Organizations carry out operation planning so as analyze their products and service and develop a plan that will enable them to make financial projections and in the long run maximize their undertakings in the market. It majorly concentrates on the inventory, production and personnel processes of an organization through the use of its financial capabilities leading to the determination of its financial capabilities (Moore, 2012). One of the fundamental role organizations gains from carrying out operational planning is making an analysis of the effects of operation and the flow of its finances enabling it to identify the weak areas and increase on its profits.
Budget planning and operational planning are important for organizations as they enable organizations to make financial projections annually and also enable the organization to manage itself with ease. Organizations carry out budget and operation planning so as to be able to understand the relation of its components which include objective development, strategizing on the standards the organization will operate on, prioritizing key factors of the organization, allocating resources as well as acquiring the resources to serve a particular purpose (Deeb, 2013).
System thinking enables organization to solve complexities by understanding the problem that is at hand, examining the possible approaches to be adopted and developing an action plan that will create change to the organization. The concept of system thinking enables the organization to concentrate on the entire organization dwelling on the interaction between different sectors and the way they affect one another (Abraham, 2012). A fundamental role of these approach is that it enables an organization determine the root cause of a problem that may be affecting, devise mechanisms that will help in rectifying the problem and putting up the necessary measures to ensure that the problem is successful handled. System thinking also adopts the use of graphical presentations and other specialized tools to enable organization achieve accurate results.
Abraham, S. (2012). Strategic management for organizations. San Diego, CA: Bridgepoint Education.
Deeb, G. (2013). If you build it, they may not come: Budget ahead for startup marketing. Forbes. Retrieved from http://www.forbes.com/sites/georgedeeb/2013/11/06/if-you-build-it-they-may-not-come-budget-ahead-for-startup-marketing/
Moore, J. (2012). 7 tips on building your business with better metrics. Forbes. Retrieved from http://www.forbes.com/sites/ciocentral/2012/07/09/7-tips-on-building-your-business-with-better-metrics/