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2. The Importance of Goals and Plans
Rationale for decisions
Standard of performance
Guides to action 5

3. Goals and Plans
Goal
A desired future state that the organization attempts to realize.
Plans
A blueprint specifying the resource allocation, schedules, and other actions necessary for attaining goals.
Planning is considered the most fundamental function.
Planning is the most controversial management function.

4. Levels of Goals/Plans & Their Importance
External Message Legitimacy for investors, customers, suppliers, community
Mission Statement
Strategic Goals/Plans Senior Management (Organization as a whole)
Internal Message Legitimacy, motivation, guides, rationale, standards
Tactical Goals/Plans Middle Management (Major divisions, functions)
Operational Goals/Plans Lower Management (Departments, individuals)

5. Goals and Plans for External and Internal Audiences
Legitimacy
Standard of Performance
What the organization stands for
Serve as performance criteria
Symbolizes legitimacy
Provide a standard of assessment
Describes values, aspirations, and reason for being
Focuses on, customers, corporate values, product quality, and attitude toward employees
Source of Motivation and Commitment
Facilitate employees’ identification with the organization
Inside Motorola: Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions.
Guides to Action
Provide a sense of direction
Focus attention on specific targets
Direct efforts toward important outcomes

6. The Mission Mission; the organization’s reason for existing.
Mission Statement;
states the basic business scope and operations
may include the market and customers
some may describe company values, product quality, attitudes toward employees

7. Strategic Goals and Plans
Where the organization wants to be in the future
Pertain to the organization as a whole
Strategic Plans
Action Steps used to attain strategic goals
Blueprint that defines the organizational activities and resource allocations
Tends to be long term

8. Tactical Goals and Plans
Apply to middle management
Goals that define the outcomes that major divisions and departments must achieve
Tactical Plans
Plans designed to help execute major strategic plans
Shorter than time frame than strategic plans

9. Operational Goals and Plans
Specific, measurable results expected from departments, work groups, and individuals
Operational Plans
Organization’s lower levels that specify action steps toward achieving operational goals
Tool for daily and weekly operations
Schedules are an important component

10. Characteristics of Effective Goal Setting
Goal Characteristics
Specific and measurable
Cover key result areas
Challenging but realistic
Defined time period
Linked to rewards

11. Model of the MBO Process
Step 1: Setting Goals
Step 2: Developing Action Plans
Corporate Strategic Goals Departmental goals Individual goals
Action Plans
Review Progress
Step 3:
Reviewing Progress
Corrective Action
Step 4: Appraising Overall Performance
Appraisal Of Overall Performance

12. MBO Benefits and Problems
Benefits of MBO
Problems with MBO
1. Manager and employee efforts are focused on activities that will lead to goal attainment.
1. Constant change prevents MBO from taking hold.
2. An environment of poor employer-employee relations reduces MBO effectiveness.
2. Performance can be improved at all company levels.
3. Strategic goals may be displaced by operational goals.
3. Employees are motivated
4. Mechanistic organizations and values that discourage participation can harm the MBO process.
4. Departmental and individual goals are aligned with company goals.
5. Too much paperwork saps MBO energy.

13. 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 17

14. Standing Plans
A policy is a general guide to action and provides direction for people within the organization
Rules describe how a specific action is to be performed
Procedures define a precise series of steps to be used in achieving a specific job 18

15. Considerations For Contingency Planning
Identify uncontrollable factors;
recession
inflation
technological developments
Minimizing Impact of Uncontrollable Factors
forecast for worst-case scenarios

16. Challenging But Realistic Goals
Stretch Goals
Considered extremely ambitious but realistic
Keys to being effective
Set within existing resource base with consideration given to:
time
equipment
financial resources

17. Planning In The New Workplace
Have a strong mission statement
Develop stretch goals
Establish a culture that encourages learning
Design new roles for planning staff
Utilize temporary task forces