On October 23rd, 2014, we updated our
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Twenty Five-Year Forecasts from The Economist Intelligence Unit: • U.S. GDP will grow 2.7% per year; EU15 countries 1.9%; Japan 1%. • Aging populations will be a drag on economies. • Emerging markets will have higher growth; Russia and Brazil 3%, India and China 6%. • In 2030 the United State will be biggest economy in world, China second, Japan third, India fourth.
Planning Tools And Techniques
creates back-up plans for when things go wrong
uses external comparisons to gain insights for planning.
are methods that lead to superior performance.
Planning Tools And Techniques
includes the persons who will be affected by plans and/or who will implement them.
Mission: The organization’s purpose or fundamental reason for existence
Vision: A widely descriptive image of what a company wants to be or wants to be known for
Value: The set of cherished notions and beliefs that guides every move that a company makes
Objective: End point of a a management program
Goal: A future target or end result that an organization wishes to achieve
What may happen in traditional objective setting.
Establishing Goals and Developing Plans
Management By Objectives (MBO)
Specific performance goals are jointly determined by employees and managers.
Progress toward accomplishing goals is periodically reviewed.
Rewards are allocated on the basis of progress towards the goals.
Key elements of MBO:
Goal specificity, participative decision making, an explicit performance/evaluation period, feedback
Steps in a Typical MBO Program
The organization’s overall objectives and strategies are formulated.
Major objectives are allocated among divisional and departmental units .
Unit managers collaboratively set specific objectives for their units with their managers.
Specific objectives are collaboratively set with all department members .
Action plans , defining how objectives are to be achieved, are specified and agreed upon by managers and employees.
The action plans are implemented .
Progress toward objectives is periodically reviewed , and feedback is provided.
Successful achievement of objectives is reinforced by performance-based rewards .
Does MBO Work?
Reason for MBO Success
Top management commitment and involvement
Potential Problems with MBO Programs
Not as effective in dynamic environment that require constant resetting of goals.
Overemphasis on individual accomplishment may create problems with teamwork.
Allowing the MBO program to become an annual paperwork shuffle.
Characteristics of Well-Designed Goals
Written in terms of outcomes, not actions
Focuses on the ends, not the means.
Measurable and quantifiable
Specifically defines how the outcome is to be measured and how much is expected.
Clear as to time frame
How long before measuring accomplishment.
Challenging yet attainable
Low goals do not motivate.
High goals motivate if they can be achieved.
Focuses, defines, and makes goals visible.
Communicated to all necessary organizational members
Puts everybody “on the same page .”
Steps in Goal Setting
Review the organization’s mission statement.
Do goals reflect the mission?
Evaluate available resources.
Are resources sufficient to accomplish the mission?
Determine goals individually or with others.
Are goals specific, measurable, and timely?
Write down the goals and communicate them.
Is everybody on the same page?
Review results and whether goals are being met.
What changes are needed in mission, resources, or goals?
Comparison of entrepreneurs and traditional supervisors.
Time management tips
Do say “No” to requests that divert you from what you really should be doing.
Don’t get bogged down in details that you can address later or leave for others.
Do have a system for screening telephone calls, e-mails, and requests for meetings.
Don’t let drop-in visitors or instant messages use too much of your time.
Do prioritize what you will work on in terms of importance and urgency.
Don’t become calendar bound by letting others control your schedule.
Do follow priorities; work on the most important and urgent tasks first. Continually work to optimize your time.”