The document discusses organizational goals and goal formulation. It begins by outlining the learning objectives which are to understand concepts of organizations and goals, discuss goal formulation processes and approaches, and explain changing perspectives on organizations. It then defines organizations and their characteristics. Several types of organizational goals are described based on level, area, and time frame. The key aspects of goal formulation covered are the process, approaches, succession, and problems. Finally, changing views of organizations as open systems, cultures, and learning systems are briefly outlined.
02. Organizational Goals, Planning & Decision Making (2021).pptxGoglePixl
The document discusses organizational goals, planning, and decision making. It defines goals as measurable end results to be achieved within a timeframe. Goals provide guidance, motivation, and a means of evaluation. Vision and mission statements describe an organization's purpose and direction. Planning involves setting goals by level (strategic, tactical, operational), area, and timeframe. Barriers to planning like improper goals must be overcome. Decision making requires choosing between alternatives, and styles include autocratic, democratic, laissez-faire, consensus, and contingency approaches.
The document discusses planning and organization in management. It defines planning as determining goals and objectives for the future and deciding how to achieve them. Organization involves structuring roles and responsibilities within a company to coordinate efforts toward goals. There are different types of plans like short, long, and standing term plans. Organization structures can be formal or informal and involve grouping activities into departments, delegating authority, and coordinating efforts. Formal structures specify roles and reporting relationships while informal structures arise spontaneously from personal relationships.
5 Establishing Organizational Objectives
iStock/Thinkstock
Ah, but a man’s reach should exceed his grasp,
Or what’s a heaven for?
—Robert Browning
Learning Objectives
After reading this chapter, you should be able to do the following:
• Describe the nature of objectives and the important role of—and management by—objectives in an HCO.
• Discuss the characteristics of good objectives.
• Delineate the types of objectives that are included in a strategic plan, and include examples of objectives for
key result areas.
• Provide an example of how to use data from an internal and external environmental analysis to set good
objectives.
• Explain how to perform a periodic review of objectives for measuring progress and making updates
as needed.
Section 5.1The Nature and Role of Objectives
Introduction
An HCO cannot achieve goals if none exist for the organization. Although this idea is quite
simple, many people overlook it. To accomplish anything, an organization must have a clear
understanding of what is to be accomplished. Strategic objectives are the tool by which
organizations define their goals and sketch out a specific road map for achieving them. If we
fail to set specific objectives, we simply waste our time and energy by going in circles. Later,
we look back at what we accomplished and wonder where the time went. Just being busy and
involved in activities does not mean that we are accomplishing what we need to accomplish.
This chapter focuses on the need to establish objectives, the characteristics of good objec-
tives, and the process of writing objectives. After the vision and mission of the HCO have been
defined, and the internal and external analyses completed, relevant objectives are developed
for the strategic plan.
5.1 The Nature and Role of Objectives
Objectives can be defined as clear, concise written statements outlining what is to be accom-
plished in key result areas in a certain time period, in measurable terms. Peter Drucker argues
that “objectives are not fate; they are direction. They are not commands, but they are com-
mitments. They do not determine the future, but they are the means by which the resources
and energies of the operation can be mobilized for the making of the future” (Drucker, 1954,
p. 102).
As noted in Chapter 2, the words key results, goals, and targets often are used synonymously
when talking about short- and long-term objectives. Whatever the label used, the idea is to
focus on a specific set of target activities and outcomes to be accomplished. Think of the anal-
ogy of the archer used in Chapter 2. An HCO administrator wants the whole organization
aimed at a single target, just as an archer wants every arrow aimed at the bull’s-eye. People
get confused and disorganized if they do not know where they are going. In large measure,
the success or failure of an HCO is based on its ability to set goals, as well as on tools with
which to measure progress toward those.
5 Establishing Organizational Objectives
iStock/Thinkstock
Ah, but a man’s reach should exceed his grasp,
Or what’s a heaven for?
—Robert Browning
Learning Objectives
After reading this chapter, you should be able to do the following:
• Describe the nature of objectives and the important role of—and management by—objectives in an HCO.
• Discuss the characteristics of good objectives.
• Delineate the types of objectives that are included in a strategic plan, and include examples of objectives for
key result areas.
• Provide an example of how to use data from an internal and external environmental analysis to set good
objectives.
• Explain how to perform a periodic review of objectives for measuring progress and making updates
as needed.
Section 5.1The Nature and Role of Objectives
Introduction
An HCO cannot achieve goals if none exist for the organization. Although this idea is quite
simple, many people overlook it. To accomplish anything, an organization must have a clear
understanding of what is to be accomplished. Strategic objectives are the tool by which
organizations define their goals and sketch out a specific road map for achieving them. If we
fail to set specific objectives, we simply waste our time and energy by going in circles. Later,
we look back at what we accomplished and wonder where the time went. Just being busy and
involved in activities does not mean that we are accomplishing what we need to accomplish.
This chapter focuses on the need to establish objectives, the characteristics of good objec-
tives, and the process of writing objectives. After the vision and mission of the HCO have been
defined, and the internal and external analyses completed, relevant objectives are developed
for the strategic plan.
5.1 The Nature and Role of Objectives
Objectives can be defined as clear, concise written statements outlining what is to be accom-
plished in key result areas in a certain time period, in measurable terms. Peter Drucker argues
that “objectives are not fate; they are direction. They are not commands, but they are com-
mitments. They do not determine the future, but they are the means by which the resources
and energies of the operation can be mobilized for the making of the future” (Drucker, 1954,
p. 102).
