Managerial Planning and

Goal Setting
 Mostly True Mostly False

1. I have clear, specific goals in several areas

of my life.
2. I have a definite outcome in life I want to achieve.
3. I prefer general to specific goals.
4. I work better without specific deadlines.
5. I set aside time each day or week
to plan my work.
6. I am clear about the measures that indicate when
I have achieved a goal.
7. I work better when I set more challenging goals
for myself.
8. I help other people clarify and define their goals.
 “ NO BATTLE PLAN SURVIVES CONTACT WITH THE
ENEMY”
Statement by General Colin Powell, former Secretary of states.

 the primary responsibilities of managers is to decide where the

organization should go in the future and how to get it there.

 company establishes a basic mission and periodically develops formal

goals and plans for carrying it out.

 No plan can be perfect, but without plans and goals, organizations and
employees flounder. However, good managers understand that plans
should grow and change to meet new conditions.
 Overview of Goals and Plans

Goal Plan

 is a desired future state  is a blueprint for goal

that the organization achievement and
attempts to realize. specifies the necessary
 Are important because resource allocations,
organizations exist for a schedules, tasks, and
purpose, and goals other actions.
define and state that  Plans specify today’s
purpose. means.
 Goals specify future ends
Level of goals and plans
Strategic goals Strategic plans

Broad statements of where the The action steps by which an

organization wants to be in the organization intends to attain
future; pertain to the organization as strategic goals.
a whole rather than to specific
divisions or departments.
Tactical goals Tactical plans

Goals that define the outcomes Plans designed to help execute

that major divisions and major strategic plans and to
departments must achieve for the accomplish a specific part of the
organization to reach its overall company’s strategy.
goals.
Operational goals Operational plans

Specific, measurable results Plans developed at the

expected from departments, work organization’s lower levels that
groups, and individuals within the specify action steps toward
organization. achieving operational goals and
that support tactical planning
activities.
 Purposes of goals and plans

Legitimacy
Source of motivation and commitment
Resource allocation
Guides to action
Rationale for decisions
Standard of performance
 Legitimacy

An organization’s mission describes what the

organization stands for and its reason for existence. It
symbolizes legitimacy to external audiences such as
investors, customers, suppliers, and the local
community
 Source of Motivation and Commitment

Goals and plans enhance employees’ motivation and

commitment by reducing uncertainty and clarifying
what they should accomplish.
 Resource Allocation

Goals help managers decide where they need to

allocate resources, such as employees, money, and
equipment.
 Guides to Action

Goals and plans provide a sense of direction. They

focus attention on specific targets and direct
employee efforts toward important outcomes.
 Rationale for Decisions

making decisions to ensure that internal policies, roles,

performance, structure, products, and expenditures
will be made in accordance with desired outcome
 Standard of Performance

Because goals define desired outcomes for the

organization, they also serve as performance criteria.
They provide a standard of assessment.
The Organizational Planning Process

Develop the
Plan

Monitor Translate
and Learn the Plan

Execute Plan
Operations Operations
 GOALS IN ORGANIZATIONS

Setting goals starts with top managers. The overall

planning process begins with a mission statement
and goals for the organization as a whole.
 Organizational Mission

the organization’s reason for existence.

 Aligning Goals with Strategy Maps

A strategy map is a visual representation of the key

drivers of an organization’s success and shows how
specific goals and plans in each area are linked.

The strategy map provides a powerful way for

managers to see the cause-and-effect relationships
among goals and plans.
 Operational Planning

Managers use operational goals to direct employees

and resources toward achieving specific outcomes
that enable the organization to perform efficiently
and effectively.
 Criteria for Effective Goals

• Specific and measurable

• Defined time period
• Cover key result areas
• Challenging but realistic
• Linked to rewards
 Management by Objectives

A Method for defining goals and monitoring

progress toward achieving them.

Management by objectives (MBO) is a system

whereby managers and employees define goals for
every department, project, and person and use
them to monitor subsequent performance.
 Four major activities make MBO
successful
Set goals

Develop action plans

Review progress

Appraise overall performance

 Single-use and Standing Plans
Single-use plans
 plans are developed to achieve
a set of goals that are not likely to
be repeated in the future.
 Single-use plans typically include
both programs and projects
Standing plans
 are ongoing plans that provide
guidance for tasks or situations
that occur repeatedly within the
organization.
 The primary standing plans are
organizational policies, rules,
and procedures. Standing plans
generally pertain to such
matters as employee illness,
absences, smoking, discipline,
hiring, and dismissal.
 Planning for a Turbulent Environment

3 critical planning methods

1. Contingency Planning

2. Building Scenarios

3. Crisis Planning
 Contingency Planning

Contingency plans that define company responses

to specific situations, such as emergencies, setbacks, or
unexpected conditions.
 Building Scenarios

Looking at trends and discontinuities and imagining

possible alternative futures to build a framework within
which unexpected future events can be managed.
 Crises Planning

Is a plan of implementation for emergency, changing

documents that is regularly reviewed, practiced and
updated as needed.

2 stages:
*Crises Prevention
*Crises Preparation
 PLANNING FOR HIGH PERFORMANCE

Traditionally, strategy and planning have been the

domain of top managers. Today, however, managers
involve people throughout the organization, which can
spur higher performance because people understand
the goals and plans.
The End…
THANK YOU 