3600planning

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  • 3600planning

    1. 1. Planning Organizational Goal Setting and Planning
    2. 2. Definitions <ul><li>Goal </li></ul><ul><ul><li>A desired future state the organization attempts to realize </li></ul></ul><ul><ul><li>e.g. - Increase net profit 20% by the end of next quarter </li></ul></ul><ul><li>Plan </li></ul><ul><ul><li>A blueprint or plan for goal achievement </li></ul></ul><ul><ul><li>e.g. - Sell life insurance to existing auto insurance customers. </li></ul></ul>
    3. 3. Purposes of Goals <ul><li>Provide guidance and a unified direction </li></ul><ul><li>Improve quality of planning </li></ul><ul><li>Motivate employees </li></ul><ul><li>Help to evaluate and control the organization. </li></ul>
    4. 4. Levels of Goals Mission Statement Strategic Goals/Plans Tactical Goals/Plans Operational Goals/Plans
    5. 5. Organizational Mission <ul><li>Reason for existence, the basic purpose of the organization </li></ul><ul><li>Focus on items such as: </li></ul><ul><ul><li>Market and customers </li></ul></ul><ul><ul><li>Desired types of activities </li></ul></ul><ul><ul><li>Values, aspirations, and reason for being </li></ul></ul><ul><ul><li>Product quality </li></ul></ul><ul><ul><li>Location of facilities </li></ul></ul><ul><ul><li>Attitude toward employees. </li></ul></ul>
    6. 6. Strategic Goals <ul><li>Set by and for top management </li></ul><ul><li>Broad statements describing where the organization wants to be in the future </li></ul><ul><li>Drucker suggests eight areas of focus, including: market standing, innovation, productivity, managerial performance, profitability, worker performance, social responsibility, and resource management. </li></ul>
    7. 7. Tactical Goals <ul><li>Set by and for middle managers </li></ul><ul><li>Aligned with strategic goals </li></ul><ul><li>Define specific results that major divisions and departments will achieve to contribute to strategic goals. </li></ul>
    8. 8. Operational Goals <ul><li>Set by and for lower-level managers </li></ul><ul><li>Address issues associated with achieving tactical goals. </li></ul>
    9. 9. Organizational Goals Example Figure 7.2 Accounting manager ï Split accounts receivable/payable functions from other areas within two years ï Computerize payroll system for each restaurant this year ï Pay all invoices within thirty days Advertising director ï Develop regional advertising campaigns within one year ï Negotiate 5 percent lower advertising rates next year ï Implement this year í s promotional strategy Restaurant manager ï Implement employee incentive system within one year ï Decrease waste by 5 percent this year ï Hire and train new assistant manager Vice president ñ finance ï Keep corporate debt to no more than 20 percent of liquid assets for next ten years ï Revise computerized accounting system within five years ï Earn 9 percent on excess cash this year President and CEO ï Provide 14 percent return to investors for at least ten years ï Start or purchase new restaurant chain within five years ï Negotiate new labor contract this year Mission: Our mission is to operate a chain of restaurants that will prepare and serve high-quality food on a timely basis and at reasonable prices. Vice president ñ marketing ï Increase per store sales 5 percent per year for ten years ï Target and attract two new market segments during next five years ï Develop new promotional strategy for next year Vice president ñ operations ï Open 150 new restaurants during next ten years ï Decrease food-container costs by 15 percent during next five years ï Decrease average customer wait by thirty seconds this year Strategic Goals Tactical Goals Operational Goals
    10. 10. ? Discussion Question ? <ul><li>In your groups identify a mission statement, strategic, tactical and operational goals for this university. Assume that departments (e.g. Management and Finance) are the equivalent of departments in the organization, and that professors are the equivalent of line management. </li></ul>
    11. 11. <ul><li>Compare your goals with the goals of the group sitting next to you. How are they different? The same? What implications do the differences in your goals have for the university? </li></ul>? Discussion Question ?
    12. 12. Other Types of Goals <ul><li>By Area </li></ul><ul><ul><li>different functional areas of organization (e.g. sale, marketing, human resources) </li></ul></ul><ul><li>By Time Frame </li></ul><ul><ul><li>short, intermediate, or long-term </li></ul></ul><ul><ul><li>explicit or open-ended time frame. </li></ul></ul>
    13. 13. Managing Multiple Goals <ul><li>Optimizing allows managers to balance and reconcile inconsistent or conflicting goals. </li></ul><ul><li>Managers can choose to pursue one goal and exclude all others or to seek a mid-range goal. </li></ul>
    14. 14. Management By Objectives (MBO) Figure 7.5 Starting the formal goal-setting program Establishment of organiza- tional goals and plans Collaborative goal setting and planning Communicat- ing organiza- tional goals and plans Meeting Verifiable goals and clear plans Counseling Resources Periodic review Evaluation
    15. 15. Benefits of MBO <ul><li>Improves employee motivation </li></ul><ul><li>Enhances communication </li></ul><ul><li>Makes performance appraisals objective </li></ul><ul><li>Focuses attention on organizational priorities </li></ul><ul><li>Helps identify managerial talent </li></ul><ul><li>Provides a systematic management philosophy </li></ul><ul><li>Facilitates control of the organization. </li></ul>
    16. 16. Problems with MBO <ul><li>Poor implementation of the goal setting process </li></ul><ul><li>Lack of top-management support for goal setting </li></ul><ul><li>Delegation of the goal-setting process to lower levels </li></ul><ul><li>Overemphasis on quantitative goals </li></ul><ul><li>Too much paperwork and record keeping </li></ul><ul><li>Managerial resistance to goal setting. </li></ul>
    17. 17. Types of Plans <ul><li>Mirror types of goals: </li></ul><ul><ul><li>Strategic </li></ul></ul><ul><ul><li>Tactical </li></ul></ul><ul><ul><li>Operational. </li></ul></ul>Mission Statement Strategic Goals/Plans Tactical Goals/Plans Operational Goals/Plans
    18. 18. Operational Single-Use Plans <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>
    19. 19. Operational Standing Plans <ul><li>A policy is a general guide to action </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><ul><li>Processes are ways goals are achieved </li></ul>
    20. 20. Contingency Planning <ul><li>Defines company responses to be taken in case of emergency or setback </li></ul>Figure 7.3 Ongoing planning process Action point 1 Action point 2 Action point 3 Action point 4 Develop plan, considering contingency events Implement plan and formally identify contingency events Specify indicators for the contingency events and develop contingency plans for each possible event Successfully complete plan or contingency plan Monitor contingency event indicators and implement contingency plan if necessary
    21. 21. Barriers to Goal Setting and Planning <ul><li>Inappropriate goals </li></ul><ul><li>Improper reward systems </li></ul><ul><li>Dynamic and complex environment </li></ul><ul><li>Reluctance to establish goals </li></ul><ul><li>Resistance to change </li></ul><ul><li>Constraints. </li></ul>
    22. 22. Overcoming Barriers to Goal Setting and Planning <ul><li>Understand your purposes for goal setting and planning </li></ul><ul><li>Communicate and allow employee participation in goal setting and planning </li></ul><ul><li>Use consistency, revision and updating to match goals and environment </li></ul>

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