As noted in Chapter 2, the words key results, goals, and targets often are used synonymously
when talking about short- and long-term objectives. Whatever the label used, the idea is to
focus on a specific set of target activities and outcomes to be accomplished. Think of the anal-
ogy of the archer used in Chapter 2. An HCO administrator wants the whole organization
aimed at a single target, just as an archer wants every arrow aimed at the bull’s-eye. People
get confused and disorganized if they do not know where they are going. In large measure,
the success or failure of an HCO is based on its ability to set goals, as well as on tools with
which to measure progress toward those.
Contents Different Managerial Functions, Definition & Meaning of Management, Planning process, functions of organization, factors affecting on staffing, Managers & Managerial Skills, Role & Responsibilities of Manager, Skills needed at various levels of Management
Management by objectives (MBO) is a systematic process for setting objectives that provide direction and help achieve organizational and individual goals. Key aspects of MBO include formulating clear and measurable objectives, setting objectives at all levels of the organizational hierarchy from board to individual employees, and reviewing objectives periodically with feedback to evaluate progress and make adjustments. For MBO to be effective requires top management support, training employees in MBO, ensuring objectives are clear, providing feedback, and encouraging participation in setting objectives.
Organization development full note nepal bank preparationRoshan Pant
Organization development is a planned, organization-wide effort led by top management to increase effectiveness and health through interventions. It responds to change by altering beliefs, attitudes, values, and structure using education strategies. The goal is to help organizations adapt to new technologies, markets, and challenges through changes to culture. Organization development uses action research methods like collecting data on problems and taking action based on analysis. It must address actual needs for change identified by the organization and involve them in planning and implementing changes.
Mananagement PPT.pptx Diploma in Electrical engineering1303EEVirajAlim
This document discusses planning and organizing at the supervisory level. It begins with introductions to planning and its importance. Planning provides direction, decreases risk, and avoids wasteful activities. The document then discusses the planning process, types of plans like operational and strategic, and the scope of plans for supervisors. It also discusses budgeting, delegation, motivation, group dynamics, and the organizing process. Overall, the document provides an overview of key concepts related to planning, organizing, and the roles and responsibilities of supervisors.
02. Organizational Goals, Planning & Decision Making (2021).pptxGoglePixl
The document discusses organizational goals, planning, and decision making. It defines goals as measurable end results to be achieved within a timeframe. Goals provide guidance, motivation, and a means of evaluation. Vision and mission statements describe an organization's purpose and direction. Planning involves setting goals by level (strategic, tactical, operational), area, and timeframe. Barriers to planning like improper goals must be overcome. Decision making requires choosing between alternatives, and styles include autocratic, democratic, laissez-faire, consensus, and contingency approaches.
The document discusses planning and organization in management. It defines planning as determining goals and objectives for the future and deciding how to achieve them. Organization involves structuring roles and responsibilities within a company to coordinate efforts toward goals. There are different types of plans like short, long, and standing term plans. Organization structures can be formal or informal and involve grouping activities into departments, delegating authority, and coordinating efforts. Formal structures specify roles and reporting relationships while informal structures arise spontaneously from personal relationships.
5 Establishing Organizational Objectives
iStock/Thinkstock
Ah, but a man’s reach should exceed his grasp,
Or what’s a heaven for?
—Robert Browning
Learning Objectives
After reading this chapter, you should be able to do the following:
• Describe the nature of objectives and the important role of—and management by—objectives in an HCO.
• Discuss the characteristics of good objectives.
• Delineate the types of objectives that are included in a strategic plan, and include examples of objectives for
key result areas.
• Provide an example of how to use data from an internal and external environmental analysis to set good
objectives.
• Explain how to perform a periodic review of objectives for measuring progress and making updates
as needed.
Section 5.1The Nature and Role of Objectives
Introduction
An HCO cannot achieve goals if none exist for the organization. Although this idea is quite
simple, many people overlook it. To accomplish anything, an organization must have a clear
understanding of what is to be accomplished. Strategic objectives are the tool by which
organizations define their goals and sketch out a specific road map for achieving them. If we
fail to set specific objectives, we simply waste our time and energy by going in circles. Later,
we look back at what we accomplished and wonder where the time went. Just being busy and
involved in activities does not mean that we are accomplishing what we need to accomplish.
This chapter focuses on the need to establish objectives, the characteristics of good objec-
tives, and the process of writing objectives. After the vision and mission of the HCO have been
defined, and the internal and external analyses completed, relevant objectives are developed
for the strategic plan.
5.1 The Nature and Role of Objectives
Objectives can be defined as clear, concise written statements outlining what is to be accom-
plished in key result areas in a certain time period, in measurable terms. Peter Drucker argues
that “objectives are not fate; they are direction. They are not commands, but they are com-
mitments. They do not determine the future, but they are the means by which the resources
and energies of the operation can be mobilized for the making of the future” (Drucker, 1954,
p. 102).
As noted in Chapter 2, the words key results, goals, and targets often are used synonymously
when talking about short- and long-term objectives. Whatever the label used, the idea is to
focus on a specific set of target activities and outcomes to be accomplished. Think of the anal-
ogy of the archer used in Chapter 2. An HCO administrator wants the whole organization
aimed at a single target, just as an archer wants every arrow aimed at the bull’s-eye. People
get confused and disorganized if they do not know where they are going. In large measure,
the success or failure of an HCO is based on its ability to set goals, as well as on tools with
which to measure progress toward those.
5 Establishing Organizational Objectives
iStock/Thinkstock
Ah, but a man’s reach should exceed his grasp,
Or what’s a heaven for?
