Managerial planning & goal setting ALL (Combined).pptx

MANAGERIAL PLANNING & GOAL SETTING

Chapter 7

PLANNING IN A TURBULENT ENVIRONMENT

• Building Scenarios

-Scenario building involves looking at current trends and discontinuities and visualizing future possibilities. Rather than looking only at history and thinking about what has been, managers think about what could be.

• Crisis scenario

-Reduces the incidence of trouble by prevention, preparation and containment.

THREE TYPES OF CRISIS SCENARIO

Prevention

-Build relationships

-Detect signals from environment

Preparation

-Designate crisis management team and spokesperson

-Create detailed crisis management plan

-Set up effective communication system

Containment

-Rapid response: Activate the crisis management plan

-Get the awful truth out

-Meet safety and emotional needs

-Return to business

PLANNING FOR HIGH PERFORMANCE

-The purpose of planning and goal setting is to help the organization achieve high performance.

Traditional Approaches to planning

-Traditionally, corporate planning has been done entirely by top executives, by consulting firms , or, most commonly, by central planning departments (CPD.)

High-Performance Approaches to Planning

-A new approach to planning is to involve everyone in the organization, and sometimes outside stakeholders as well, in the planning process. The evolution to a new approach began with a shift to decentralized planning. This approach enables managers throughout the company to come up with their own creative solution to problems and become more committed to following through on their plans.

GUIDELINES FOR PLANNING IN THE NEW WORKPLACE

Start with a strong mission and vision -During times of turbulence and uncertainty, a powerful sense of purpose (mission) and direction for the future (vision) become even more important.

Set stretch goals for excellence -Stretch goals are highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. Managers can use stretch goals to compel employees to think in new ways that can lead to bold, innovative breakthroughs.

EMBRACE EVENT-DRIVEN PLANNING

Calendar-Driven Planning

Is based on time

Produces a document

Is declared

Focuses on goals

Creates obstacles to change once set

• Creates strategy implementers

Event-Driven Planning

Is based on events-small and large

Produces a sequential process

Is evolutionary and interactive

Focuses on process

Allows for continuous change

Creates organization wide strategists

USE PERFORMANCE DASHBOARDS

• People need a way to see how plans are progressing and gauge their progress toward achieving goals. Companies began using business performance dashboards as a way for executives to keep track of key performance metrics, such as sales in relation to targets, number of products on back order , or percentage of customer service calls resolved within specified time periods.

ORGANIZE TEMPORARY TASK FORCES

• A planning task force is a temporary group of managers and employees who takes responsibility for developing a strategic plan. The task force often includes outside stakeholders as well, such as customers, suppliers, strategic partners, investors, or even members of the general community.

PLANNING STILL STARTS AND STOPS AT THE TOP

• Even though planning is decentralized, top managers must show support and commitment to the planning process. Top managers also accept responsibility when planning and goal setting are ineffective rather than blaming the failure on lower-level managers or employees.

Managerial Planning and Goal Setting

chapter 7

MANAGER’S CHALLENGE

• In todays uncertain environment managers face growing uncertainty, turbulence and they don’t know how to cope with all economic, social and political turmoil.

TOPICS IN CHAPTER 7

• Process of planning

• How managers develop effective plans.

• Goal setting

• Types of plans

• New approaches to planning

PROCESS OF PLANNING

• Before you make plans, you need a goal.

• A goal is a desired future state that the organization attempts to realize.

• A plan is a blueprint specifying the resource allocations, schedules and other actions necessary for attaining goals.

PROCESS OF PLANNING

• Planning is the act of determining the organizational goals and the means of achieving them.

- the most fundamental management function.

LEVEL OF GOALS AND PLANS AND RANK OF IMPORTANCE

PURPOSE OF GOALS AND PLANS

Legitimacy

• is the organizational mission.

• This involves what the organization stands for; its reason of

existence. A mission statement enables employees to become

committed to the organization.

PURPOSE OF GOALS AND PLANS

Source of motivation/ commitment

• motivates employee by reducing or completely removing

uncertainty by clarifying what they should accomplish.

• Whereas a goal provides the ‘why’ of an organization the plan

tells ‘how’. It tells of the actions needed to achieve the goal.

PURPOSE OF GOALS AND PLANS

Resource allocations

• goals help managers decide where they need to distribute resources

such as money, employees and equipment.

Guides to action

• provides a sense of direction.

• It focuses on specific area and direct employee effort toward

important outcomes.

PURPOSE OF PLANS AND GOALS

Standard of performance

• goals define desired outcomes for an organization.

• They serve as performance criteria and assessment standard.

PURPOSE OF PLANS AND GOALS

Rationale for decisions

• through goal setting and planning, managers learn what the

organization is trying to accomplish.

• they make decisions for internal policies roles, performance,

structure, products and expenditures in accordance for desired

outcomes.

ORGANIZATIONAL MISSION

• Mission

- reason for the existence of organization.

• Mission statement

- broadly states the basic scope of the business that differentiates it from similar

types.

- may include market and customers

-some may describe company characteristics such as value, product, quality,

location of facilities and attitude towards employees.

SAMPLE MISSION STATEMENT

STRATEGIC GOALS AND PLANS

• strategic goal

-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.

-blueprints for resource allocations

-tends to be long term

TACTICAL GOALS AND PLANS

• Tactical goal

-define outcomes that major departments or divisions must

achieve in order to meet organizational goals.

• Tactical plans

-Designed to help execute major strategic plans and to

accomplish specific part of company strategy.

OPERATIONAL GOALS AND PLANS

• Operational goal

-specific measurable results expected from department,

workgroup and individuals within an organization.

• Operational plans

-Developed at organizations lower levels that specify action steps

toward achieving operational goals and support tactical planning.

GOAL ATTAINMENTMeans- end chain

• Attainment of goals at lower level permits the

attainment of high level goal.

• Traditional organizational responsibility

Strategic goals- top managers

Tactical goals- middle managers

Operational goals- first line management and

workers

CHARACTERISTICS OF EFFECTIVE GOAL SETTINGS

• Specific and measurable

• Cover key result areas

• Challenging but realistic

• Define time period

• Linked to rewards

PLANNING TYPES

Management by objectives

Single-use Plans

Standing Plans

Contingency Plans

MANAGEMENT BY OBJECTIVES

Method whereby managers and employees define goals for every project, person and management and use them to monitor performance.

Includes four major activities and they are setting goals, developing action plans, reviewing progress and appraising overall performance.

This application must fit the needs of each company.

Managers believe that they are better oriented toward goal achievement.

Also has benefits and problems.

CON’T

SINGLE-USE PLANS

Develop to achieve a set of goals that should not be used in the future.

Typically include both programs and projects Program Project

Take so many years to do something. Converting all paper

files to digital.

Something that should be able to be done. Renovating the office

STANDING PLANS FOR TASKS PERFORMED REPEATEDLY

• Three types

Policy is a general guide to action and boundaries within which to make decisions. (sexual harassment policy)

Rule describes how a specific action is to be performed. ( NO eating or drinking rule while using computers)

Procedure involves a series of steps to reach goals. ( Procedure issuing refunds)

CONTINGENCY PLANTHE RESPONSE TO A SITUATION-

UNEXPECTED CONDITIONS

Managers identify important factors in the environment these includes economic downturns, declining markets, increase the cost of supplies, new technological developments or safety accidents.

This happens then they forecast a range of alternative responses that is suitable.