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Organizational Planning And Goal Setting

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Sabih Kamran
Sabih Kamran

MGT 201 Helpful Slides For Management Students Of Different Universities In Karachi And All Over Pakistan And Organizational Planning And Goal Setting

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ORGANIZATIONAL PLANNING & GOAL SETTING Prepared By : ZAREEN SHAIKH, SZABIST Larkana Session-6 Class-BBA.2
Goals and Plans A blueprint specifying the resource allocation, schedules, and other actions necessary for attaining goals. Planning is considered the most fundamental function. Planning is the most controversial management function. Plan Goal A desired future state that the organization attempts to realize.
Levels of Goals/Plans
Goals and Plans Purposes Legitimacy/Mission Statement Describes values, aspirations, and reason for being. Focuses on, customers, corporate values, product quality, and attitude toward employees. Source of Motivation and Commitment Facilitate employees’ identification with the organization. Guides to Action Provide a sense of direction. Focus attention on specific targets. Direct efforts toward important outcomes. What the organization stands for. Standard of Performance Serve as performance criteria. Provide a standard of assessment.
Peter Drucker’s Eight Content Areas in Developing Goals Marketing. Innovation. Productivity. Physical and financial resources. Profitability. Managerial performance and development. Worker performance and attitude. Public responsibility.
Overall Planning Process Begins With:  Mission statement  Strategic goals
Goals and Plans Strategic Goals • Where the organization wants to be in the future. • Pertain to the organization as a whole. Strategic Plans • Action Steps. • Blueprint that defines the organizational activities and resource allocations.
Tactical Goals and Plans Tactical Goals Goals that define the outcomes that major divisions and departments must achieve. Tactical Plans Plans designed to help execute major strategic plans.
Operational Goals and Plans Operational Goals Specific, measurable results expected from departments, work groups, and individuals. Operational Plans Organization’s lower levels that specify action steps toward achieving operational goals.
Planning Time Horizon
Means End-Chain • The achievement of goals at low levels permits the attainment of high-level goals.
Characteristics of Effective Goal Setting Goal Characteristics Specific and measurable. Cover key result areas. Challenging but realistic. Defined time period. Linked to rewards.
Model of the MBO Process Step 1: Setting Goals Step 2: Developing Action Plans Step 3: Reviewing Progress Corporate Strategic Goals Departmental Goals Individual Goals Step 4: Appraising Overall Performance Appraisal of Overall Performance Corrective Action Review Progress Action Plans
MBO Benefits and Problems Benefits of MBO Problems with MBO 1. Manager and employee efforts are focused on activities that will lead to goal attainment. 2. Performance can be improved at all company levels. 3. Employees are motivated. 4. Departmental and individual goals are aligned with company goals. 1. Constant change prevents MBO from taking hold. 2. An environment of poor employer- employee relations reduces MBO effectiveness. 3. Strategic goals may be displaced by operational goals. 4. Mechanistic organizations and values that discourage participation can harm the MBO process. 5. Too much paperwork saps MBO energy.
Plans Single-Use Standing Contingency Crisis Management Three Stages Prevention Preparation Containment
How Do Managers Plan? • Establishing Goals – Approaches to Establishing Goals • Traditional goal setting - Overall goals established at the top of the organization – overall goals broken down into sub goals for each level of the organization Problems of traditional goal setting 1. Planners out of touch on day to day basis 2. No flexibility in plans 3. Less creativity and learning
Traditional Objective Setting Individual Employee’s Objective Top Management’s Objective Department Manager’s Objective Division Manager’s Objective “Increase profits, regardless of the means” “I want to see a significant improvement in this division’s profits” “We need to improve the company’s performance” “Don’t worry about quality: just work fast”
The New Planning Paradigm Six Rules of Planning Start with a Strong Mission Set Stretch Goals Create an Environment that Encourages Learning Design New Roles for Planning Staff Use Temporary Task Forces Planning Still Starts and Stops at the Top
Strategic Management Questions  What changing and trends are occurring?  Who are the customers?  What products or services should we offer?  How can we offer these products or services efficiently?
Strategic Management Process Identify Strategic Factors •Strengths •Weaknesses Scan Internal Environment •Core Competence •Synergy •Value Creation Identify Strategic: •Corporate •Business •Functional Define New: •Mission •Goals •Grand Strategy Evaluate Current: •Mission •Goals •Strategies Scan External Environment •National •Global •Opportunities •Threats Identify Strategic Factors SWOT Implementing Strategy via Changes in: •Structure •Human resources •Information & control systems
Tools for Putting Strategy into Action
–ANY QUESTION