—Robert Browning
Learning Objectives
After reading this chapter, you should be able to do the following:
• Describe the nature of objectives and the important role of—and management by—objectives in an HCO.
• Discuss the characteristics of good objectives.
• Delineate the types of objectives that are included in a strategic plan, and include examples of objectives for
key result areas.
• Provide an example of how to use data from an internal and external environmental analysis to set good
objectives.
• Explain how to perform a periodic review of objectives for measuring progress and making updates
as needed.
Section 5.1The Nature and Role of Objectives
Introduction
An HCO cannot achieve goals if none exist for the organization. Although this idea is quite
simple, many people overlook it. To accomplish anything, an organization must have a clear
understanding of what is to be accomplished. Strategic objectives are the tool by which
organizations define their goals and sketch out a specific road map for achieving them. If we
fail to set specific objectives, we simply waste our time and energy by going in circles. Later,
we look back at what we accomplished and wonder where the time went. Just being busy and
involved in activities does not mean that we are accomplishing what we need to accomplish.
This chapter focuses on the need to establish objectives, the characteristics of good objec-
tives, and the process of writing objectives. After the vision and mission of the HCO have been
defined, and the internal and external analyses completed, relevant objectives are developed
for the strategic plan.
5.1 The Nature and Role of Objectives
Objectives can be defined as clear, concise written statements outlining what is to be accom-
plished in key result areas in a certain time period, in measurable terms. Peter Drucker argues
that “objectives are not fate; they are direction. They are not commands, but they are com-
mitments. They do not determine the future, but they are the means by which the resources
and energies of the operation can be mobilized for the making of the future” (Drucker, 1954,
p. 102).
As noted in Chapter 2, the words key results, goals, and targets often are used synonymously
when talking about short- and long-term objectives. Whatever the label used, the idea is to
focus on a specific set of target activities and outcomes to be accomplished. Think of the anal-
ogy of the archer used in Chapter 2. An HCO administrator wants the whole organization
aimed at a single target, just as an archer wants every arrow aimed at the bull’s-eye. People
get confused and disorganized if they do not know where they are going. In large measure,
the success or failure of an HCO is based on its ability to set goals, as well as on tools with
which to measure progress toward those.
Contents Different Managerial Functions, Definition & Meaning of Management, Planning process, functions of organization, factors affecting on staffing, Managers & Managerial Skills, Role & Responsibilities of Manager, Skills needed at various levels of Management
Management by objectives (MBO) is a systematic process for setting objectives that provide direction and help achieve organizational and individual goals. Key aspects of MBO include formulating clear and measurable objectives, setting objectives at all levels of the organizational hierarchy from board to individual employees, and reviewing objectives periodically with feedback to evaluate progress and make adjustments. For MBO to be effective requires top management support, training employees in MBO, ensuring objectives are clear, providing feedback, and encouraging participation in setting objectives.
Organization development full note nepal bank preparationRoshan Pant
Organization development is a planned, organization-wide effort led by top management to increase effectiveness and health through interventions. It responds to change by altering beliefs, attitudes, values, and structure using education strategies. The goal is to help organizations adapt to new technologies, markets, and challenges through changes to culture. Organization development uses action research methods like collecting data on problems and taking action based on analysis. It must address actual needs for change identified by the organization and involve them in planning and implementing changes.
Mananagement PPT.pptx Diploma in Electrical engineering1303EEVirajAlim
This document discusses planning and organizing at the supervisory level. It begins with introductions to planning and its importance. Planning provides direction, decreases risk, and avoids wasteful activities. The document then discusses the planning process, types of plans like operational and strategic, and the scope of plans for supervisors. It also discusses budgeting, delegation, motivation, group dynamics, and the organizing process. Overall, the document provides an overview of key concepts related to planning, organizing, and the roles and responsibilities of supervisors.
Kuis 1, an overview of strategic managementwinniewien
Strategic management involves analyzing an organization's internal strengths and weaknesses as well as external opportunities and threats. It is a continual process that includes planning, implementing, monitoring, and reevaluating decisions across business functions to achieve organizational goals. Key aspects of strategic management include developing a vision and mission, setting goals and objectives, determining strategies, implementing strategies, and evaluating strategy effectiveness. SWOT analysis is an important tool that helps organizations assess their internal resources and competencies as well as external factors to inform strategic decision making.
This document discusses several key concepts in management including:
1. Definitions of management as the process of dealing with things/people and organizing activities to achieve objectives. Objectives include organizational, social, personal, human, and economic goals.
2. Management as a process consisting of planning, organizing, actuating and controlling to accomplish objectives using resources.
3. Theories of management put forth by Taylor on scientific management, Fayol on principles of management, and Mayo on group dynamics.
4. Additional concepts covered are management by objectives, types of plans, organizing, and types of organizations.
This document provides an overview of planning as a management process. It discusses planning as determining future courses of action, with consideration of objectives, activities, policies, and timing. Key features of planning discussed include it being a process, primarily concerned with the future, involving alternative selection, and undertaken at all organizational levels. The importance of planning is outlined in terms of primacy over other functions, offsetting uncertainty, focusing on objectives, coordination, and control. Steps in the planning process and types of plans are also summarized.
This document discusses planning in organizations. It defines planning as defining goals, strategies, and coordinating activities to achieve goals. Planning provides direction, reduces uncertainty, establishes goals, and minimizes waste. There are different types of goals like financial, strategic, stated, and real goals. Approaches to goal setting include traditional top-down and MBO which involves collaborative goal setting. Plans outline how to achieve goals and come in forms like strategic, operational, short-term, long-term, specific, directional, single-use, and standing plans. Environmental uncertainty, organizational level, and future commitments impact planning.
