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


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Organizational Planning and Goal Setting

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

    1. 1. 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
    2. 2. <ul><li>1. Short Recap – Previous Weeks </li></ul><ul><li>2. What is Planning? </li></ul><ul><li>3. The reasons for planning </li></ul><ul><li>4. How managers develop effective plans </li></ul><ul><li>5. Goal setting </li></ul><ul><li>6. Describe and Explain 4 types of plans </li></ul><ul><li>7. New approaches to planning </li></ul>Objectives of Session
    3. 3. Today we are talking about Organizational Goals and Planning <ul><li>Have you ever hear the adage, “those who fail to plan, plan to fail” </li></ul><ul><li>What does it mean? </li></ul><ul><li>We all plan – Some of us have things to do list, diaries, PAs </li></ul>
    4. 4. Planning <ul><li>Of the 4 management function – planning, organizing, leading & controlling - Planning is most fundamental as everything stems from planning </li></ul><ul><li>Planning can be very controversial </li></ul><ul><ul><li>How do we get where we want to go? </li></ul></ul><ul><ul><li>Who do we involve in the planning process? </li></ul></ul><ul><ul><li>How do we prepare for an unexpected future? </li></ul></ul><ul><ul><li>What resources will I need? </li></ul></ul>
    5. 5. Planning for the Future <ul><li>Most organizations are facing turbulence and growing uncertainty </li></ul><ul><ul><li>Economic, political, & social turmoil = managers wonder how to cope (USA as we speak) </li></ul></ul><ul><ul><li>Renewed interest in organizational planning </li></ul></ul><ul><ul><li>Successful organizations do not just happen, they are planned for and managed so </li></ul></ul>
    6. 6. Managerial Planning and Goal Setting <ul><li>A fundamental role of managers to decide where the organization is going and how it will get there </li></ul><ul><li>In small organizations planning tends to be informal while in large organizations, planning is formal as there are stakeholders and shareholders to respond to </li></ul>
    7. 7. Why are Goals and Plans important? <ul><li>Goals specify future states of being and future ends </li></ul><ul><li>Plans specify today’s means in getting there (Meaning, to the Goals) </li></ul>
    8. 8. The Importance of Goals and Plans <ul><li>Guides to action </li></ul><ul><li>Rationale for decisions </li></ul><ul><li>Standard of performance </li></ul>Goals and Plans
    9. 9. Goals and Plans <ul><li>Goal - A desired future state that the organization attempts to realize . </li></ul><ul><li>Plan - A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals </li></ul><ul><li>Planning – determining the organization’s goals and the means for achieving them </li></ul><ul><ul><li>the most fundamental management function </li></ul></ul><ul><ul><li>the most controversial management function. </li></ul></ul>
    10. 10. 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
    11. 11. Benefits for the Organization <ul><li>Legitimacy </li></ul><ul><ul><li>What the organization stands for - reason for being </li></ul></ul><ul><ul><li>Symbolizes legitimacy </li></ul></ul><ul><ul><li>Employees identify with overall purpose </li></ul></ul><ul><li>Source of Motivation and Commitment </li></ul><ul><ul><li>Employees’ identification with the organization </li></ul></ul><ul><ul><li>Motivate by reducing uncertainty </li></ul></ul><ul><li>Guides to Action </li></ul><ul><ul><li>Provide a sense of direction; focus attention on specific targets </li></ul></ul><ul><ul><li>Direct efforts toward important outcome </li></ul></ul>Provided from Internal and External Messages Goals and Plans Send
    12. 12. Benefits for the Organization <ul><li>Rationale for Decisions </li></ul><ul><ul><li>Learn what organization is trying to accomplish </li></ul></ul><ul><ul><li>Make decisions to ensure that internal policies, roles, performance, structure, products, and expenditures will be made in accordance with desired outcomes </li></ul></ul><ul><li>Standard of Performance </li></ul><ul><ul><li>Serve as performance criteria </li></ul></ul><ul><ul><li>Provide a standard of assessment </li></ul></ul>
    13. 13. Organizational Mission <ul><li>Mission = organization’s reason for existing </li></ul><ul><li>Mission Statement </li></ul><ul><ul><li>Broadly states the basic business scope and operations that distinguishes it from similar types of organizations </li></ul></ul><ul><ul><li>May include the market and customers </li></ul></ul><ul><ul><li>Some may describe company values, product quality, attitudes toward employees </li></ul></ul>
    14. 14. The Power of a well designed Mission Statement <ul><li>1. Attract high quality employees to your firm </li></ul><ul><li>2. Enhance employees motivation </li></ul><ul><li>3. Improve overall Organizational Performance </li></ul><ul><li>4. Attract Customers </li></ul>
    15. 15. 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.
