Organizational Mission Reason for existence, the basic purpose Focus on items such as: Market and customers Desired types of activities Values, aspirations, and reason for being Product quality Location of facilities Attitude toward employees.
Levels of Goals and Plans Strategic goals—broad statements describing where the organization wants to be in the future. Tactical goals—specific results for major divisions and departments. Operational goals—specific results expected from work groups, and individuals.
Planning Horizon Long term planning Includes strategic goals and plans Up to five years Intermediate-term planning Includes tactical objectives One to two years Short-term planning Includes operational objectives for departments and individuals One year or less
Peter Drucker’s Eight Areas of Focus 1. Market standing relative to competitors 2. Innovation of new methods or products 3. Productivity or efficiency 4. Resources, both physical and financial 5. Profitability 6. Managerial performance and development 7. Worker performance and attitude 8. Public responsibility to customers and society.
Chapter Outline Introduction Goals, plans, planning Planning hierarchy Planning time horizon Criteria for effective goals
Criteria for Effective Goals Be specific and measurable (When possible, goals should be expressed in quantitative terms) Cover key result areas Be challenging but realistic Be for a defined time period Be linked to rewards
Chapter Outline Introduction Goals, plans, planning Planning hierarchy Planning time horizon Criteria for effective goals Planning types
Single-Use Plans—For Goals Not Likely To Be Repeated A program is a complex set of objectives and plans to achieve an important, one-time organizational goal A project is similar to a program, but generally smaller in scope and complexity
Standing Plans A policy is a general guide to action and provides direction for people within the organization Procedures define a precise series of steps to be used in achieving a specific job Rules describe how a specific action is to be performed
Chapter Outline Introduction Goals, plans, planning Planning hierarchy Planning time horizon Criteria for effective goals Planning types Planning in a turbulent environment Planning for high performance