More Related Content

Organizational Planning And Goal Setting

  • 1. ORGANIZATIONAL PLANNING & GOAL SETTING Prepared By : ZAREEN SHAIKH, SZABIST Larkana Session-6 Class-BBA.2
  • 2. Goals and Plans A blueprint specifying the resource allocation, schedules, and other actions necessary for attaining goals. Planning is considered the most fundamental function. Planning is the most controversial management function. Plan Goal A desired future state that the organization attempts to realize.
  • 4. Goals and Plans Purposes Legitimacy/Mission Statement Describes values, aspirations, and reason for being. Focuses on, customers, corporate values, product quality, and attitude toward employees. Source of Motivation and Commitment Facilitate employees’ identification with the organization. Guides to Action Provide a sense of direction. Focus attention on specific targets. Direct efforts toward important outcomes. What the organization stands for. Standard of Performance Serve as performance criteria. Provide a standard of assessment.
  • 5. Peter Drucker’s Eight Content Areas in Developing Goals Marketing. Innovation. Productivity. Physical and financial resources. Profitability. Managerial performance and development. Worker performance and attitude. Public responsibility.
  • 6. Overall Planning Process Begins With:  Mission statement  Strategic goals
  • 7. Goals and Plans Strategic Goals • Where the organization wants to be in the future. • Pertain to the organization as a whole. Strategic Plans • Action Steps. • Blueprint that defines the organizational activities and resource allocations.
  • 8. Tactical Goals and Plans Tactical Goals Goals that define the outcomes that major divisions and departments must achieve. Tactical Plans Plans designed to help execute major strategic plans.
  • 9. Operational Goals and Plans Operational Goals Specific, measurable results expected from departments, work groups, and individuals. Operational Plans Organization’s lower levels that specify action steps toward achieving operational goals.
  • 11. Means End-Chain • The achievement of goals at low levels permits the attainment of high-level goals.
  • 12. Characteristics of Effective Goal Setting Goal Characteristics Specific and measurable. Cover key result areas. Challenging but realistic. Defined time period. Linked to rewards.
  • 13. Model of the MBO Process Step 1: Setting Goals Step 2: Developing Action Plans Step 3: Reviewing Progress Corporate Strategic Goals Departmental Goals Individual Goals Step 4: Appraising Overall Performance Appraisal of Overall Performance Corrective Action Review Progress Action Plans
  • 14. MBO Benefits and Problems Benefits of MBO Problems with MBO 1. Manager and employee efforts are focused on activities that will lead to goal attainment. 2. Performance can be improved at all company levels. 3. Employees are motivated. 4. Departmental and individual goals are aligned with company goals. 1. Constant change prevents MBO from taking hold. 2. An environment of poor employer- employee relations reduces MBO effectiveness. 3. Strategic goals may be displaced by operational goals. 4. Mechanistic organizations and values that discourage participation can harm the MBO process. 5. Too much paperwork saps MBO energy.
  • 16. How Do Managers Plan? • Establishing Goals – Approaches to Establishing Goals • Traditional goal setting - Overall goals established at the top of the organization – overall goals broken down into sub goals for each level of the organization Problems of traditional goal setting 1. Planners out of touch on day to day basis 2. No flexibility in plans 3. Less creativity and learning
  • 17. Traditional Objective Setting Individual Employee’s Objective Top Management’s Objective Department Manager’s Objective Division Manager’s Objective “Increase profits, regardless of the means” “I want to see a significant improvement in this division’s profits” “We need to improve the company’s performance” “Don’t worry about quality: just work fast”
  • 18. The New Planning Paradigm Six Rules of Planning Start with a Strong Mission Set Stretch Goals Create an Environment that Encourages Learning Design New Roles for Planning Staff Use Temporary Task Forces Planning Still Starts and Stops at the Top
  • 19. Strategic Management Questions  What changing and trends are occurring?  Who are the customers?  What products or services should we offer?  How can we offer these products or services efficiently?
  • 20. Strategic Management Process Identify Strategic Factors •Strengths •Weaknesses Scan Internal Environment •Core Competence •Synergy •Value Creation Identify Strategic: •Corporate •Business •Functional Define New: •Mission •Goals •Grand Strategy Evaluate Current: •Mission •Goals •Strategies Scan External Environment •National •Global •Opportunities •Threats Identify Strategic Factors SWOT Implementing Strategy via Changes in: •Structure •Human resources •Information & control systems