Chapter 7 Managerial Planning and Goal Setting 2016

Planning is Fundamental v All of the other management functions stem from planning v

Goals and Plans A goal is a desired future state that the organization attempts

7. 1 Levels of Goals and Plans © 2016 Cengage Learning. All Rights Reserved.

7. 2 The Organizational Planning Process © 2016 Cengage Learning. All Rights Reserved. May

Goal-Setting in Organizations Organizational mission – the organization’s reason for existence v Strategic goals

7. 4 A Strategy Map for Aligning Goals © 2016 Cengage Learning. All Rights

Operational Planning v Direct employees and resources v Guide toward efficient and effective performance

7. 5 Characteristics of Effective Goal Setting © 2016 Cengage Learning. All Rights Reserved.

7. 6 Model of the MBO Process Defined in 1954 by Peter Drucker v

7. 7 MBO Benefits © 2016 Cengage Learning. All Rights Reserved. May not be

Single-Use and Standing Plans Single-Use Plans v. Achieve one-time goals v. Programs and projects

Types of Single-Use and Standing Plans v Single-Use Plans v. Program: building new headquarters,

Types of Single-Use and Standing Plans v. Policy: Sexual harassment policies, Internet and social

7. 8 Major Types of Single Use and Standing Plans © 2016 Cengage Learning.

Benefits and Limitations of Planning • • Goals and plans provide a source of

Planning for a Turbulent Environment v Contingency Planning v. Planning for emergencies, setbacks, or

7. 9 Essential Stages of Crisis Planning © 2016 Cengage Learning. All Rights Reserved.

Set Stretch Goals for Excellence v v v Stretch goals are highly ambitious Clear,

Use Performance Dashboards vkeep track of key performance metrics valign and track goals vcan

7 -10 A Performance Dashboard for Planning © 2016 Cengage Learning. All Rights Reserved.

Deploy Intelligence Teams v Intelligence teams vcross-functional group of managers vwork together vgain a

Slides: 22

Download presentation

Planning is Fundamental v All of the other management functions stem from planning v How do you plan for an undefined future? v No plan is perfect v. Without plans and goals, organizations flounder © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

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 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

Goal-Setting in Organizations Organizational mission – the organization’s reason for existence v Strategic goals – official goals, broad statements describing the organization’s future v Strategic plans – define the action steps the company will take v Goals should be aligned using a strategy map v © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

Operational Planning v Direct employees and resources v Guide toward efficient and effective performance v Includes planning approaches: v. Management-by-Objectives (MBO) v. Single-Use Plans v. Standing Plans © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

7. 5 Characteristics of Effective Goal Setting © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

7. 6 Model of the MBO Process Defined in 1954 by Peter Drucker v Method for defining goals and monitoring performance v © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10

Single-Use and Standing Plans Single-Use Plans v. Achieve one-time goals v. Programs and projects Standing Plans v. Ongoing plans v. Policies, rules, procedures © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

Types of Single-Use and Standing Plans v Single-Use Plans v. Program: building new headquarters, converting paper files to digital v. Project: renovating the office, setting up a new company intranet © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

Types of Single-Use and Standing Plans v. Policy: Sexual harassment policies, Internet and social media policies v. Rule: No eating rule in areas of company where employees are visible to public v. Procedure: Procedures for issuing refunds, Procedures for handling employee grievances © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14

7. 8 Major Types of Single Use and Standing Plans © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15

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 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16

Planning for a Turbulent Environment v Contingency Planning v. Planning for emergencies, setbacks, or unexpected conditions v Building Scenarios v. A forecasting technique to look at current trends and discontinuities and visualize future possibilities v Crisis Planning v. Unexpected events that are sudden and devastating © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17

Set Stretch Goals for Excellence v v v Stretch goals are highly ambitious Clear, compelling, and imaginative Require innovation Goals must be seen as achievable Like Big Hairy Audacious Goal (BHAG) from 1996 article on “Building Your Company’s Vision” As times move faster and become more turbulent, these are important © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19

Use Performance Dashboards vkeep track of key performance metrics valign and track goals vcan be applied throughout the company on the factory or sales floor. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20

Deploy Intelligence Teams v Intelligence teams vcross-functional group of managers vwork together vgain a deep understanding of a specific competitive issue voffer insight and recommendations for planning © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22