Strategic planning
Strategic planning comprises of the topmost management in any organisation. Strategic
management comprises decisions made by the chief executive the board of directors and
very senior managers. They formulate long- term plans and assess how such plans are
strategic to the long-term survival. They also assess the effects of external events on the
company performance.
The strategic information required contain the following characteristics:
i) Information used is normally old and relates to prior periods and as such it is not
timely. For example, trend analysis.
ii) The response time for information needs is slow since it has to be gathered from
non-specific sources.
iii) The frequency of information usage is not consistent and varies according to the
current situation or needs.
iv) The accuracy of information used is relatively low since most of data used is in form
of estimates and predictions.
v) Information is highly summarised and does not contain a lost of details thus it is
highly aggregated.
vi) Information used in strategic planning is costly and hard to access and so to obtain it
requires extra effort.
vii) Information is unstructured and so cannot be programmed since it is relatively
uncertain.
2. Operational control
Operational control ensures that specific tasks are carried out efficiently and effectively.
It involves the lowest level of management. Operational management consists of junior
officers, clerks and supervisors. Their responsibilities include ensuring that transactions
are collected from environment and recorded in suitable form and specific tasks are
identified and organised for operation activities. It also ensures that adequate operation
controls are put in place to control variances and abnormalities.
The characteristics of information used for operational control include: -
i) Information is always timely and up to date
ii) It is highly accurate as it involves facts and not estimates.
iii) It is usually very detailed and contain a lot of information.
iv) Information is mostly online and need not be searched for since It is ready for use
upon demand.
v) It is always easy to access since it is always up to date.
vi) The response time to operational decisions based on operational information is
instant and constant over time.
gregorymasila answered the question on November 30, 2017 at 11:45
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