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Growing Pains, 5th Edition by Yvonne Randle, Eric G. Flamholtz

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Part II

Mastering the Tools for Building Sustainably Successful Organizations®

Part One of this book presented the key factors that determine organizational success and provided a framework for understanding the stages of organizational growth. Part Two focuses on a set of tools that can be used by company leaders to promote successful growth and development. Specifically, we will discuss some of the major elements of an organization's management infrastructure—its management systems and corporate culture. Management systems and corporate culture were described briefly in Chapter 2, and their places on the Pyramid of Organizational Development were shown in Figure II.1.

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Figure II.1 The Management System

An organization's management systems consist of (1) the planning system (including the strategic planning process), (2) the organization structure, (3) its system for management and leadership development, and (4) the company's control or performance management systems. Management systems have a critical influence on an organization's current and future performance and profitability.

A planning system includes the processes for strategic planning, operational planning, budgeting, and contingency planning. The strategic planning process is a critical resource or tool for managing organizational growth and development. Chapter 6 presents concepts and methods of strategic planning. ...

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