This document discusses planning in organizations. It defines planning as defining goals, strategies, and coordinating activities to achieve goals. Planning provides direction, reduces uncertainty, establishes goals, and minimizes waste. There are different types of goals like financial, strategic, stated, and real goals. Approaches to goal setting include traditional top-down and MBO which involves collaborative goal setting. Plans outline how to achieve goals and come in forms like strategic, operational, short-term, long-term, specific, directional, single-use, and standing plans. Environmental uncertainty, organizational level, and future commitments impact planning.
Principles and Practices of Management unit-ii.pptxSatyaM733268
This document provides an overview of planning concepts and practices in management. It defines planning as determining objectives, alternative courses of action, and choosing suitable actions to achieve objectives. The document outlines the objectives, types (strategic, operational, tactical), and premises (internal, external, controllable, uncontrollable) of planning. It also discusses strategic planning, vision and mission statements, management by objectives, decision making, and organizational structures like departmentalization and centralization/decentralization.
This document provides an overview of management principles and concepts. It defines management as coordinating work through people to achieve organizational goals. It then discusses several definitions of management provided by experts. It describes the nature of management as a universal, goal-oriented, intellectual, ongoing process that is both an art and a science. It also discusses the levels of management, functions of management, and contrasts administration with management. Finally, it provides an overview of the evolution of management thought including contributions from Taylor on scientific management and Fayol on administrative management.
This document provides an overview of management principles and concepts. It defines management as coordinating work through people to achieve organizational goals. It then discusses several definitions of management provided by experts. It describes the nature of management as a universal, goal-oriented, intellectual, ongoing process that is both an art and a science. It also discusses the levels of management, functions of management, and contrasts administration with management. Finally, it discusses some of the early contributors to management thought, including Taylor's scientific management principles and Fayol's administrative management approach.
1) The document discusses strategy implementation, which refers to executing plans and strategies to accomplish long-term organizational goals. It involves developing structures, resources, and controls to follow strategies and gain a competitive advantage.
2) The process of strategy implementation includes building capabilities, supplying sufficient resources, developing supportive policies, continuous improvement, aligning rewards, and using strategic leadership. It takes place after environmental scanning, SWOT analysis, and identifying strategic issues.
3) Key challenges to strategy implementation are weak strategies, ineffective training, lack of resources, poor communication, and lack of follow through. Regular reviews are needed to ensure strategies are performing as intended.
This document discusses key concepts in planning, including defining planning, the importance of planning, different types of planning (strategic, tactical), and the planning process. Planning is defined as setting objectives to be accomplished in the future and deciding how to reach them. It helps reduce uncertainty, make objectives clear, and coordinate activities. There are two main types of planning: strategic planning for top managers focuses on the organization's overall direction, while tactical planning for middle/lower managers focuses on tasks to achieve objectives. The planning process involves appraising the current position, setting objectives, and developing plans to achieve objectives. Objectives can be organizational, managerial, or individual. Effective planning is important for an organization's success.
Planning involves establishing goals and developing strategies to achieve those goals. It occurs at multiple levels within an organization, from strategic planning at the corporate level to operational planning by individuals. The planning process involves setting goals, developing plans, implementing plans, and reviewing progress. Management by objectives (MBO) is a planning approach where managers work with subordinates to jointly set measurable performance objectives. Key steps in MBO include setting goals, developing action plans, reviewing progress, and appraising performance. For MBO to be effective requires commitment from top management, educating employees, and ensuring goals align with overall organizational objectives.
Teams can be formal or informal. Formal teams are created by management to perform assigned duties, while informal teams arise spontaneously from social interactions between individuals. There are five stages of team formation: forming, storming, norming, performing, and adjourning. A team's effectiveness depends on factors like its design, processes, environment, and ability to achieve goals and meet member needs. Common types of teams include problem-solving teams, self-managed work teams, cross-functional teams, and virtual teams. The project life cycle involves initiation, planning, execution, and closure/evaluation phases to define requirements, create management plans, build deliverables, and review outcomes.
This document provides an overview of goals, plans, and the planning process. It defines goals as desired future states and plans as the means to attain goals. Goals and plans provide legitimacy, motivation, resource allocation guidance, rationale for decisions, and performance standards. There are strategic, tactical, and operational goals and plans at different organizational levels with time horizons. Effective goal setting involves specific, measurable, challenging yet attainable, time-bound, and relevant goals. Management by objectives (MBO) is a planning approach where managers and employees jointly define goals. Contingency planning prepares for unexpected events. Decentralized planning in high-performing organizations involves employees in the planning process.
This document provides an overview of management concepts including:
- Definitions of management as the process of planning, organizing, leading, and controlling organizational resources to achieve goals.
- The four main functions of management: planning, organizing, leading, and controlling.
- Three levels of management in organizations: first-line, middle, and top-level managers.
- Characteristics of organizational structure including span of control, centralization, formalization, and departmentalization.
- Key responsibilities of management such as goal-setting, resource allocation, decision-making, and ensuring employee well-being.
MBO is an approach to management where managers and subordinates jointly set goals and work towards achieving them. It was popularized by Peter Drucker. Some key aspects of MBO include joint goal setting between managers and subordinates, establishing responsibilities for achieving goals, and constant performance monitoring. MBO aims to improve employee motivation, morale, and leadership. While it can facilitate planning and control, MBO also has limitations such as being time-consuming, potentially increasing pressure on employees, and creating conflicts between objectives.
