Organizational

Planning
& Goal Setting
Goals and Plans
A blueprint specifying the resource allocation, schedules,
and other actions necessary for attaining goals.
Planning is considered the most fundamental function.
Planning is the most controversial management function.
Plan
Goal
A desired future state that the organization attempts to
realize.
Levels of Goals/Plans
Goals and Plans Purposes
Legitimacy/Mission Statement
Describes values, aspirations, and reason for being.
Focuses on, customers, corporate values, product quality, and attitude toward employees.
Source of Motivation and Commitment
Facilitate employees identification with the organization.
Guides to Action
Provide a sense of direction.
Focus attention on specific targets.
Direct efforts toward important outcomes.
What the organization stands for.
Standard of Performance
Serve as performance criteria.
Provide a standard of assessment.
Inside Motorola
Peter Druckers Eight Content
Areas in Developing Goals
OMarketing.
OInnovation.
OProductivity.
OPhysical and financial resources.
OProfitability.
OManagerial performance and development.
OWorker performance and attitude.
OPublic responsibility.
Overall Planning Process
Begins With: E Mission statement
E Strategic goals
Goals and Plans
Strategic Goals
Where the organization wants to be in the future.
Pertain to the organization as a whole.
Strategic Plans
Action Steps.
Blueprint that defines the organizational activities and
resource allocations.
Tactical Goals and Plans
Tactical Goals
Goals that define the outcomes that major divisions
and departments must achieve.
Tactical Plans
Plans designed to help execute major strategic plans.
Operational Goals and Plans
Operational Goals
Specific, measurable results expected from
departments, work groups, and individuals.
Operational Plans
Organizations lower levels that specify action
steps toward achieving operational goals.
Planning Time Horizon
Means End-Chain
The achievement of goals at low levels
permits the attainment of high-level goals.
Characteristics of
Effective Goal Setting
Goal Characteristics
ESpecific and measurable.
ECover key result areas.
EChallenging but realistic.
EDefined time period.
ELinked to rewards.
Model of the MBO Process
Step 1: Setting Goals
Step 2: Developing Action Plans
Step 3:
Reviewing Progress
Corporate Strategic Goals
Departmental Goals
Individual Goals
Step 4: Appraising Overall
Performance
Appraisal of Overall Performance
Corrective Action
Review Progress
Action Plans
MBO Benefits and Problems
Benefits of MBO
Problems with MBO
1. Manager and employee efforts are
focused on activities that will lead to
goal attainment.
2. Performance can be improved at all
company levels.
3. Employees are motivated.
4. Departmental and individual goals
are aligned with company goals.
1. Constant change prevents MBO from
taking hold.
2. An environment of poor employer-
employee relations reduces MBO
effectiveness.
3. Strategic goals may be displaced by
operational goals.
4. Mechanistic organizations and values that
discourage participation can harm the
MBO process.
5. Too much paperwork saps MBO energy.
Plans
Single-Use
Standing
Contingency
Crisis Management
Three Stages
OPrevention
OPreparation
OContainment
The New Planning Paradigm
Six Rules of
Planning
OStart with
a Strong
Mission
OSet Stretch
Goals
OCreate an
Environment
that
Encourages
Learning
ODesign
New Roles
for
Planning
Staff
OUse
Temporary
Task Forces
OPlanning
Still Starts
and Stops at
the Top
Strategic Management Questions
- What changing and trends are occurring?
- Who are the customers?
- What products or services should we offer?
- How can we offer these products or
services efficiently?
Strategic Management Process
Identify Strategic
Factors
Strengths
Weaknesses
Scan Internal
Environment
Core
Competence
Synergy
Value Creation
Identify
Strategic:
Corporate
Business
Functional
Define New:
Mission
Goals
Grand Strategy
Evaluate Current:
Mission
Goals
Strategies
Scan External
Environment
National
Global
Opportunities
Threats
Identify Strategic
Factors
SWOT
Implementing Strategy
via Changes in:
Structure
Human resources
Information &
control systems
Porters Competitive Forces
Potential new entrants
Bargaining power of buyers
Bargaining power of suppliers
Threat of substitute products
Rivalry among competitors
The Five Forces Affecting
Industry Competition
SOURCES: Based on Michael
E. Porter, Competitive
Strategy: Techniques for
Analyzing Industries and
Competitors (New York: Free
Press, 1980); and Michael E.
Porter, Strategy and the
Internet, Harvard Business
Review (March, 2001), 63-78.
Competitive Strategies
1. Differentiation
2. Cost Leadership
3. Focus
Partnership Strategies
Collaboration
High
Low
Organizational
Combination
Strategic
Alliance
Degree of
Collaboration
Preferred Supplier Arrangements
Strategic Business Partnering
Joint Ventures
Mergers
Acquisitions
Source: Adapted from Roberta Maynard. Striking the Right March, Nations Business (May 1996), 18-28.
Tools for Putting
Strategy into Action
SOURCE: Adapted from Jay R. Galbraith and Robert K. Kazanjian, Strategy Implementation: Structure, Systems, and Process, 2d ed. (St. Paul, Minn.: West, 1986), 115. Used
with permission.