    16. 16. <ul><li>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. </li></ul><ul><li>The niche area that we have successfully </li></ul><ul><li>targeted over the last fifteen years has been as construction facilitators and operatives for foreign investors to Jamaica. </li></ul><ul><li>Our client list includes several International Fortune 500 companies including Hanes/Sarah Lee Corporation, Jockey International, Wyndham Hotels, AT&T, and McDonald's International. </li></ul>Harper Construction Services Mission Statement
    17. 17. Harper Construction Services Mission Statement (cont’d) <ul><li>We offer our clients our experienced services in : </li></ul><ul><li>Design-Build </li></ul><ul><li>Project Development </li></ul><ul><li>Preconstruction Services </li></ul><ul><li>General Contracting </li></ul><ul><li>Project Management </li></ul><ul><li>Our clients can expect from us : </li></ul><ul><li>Quality; Reliability; Realistic Budgets; Accountability ; Customer Focus </li></ul><ul><li>Performance within schedule ; Adept client communication </li></ul><ul><li>Our understanding of the needs of foreign and local investors </li></ul>
    18. 18. Harper Construction Services Mission Statement (cont’d) <ul><li>  Harper Construction Services  are the agents for: J.H.A. Associates ,Installers and Manufacturers of Panel, .Accordion and Roller Hurricane  Shutters. </li></ul><ul><li>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. </li></ul>
    19. 19. Strategic Goals and Plans <ul><li>Strategic Goals </li></ul><ul><li>Where the organization wants to be in the future </li></ul><ul><li>Pertain to the organization as a whole </li></ul><ul><li>Strategic Plans </li></ul><ul><li>Action Steps used to attain strategic goals </li></ul><ul><li>Blueprint that defines the organizational activities and resource allocations </li></ul><ul><li>Tends to be long term </li></ul>
    20. 20. Tactical Goals and Plans <ul><li>Tactical Goals </li></ul><ul><li>Apply to middle management </li></ul><ul><li>Goals that define the outcomes that major divisions and departments must achieve </li></ul><ul><li>Tactical Plans </li></ul><ul><li>Plans designed to help execute major strategic plans </li></ul><ul><li>Shorter than time frame than strategic plans </li></ul>
    21. 21. Operational Goals and Plans <ul><li>Operational Goals </li></ul><ul><li>Specific, measurable results </li></ul><ul><li>Expected from departments, work groups, and individuals </li></ul><ul><li>Operational Plans </li></ul><ul><li>Organization’s lower levels that specify action steps toward achieving operational goals </li></ul><ul><li>Tool for daily and weekly operations </li></ul><ul><li>Schedules are an important component </li></ul>
    22. 22. Goal Attainment <ul><li>Means-end Chain </li></ul><ul><li>Attainment of goals at lower levels permits the attainment of high-level goals </li></ul><ul><li>Traditional organizational responsibility </li></ul><ul><ul><li>Strategic = top management </li></ul></ul><ul><ul><li>Tactical – middle management </li></ul></ul><ul><ul><li>Operational = 1 st line management & workers </li></ul></ul>
    23. 23. Hierarchy of Goals Operational Goals Tactical Goals Strategic Goals Mission Traditional Responsibility Top Management Middle Management 1st-line Management & Workers <ul><li>Shrinking middle management </li></ul><ul><li>Employee empowerment </li></ul>Employees Today
    24. 24. Characteristics of Effective Goal Setting or (Criteria) <ul><li>Specific and measurable </li></ul><ul><li>Cover Key Areas </li></ul><ul><li>Challenging but realistic </li></ul><ul><li>Defined time period </li></ul><ul><li>Linked to rewards </li></ul>Formerly SMART
    25. 25. Characteristics of Effective Goal Setting or (Criteria) <ul><li>Specific and measurable </li></ul><ul><ul><li>Where possible, goals should be expressed quantitatively (2% increase in sales) </li></ul></ul><ul><ul><li>This allows measurable progress </li></ul></ul><ul><li>Cover Key Areas </li></ul><ul><ul><li>Choose areas that contribute most to the organizational performance (Critical Success Factor [CSF]) Say 5 per department </li></ul></ul><ul><ul><li>One method is – Balanced Score Card Method </li></ul></ul><ul><ul><li>E.g. Financial, Customer service; internal processes; innovation and learning </li></ul></ul>
