Chapter 7 Managerial Planing and Goal Setting

7/28/2019 Chapter 7 Managerial Planing and Goal Setting

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MMPRINCIPLESANDDYNAMICSOFMANAGEMENT

Chapter

7


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GROUP3

Deo Ferdie Jo Miguel


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Learning Objective

Define goals and plans and explain the relationshipbetween them.

Explain the concept of organizational mission and how itinfluences goal setting and planning.

Describe the types of goals an organization should have andwhy they resemble a hierarchy.

Define the characteristics of effective goals. Describe the four essential steps in the MBO process. Explain the difference between single-use plans and standing

plans.

Describe and explain the importance of the three stages ofcrisis management planning.

Summarize the guidelines for high-performance planning in afast-changing environment.


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Goal a desired future state that the organization

attempts to realize

Plan a blueprint specifying the resource

allocations, schedules, and other actions

necessary for attaining goals.

Planning The act of determining the

organization's goals and the means for achieving

them

Hierarchy of Goals for an Organization

Mission Statement External Message

Strategic Goals/

Plans

Sr. Management-

Organization

Internal Message

Tactical Goals/

Plans

Middle

Management-

Division

Internal Message

Operational Goals/

Plans

Lower

Management

Departments

Internal Message

DEFINEGOALANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN

SINGLEUSEPLANSANDSTANDINGPLANS

STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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Level of Goals and PlansDEFINEGOALANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN


STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE

MissionStateme

nt

SeniorManagement(Organizationasawhole)

StrategicGoals/Plan

MiddleManagement

(Majordivisions,functions)

TacticalGoals/Plans

LowerManagement

(Departments,Individuals)

OperationalGoals/Plan

External Message

Legitimacy for

investors, Customers,suppliers, community

Internal MessageLegitimacy,

motivation, resourceallocation, guides,

rationale, standards


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External and Internal messages provide the

Organization with:

1. Legitimacy describes what the organizationstands for and its reason for existence

2. Source of motivations and commitment letsthe employees know what the actions toundertake to achieve the goal

3. Resource allocations help managers todecide where they need to allocate resourcessuch as employees, money and equipment

4. Guides to action provides a sense ofdirection

5. Rationale for decisions managers learn whatthe organization is trying to accomplish

6.

Standard of performance provide a standardof assessment and performance criteria

The overall planning process prevents managersfrom thinking merely in terms of day to day activities.When organizations drift away from goals and plans,

they typically get into trouble.

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN


STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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Mission

the organization's reason for existence a well-defined mission is the basis fordevelopment of all subsequent goals and

plans

Mission Statement

a broadly concept of organizational stateddefinition of the organization's basicbusiness scope and operations that

distinguishes it from similar types of

organization

a well-designed statement can enhanceemployee motivation and organizationalperformance

they reveal the company's philosophy aswell as purpose

DEFINEGOAL

ANDPLANS

CONCEPTOFORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN


STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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The Bristol-Myers Squibb Pledge

Our companys mission is to extend and

enhance human life by providing thehighest- quality pharmaceutical andrelated health care products

We pledge to our patients and customers, to

our employees and partners, to ourshareholders and neighbors, and to theworld we serve to act on our belief thatthe priceless ingredient of every product isthe honor and integrity of its maker.

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN


STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN


STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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Step 1:Strategic Goals - broad statements of

where the organization wants to be in the

future; pertain to the organization as a

whole rather than to specific divisions ordepartments

Step 2:Strategic Plans - the action steps by

which an organization intends to attain

strategic goals

Step 3:Tactical Goals - goals that define the

outcomes the major d iv is ions and

departments must achieve in order for the

organization to reach its overall goals.

Step 4:Tactical Plans- designed to help execute

major strategic plans and to accomplish a

specific part of the company's strategy

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN


STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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Step 5:Operational Goals - specific measurable

results expected from departments, work

groups, and individuals within the organization

Step 6:Operational Plans - developed at the

organization's lower levels that specify action

steps toward achieving operational goals and

that support tactical planning activities

Effectively designed goals are aligned into a

hierarchy; the achievement of low level goals

permits the attainment of high -level goals-

means-ends chain.