UNIT - III: PLANNING AND CONTROL: Concept- Process and Types; Decision making
concept and process; Bounded rationality; Management by objectives; Corporate Planning;
Environment analysis and Diagnosis; Strategy Formulations; Managerial Control- Concept
and process - Designing an Effective Control System - Techniques - Traditional and Modern
(PERT and CPM).
This document discusses strategic planning and management. It begins by recapping the four basic managerial functions of planning, organizing, leading, and controlling. It then expands on the planning function, explaining that there are both short-term operational plans and long-term strategic plans. Strategic planning involves setting goals, developing strategies to achieve those goals, and determining tactics. The key elements of strategic management are strategic formulation, implementation, and evaluation. Strategic analysis is a critical part of the process and involves assessing the organization's vision, mission, values, and internal and external environments.
The document discusses determining critical success factors for organizations. It provides context on what critical success factors are and how they relate to an organization's mission and strategic goals. A 5-step process is outlined for identifying an organization's critical success factors: 1) Pull together a team, 2) Get employee feedback, 3) Examine long-term goals using frameworks like SWOT analysis and strategic planning, 4) Determine the key factors for achieving long-term plans, 5) Implement the strategic plan considering the critical success factors. Examples of critical success factors and how to write them are also provided.
Kuis 1, an overview of strategic managementwinniewien
Strategic management involves analyzing an organization's internal strengths and weaknesses as well as external opportunities and threats. It is a continual process that includes planning, implementing, monitoring, and reevaluating decisions across business functions to achieve organizational goals. Key aspects of strategic management include developing a vision and mission, setting goals and objectives, determining strategies, implementing strategies, and evaluating strategy effectiveness. SWOT analysis is an important tool that helps organizations assess their internal resources and competencies as well as external factors to inform strategic decision making.
This document discusses several key concepts in management including:
1. Definitions of management as the process of dealing with things/people and organizing activities to achieve objectives. Objectives include organizational, social, personal, human, and economic goals.
2. Management as a process consisting of planning, organizing, actuating and controlling to accomplish objectives using resources.
3. Theories of management put forth by Taylor on scientific management, Fayol on principles of management, and Mayo on group dynamics.
4. Additional concepts covered are management by objectives, types of plans, organizing, and types of organizations.
This document provides an overview of planning as a management process. It discusses planning as determining future courses of action, with consideration of objectives, activities, policies, and timing. Key features of planning discussed include it being a process, primarily concerned with the future, involving alternative selection, and undertaken at all organizational levels. The importance of planning is outlined in terms of primacy over other functions, offsetting uncertainty, focusing on objectives, coordination, and control. Steps in the planning process and types of plans are also summarized.
This document discusses planning in organizations. It defines planning as defining goals, strategies, and coordinating activities to achieve goals. Planning provides direction, reduces uncertainty, establishes goals, and minimizes waste. There are different types of goals like financial, strategic, stated, and real goals. Approaches to goal setting include traditional top-down and MBO which involves collaborative goal setting. Plans outline how to achieve goals and come in forms like strategic, operational, short-term, long-term, specific, directional, single-use, and standing plans. Environmental uncertainty, organizational level, and future commitments impact planning.
This document discusses planning in organizations. It defines planning as defining goals, strategies, and coordinating activities to achieve goals. Planning provides direction, reduces uncertainty, establishes goals, and minimizes waste. There are different types of goals like financial, strategic, stated, and real goals. Approaches to goal setting include traditional top-down and MBO which involves collaborative goal setting. Plans outline how to achieve goals and come in forms like strategic, operational, short-term, long-term, specific, directional, single-use, and standing plans. Environmental uncertainty, organizational level, and future commitments impact planning.
Principles and Practices of Management unit-ii.pptxSatyaM733268
This document provides an overview of planning concepts and practices in management. It defines planning as determining objectives, alternative courses of action, and choosing suitable actions to achieve objectives. The document outlines the objectives, types (strategic, operational, tactical), and premises (internal, external, controllable, uncontrollable) of planning. It also discusses strategic planning, vision and mission statements, management by objectives, decision making, and organizational structures like departmentalization and centralization/decentralization.
This document provides an overview of management principles and concepts. It defines management as coordinating work through people to achieve organizational goals. It then discusses several definitions of management provided by experts. It describes the nature of management as a universal, goal-oriented, intellectual, ongoing process that is both an art and a science. It also discusses the levels of management, functions of management, and contrasts administration with management. Finally, it provides an overview of the evolution of management thought including contributions from Taylor on scientific management and Fayol on administrative management.
This document provides an overview of management principles and concepts. It defines management as coordinating work through people to achieve organizational goals. It then discusses several definitions of management provided by experts. It describes the nature of management as a universal, goal-oriented, intellectual, ongoing process that is both an art and a science. It also discusses the levels of management, functions of management, and contrasts administration with management. Finally, it discusses some of the early contributors to management thought, including Taylor's scientific management principles and Fayol's administrative management approach.
1) The document discusses strategy implementation, which refers to executing plans and strategies to accomplish long-term organizational goals. It involves developing structures, resources, and controls to follow strategies and gain a competitive advantage.
2) The process of strategy implementation includes building capabilities, supplying sufficient resources, developing supportive policies, continuous improvement, aligning rewards, and using strategic leadership. It takes place after environmental scanning, SWOT analysis, and identifying strategic issues.
3) Key challenges to strategy implementation are weak strategies, ineffective training, lack of resources, poor communication, and lack of follow through. Regular reviews are needed to ensure strategies are performing as intended.