    26. 26. Characteristics of Effective Goal Setting or (Criteria) <ul><li>Challenging but realistic </li></ul><ul><ul><li>Should be challenging but not unreasonably difficult </li></ul></ul><ul><ul><li>Goals fall within department’s resources and time </li></ul></ul><ul><li>Defined time period </li></ul><ul><ul><li>Specify time (deadline) for goal to be achieved </li></ul></ul><ul><li>Linked to rewards </li></ul><ul><ul><li>Ultimate impact on goals most times depends on the extent to which they are linked to promotions, salary increases and rewards </li></ul></ul><ul><ul><li>People who achieve goals should be rewarded </li></ul></ul>
    27. 27. 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
    28. 28. MBO Benefits and Problems <ul><li>Manager and employee efforts are focused on activities that will lead to goal attainment </li></ul><ul><li>Performance can be improved at all company levels </li></ul><ul><li>Employees are motivated </li></ul><ul><li>Departmental and individual goals are aligned with company goals </li></ul><ul><li>Constant change prevents MBO from taking hold </li></ul><ul><li>An environment of poor employer-employee relations reduces MBO effectiveness </li></ul><ul><li>Strategic goals may be displaced by operational goals </li></ul><ul><li>Mechanistic organizations and values that discourage participation can harm the MBO process </li></ul><ul><li>Too much paperwork saps MBO energy </li></ul>Benefits of MBO
    29. 29. Types of Planning - Single-Use Plans (2) <ul><li>For Goals Not Likely To Be Repeated </li></ul><ul><li>A program is a complex set of objectives and plans to achieve an important, one-time organizational goal </li></ul><ul><li>A project is similar to a program, but generally smaller in scope and complexity </li></ul>
    30. 30. Types of Planning - Standing Plans – (3) For Tasks Performed Repeatedly <ul><li>A policy is a general guide to action and provides direction for people within the organization </li></ul><ul><li>Rules describe how a specific action is to be performed </li></ul><ul><li>Procedures define a precise series of steps to be used in achieving a specific job </li></ul>
    31. 31. Types of Planning - Contingency Plans (4) - Specific Situations - unexpected conditions <ul><li>Identify Uncontrollable Factors </li></ul><ul><ul><li>Economic turndowns </li></ul></ul><ul><ul><li>Declining markets </li></ul></ul><ul><ul><li>Increases in costs of supplies </li></ul></ul><ul><ul><li>Technological developments </li></ul></ul><ul><ul><li>Safety accidents </li></ul></ul><ul><li>Minimize Impact of Uncontrollable Factors </li></ul><ul><ul><li>Forecast a range of alternative responses to most-likely high-impact contingencies </li></ul></ul>
    32. 32. Building Scenarios – An extension of Contingency Planning <ul><li>Looking at trends and discontinuities and imagining possible alternative futures to build a framework within which unexpected future events can be managed </li></ul>Forces managers to rehearse mentally what they would do if their best-laid plans were to collapse
    33. 33. Crisis Management Planning Sudden - Devastating –Require Immediate Response ( An extension of Contingency Planning) <ul><li>Prevention </li></ul><ul><ul><li>Build trusting relationship with key stakeholders </li></ul></ul><ul><ul><li>Open communication </li></ul></ul><ul><li>Preparation </li></ul><ul><ul><li>Crisis Management Team </li></ul></ul><ul><ul><li>Crisis Management Plan </li></ul></ul><ul><ul><li>Establish an Effective Communications system </li></ul></ul><ul><li>Containment </li></ul>
    34. 34. Planning for High Performance <ul><li>Central Planning = Traditional </li></ul><ul><li>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 </li></ul><ul><li>Decentralized Planning = High-Performance ( Managers work with planning experts to develop their own goals and plans) </li></ul>
    35. 35. Planning for High Performance <ul><li>Planning comes alive when employees are involved in setting goals and determining the means to reach them </li></ul>
    36. 36. Planning In The New Workplace <ul><li>Have a strong mission statement and vision </li></ul><ul><li>Set stretch goals for excellence </li></ul><ul><li>Establish a culture that encourages learning </li></ul><ul><li>Embrace event-driven planning </li></ul><ul><li>Utilize temporary task forces </li></ul><ul><li>Planning still starts and stops at the top </li></ul>
    37. 37. The End <ul><li>Any Questions </li></ul><ul><li>Course Test#1 – </li></ul><ul><li>October 3, 2008 in your Tutorial Session (Lectures 1- 4) </li></ul><ul><li>Have a great Week </li></ul>