1. MANAGEMENT
RICHARD L. DAFT

2. Managerial Planning and Goal Setting
Managerial Planning and Goal Setting
CHAPTER 6

3. Learning Outcomes
Define goals and plans and explain the relationship between them.
Explain the concept of organizational mission and how it influences goal setting and planning.
Describe the types of goals an organization should have and how managers use strategy maps to align goals.
Define the characteristics of effective goals.
Describe the four essential steps in the management by objectives (MBO) process.
Explain the difference between single-use plans and standing plans.
Describe and explain the importance of contingency planning, scenario building, and crisis planning in today’s environment.
Summarize the guidelines for high-performance planning in a fast-changing environment.
Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

4. Does Goal Setting Fit Your Management Style?
Managers must plan where the organization should go in the future
Managers must plan for unexpected events
The company establishes a basic mission and develops goals and objectives
Plans should meet environmental changes and expectations of stakeholders
Planning is fundamental to all organizations
Everything stems from planning
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5. Overview of Goals and Plans
A goal is a desired future state that the organization attempts to realize
A plan is a blueprint for goal achievement
There are different levels of planning and goals in an organization
Goals at each level of the organization guide the organization
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6. Levels of Goals/Plans and their Importance
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7. Characteristics of Goals and Plans
Legitimacy
Source of motivation and commitment
Resource allocation
Guides to action
Rationale for decisions
Standards of performance
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8. The Organizational Planning Process
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9. Organizational Mission
The mission statement is the reason the organization exists
Top of the goal hierarchy
Describes the values, aspirations and reason for being
A well-defined mission is the basis for all other goals
Mission statements outline the stated purpose and values to stakeholders
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10. Types of Goals and Plans
Strategic Goals – official goals, broad statements about the organization
Define the action steps the company intends to attain
The blueprint that defines activities
Tactical Goals – help execute major strategic plans
Specific part of the company’s strategy
Plans of the divisions and departments
Operational Goals – results expected from departments, work groups, and individuals
Lower levels of the organization
Specific action steps
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11. Aligning Goals with Strategy Maps
Goals should be consistent and mutually supportive
The achievement of goals at low levels permits the attainment of high-level goals
Individuals, teams, and departments should be working in concert
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12. Strategy Map for Aligning Goals
Goals should be consistent and mutually supportive
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13. Operational Planning
Operational goals should direct employees and resources toward outcomes
It is important to establish effective goals
Management by objective
Single-use plans
Standing plans
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14. Characteristics of Effective Goal Setting
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15. Management by Objective
Defined by management scholar Peter Drucker in his 1954 book, The Practice of Management
Process of defining goals and monitoring progress
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16. Model of the MBO Process
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17. MBO Benefits and Problems
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18. Single-Use and Standing Plans
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19. Planning for a Turbulent Environment
Contingency Planning – plans for emergencies, setbacks or unexpected conditions
Building Scenarios – visualizing future possibilities
Crisis Planning – preparing to cope with unexpected events
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20. Essential Stages of Crisis Planning
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21. Planning for High Performance
Traditional Approach:
Done by top executives (top down)
Central planning departments
Planning specialist
High-Performance Approach:
Decentralized planning
Managers plan throughout the organization
Now involves line-managers and employees
Dynamic plans for fast-changing needs
Stretch Goals and Big Hairy Audacious Goals (BHAG) are big and inspiring
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22. Performance Dashboard for Planning
Gauge progress toward goals
Align and track goals
All employees can track progress
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