Summarize the function of decision making and the planning process. Discuss the purpose of organizational goals, identify different kinds of goals, discuss who sets goals, and describe how to manage multiple goals. Identify different kinds of organizational plans, note the time frames for planning, discuss who plans, and describe contingency planning. Discuss how tactical plans are developed and executed. Describe the basic types of operational plans used by organizations. Identify the major barriers to goal setting and planning, how organizations overcome those barriers, and how to use goals to implement plans.

1. PLANNING AND DECISION MAKINGPLANNING AND DECISION MAKING
Topic ObjectivesTopic Objectives
1.1. Summarize the function of decision making and theSummarize the function of decision making and the
planning process.planning process.
2.2. Discuss the purpose of organizational goals, identifyDiscuss the purpose of organizational goals, identify
different kinds of goals, discuss who sets goals, anddifferent kinds of goals, discuss who sets goals, and
describe how to manage multiple goals.describe how to manage multiple goals.
3.3. Identify different kinds of organizational plans, note theIdentify different kinds of organizational plans, note the
time frames for planning, discuss who plans, andtime frames for planning, discuss who plans, and
describe contingency planning.describe contingency planning.
4.4. Discuss how tactical plans are developed and executed.Discuss how tactical plans are developed and executed.
5.5. Describe the basic types of operational plans used byDescribe the basic types of operational plans used by
organizations.organizations.
6.6. Identify the major barriers to goal setting and planning,Identify the major barriers to goal setting and planning,
how organizations overcome those barriers, and how tohow organizations overcome those barriers, and how to
use goals to implement plans.use goals to implement plans.
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2. Decision Making and theDecision Making and the
Planning ProcessPlanning Process
Decision makingDecision making
– Is the cornerstone of planning.Is the cornerstone of planning.
– Is the catalyst that drives the planningIs the catalyst that drives the planning
process.process.
– Underlies every aspect of setting goals andUnderlies every aspect of setting goals and
formulating plans.formulating plans.
PlanningPlanning
– All organizations plan, but not in the sameAll organizations plan, but not in the same
fashion.fashion.
– All planning occurs within an environmentalAll planning occurs within an environmental
context.context.
– All goals require plans to guide in theirAll goals require plans to guide in their
achievement.achievement.
– All goals are tied higher goals and plansAll goals are tied higher goals and plans
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4. Organizational GoalsOrganizational Goals
Purposes of GoalsPurposes of Goals
– Provide guidance and a unifiedProvide guidance and a unified
direction for people in the organization.direction for people in the organization.
– Strongly affect on the quality of otherStrongly affect on the quality of other
aspects of planning.aspects of planning.
– Serve as a source of motivation forServe as a source of motivation for
employees.employees.
– Provide a mechanism for evaluationProvide a mechanism for evaluation
and control of the organization.and control of the organization.
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5. Kinds of GoalsKinds of Goals
• By LevelBy Level
– Mission statementMission statement
– Strategic goalsStrategic goals
– Tactical goalsTactical goals
– Operational goalsOperational goals
• By AreaBy Area
– Different functional areas of the organization.Different functional areas of the organization.
• By Time FrameBy Time Frame
– Long-term, intermediate-term, or short-termLong-term, intermediate-term, or short-term
time frames and explicit time frames or open-time frames and explicit time frames or open-
ended.ended.
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7. ResponsibilitiesResponsibilities
of Setting Goalsof Setting Goals
Who Sets Goals?Who Sets Goals?
– All managers:All managers: mmanagerialanagerial
responsibility for goal settingresponsibility for goal setting
should correspond to theshould correspond to the
manager’s level in themanager’s level in the
organization.organization.
Managing Multiple GoalsManaging Multiple Goals
– Optimizing allows managers toOptimizing allows managers to
balance and reconcile inconsistentbalance and reconcile inconsistent
or conflicting goals.or conflicting goals.
• Managers can choose to pursue oneManagers can choose to pursue one
goal and exclude all others or to seek agoal and exclude all others or to seek a
mid-range goal.mid-range goal.
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8. Kinds of Organizational PlansKinds of Organizational Plans
• Strategic PlansStrategic Plans
– A general plan set by and for top managementA general plan set by and for top management
that outlines resource allocation, priorities,that outlines resource allocation, priorities,
and action steps to achieve strategic goals.and action steps to achieve strategic goals.
• Tactical PlansTactical Plans
– A plan aimed at achieving the tactical goals setA plan aimed at achieving the tactical goals set
by and for middle management.by and for middle management.
• Operational PlansOperational Plans
– Short-term focus plans that are set by and forShort-term focus plans that are set by and for
lower-level managers.lower-level managers.
