7-1 Copyright © 2005 Prentice-Hall Chapter 7 Planning and Goal Setting Management: A Skills Approach, 2/e by Phillip L. Hunsaker Copyright © 2005 Prentice-Hall

7-2 Copyright © 2005 Prentice-Hall Learning Objectives Create Strategic and Operational Goals Perform SWOT Analyses Create Plans to Achieve Goals Determine Distinctive Competencies Formulate Competitive Strategies Obtain Employee Commitment to Goals

7-3 Copyright © 2005 Prentice-Hall How Well Do I Plan and Set Goals? Am I a Good Planner? How Well Do I Set Goals?

7-4 Copyright © 2005 Prentice-Hall Skill Concepts Most of us have goals we want to achieve. Managers have organizational goals to accomplish through the efforts of their employees. Managers should make sure employees know what they are trying to accomplish in their jobs.

7-5 Copyright © 2005 Prentice-Hall Planning Defining the organization’s objectives Establishing an overall strategy for achieving those goals Developing the means to integrate and coordinate necessary activities

7-6 Copyright © 2005 Prentice-Hall Strategic Plans Apply to the whole organizationApply to the whole organization Establish the organization’s overall objectivesEstablish the organization’s overall objectives

7-7 Copyright © 2005 Prentice-Hall Operational Plans Specify the details of how the overall objectives are to be achievedSpecify the details of how the overall objectives are to be achieved Short term in natureShort term in nature

7-8 Copyright © 2005 Prentice-Hall The Strategic Planning Process

7-9 Copyright © 2005 Prentice-Hall Step 1: Identify Overall Goals Mission Statement Vision SWOT Analysis

7-10 Copyright © 2005 Prentice-Hall Step 2: Analyze the Environment Make Scanning a Priority Anticipate Change Flexible Thinking Consult With Colleagues Be Patient With Ambiguity

7-11 Copyright © 2005 Prentice-Hall External Analysis Step 3: Identify Opportunities and Threats

7-12 Copyright © 2005 Prentice-Hall Internal Analysis Step 4: Analyze the Organization’s Resources

7-13 Copyright © 2005 Prentice-Hall Step 5: Identify Strengths and Weaknesses Strengths Weaknesses

7-14 Copyright © 2005 Prentice-Hall Step 6: Identify Operational Objectives Niche Distinctive Competence

7-15 Copyright © 2005 Prentice-Hall Step 7: Create Strategies Competitive Strategy Cost-leadership Differentiation Focus

7-16 Copyright © 2005 Prentice-Hall Step 8: Implement Strategies

7-17 Copyright © 2005 Prentice-Hall Step 9: Evaluate Results

7-18 Copyright © 2005 Prentice-Hall Goal Setting Characteristics of Effective Goals

7-19 Copyright © 2005 Prentice-Hall Goal Setting Elements exemplified in MBO systems Goals are jointly determined by employees and supervisors. Generates commitment and provides control

7-20 Copyright © 2005 Prentice-Hall Goal Setting Process 1)Clarify alignment to organizational objectives 2)Set specific objectives with employees 3)Obtain commitment to goals 4)Prioritize goals according to their importance

7-21 Copyright © 2005 Prentice-Hall Goal Setting Process 5) Specify the time span involved 6) Specify how the performance will be measured 7) Provide performance feedback