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Organizational Planning and Goal Setting

Organizational Planning and Goal Setting

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Introduction to managment   groups g-i - organizational planning and goal setting - oct 1, 2008 Introduction to managment groups g-i - organizational planning and goal setting - oct 1, 2008 Presentation Transcript

  • MAN1006: Introduction to Management (Groups~BBA1G-I) Lecture 5 – Organizational Goal Setting and Planning Lecturer: Oswy Gayle Wednesday October 1, 2008 University of Technology, Jamaica School of Business Administration
    • 1. Short Recap – Previous Weeks
    • 2. What is Planning?
    • 3. The reasons for planning
    • 4. How managers develop effective plans
    • 5. Goal setting
    • 6. Describe and Explain 4 types of plans
    • 7. New approaches to planning
    Objectives of Session
  • Today we are talking about Organizational Goals and Planning
    • Have you ever hear the adage, “those who fail to plan, plan to fail”
    • What does it mean?
    • We all plan – Some of us have things to do list, diaries, PAs
    View slide
  • Planning
    • Of the 4 management function – planning, organizing, leading & controlling - Planning is most fundamental as everything stems from planning
    • Planning can be very controversial
      • How do we get where we want to go?
      • Who do we involve in the planning process?
      • How do we prepare for an unexpected future?
      • What resources will I need?
    View slide
  • Planning for the Future
    • Most organizations are facing turbulence and growing uncertainty
      • Economic, political, & social turmoil = managers wonder how to cope (USA as we speak)
      • Renewed interest in organizational planning
      • Successful organizations do not just happen, they are planned for and managed so
  • Managerial Planning and Goal Setting
    • A fundamental role of managers to decide where the organization is going and how it will get there
    • In small organizations planning tends to be informal while in large organizations, planning is formal as there are stakeholders and shareholders to respond to
  • Why are Goals and Plans important?
    • Goals specify future states of being and future ends
    • Plans specify today’s means in getting there (Meaning, to the Goals)
  • The Importance of Goals and Plans
    • Guides to action
    • Rationale for decisions
    • Standard of performance
    Goals and Plans
  • Goals and Plans
    • Goal - A desired future state that the organization attempts to realize .
    • Plan - A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals
    • Planning – determining the organization’s goals and the means for achieving them
      • the most fundamental management function
      • the most controversial management function.
  • Mission Statement Strategic Goals/Plans Senior Management (Organization as a whole) Tactical Goals/Plans Middle Management (Major divisions, functions) Operational Goals/Plans Lower Management (Departments, individuals) Internal Message Legitimacy, motivation, guides, rationale, standards External Message Legitimacy for investors, customers, suppliers, community Levels of Goals/Plans & Their Importance
  • Benefits for the Organization
    • Legitimacy
      • What the organization stands for - reason for being
      • Symbolizes legitimacy
      • Employees identify with overall purpose
    • Source of Motivation and Commitment
      • Employees’ identification with the organization
      • Motivate by reducing uncertainty
    • Guides to Action
      • Provide a sense of direction; focus attention on specific targets
      • Direct efforts toward important outcome
    Provided from Internal and External Messages Goals and Plans Send
  • Benefits for the Organization
    • Rationale for Decisions
      • Learn what organization is trying to accomplish
      • Make decisions to ensure that internal policies, roles, performance, structure, products, and expenditures will be made in accordance with desired outcomes
    • Standard of Performance
      • Serve as performance criteria
      • Provide a standard of assessment
  • Organizational Mission
    • Mission = organization’s reason for existing
    • Mission Statement
      • Broadly states the basic business scope and operations that distinguishes it from similar types of organizations
      • May include the market and customers
      • Some may describe company values, product quality, attitudes toward employees
  • The Power of a well designed Mission Statement
    • 1. Attract high quality employees to your firm
    • 2. Enhance employees motivation
    • 3. Improve overall Organizational Performance
    • 4. Attract Customers
  • Bristol-Myers Squibb Mission Statement Our company’s mission is to extend and enhance human life by providing the highest-quality pharmaceutical and related health care products.
    • Harper Construction Services, is a well established Project Management, Building and Civil Engineering Construction company with multi-faceted experience in various sectors of the Jamaican market.
    • The niche area that we have successfully
    • targeted over the last fifteen years has been as construction facilitators and operatives for foreign investors to Jamaica.
    • Our client list includes several International Fortune 500 companies including Hanes/Sarah Lee Corporation, Jockey International, Wyndham Hotels, AT&T, and McDonald's International.
    Harper Construction Services Mission Statement
  • Harper Construction Services Mission Statement (cont’d)
    • We offer our clients our experienced services in :
    • Design-Build
    • Project Development
    • Preconstruction Services
    • General Contracting
    • Project Management
    • Our clients can expect from us :
    • Quality; Reliability; Realistic Budgets; Accountability ; Customer Focus
    • Performance within schedule ; Adept client communication
    • Our understanding of the needs of foreign and local investors
  • Harper Construction Services Mission Statement (cont’d)
    •   Harper Construction Services  are the agents for: J.H.A. Associates ,Installers and Manufacturers of Panel, .Accordion and Roller Hurricane  Shutters.
