Upload
kalthumzul
View
11
Download
1
Tags:
Embed Size (px)
Citation preview
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
3
chapter6
• 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.
Learning Outcomes
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
4
chapter6Does 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
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
5
chapter6 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
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
6
chapter6 Levels of Goals/Plans and their Importance
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
7
chapter6 Characteristics of Goals and Plans
Legitimacy
Source of motivation and commitment
Resource allocation
Guides to action
Rationale for decisions
Standards of performance
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
8
chapter6 The Organizational Planning Process
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
9
chapter6 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
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
10
chapter6 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
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
11
chapter6 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
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
12
chapter6 Strategy Map for Aligning Goals
Goals should be consistent
and mutually
supportive
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
13
chapter6 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
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
14
chapter6 Characteristics of Effective Goal Setting
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
15
chapter6 Management by Objective
Defined by management scholar Peter Drucker in his 1954 book, The Practice of Management
Process of defining goals and monitoring progress
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
16
chapter6 Model of the MBO Process
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
17
chapter6 MBO Benefits and Problems
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
18
chapter6 Single-Use and Standing Plans
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
19
chapter6 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
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
20
chapter6 Essential Stages of Crisis Planning
Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
21
chapter6 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