Lec5 chp6

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Lec5 chp6

  1. 1. Managerial Planning and Goal Setting CHAPTER 6 0
  2. 2. <ul><li>Define goals and plans and explain the relationship between them. </li></ul><ul><li>Explain the concept of organizational mission and how it influences goal setting and planning. </li></ul><ul><li>Describe the types of goals an organization should have and how managers use strategy maps to align goals. </li></ul><ul><li>Define the characteristics of effective goals . </li></ul><ul><li>Describe the four essential steps in the management by objectives (MBO) process. </li></ul><ul><li>Explain the difference between single-use plans and standing plans . </li></ul><ul><li>Describe and explain the importance of contingency planning, scenario building , and crisis planning in today’s environment. </li></ul><ul><li>Summarize the guidelines for high-performance planning in a fast-changing environment . </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0 Learning Outcomes
  3. 3. Overview of Goals and Plans <ul><li>A goal is a desired future state that the organization attempts to realize </li></ul><ul><li>A plan is a blueprint for goal achievement </li></ul><ul><li>There are different levels of planning and goals in an organization </li></ul><ul><li>Goals at each level of the organization guide the organization </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  4. 4. Levels of Goals/Plans and their Importance Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  5. 5. Characteristics of Goals and Plans <ul><li>Legitimacy </li></ul><ul><li>Source of motivation and commitment </li></ul><ul><li>Resource allocation </li></ul><ul><li>Guides to action </li></ul><ul><li>Rationale for decisions </li></ul><ul><li>Standards of performance </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  6. 6. The Organizational Planning Process Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  7. 7. Organizational Mission <ul><li>The mission statement is the reason the organization exists </li></ul><ul><ul><li>Top of the goal hierarchy </li></ul></ul><ul><ul><li>Describes the values, aspirations and reason for being </li></ul></ul><ul><ul><li>A well-defined mission is the basis for all other goals </li></ul></ul><ul><li>Mission statements outline the stated purpose and values to stakeholders </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  8. 8. Types of Goals and Plans <ul><li>Strategic Goals – official goals, broad statements about the organization </li></ul><ul><ul><li>Define the action steps the company intends to attain </li></ul></ul><ul><ul><li>The blueprint that defines activities </li></ul></ul><ul><li>Tactical Goals – help execute major strategic plans </li></ul><ul><ul><li>Specific part of the company’s strategy </li></ul></ul><ul><ul><li>Plans of the divisions and departments </li></ul></ul><ul><li>Operational Goals – results expected from departments, work groups, and individuals </li></ul><ul><ul><li>Lower levels of the organization </li></ul></ul><ul><ul><li>Specific action steps </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  9. 9. Aligning Goals with Strategy Maps <ul><li>Goals should be consistent and mutually supportive </li></ul><ul><li>The achievement of goals at low levels permits the attainment of high-level goals </li></ul><ul><li>Individuals, teams, and departments should be working in concert </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  10. 10. Strategy Map for Aligning Goals Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. Goals should be consistent and mutually supportive 0
  11. 11. Operational Planning <ul><li>Operational goals should direct employees and resources toward outcomes </li></ul><ul><li>It is important to establish effective goals </li></ul><ul><ul><li>Management by objective </li></ul></ul><ul><ul><li>Single-use plans </li></ul></ul><ul><ul><li>Standing plans </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  12. 12. Characteristics of Effective Goal Setting Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  13. 13. Management by Objective <ul><li>Defined by management scholar Peter Drucker in his 1954 book, The Practice of Management </li></ul><ul><li>Process of defining goals and monitoring progress </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  14. 14. Model of the MBO Process Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  15. 15. MBO Benefits and Problems Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  16. 16. Single-Use and Standing Plans Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  17. 17. Planning for a Turbulent Environment <ul><li>Contingency Planning – plans for emergencies, setbacks or unexpected conditions </li></ul><ul><li>Building Scenarios – visualizing future possibilities </li></ul><ul><li>Crisis Planning – preparing to cope with unexpected events </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  18. 18. Essential Stages of Crisis Planning Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  19. 19. Planning for High Performance <ul><li>Traditional Approach: </li></ul><ul><li>Done by top executives (top down) </li></ul><ul><li>Central planning departments </li></ul><ul><li>Planning specialist </li></ul><ul><li>High-Performance Approach: </li></ul><ul><li>Decentralized planning </li></ul><ul><li>Managers plan throughout the organization </li></ul><ul><li>Now involves line-managers and employees </li></ul><ul><li>Dynamic plans for fast-changing needs </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. Stretch Goals and Big Hairy Audacious Goals (BHAG) are big and inspiring 0
  20. 20. Performance Dashboard for Planning <ul><li>Gauge progress toward goals </li></ul><ul><li>Align and track goals </li></ul><ul><li>All employees can track progress </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0

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