This document discusses key concepts in planning, including defining planning, the importance of planning, different types of planning (strategic, tactical), and the planning process. Planning is defined as setting objectives to be accomplished in the future and deciding how to reach them. It helps reduce uncertainty, make objectives clear, and coordinate activities. There are two main types of planning: strategic planning for top managers focuses on the organization's overall direction, while tactical planning for middle/lower managers focuses on tasks to achieve objectives. The planning process involves appraising the current position, setting objectives, and developing plans to achieve objectives. Objectives can be organizational, managerial, or individual. Effective planning is important for an organization's success.
Planning involves establishing goals and developing strategies to achieve those goals. It occurs at multiple levels within an organization, from strategic planning at the corporate level to operational planning by individuals. The planning process involves setting goals, developing plans, implementing plans, and reviewing progress. Management by objectives (MBO) is a planning approach where managers work with subordinates to jointly set measurable performance objectives. Key steps in MBO include setting goals, developing action plans, reviewing progress, and appraising performance. For MBO to be effective requires commitment from top management, educating employees, and ensuring goals align with overall organizational objectives.
Teams can be formal or informal. Formal teams are created by management to perform assigned duties, while informal teams arise spontaneously from social interactions between individuals. There are five stages of team formation: forming, storming, norming, performing, and adjourning. A team's effectiveness depends on factors like its design, processes, environment, and ability to achieve goals and meet member needs. Common types of teams include problem-solving teams, self-managed work teams, cross-functional teams, and virtual teams. The project life cycle involves initiation, planning, execution, and closure/evaluation phases to define requirements, create management plans, build deliverables, and review outcomes.
This document provides an overview of goals, plans, and the planning process. It defines goals as desired future states and plans as the means to attain goals. Goals and plans provide legitimacy, motivation, resource allocation guidance, rationale for decisions, and performance standards. There are strategic, tactical, and operational goals and plans at different organizational levels with time horizons. Effective goal setting involves specific, measurable, challenging yet attainable, time-bound, and relevant goals. Management by objectives (MBO) is a planning approach where managers and employees jointly define goals. Contingency planning prepares for unexpected events. Decentralized planning in high-performing organizations involves employees in the planning process.
This document provides an overview of management concepts including:
- Definitions of management as the process of planning, organizing, leading, and controlling organizational resources to achieve goals.
- The four main functions of management: planning, organizing, leading, and controlling.
- Three levels of management in organizations: first-line, middle, and top-level managers.
- Characteristics of organizational structure including span of control, centralization, formalization, and departmentalization.
- Key responsibilities of management such as goal-setting, resource allocation, decision-making, and ensuring employee well-being.
MBO is an approach to management where managers and subordinates jointly set goals and work towards achieving them. It was popularized by Peter Drucker. Some key aspects of MBO include joint goal setting between managers and subordinates, establishing responsibilities for achieving goals, and constant performance monitoring. MBO aims to improve employee motivation, morale, and leadership. While it can facilitate planning and control, MBO also has limitations such as being time-consuming, potentially increasing pressure on employees, and creating conflicts between objectives.
UNIT - III: PLANNING AND CONTROL: Concept- Process and Types; Decision making
concept and process; Bounded rationality; Management by objectives; Corporate Planning;
Environment analysis and Diagnosis; Strategy Formulations; Managerial Control- Concept
and process - Designing an Effective Control System - Techniques - Traditional and Modern
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2. Learning Objectives
After comprehensive studying of this chapter, learners will be able to:
Know about concept and characteristics of organizations.
Discuss the concept, purpose and types of organizational goals.
Explain the features of effective organizational goals.
Discuss the goal formulation processes and approaches.
Know about goal succession and displacement.
Discuss problems of goal formulation.
Explain the changing perspectives on organization.
4/19/2023 2
3. Concept of Organization
“Organization is a group of two or more people who work together in a structured setting to achieve
common goal.” Gene Burton
“An organization is a collection of interacting and interdependent individuals who work toward common
goals whose relationships are determined according to a certain
structure.” W. J. Duncan
“Organization is any group of individuals, large or small, that is operating under the direction of executive
leadership in accomplishment of certain common objective.” Keith Davis
From the above study it can be concluded that organizations have a structured setting where
people work together to achieve common goals. Within the organization there should be clear
delelgation of authority and responsibility among the members.
4. Characteristics of Organization
The characteristics of organization are as follows:
1. Collection of people:
2. Common goal:
3. Division of work:
4. Coordination:
5. Hierarchy of authority:
6. Perpetual existence:
7. Environment:
8. Technology:
5. Organizational Goals
Goals are what organizations want to achieve in the future. Achievement of a goal is the destination of an
organization
“Organizational goals are the objectives that management seeks to achieve in pursuing the firm’s purpose.”
Moorhead and Griffin
“Organizational goals are the broad aims which serve as guides for action and as the starting point for more
specific and detail operating objectives at lower levels in the organization.”
Ivancevich, Donnelly and Gibson
From the above studies it may be concluded that organizational goal is a desired future state of
affairs that management seeks to achieve. It represents broad aims that serve as guides for an
action. The goal must be specific and measurable in quantitative term, and it must be set for a
definite period of time.
6. Purposes of Organizational Goals
Goals are the reasons what and why organizations
come into existence for. They are the basis of
functioning of the organization. The following are the
main purposes of organizational goals:
1. Provide guidance and direction:
2. Promote good planning:
3. Source of motivation:
4. Means of evaluation and control
5. Provide image and identity:
7. Types of Organizational Goals
Types of Organizational Goals
Mission
Strategic
Tactical
Operational
On the Basis of Level
Production
Marketing
Finance
Human Resource
On the Basis of Area
Long-term
Medium-term
Short-term
On the Basis of Time
8. A. On the Basis of Level
1. Mission: Mission focuses on the vision of an organization. It also represents the philosophy
and ideology of the organization. It is a statement of its fundamental unique purpose for setting a
business apart from other similar firms, and for identifying the unique scope of the business
operation in product and market terms.