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9. Time Frames for PlanningTime Frames for Planning
The Time Dimension of PlanningThe Time Dimension of Planning
– Planning must provide sufficient time to fulfillPlanning must provide sufficient time to fulfill
the managerial commitments involved.the managerial commitments involved.
Long-range PlansLong-range Plans
– Cover present and future strategic issuesCover present and future strategic issues
extending beyond five years in the future.extending beyond five years in the future.
Intermediate PlansIntermediate Plans
– Cover from 1 to 5 years and parallel tacticalCover from 1 to 5 years and parallel tactical
plans.plans.
– Are the principal focus of organizationalAre the principal focus of organizational
planning efforts.planning efforts.
Short-range PlansShort-range Plans
– Are action plans and reaction (contingency)Are action plans and reaction (contingency)
plans that have a time frame of one year orplans that have a time frame of one year or
less.less.
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10. Responsibilities for PlanningResponsibilities for Planning
Planning StaffPlanning Staff
– Gather information, coordinate planningGather information, coordinate planning
activities, and take a broader view thanactivities, and take a broader view than
individual managers.individual managers.
Planning Task ForcePlanning Task Force
– Created when the organization wants a specialCreated when the organization wants a special
circumstance addressed.circumstance addressed.
Board of DirectorsBoard of Directors
– Establishes corporate mission and strategy.Establishes corporate mission and strategy.
– May engage in strategic planning.May engage in strategic planning.
Chief Executive OfficerChief Executive Officer
– May serve as president or board chair; has aMay serve as president or board chair; has a
major role in planning and implementing themajor role in planning and implementing the
strategy.strategy.
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11. ResponsibilitiesResponsibilities
for Planning (cont..)for Planning (cont..)
Executive CommitteeExecutive Committee
– Composed of top executives.Composed of top executives.
– Meets regularly with the CEOMeets regularly with the CEO
to review strategic plans.to review strategic plans.
Line ManagementLine Management
– Have formal authority andHave formal authority and
responsibility for management ofresponsibility for management of
the organization.the organization.
– Help to formulate strategy byHelp to formulate strategy by
providing information.providing information.
– Responsible for executing the plansResponsible for executing the plans
of top management.of top management.
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12. Contingency Planning andContingency Planning and
Crisis ManagementCrisis Management
Contingency PlanningContingency Planning
– The determination of alternative courses ofThe determination of alternative courses of
action to be taken if an intended plan isaction to be taken if an intended plan is
unexpectedly disrupted or renderedunexpectedly disrupted or rendered
inappropriate.inappropriate.
– These plans help managers to cope withThese plans help managers to cope with
uncertainty and change.uncertainty and change.
Crisis ManagementCrisis Management
– The set of procedures the organization uses inThe set of procedures the organization uses in
the event of a disaster or other unexpectedthe event of a disaster or other unexpected
calamity.calamity.
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16. Managing Goal-Setting andManaging Goal-Setting and
Planning ProcessesPlanning Processes
Barriers to Goal Setting and PlanningBarriers to Goal Setting and Planning
– As part of managing the goal-settingAs part of managing the goal-setting
and planning process, managers mustand planning process, managers must
understand the barriers that can disruptunderstand the barriers that can disrupt
them.them.
– Managers must also know how toManagers must also know how to
overcome them.overcome them.
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19. Using Goals to Implement Plans:Using Goals to Implement Plans:
The Effectiveness of Formal Goal SettingThe Effectiveness of Formal Goal Setting
Strengths (Success)Strengths (Success)
– Improved employeeImproved employee
motivationmotivation
– EnhancesEnhances
communicationcommunication
– Fosters more objectiveFosters more objective
performance appraisalsperformance appraisals
– Focuses attention onFocuses attention on
appropriate goals andappropriate goals and
plansplans
– Helps identify managerialHelps identify managerial
talenttalent
– Provides a systematicProvides a systematic
management philosophymanagement philosophy
– Facilitates control of theFacilitates control of the
organizationorganization
Weaknesses (Failure)Weaknesses (Failure)
– Poor implementation ofPoor implementation of
the goal setting processthe goal setting process
– Lack of top-Lack of top-
management supportmanagement support
for goal settingfor goal setting
– Delegation of the goal-Delegation of the goal-
setting process to lowersetting process to lower
levelslevels
– Overemphasis onOveremphasis on
quantitative goalsquantitative goals
– Too much paperworkToo much paperwork
and record keepingand record keeping
– Managerial resistanceManagerial resistance
to goal settingto goal setting
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20. Thank YouThank You
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