Managerial Planning and Goal Setting Chapter 7 Managerial Planning and Goal Setting

Planning is Fundamental All of the other management functions stem from planning How do you plan for an undefined future? No plan is perfect Without plans and goals, organizations flounder Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Goals and Plans A goal is a desired future state that the organization attempts to realize PLANNING A plan is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7.1 Levels of Goals and Plans Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7.2 The Organizational Planning Process Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Goal Setting in Organizations Organizational Mission – the organization’s reason for existence Strategic goals – official goals, broad statements describing the organization’s future Strategic plans – define the action steps the company will take Goals should be aligned Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7.4 A Strategy Map for Aligning Goals Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Operational Planning Direct employees and resources Guide efficient and effective performance Includes planning approaches: Management by Objectives (MBO) Single-Use Plans Standing Plans Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7.5 Criteria for Effective Goal Setting Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7.6 Model of the MBO Process Defined in 1954 by Peter Drucker Method for defining and monitoring goals Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7.7 MBO Benefits Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Single-Use and Standing Plans Single-Use Plans Achieve one-time goal Programs and Projects Standing Plans Ongoing plans Policies, rules, procedures Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Types of Single-Use and Standing Plans Single-Use Plans Program: building new headquarters, converting paper files to digital Project: renovating the office, setting up a new company intranet Standing Plans Policy Rule Procedure Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Benefits and Limitations of Planning Goals and plans provide a source of motivation and commitment Goals and plans guide resource allocation Goals and plans are a guide to action Goals and plans set a standard of performance Goals and plans can create a false sense of certainty Goals and plans may cause rigidity in a turbulent environment Goals and plans can get in the way of intuition and creativity Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Planning for a Turbulent Environment Contingency Planning Planning for emergencies, setbacks, or unexpected conditions Building Scenarios A forecasting technique to look at current trends and visualize future possibilities Crisis Planning Sudden, devastating, unexpected events Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7.9 Essentials Stages of Crisis Planning Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

Set Stretch Goals for Excellence Stretch goals are highly ambitious Clear, compelling, and imaginative Require innovation Goals must be seen as achievable Like Big Hairy Audacious Goals (BHAG) from 1996 article on building your vision As times move faster and become more turbulent, these are important Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7.10 A Performance Dashboard for Planning Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.