Human Relations

Goal Setting & Planning

Human Relations
Goal Goals and Plans A desired future state that the organization wants to achieve. What do we want? A blueprint of the actions necessary to reach the desired How do we get goal.

Plan

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Levels of Goals/Plans - NASA
Mission Statement

A Mission Statement describes our we do is focused on Everything purpose.

getting there.

Strategic Goals

Strategic Plans

Senior Management

Strategic level is the Big Take a manPicture. to the moon by 1970. Tactics break strategies into steps. Build a rocket and launch
pad.

Tactical Goals

Tactical Plans

Middle Management

Operational Goals

Operational Plans

And smaller steps.

Build part of a rocket.

Lower Management

Human Relations
Mission Statement
Answers the question:
Mission Statement

Beat GM!

us?

What drives
Honda

A good Mission Statement: Elicits an emotional, motivational response in company employees. Is easily understood and can be transferred into individual action. Points to a tangible and measurable goal. Speaks to the competitive environment in which the company operates.

Principles of Management
Mission Statement
Mission Statement

An Organizations Mission: Reflects managements vision of who the firm serves. Provides a clear vision of what the firm provides customers. Directs managers where the firm should be staking out a competitive position in the marketplace.

A Mission Statement points to goals that are definable, measurable, actionable, and with emotional appeal that everyone understands and can act upon.

Human Relations
Mission Statement
To provide any customer a means of moving people and things up, down, and sideways over short distances, with higher reliability than any similar enterprise in the world.

Mission Statement

Elevator

Human Relations
Mission Statement
To offer food prepared in the same high-quality manner world-wide, tasty, reasonably priced, and delivered in a consistent, low-key and friendly atmosphere.

Mission Statement

Human Relations
Mission Statement
Mission Statement

To offer all of the fine customers in our territories all of their household needs in a manner in which they continue to think of us fondly.

Human Relations
Mission Statement
To provide our customers with error-free financial instruments delivered in a timely fashion. Errorfree means absolutely no errors. Timely means within 48 hours.

Mission Statement

Human Relations
Strategic Goals and Plans
Strategic Goals Strategic Plans

Senior Management

Strategic level is the Big Picture.

An Organizations Helps managers at lower levels focus. Strategic Goals: Avoids pitfall of them trying to move in too many directions at Senior Management formulates Strategic once. Goals so: level managers know where the Lower firm is at present. the firm is headed. And know where

Human Relations
Strategic Goals and Plans
Strategic Goals Strategic Plans

Senior Management

Nike

Protect and improve Nikes position as the number one athletic brand in America. Intensify the companys effort to develop products that women want and need. Explore the market for products specifically designed for the requirements of maturing Americans. Continue the drive for increased margins

Human Relations
Tactical and Operational Goals and Plans
Tactical Goals Tactical Plans

Middle Management

Tactics break strategies into smaller more specific steps .

Operational Goals

Operational Plans

Lower Management

And operational goals are even more specific steps .

Human Relations
Tactical and Operational Goals and Plans
Strategic Goal: Build momentum in fitness market. Marketing manager works with advertising manager and sales manager to devise point-of-purchase displays for fitness centers. Sales manager incorporates Strategic Goal: Increase margins via sales calls to fitness inventory management. evaluate production Purchasingeach salespersons sales plan. centers in managers lead times and tighten ROPs. Information Technology manager assigns inventory analyst to task of updating with more current

Human Relations
Cool Bottled Water, Inc.
Cool Bottled Water is a company that sells private label water drawn from the Sammamish Slough near Woodinville, Washington State. Private Label refers to the labeling of the bottles. Major companies and restaurant chains that want to create brand awareness order Our Mission Statement: bottles to be labeled with their own custom customers increase the Our goal is to help our brand. publics awareness of their names by providing them with premium bottled water labeled with their own name.

Human Relations
and a marketing team to develop and promote the product to large companies and restaurant chains in Washington, Oregon, and California, and to launch Day Zero on August 15th, 2002. Strategic Plan: of 15%. To achieve ROI Product development will be the responsibility of the Research and Development team, who are charged with maintaining purity and clarity standards. Production will be the responsibility of the Production and

Strategic Strategic Goal: Level To develop a source of water, a bottling plant,

Human Relations
Tactical Tactical Goal Production Team Level Produce bottled water per industry
Tactical Plan Production Team specifications for less than 35 cents per unit. Water will be drawn from two locations along the Slough on properties owned by the Clapping Hands Ranch. Water rights will be secured starting Day Zero minus 90 for 99 years via a mineral rights lease attached to the deed of the Ranch, which will be binding on subsequent owners. The water will be tested monthly for purity, and bottled in the companys bottling plant in Woodinville adjacent to the south source. The north-source water will be piped approximately one mile to the bottling plant. Approximately 500 gallons are available each

Human Relations
Operational Operational Goal Bottling Team Sub-unit of Level Production Team Acquire bottling equipment of sufficient Operational technology to Team Sub-unit of capacity and Plan Bottling maintain output and Production Team quality standards. Prepare RFP for equipment called out in specifications from Research and Development. Consider cost, ease of operation, reliability, and productivity, and choose appropriate equipment. Install equipment per factory specifications by Day Zero 95. Test output for 90 days prior to Day Zero.

