Define goals and plans and explain the relationship between them.
Explain the concept of organizational mission and how it influences goal setting and planning.
Describe the goals an organization should have and why they resemble a hierarchy.
Define the characteristics of effective goals.
Describe the four essential steps in the MBO process.
Explain the difference between single-use plans and standing plans.
Learning Objectives (contd.)
Describe and explain the importance of the three stages of crisis management planning.
Discuss how planning in a turbulent environment differs from traditional approaches to planning.
Define the components of strategic management.
Describe the strategic planning process and SWOT analysis.
Describe business-level strategies, including Michael E. Porter’s competitive forces and strategies and partnership strategies.
Learning Objectives (contd.)
Explain the major considerations in formulating functional strategies.
Discuss the organizational dimensions used for implementing strategy.
Goals and Plans A blueprint specifying the resource allocation, schedules, and other actions necessary for attaining goals. Plan Goal A desired future state that the organization attempts to realize. 0
Ex. 5.1 Levels of Goals/Plans and Their Importance 0
Purposes of Goals and Plans
Source of motivation and commitment
Rationale for decisions
Guides to action
Standard of performance
Goals and Plans
Where the organization wants to be in the future.
Pertain to the organization as a whole.
Blueprint that defines the organizational activities and resource allocations.
Tactical Goals and Plans Tactical Goals Goals that define the outcomes that major divisions and departments must achieve. Tactical Plans Plans designed to help execute major strategic plans. 0
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. 0
Ex. 5.3 Characteristics of Effective Goal Setting Goal Characteristics
Specific and measurable.
Cover key result areas.
Challenging but realistic.
Defined time period.
Linked to rewards.
Ex. 5.4 Model of the MBO Process Step 1: Setting Goals Step 2: Developing Action Plans Step 3: Reviewing Progress Corporate Strategic Goals Departmental Goals Individual Goals Step 4: Appraising Overall Performance Appraise Performance Take Corrective Action Review Progress Action Plans 0
Ex. 5.5 MBO Benefits and Problems Benefits
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.
Ex. 5.5 MBO Benefits and Problems (contd.) Problems
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.
Set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals
Ex. 5.9 The Strategic Management Process 0 Identify Strategic Factors
Scan Internal Environment
Scan External Environment
Identify Strategic Factors SWOT Implementing Strategy via Changes in:
Information & control systems
Porter’s Competitive Forces Potential new entrants Bargaining power of buyers Bargaining power of suppliers Threat of substitute products Rivalry among competitors Beware 0
Ex. 5.11 The Five Forces Affecting Industry Competition SOURCES: Based on Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (New York: Free Press, 1980); and Michael E. Porter, “Strategy and the Internet,” Harvard Business Review (March, 2001), 63-78. 0
1 . Differentiation
2. Cost Leadership
Ex. 5.13 A Continuum of Partnership Strategies High Low Organizational Combination Strategic Alliance Degree of Collaboration Preferred Supplier Arrangements Strategic Business Partnering Joint Ventures Mergers Acquisitions Source: Adapted from Roberta Maynard. “Striking the Right March,” Nation’s Business (May 1996), 18-28. 0
Ex. 5.14 Tools for Putting Strategy into Action SOURCE: Adapted from Jay R. Galbraith and Robert K. Kazanjian, Strategy Implementation: Structure, Systems, and Process , 2d ed. (St. Paul, Minn.: West, 1986), 115. Used with permission. 0