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN


STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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Specific and Measurable when possible, goals should be expressed in

quantitative terms

Cover key results areas Goals must be based on the idea of choice

and clarity

Challenging but realistic Goals should be challenging but not

unreasonably difficult Defined time period

Goals should specify the time period overwhich they will be achieved.

Linked to rewards The ultimate impact of goals depends on the

extent to which salary increases, promotions,

and awards are based on goal achievement.

Rewards give meaning and significance togoals and help commit employees to

achieving goals.

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICS

OFEFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN

SINGLEUSEPLANSAND

STANDINGPLANS

STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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Management by Objectives (MBO)

A method of management whereby managersand employees define goals for everydepartment, project, and person and use them

to monitor subsequent performance.

1. Set goals - what are we trying to accomplish;the goal should be concrete and realistic,

provide a specific target and time frame, and

assign responsibility

2. Develop Action Plans - defines the course ofaction needed to achieve the stated goals

3. Review Progress - a periodic progress review toensure that action plans are working

4.Appraise overall Performance - evaluatewhether annual goals have been achieved for

both individuals and department.

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEENSINGLEUSEPLANSAND

STANDINGPLANS

STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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MBO Benefits and ProblemsDEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS


STANDINGPLANS

STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE

Benefits Problems

1.Managerandemployee

effortsarefocusedonactivitiesthatwillleadto

goalattainment.

1.Constantchangeprevents

MBOfromtakinghold.

2.Performancecanbe

improvedatallcompanylevels

2.Anenvironmentofpoor

employeremployeerelationsreducesMBOeffectiveness.

3.Employeesaremotivated. 3.Mechanisticorganizations

andvaluesthatdiscourageparticipationcanharmthe

MBOprocess.

4.Departmentaland

individualgoalsarealignedwithcompanygoals.

4.Toomuchpaperworksaps

MBOenergy.


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Single Plans

plans that are developed to achieve a set ofgoals that are unlikely to be repeated in the

future

Standing Plans

ongoing plans that are used to provideguidance for tasks performed repeatedly

within the organization

GOALAND

PLANS


TYPESOF

GOALS

CHARACTERISTICSOFEFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCE

BETWEENSINGLEUSEPLANSAND

STANDINGPLANS

CASESAMPLE

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBOPROCESS

DIFFERENCEBETWEENSINGLEUSEPLANSANDSTANDINGPLANS

STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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Major Types of Single Use and Standing PlanGOALANDPLANS


TYPESOF

GOALS


STEPSINTHEMBO

PROCESS

DIFFERENCE

BETWEENSINGLEUSEPLANSAND

STANDINGPLANS

CASESAMPLE

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS


STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEENSINGLEUSEPLANS

ANDSTANDINGPLANSSTAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE

SingleUsePlan StandingPlan

Program

Plans for attaining a onetimeorganizationalgoal

Major undertaking thatmayt ak e s ev e r a l y ea r s t o

completeLarge in scope; may beassoc ia ted wi th several

projects

Project

Also a set of plans forattainingaonetimegoal

Sma ll er i n s co pe a ndcomplexity than a program,

shorterinhorizon

Often one part of a largerprogram

Policy

Broadinscopegeneralguidetoaction

Basedonorganizationsoverallgoals/strategicplan

Definesboundarieswithinwhichtomakedecision

RoleNarrowinscopeDescribeshowaspecificactionistobeperformed

ProcedureSometimescalledastandardoperatingprocedure

Definesapreciseseriesofstepstoattaincertaingoals


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Prevention - through relationship building and

being able to detect signals from the

environment, the aim is to prevent crisis

from happening; also important to be able torespond more effectively to unavoidable crises

Preparation - the stage is composed of:

1. Designation of crisis management team andspokesperson

2. Creation of a detailed crisis management plan3. Setting up of an effective communications

system

Containment - if crises does hit, rapid response

is crucial- implementation and practice of

preparations made and the crisis management

plan

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOFGOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBOPROCESS


STANDINGPLANS

STAGESOFCRISISMANAGEMENTPLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

CASESAMPLE


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Decentralized planning - managers work withplanning experts to develop their own goals and

plans.