    • We are committed to a high standard of performance to meet the expectations of our local and international clients within a framework of trust, responsibility and reliability.
  • Strategic Goals and Plans
    • Strategic Goals
    • Where the organization wants to be in the future
    • Pertain to the organization as a whole
    • Strategic Plans
    • Action Steps used to attain strategic goals
    • Blueprint that defines the organizational activities and resource allocations
    • Tends to be long term
  • Tactical Goals and Plans
    • Tactical Goals
    • Apply to middle management
    • Goals that define the outcomes that major divisions and departments must achieve
    • Tactical Plans
    • Plans designed to help execute major strategic plans
    • Shorter than time frame than strategic plans
  • Operational Goals and Plans
    • Operational Goals
    • Specific, measurable results
    • Expected from departments, work groups, and individuals
    • Operational Plans
    • Organization’s lower levels that specify action steps toward achieving operational goals
    • Tool for daily and weekly operations
    • Schedules are an important component
  • Goal Attainment
    • Means-end Chain
    • Attainment of goals at lower levels permits the attainment of high-level goals
    • Traditional organizational responsibility
      • Strategic = top management
      • Tactical – middle management
      • Operational = 1 st line management & workers
  • Hierarchy of Goals Operational Goals Tactical Goals Strategic Goals Mission Traditional Responsibility Top Management Middle Management 1st-line Management & Workers
    • Shrinking middle management
    • Employee empowerment
    Employees Today
  • Characteristics of Effective Goal Setting or (Criteria)
    • Specific and measurable
    • Cover Key Areas
    • Challenging but realistic
    • Defined time period
    • Linked to rewards
    Formerly SMART
  • Characteristics of Effective Goal Setting or (Criteria)
    • Specific and measurable
      • Where possible, goals should be expressed quantitatively (2% increase in sales)
      • This allows measurable progress
    • Cover Key Areas
      • Choose areas that contribute most to the organizational performance (Critical Success Factor [CSF]) Say 5 per department
      • One method is – Balanced Score Card Method
      • E.g. Financial, Customer service; internal processes; innovation and learning
  • Characteristics of Effective Goal Setting or (Criteria)
    • Challenging but realistic
      • Should be challenging but not unreasonably difficult
      • Goals fall within department’s resources and time
    • Defined time period
      • Specify time (deadline) for goal to be achieved
    • Linked to rewards
      • Ultimate impact on goals most times depends on the extent to which they are linked to promotions, salary increases and rewards
      • People who achieve goals should be rewarded
  • Types of Planning - Model of the MBO Process (1) Step 1: Set Goals Step 2: Develop Action Plans Step 3: Review Progress  Corporate Strategic Goals  Departmental goals  Individual goals Step 4: Appraise Overall Performance Appraise Performance Take Corrective Action Review Progress Action Plans
  • MBO Benefits and Problems
    • Manager and employee efforts are focused on activities that will lead to goal attainment
    • Performance can be improved at all company levels
    • Employees are motivated
    • Departmental and individual goals are aligned with company goals
    • Constant change prevents MBO from taking hold
    • An environment of poor employer-employee relations reduces MBO effectiveness
    • Strategic goals may be displaced by operational goals
    • Mechanistic organizations and values that discourage participation can harm the MBO process
    • Too much paperwork saps MBO energy
    Benefits of MBO
  • Types of Planning - Single-Use Plans (2)
    • For Goals Not Likely To Be Repeated
    • A program is a complex set of objectives and plans to achieve an important, one-time organizational goal
    • A project is similar to a program, but generally smaller in scope and complexity
  • Types of Planning - Standing Plans – (3) For Tasks Performed Repeatedly
    • A policy is a general guide to action and provides direction for people within the organization
    • Rules describe how a specific action is to be performed
    • Procedures define a precise series of steps to be used in achieving a specific job
  • Types of Planning - Contingency Plans (4) - Specific Situations - unexpected conditions
    • Identify Uncontrollable Factors
      • Economic turndowns
      • Declining markets
      • Increases in costs of supplies
      • Technological developments
      • Safety accidents
    • Minimize Impact of Uncontrollable Factors
      • Forecast a range of alternative responses to most-likely high-impact contingencies
  • Building Scenarios – An extension of Contingency Planning
    • Looking at trends and discontinuities and imagining possible alternative futures to build a framework within which unexpected future events can be managed
    Forces managers to rehearse mentally what they would do if their best-laid plans were to collapse
  • Crisis Management Planning Sudden - Devastating –Require Immediate Response ( An extension of Contingency Planning)
    • Prevention
      • Build trusting relationship with key stakeholders
      • Open communication
    • Preparation
      • Crisis Management Team
      • Crisis Management Plan
      • Establish an Effective Communications system
    • Containment
  • Planning for High Performance
    • Central Planning = Traditional
    • Department’s Group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEO
    • Decentralized Planning = High-Performance ( Managers work with planning experts to develop their own goals and plans)
  • Planning for High Performance
    • Planning comes alive when employees are involved in setting goals and determining the means to reach them
  • Planning In The New Workplace
    • Have a strong mission statement and vision
    • Set stretch goals for excellence
    • Establish a culture that encourages learning
    • Embrace event-driven planning
    • Utilize temporary task forces
    • Planning still starts and stops at the top
  • The End
    • Any Questions
    • Course Test#1 –
    • October 3, 2008 in your Tutorial Session (Lectures 1- 4)
    • Have a great Week