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Long range planning must include planning for personnel development and organizational structural changes. Basically, this involves 3 steps. The first is to objectively appraise the current state of personnel and the organization. This should include consideration of such factors as the qualifications of personnel, depth of management, compensation levels, personnel policies and practices, and management development programs. The second step is to set long term objectives for achievement within a set time period. It should be determined whether the organization will be centralized or decentralized, the qualified personnel needed, and a source or sources for obtaining qualified employees. The final step is to develop plans which will help the organization reach its future goals.

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