Managerial planning and goal setting


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Managerial planning and goal setting (perencanaan manajemen dan pengaturan tujuan)

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  • Managerial planning and goal setting

    1. 1. Managerial Planning and Goal Setting ORGANISASI dan MANAJEMEN PERUSAHAAN INDUSTRI
    2. 2. Planning for the Future
    3. 3. 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>
    4. 4. Managerial Planning and Goal Setting <ul><li>Process of planning </li></ul><ul><li>How managers develop effective plans </li></ul><ul><li>Goal setting </li></ul><ul><li>Types of plans </li></ul><ul><li>New approaches to planning </li></ul>
    5. 5. 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
    6. 6. 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
    7. 7. 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 outcomes </li></ul></ul>Provided from Internal and External Messages Goals and Plans Send
    8. 8. 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>Provided from Internal and External Messages Goals and Plans Send
    9. 9. 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>
    10. 10. Visi-Misi PT PERTAMINA VISI :Menjadi Perusahaan Minyak Nasional Kelas Dunia MISI :Menjalankan usaha inti minyak, gas, dan bahan bakar nabati secara terintegrasi, berdasarkan prinsip-prinsip komersial yang kuat
    11. 11. 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>
    12. 12. 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>
    13. 13. 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>
    14. 14. 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>
    15. 15. 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
    16. 16. Characteristics of Effective Goal Setting <ul><li>Specific and measurable </li></ul><ul><li>Covered key result area </li></ul><ul><li>Challenging but realistic </li></ul><ul><li>Defined time period </li></ul><ul><li>Linked to rewards </li></ul>
    17. 17. VISION
    18. 18. OBJECTIVE
    19. 19. STRATEGY
    20. 20. TACTIC
    21. 21. ACTION
    22. 22. The Organizational Planning Process Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
    23. 23. 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>0
    24. 24. Strategy Map for Aligning Goals Goals should be consistent and mutually supportive 0
    25. 25. 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><ul><ul><li>Contingency plans </li></ul></ul>0
    26. 26. 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>0
    27. 27. Model of the MBO Process 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 Problems with MBO
    29. 29. Single-Use Plans For Goals Not Likely To Be Repeated <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. Standing Plans 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. Contingency Plans 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. Strategy Formulation and Implementation
    33. 33. Strategic Planning <ul><li>Strategic planning has taken on new importance in today’s world of globalization, deregulation, advancing technology, and changing demographics, and lifestyles </li></ul>
    34. 34. Strategy Formulation and Implementation <ul><li>Strategic Management </li></ul><ul><ul><li>Definition </li></ul></ul><ul><ul><li>Components </li></ul></ul><ul><ul><li>Model of Strategic Management Process </li></ul></ul><ul><ul><li>Models of Strategy Formation </li></ul></ul><ul><li>Managerial Tools to Implement Strategic Plans </li></ul>
    35. 35. Thinking Strategically <ul><li>Answers to the following define an overall direction for the organization's grand strategy </li></ul><ul><li>Where is the organization now? </li></ul><ul><li>Where does the organization want to be? </li></ul><ul><li>What changes are among competitors? </li></ul><ul><li>What courses of action will help us achieve our goals? </li></ul>
    36. 36. Strategic Management <ul><li>Set of decisions and actions used to implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals </li></ul><ul><li>Responsibility = top managers & </li></ul><ul><li> chief executive </li></ul>
    37. 37. Strategic Management <ul><li>Managers ask such questions as... </li></ul><ul><li>What changes and trends are occurring? </li></ul><ul><li>Who are our customers? </li></ul><ul><li>What products or services should we offer? </li></ul><ul><li>How can we offer these products or services most efficiently? </li></ul>
    38. 38. Grand Strategy <ul><li>General plan of major action to achieve long-term goals </li></ul><ul><li>Falls into three general categories </li></ul><ul><li>1. Growth </li></ul><ul><li>2. Stability </li></ul><ul><li>3. Retrenchment </li></ul>A separate grand strategy can be defined for global operations
    39. 39. Grand Strategy: Growth <ul><li>Growth can be promoted internally by investing in expansion or externally by acquiring additional business divisions </li></ul><ul><ul><li>Internal growth = can include development of new or changed products </li></ul></ul><ul><ul><li>External growth = typically involves diversification – businesses related to current product lines or into new areas </li></ul></ul>
    40. 40. Grand Strategy: Stability <ul><li>Stability , sometimes called a pause strategy , means that the organization wants </li></ul><ul><ul><li>to remain the same size or </li></ul></ul><ul><ul><li>to grow slowly and in a controlled fashion </li></ul></ul>
    41. 41. Grand Strategy: Retrenchment <ul><li>Retrenchment = the organization goes through a period of forced decline by either shrinking current business units or selling off or liquidating entire businesses </li></ul><ul><li>Liquidation = selling off a business nit for the cash value of the assets, thus terminating its existence </li></ul><ul><li>Divestiture = involves selling off of businesses that no longer seem central to the corporation </li></ul>
