1. Managerial Planning and Goal Setting
D:Chapter 7
Managerial Planning and Goal Setting

2. Chapter Outline
Introduction
Goals, plans, planning

3. Goals and Plans A Plan is the means devised to reach a goal.
A goal is a desired future target or end result.
A Plan is the means devised to reach a goal.
Planning is the act of determining the goals and plans. 2

4. The Benefits of Goals and Plans
Legitimacy to external audiences
A source of motivation and commitment
Guides to action
Rationale for decisions
Standard of performance and control 4

5. Chapter Outline
Introduction
Goals, plans, planning
Planning hierarchy

6. 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. 7

7. LEVELS OF GOALS Operational Goals Plans Tactical Strategic
TM 6-3
LEVELS OF GOALS
Operational
Goals
Plans
Tactical
Strategic
Top Management
Organizationwide
perspective
Middle Management
Department
perspective
First Level
Management
Unit/Individual
perspective
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8. 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. 8

9. MEANS -- ENDS CHAIN Strategic Goals Tactical Operational
TM 6-4
MEANS -- ENDS CHAIN
Strategic
Goals
Tactical
Operational
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10. Chapter Outline Introduction Planning hierarchy Planning time horizon
Goals, plans, planning
Planning hierarchy
Planning time horizon

11. Planning Horizon Long term planning Intermediate-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 22

12. 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. 9

13. Chapter Outline Introduction Planning hierarchy Planning time horizon
Goals, plans, planning
Planning hierarchy
Planning time horizon
Criteria for effective goals

14. 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 12

15. Chapter Outline Introduction Planning hierarchy Planning time horizon
Goals, plans, planning
Planning hierarchy
Planning time horizon
Criteria for effective goals
Planning types

16. PLANS ACCORDING TO USE PROGRAM PROJECT POLICIES PROCEDURES RULES
TM 6-6
PLANS ACCORDING TO USE
PROGRAM
Single-Use Plans
Aim at achieving a
specific, non-recurring
goal
PROJECT
POLICIES
PROCEDURES
RULES
Standing Plans
Providing ongoing
guidance for recurring
activities
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17. 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

18. 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 18

19. Chapter Outline Introduction Planning hierarchy Planning time horizon
Goals, plans, planning
Planning hierarchy
Planning time horizon
Criteria for effective goals
Planning types
Planning in a turbulent environment
Planning for high performance