Planning experts work with managers in majordivisions or departments do develop their own

goals and plans.

Strong Mission and Vision - during times ofturbulence or uncertainty, a powerful sense of

purpose (mission) and direction for the future

(vision) will guide employee thinking and behavior

to coordinate the resources of the company in theright direction

Set Stretch Goals for Excellence- ambitious goalsof improvement, that are still realistic and

achievable, to motivate employees to think out ofthe box and increase their performance

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN


STAGESOFCRISIS

MANAGEMENTPLANNING

GUIDELINESFORHIGHPERFORMANCEPLAN

CASESAMPLE


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Embrace Event-Driven Planning - long rangestrategic planning is supplemented with 'right now'

event-driven planning, which responds to the

current reality of what the environment and themarketplace demands.

Use Performance Dashboards- a tool thatmeasures and gauges the progress towardsachieving the set goals

Organize Temporary Task Forces- a temporarygroup of managers and employees who take

responsibility for developing a strategic plan

Planning Still Starts and Stops at the Top- topmanagers crease a mission and vision worthy of

employees' best efforts and that provides a

framework for planning and goal setting; thesemanagers must show support and commitment to

the planning process

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN

SINGLEUSEPLANSAND

STANDINGPLANS

STAGESOFCRISISMANAGEMENT

PLANNING

GUIDELINESFORHIGHPERFORMANCE

PLAN

CASESAMPLE


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GROUP CASE

Chapter

7DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN

SINGLEUSEPLANSAND

STANDINGPLANS

STAGESOFCRISIS

MANAGEMENT

PLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

GROUPCASE


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Note:Theentiretextofthecaseisfoundonpages233234ofthetextbook:

Question: What are the causes of the confusion

confronting Keith Houck? Is H.I.D. ready to

formulate a strategic plan? Why or why not?

Answer: The cause of the confusion is that

although everyone knows the end goal

(mission), no one knew 'how' to achieve this

goal. The company should be ready to

formulate the strategic goals first, before the

strategic plan. Top management should first beable to formulate measurable goals that can be

targeted by the organization.

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN

SINGLEUSEPLANSAND

STANDINGPLANS

STAGESOFCRISIS

MANAGEMENT

PLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

GROUPCASE


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Question: If you were Keith Houck, what

questions would you ask the managers? What

steps would recommend in your effort to help

H.I.D. successfully formulate strategic goalsand plans?

Answer: He started of in the right foot by going

through the vision of each of the managers,

what is missing is how all these expectationscontribute to the overall goal of the

o rgan iza t i on . . . i f t he re i s one . My

recommendation is for management to set

targets and goals for the organization as a

whole followed by how each major division will

contribute to the achievement of the set goal.Keeping in mind that the goals should be

specific and measurable, that cover key results

areas, that is challenging but realistic, that

there are defined time period and that they are

linked to rewards.

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN

SINGLEUSEPLANSAND

STANDINGPLANS

STAGESOFCRISIS

MANAGEMENT

PLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

GROUPCASE


23/24

DEFINEGOAL

ANDPLANS

CONCEPTOF

ORGANIZATIONAL

TYPESOF

GOALS

CHARACTERISTICSOF

EFFECTIVEGOALS

STEPSINTHEMBO

PROCESS

DIFFERENCEBETWEEN

SINGLEUSEPLANSAND

STANDINGPLANS

STAGESOFCRISIS

MANAGEMENT

PLANNING

GUIDELINESFORHIGH

PERFORMANCEPLAN

GROUPCASE

Question: If you were Bill Collins, what might you

have done differently during your tenure as

H.I.D. president?

Answer: I would have set the direction in which

the organization will focus on. All existing

organizations or companies will have goals of

profit, to be number one, to exceed customer

expectations... its already a given. As thehead, I would have to focus on key areas that I

believe will give the best return on resources,

will give the biggest impact. Once that is

determined, I would have made sure that the

goals are measurable and specific so we can

determine our progress and achievement. Allthe goals will then be discussed by the heads

so we can plan on the next steps to be taken.


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GROUP3

THANKYOU

Documents

Chapter 7 Managerial Planing and Goal Setting