    42. 42. Global Corporate Strategies Need for National Responsiveness High Low Low High <ul><li>Transnational </li></ul><ul><li>Strategy </li></ul><ul><li>Seeks to balance global efficiencies and local responsiveness </li></ul><ul><li>Combines standardization and customization for product/advertising strategies </li></ul><ul><li>Globalization </li></ul><ul><li>Strategy </li></ul><ul><li>Treats world as a single global market </li></ul><ul><li>Standardizes global products/advertising strategies </li></ul><ul><li>Multi-domestic Strategy </li></ul><ul><li>Handles markets independently for each country </li></ul><ul><li>Adapts product/advertising to local tastes and needs </li></ul>Need for Global Integration <ul><li>Export </li></ul><ul><li>Strategy </li></ul><ul><li>Domestically focused </li></ul><ul><li>Exports a few domestically produced products to selected countries </li></ul>
    43. 43. Global Strategy <ul><li>Globalization = product design and advertising strategies are standardized around the world </li></ul><ul><li>Multi-domestic = adapt product and promotion for each country </li></ul><ul><li>Transnational = combine global coordination with flexibility to meet specific needs in various countries </li></ul>
    44. 44. Purpose of Strategy <ul><li>The plan of action that prescribes resource allocation and other activities for dealing with the environment, achieving a competitive advantage, that help the organization attain its goals </li></ul><ul><li>Strategies focus on: </li></ul><ul><li>Core competencies </li></ul><ul><li>Developing synergy </li></ul><ul><li>Creating value for customers </li></ul>
    45. 45. Three Levels of Strategy in Organizations Corporate-Level Strategy : What business are we in? Corporation Business-Level Strategy: How do we compete? Textiles Unit Chemicals Unit Auto Parts Unit Functional-Level Strategy: How do we support the business-level strategy ? Finance R&D Manufacturing Marketing
    46. 46. Strategic Management Process Implement Strategy via Changes in: Leadership culture, Structure, HR, Information & control systems SWOT Formulate Strategy – Corporate, Business, Functional Define new Mission Goals, Grand Strategy Identify Strategic Factors – Strengths, Weaknesses Identify Strategic Factors – Opportunities, Threats Scan Internal Environment – Core Competence, Synergy, Value Creation Evaluate Current Mission, Goals, Strategies Scan External Environment – National, Global
    47. 47. Strategy Formulation vs. Implementation <ul><li>Strategy Formulation = stage of strategic management that involves planning and decision making that lead to the establishment of the organization’s goals and of a specific strategic plan </li></ul><ul><li>Strategy Implementation = stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes </li></ul>
    48. 48. Checklist for Analyzing Organizational Strengths and Weaknesses Sources: Based on Howard H. Stevenson, “ Defining Corporate Strengths and Weaknesses,” Sloan Management Review 17 (spring 1976), 51-68; and M.L.Kastens, Long-Range Planning for Your Business (New York: American Management Association, 1976). Management and Organization Management quality Staff quality Degree of centralization Organization charts Planning, information, control systems Finance Profit margin Debt-equity ratio Inventory ratio Return on investment Credit rating Marketing Sales force turnover Production Plant location Machinery obsolescence Purchasing system Quality control Productivity/efficiency Human Resources Employee experience, education Union status Turnover, absenteeism Work satisfaction Grievances Research and Development Basic applied research Laboratory capabilities Research programs New-product innovations Technology innovations Distribution channels Market share Advertising efficiency Customer satisfaction Product quality Service reputation
    49. 49. Portfolio Strategy <ul><li>Mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage </li></ul>BCG Matrix
    50. 50. Five Forces Affecting Industry Competition Source: Based on Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (New York: Free Press, 1980). <ul><li>Internet reduces barriers to entry </li></ul><ul><li>Internet expands market size, but creates new substitution threats </li></ul><ul><li>Internet tends to increase the bargaining power of suppliers </li></ul><ul><li>Internet shifts greater power to end consumers </li></ul>Internet blurs differences among competitors in an industry Bargaining Power of Buyers Bargaining Power of Suppliers Threat of Substitute Products Potential New Entrants Rivalry among Competitors
    51. 51. Competitive Edge Through Competitive Strategies <ul><li>Differentiation = attempt to distinguish products or services from that of competitors </li></ul><ul><li>Cost leadership = aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors </li></ul><ul><li>Focus = concentrates on a specific regional market or buyer group </li></ul>
    52. 52. Continuum of Partnership Strategies Organizational Combination Strategic Alliances Preferred Supplier Arrangements Strategic Business Partnering Mergers Acquisitions Low High Joint Ventures Degree of Collaboration Degree of Collaboration
    53. 53. Implementing Strategy Tools <ul><li>Leadership </li></ul><ul><li>Structural design </li></ul><ul><li>Information and control systems </li></ul><ul><li>Human resources </li></ul>
    54. 54. Tools for Putting Strategy into Action Environment Organization Strategy Performance Leadership  Persuasion  Motivation  Culture/values <ul><li>Structural Design  Organization Chart  Teams  Centralization </li></ul><ul><li>Decentralization, </li></ul><ul><li>Facilities, task design </li></ul>Human Resources  Recruitment/selection  Transfers/promotions  Training  Layoffs/recalls 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. Information and Control Systems  Pay, reward system  Budget allocations  Information systems  Rules/procedures