2. Strategic: Strategic goals are developed on the basis of mission and focus on long term
objectives of the organization. Strategic goals lead to all the basic management functions. Every
organization needs to develop strategic goals which help to decide on what choices of an
organization making among various alternatives available.
3. Tactical: Tactical goals are developed on the basis of strategic goals. Middle level management
sets these goals for one or more years by focusing on how to take the necessary actions to achieve
the strategic goals. They are the sub-divisions of strategic goals to be implemented in practice.
4. Operational: In this stage, tactical goals are classified into small units to be achieved in a short
span of time like in a day or a week. On the basis of schedule, works are assigned to subordinates,
and resources are allocated to them for effective functioning.
9. B. On the Basis of Area
1. Production: Production goal is necessary for manufacturing organizations. This goal focuses
on production of quality goods in reasonable price at the right time. This goal is essential to fulfil
the market demand and to fulfil the economic objective of the organization.
2. Marketing: Marketing goal focuses on fulfilling marketing mix; and the marketing mix
consists of product, place, price and promotion. Therefore, marketing goal consists of distribution
of quality product to needy customers at the lowest possible price.
3. Finance: Financial goal focuses on monetary management of the organization. The monetary
management activities involve preparation of budget; cash flow statement, position of working
capital, cost of capital, etc.
4. Human resource: This goal concentrates on recruitment, appointment and placement of right
persons to the right jobs. It involves manpower development activities such as training,
workshop, seminar, etc.
10. C. On the Basis of Time
1. Long term: Organizational mission and strategy are long term goals of an organization.
Mission focuses on the vision of the organization by representing its philosophy and ideology.
Strategic goals are determined by focusing long term objectives and activities of the organization.
They are developed on the basis of guidance of mission.
2. Medium term: Tactical goals are medium term goals of an organization. Middle level
management sets these goals for one or more years. They are the sub-division of long term goals
to be implemented in practice. In this stage, strategic goals are classified into departmental goals
such as production, marketing, finance, personnel etc.
3. Short term: Operational goals are short term goals of an organization. Such goals are developed
on the basis of medium term goals. Lower level management consisting of supervisors and
foremen are responsible for setting these goals. Such goals are basically set for day–to–day
operations of the organization.
11. Features of Effective Organizational Goals
1. Specific: An organizational goal must be clearly defined
and achievable through organizational resources.
2. Measurable: The goals of an organization should be
measurable in terms of quantity, cost, time and quality. On
the basis of their performance, the progress of work of an
organization will be evaluated and supervised.
3. Acceptable: The goals should be acceptable and agreed
upon by all the members of the organization. Organizational
goals should be set through a mutual consent of all the
responsible members.
4. Realistic: The goals can be achieved by the hard work of
members even though they are challenging. The
management must set a realistic and challenging goal.
5. Time-bound: The goals must be set for a specific period of
time. It should achievable within a defined time frame. It is
essential because achievement of goals after the expiry of the
defined time may be useless.
12. Goal Formulation Process
1. Environmental scanning: Environmental scanning is the initial stage of the goal formation
process. It is the process of accumulating and analyzing information that is obtained from the
changing environment of the society. It is essential to monitor the development and change in the
environment. Basically, both internal and external environments are to be scanned to analyze their
impact on organizational performance. SWOT (Strength, Weakness, Opportunity and Threat)
analysis is helpful for environmental scanning.
2. Formation of overall goals: This is the second stage of the goal formation process. In this stage,
mission and strategic goals of an organization are defined. The top-level management involves in
setting the overall goals of an organization. For the overall goal formation, information from
environment should be collected and analyzed.
3. Formation of specific goal: This is the final stage of the goal formation process and involves
sub-divisions of the overall goals of the organization. In this stage, contribution of each
department, unit, branch and individual is defined to fulfil the overall goals of the organization. It
is a short-term goal and set for a day, a week, a month and so on.
13. Approaches to Goal Formulation
Top-down
Approach
Approaches to Goal Formation
Bottom-up
Approach
Management by
Objective
Approach
14. Contd…
1. Top-down approach: This is the traditional approach of the goal setting process. In this
approach, top level management sets strategic, tactical and operational goals of the organization
and provides instruction to the subordinates for implementation. In this approach the top-level
managers do not take any suggestion and feedback from middle and first line managers while
setting goals.
2. Bottom–up approach: In this approach, middle and first line managers are given authority to
set their own departmental and unit goals within the given framework. On the basis of the
framework of corporate and strategic goal, middle and first line managers set their unit and
individual goals. In this approach the top-level managers integrate and unify the unit goals in
consultation with and consent of subordinates.
3. Management by objective (MBO) approach: Management by objective is a comprehensive
technique applied for goal setting. Peter F. Drucker propounded this approach in 1954. In this
approach, both top and operational level managers of an organization jointly identify the
common goals; define each individual’s major areas of responsibility in terms of the results
expected from them.
15. Goal Succession
Goal succession is the act of intentional review and modification of existing goals. It is essential
when existing corporate goal has been achieved or cannot be achieved in the existing form due to
environmental influence. At the initial stage, the top-level management sets corporate goals and
to achieve them, the functional managers set operational goals. In the course of functioning due to
environmental influence, it is necessary to modify the existing goals according to the time and
situation to achieve corporate goals. Such modification of present goals is also a part of goal
succession.
