn from the experts. There are many great examples of for-profit and non-profit organizations in the business industry today. One of the well-known for-profit organizations is PepsiCo. PepsiCo is one of the popular beverage manufactures, and one of their main goals is to make profits. One of the examples of non-profit organizations is Goodwill Industries. Goodwill is an American non-profit organization that provides job training, career management, services, and other community based programs and activities. These two organizations have very different goals, but they share some similarities when it comes to a business planning.
Planning is one of the vital key in operating both for-profit and non-profit organizations. It is needed in all aspects of an organization. According to Stephen Robbins in the book
“Organizational Management and Leadership” defines planning as “the development of goals, which leads to the development of an overall strategy for achieving those goals. Planning can be performed at all levels of an organization. Supervisors are planning when a weekly work schedule is put together for hourly staff. Top executives are planning when they define the mission statement of the company and determine how the organization can maintain its competitive advantage.”
This paper will discuss about organizational structure, philosophies and business practices of for-profit healthcare organizations and non-profit organizations. The most essential dissimilarity between nonprofit and for-profit organizations is the reason they exist. As for-profit organization in healthcare, they are generally found to generate income for entrepreneurs and their employees. However, nonprofits are generally found to serve a humanitarian or environmental need. Furthermore, nonprofits an organization does not pay property taxes due to a consideration of a charity and they establish a certain community in agreement with state and federal
Planning: is the ability to manage the functions of an organization and take decisions that will bring good results in the present and the future, of the organization. It is the management decision-making of the goals to develop a good organization.
Planning is the foundation of all the functions of management upon which the other three areas should be built. During planning, management must evaluate the company’s current situation and then developing strategies to achieve these goals, this is called strategic planning.
Anne, Planning is the most important function of management, planning provides clear concise directions for everyone in the organization. The importance of planning is that it provides attention on objectives and results, reduces uncertainty, gives direction for everyone, encourages team work and creativity, helps with decision making among many other important factors. Each organization is different in the approach they take in planning one’s organization. There are different plans that may be used depending on what you are trying to achieve.
For-Profit versus Non-profit entities in relation to healthcare organizations, both have similarities and differences within their healthcare concept. Therefore, one needs to analyze key components of both health care entities.
Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement: 4th ed. San Francisco: Jossey-Bass.
The White Paper released by the Camden Group and presented for review by the contributing authors (Rebecca Bales, Kelly Tiberio, and Tara Tesch) offers a perspective from one of the nation’s leading Health Care advisory firms. The paper brings to the forefront the characteristics of Non-Profit and for-profit hospitals, and the outlook for conversion from one industry classification (Non-Profit into a For-profit) business entity. Contained within the paper are a wide-range of topics with regards to the similarities between the two health care models, laws and regulations from both the State & Federal levels that guide their respective classification, market outlook for the health care industry and case studies that highlight the impact of actual conversion from Non-profit to For-profit hospitals from an industry standpoint. The health care is a challenging and competitive environment, therefore the paper focuses on providing insight on a strategy based on adapting from one business model into another in order to remain competitive.
The book quotes “In creating strategic plans, non-profit leaders are determining which set of strategies are key to the impact they want to achieve in their communities” (Heyman, 2011, pg 63). This specific leadership topic caught my attention because I firmly believe that leaders cannot lead without some sort of a thoroughly thought out plan to do great things. Strategic planning is essential to a nonprofit professional organization in which it undertook a strategic planning process vital arranging procedure to address difficulties, refine its central goal and standards explanation, and acquire input from the individuals so as to better address their issues and go places and advance the association in a durable and intentional way (McHatton, Bradshaw, Gallagher, & Reeves, 2011). At the end of the day, strategic planning is characterized as the key masterminding of a wide term that conceals techniques used to guide decision-making in an association. By obtaining these arrangements of aptitudes, leaders need to consequently consider everything in their association and how does that one arrangement impact the other in the event that they decide to run with arrangement A or arrangement B. With the strategic planning in motion, leaders must develop a language to describe the organization’s current community goals and impact that is essential to effective marketing and
No one can achieve any goals without a strategic plan. When setting a goal a person has to think of ways to accomplish the goal. Having a goal without a plan is like having a class with no books. A goal is the big idea and the strategy contain the steps to the achievement of that objective. Many businesses would go bankrupt if they did not have a strategic plan to achieve profit goals. For instance, Walmart has a goal to meet their set revenue for the month, so the company has to set tactical ideas to reach that revenue goal. There is no way to set a goal and not have an operational plan to attain
A non-profit organization cannot be effectively managed if it is not effectively planned. One of the challenges facing non-profit organizations has been long range, strategic planning. Long range, strategic planning in the non-profit sector is essential to the success of an organization. Long range, strategic planning encompasses broad policy and direction setting, internal and external assessments, attention to key stakeholders, the identification of key issues, development of strategies to deal with each issue, decision making, action and the continuous monitoring of results. (Herman, The Jossey-Bass Handbook of Nonprofit Leadership and Management, 154) While it is important to deal with the short term planning and activities of non-profits, managers or directors must consider the future of their organizations. Successful planning should be comprehensive, integrating all areas of responsibility of an organization.
Planning provides a guideline for the members of an organisation to carry out their tasks according to the set objectives. The absence of planning can create ambiguity within the organisation.
Planning is a process of establishing a mission with clear goals as a means to achieve them. Good planning requires special skills and perspectives allowing decision-makers to understand the challenges they are facing and apply the most effective solution to a problem. In order to achieve success, one must plan accordingly. Planning can be short term or long term. Short term plans are done on daily basis and are easier to achieve than long term plans. Long term plans are also known as strategic plans and are used to achieve a long range vision or mission of a company. In both methods of planning, short term and long term, is necessary to achieve top notch results. Like in any other process, there are both benefits and pitfalls to a
Per John M. Bryson, strategic planning, if properly conducted, can help the leaders and managers of public and non-profit organizations think, learn and act tactically. Strategic planning enables organizational leaders and managers to first identify their organization’s mission and/or purpose. Thereafter, the planning process permits these leaders to pinpoint the actions and activities that will enable the organization to achieve its mission. Finally, the planning process requires the organizational leaders to synthesize objectives and activities into a blueprint or concrete plan of action under which the organization will conduct its business.
Managers and organisations plan because it provides them with some direction and reduces uncertainty within the firm. It is also used to set standards for controlling, it is therefore very important within organisations. (Robbins, Bergman, Stagg & Coulter et al, 2006)