3Organizational Goals Purposes of Goals Provide guidance and a unified direction for people in the organization.Strongly affect on the quality of other aspects of planning.Serve as a source of motivation for employees.Provide a mechanism for evaluation and control of the organization.
4Classifications of Goals By LevelBy AreaBy Time Frame
5Kinds of Goals By Level Mission statement Strategic goals Tactical goalsOperational goals.
6Kinds of GoalsBy Area - Different functional areas of the organization.MarketingFinanceHRProductionBy Time FrameLong-termIntermediate-termShort-term time framesExplicit time frames v. open-ended.
7Kinds of Organizational Goals for a Regional Fast-Food Chain
8Responsibilities of Setting Goals Who Sets Goals?All managers: managerial responsibility for goal setting should correspond to the manager’s level in the organization.Managing Multiple GoalsOptimizing allows managers to balance and reconcile inconsistent or conflicting goals.Managers can choose to pursue one goal and exclude all others or to seek a mid-range goal.
9Kinds of Organizational Plans Strategic PlansA general plan set by and for top management that outlines resource allocation, priorities, and action steps to achieve strategic goals.Tactical PlansA plan aimed at achieving the tactical goals set by and for middle management.Operational PlansShort-term focus plans that are set by and for lower-level managers.
10Time Frames for Planning The Time Dimension of Planning - Planning must provide sufficient time to fulfill the managerial commitments involved.Long-range PlansCover present and future strategic issues extending beyond five years in the future.Intermediate PlansCover from 1 to 5 years and parallel tactical plans.Are the principal focus of organizational planning efforts.Short-range PlansAre action plans and reaction (contingency) plans that have a time frame of one year or less.
11Responsibilities for Planning Planning StaffGather information, coordinate planning activities, and take a broader view than individual managers.Planning Task ForceCreated when the organization wants a special circumstance addressed.Board of DirectorsEstablishes corporate mission and strategy.May engage in strategic planning or may approve.Chief Executive OfficerMay serve as president or board chair; has a major role in planning and implementing the strategy.
12Responsibilities for Planning (cont’d) Executive CommitteeComposed of top executives.Meets regularly with the CEO to review strategic plans.Line ManagementHave formal authority and responsibility for management of the organization.Help to formulate strategy by providing information.Responsible for executing the plans of top management.
13Contingency Planning and Crisis Management The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate.These plans help managers to cope with uncertainty and change.Anticipates problems and develops solutions for them before they happen.Crisis ManagementThe set of procedures the organization uses in the event of a disaster or other unexpected calamity.Reaction
15Developing Tactical Plans Recognize and understand the strategic plans and the tactical objectives.Specify relevant resource and time constraints.Recognize and identify human resource commitments.
16Executing Tactical Plans Evaluate each course of action in light of the objective.Obtain and distribute information and resources.Monitor horizontal & vertical communication, and integration activitiesMonitor ongoing activities for goal achievement.
17Types of Operational Plans Single Use PlansDesigned to deal with a unique and nonrecurring situation.Post-Katrina recovery of MGM GrandThey have a clear time frame for their usefulness (usually short-term)Often they are used once and then discarded.
18Types of Operational Plans Standing PlansOngoing guides for action dealing with recurring situationsMarketing plans for global expansion, e.g.
19Managing Goal-Setting and Planning Processes Barriers to Goal Setting and PlanningAs part of managing the goal-setting and planning process, managers must understand the barriers that can disrupt them.Managers must also know how to overcome them.
20Barriers to Goal Setting and Planning Inappropriate goalsUnrealisticUnethicalImproper reward system (short-term results instead of long-term ones)Dynamic and complex environmentReluctance to establish goals (you will be accountable)Resistance to changeResource constraints
21Reducing Barriers to Goal Setting and Planning Understanding the purpose of the goals and planning.Explain the consequences of doing nothing.Communication and participation (make your goals their goals — Roald Amundsen).Consistency, revision, and updatingEffective reward system
23How Formal Goal Setting Contributes to Organizational Success Improved employee motivationEnhances communicationFosters more objective performance appraisalsFocuses attention on appropriate goals and plansHelps identify managerial talentProvides a systematic management philosophyFacilitates control of the organization
24Factors Contributing to the Failure of Formal Goal Setting Poor implementation of the goal setting processLack of top-management support for goal settingDelegation of the goal-setting process to lower levelsOveremphasis on quantitative goalsToo much paperwork and record keepingManagerial resistance to goal setting