Reasons for Goal Succession: The following are some common reasons for goal succession:
1. Achievement of original goal:
2. Non-achievement of original goal:
3. Change in environment:
4. Organizational priority shifting:
16. Contd…
1. Achievement of original goal: When original goal is achieved in a given period of time, it is
essential to set a new goal because it is a part of goal succession. And setting new goal is
necessary for perpetual existence of an organization.
2. Non-achievement of original goal: The non-achievement of the original goal needs goal
succession. When original goal cannot be achieved even by the hard work of the management, it
needs to review and modify the existing goal for perpetual existence of the organization.
3. Change in environment: Environment is dynamic and regularly influences on organizational
functioning. It is more difficult to forecast and predict environmental changes, basically, of
external environment. Therefore, every organization needs to modify its original goal in
accordance with the environmental changes.
4. Organizational priority shifting: Goal succession is the outcome of shift in organizational
needs and priorities. Although there may be many objectives that an organization has to achieve,
it becomes impossible to achieve more objectives at a time by mobilizing scarce resources.
17. Goal Displacement
“Goal displacement in a business organization occurs when decision makers substitute tangible goals for
broader, riskier, more uncertain, long range goals.” D. E. McFarland
All organizations perform their business activities within the changing environment. In certain
circumstances, goal displacement may create great problems in business activities challenging to
the existence of an organization. Therefore, the top level management should gather adequate
and up-to-date information from the environment by making a critical analysis of such
information before taking goal displacement decisions. Because it is not appropriate to displace
the original goal without considering its impact except in an unachievable and abstract
conditions.
18. Contd…
1. Excessive delegation: Excessive delegation of authority to the subordinates may result in
distortion of the original goal. Generally, the manager delegates authority and responsibility to
the subordinates but maintains proper supervision and control over their activities.
2. Subordination of organizational goal: It is an accepted principle that top priority must be
given for achievement of organizational goals. Ultimately, the achievement of organizational
goals fulfills individual goals. However, if employees give more priority to their individual goals
by subordinating organizational goals, it results in goal displacement.
3. Employees’ attitude: The management sets organizational goals and circulates them to the
employees for their implementation. If employees have a positive attitude toward the
organizational goals they can be achieved in an effective way.
4. Vague goal: An abstract or vague goal cannot be achieved. Generally, a goal must be
specific and achievable within the defined time. However, if a goal is unclear, members of the
organization cannot achieve it with limited resources.
5. Bureaucratic difficulties: The management develops rules, policies and procedures to
perform organizational functions in a systematic way. However, it is essential to modify and
amend such a system on the basis of time and requirement.
19. Problems of Goal Formulation
1. Inappropriate goal: An unattainable goal is known as inappropriate goal. Organizational
goals become inappropriate when the management lays more emphasis either on quantitative or
qualitative measures.
2. Improper reward system: An improper reward system acts as a major barrier to goal
setting. In an organization there must be a balance between reward and goal setting efficiency of
the employees.
3. Dynamic and complex environment: The environmental change may create difficulty in
goal formulation. The rapid technological innovation and keen competition can increase the
difficulties for an organization to set goals.
4. Reluctance to set goals: Some managers are reluctant to set goals for themselves, and their
subordinates may create barriers in the overall goal setting of the organization. If managers set
goals that are specific, concise, and time-bound then the achievement of the goals is obvious.
5. Resistance to change: The resistance to change is another barrier for goal setting. Generally,
people tend to resist change because of lack of confidence and conservative attitude toward goal
setting process.
.
20. Changing Perspectives of Organization
The environment is dynamic and changes according to
time.
Every organization establishes, exists and performs
functions within the changing environment.
The rapid development of technology, change in social
expectations, political influence, and economic change,
etc. force the organizations to perform their business
activities in distinct ways.
21. Contd…
1. Open system: Traditionally, organizations were viewed as a close system where they did not
consider social needs and expectation.
2. Organizations as culture: All organizations have their own culture that is to be followed by all
the members. Culture is the sum-total of values, norms, traditions, beliefs and assumptions of an
organization.
3. Globalization: The concept of globalization has been emerging today in business
organizations. Truly speaking, the introduction of network in transportation, communication, and
economic interdependency has tied the people of the world together by making the globe shrink
in a narrow vision.
4. Learning system: It is a fact that knowledge is power and present society is based on
knowledge. In competitive environment, customers expect new ideas, new things and creativity
in product or service from any organization.
5. Temporary employment: The concept of employees’ appointment on temporary basis, that is,
on contract basis or on daily wage system is evolved in many organizations. Slowly the concept of
permanent employment is being terminated due to priority to work rather than job security and
flexibility of work schedule.
Go through the book published from Advance Saraswati Prakashan for Further..
22. Assignment
Brief Answer Questions
4/19/2023
22
Descriptive Answer Questions
1. Discuss the processes and approaches to goal formation in different organizations.
2. In present day competitive environment, all business organizations face problems in goal
formation. By keeping in mind this point of view, describe the major problems in goal formulation.
1. Why is goal formulation important for the organization? Explain the problems of goal formulation.
2. Explain the goal formation process and its problems
3. Explain the different types of organizational goals.
4.Describe the features of effective organizational goals.
5. What are the different approaches to goal formulation? Discuss them in brief.
6. What do you mean by goal succession? Explain the reasons of goal succession.
7. Describe the changing perspectives on organization.
8. What are organizational goals? Explain the process of goal formulation.