Human Relations
C ool B o ttled W ater, In c.
C ash Flo w An alysis
12 M o nth s E nd in g 12-31-03

R ev en ue C ost of G oods S old B eginning Inventory + P urchases = T otal G oods A vailable for Sale - E nding Inventory T o tal C o st o f G o o ds S o ld G ro ss Profit O perating E xpenses E xec utive S alaries ($50k eac h) P ayroll (20% of S ales) R ent ($5k /m o) A dvertising D epreciation U tilities P rofessional Services Insurance Licenses T o tal O p erating E xp enses N et Inc om e B efore F ederal T ax Federal Incom e T ax (25% ) N et Pro fit

M ay (2.25% ) June (3.25% ) July (5.25% )A ugust (6.25% ) Septem ber (7% )ctober (8%N ovem ber (9%ecem ber (10% ) O ) D ) January (11% )ebruary (12% ) F $16,734 $24,172 $39,047 $46,484 $52,063 $59,500 $66,938 $74,375 $81,813 $89,250

$20,573 $5,555 $26,128 $20,573 $5,555 $11,180

$20,573 $8,023 $28,596 $20,573 $8,023 $16,148

$20,573 $12,961 $33,534 $20,573 $12,961 $26,086

$20,573 $15,430 $36,003 $20,573 $15,430 $31,055

$20,573 $17,281 $37,854 $20,573 $17,281 $34,781

$20,573 $19,750 $40,323 $20,573 $19,750 $39,750

$20,573 $22,219 $42,792 $20,573 $22,219 $44,719

$20,573 $24,688 $45,261 $20,573 $24,688 $49,688

$20,573 $27,156 $47,729 $20,573 $27,156 $54,656

$20,573 $29,625 $50,198 $20,573 $29,625 $59,625

$20,833 $3,347 $5,000 $15,250 $250 $250 $500 $1,500 $500 $47,430 -$36,251 -$9,063 -$27,188

$20,833 $4,834 $5,000 $0 $250 $250 $0 $0 $0 $31,168 -$15,019 -$3,755 -$11,264

$20,833 $7 ,809 $5 ,000 $0 $250 $250 $0 $0 $0 $34,143 -$8,057 -$2,014 -$6,043

$20,833 $9,297 $5,000 $0 $250 $250 $500 $0 $0 $36,130 -$5,076 -$1,269 -$3,807

$20,833 $10,413 $5,000 $0 $250 $250 $0 $0 $0 $36,746 -$1,965 -$491 -$1,473

$20,833 $11,900 $5,000 $0 $250 $250 $0 $0 $0 $38,233 $1,517 $379 $1,138

$20,833 $13,388 $5,000 $0 $250 $250 $500 $0 $0 $40,221 $4,498 $1,124 $3,373

$20,833 $14,875 $5,000 $0 $250 $250 $0 $0 $0 $41,208 $8,479 $2,120 $6,359

$20,833 $16,363 $5,000 $0 $250 $250 $0 $0 $0 $42,696 $11,960 $2,990 $8,970

$20,833 $17,850 $5,000 $0 $250 $250 $500 $0 $0 $44,683 $14,942 $3,735 $11,206

Model of the MBO Process

Step 1: Setting Goals Corporate Strategic Goals Departmental Goals Individual Goals Step 2: Developing Action Plans Action Plans

Review Progress Step 3: Reviewing Progress Corrective Action Appraisal of Overall Performance Step 4: Appraising Overall Performance

Human Relations
MBO Benefits and Problems
Benefits of 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.

Problems with MBO

1. Constant change prevents MBO from taking hold. 2. An environment of poor employeremployee 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.

Human Relations
Single-Use Plans for Goals not Likely to be Repeated
A program is a complex set of objectives A program is a complex set of objectives and plans to achieve an important, one-time and plans to achieve an important, one-time organizational goal. organizational goal. A project is similar to a program, but A project is similar to a program, but generally smaller in scope and complexity. generally smaller in scope and complexity.

Human Relations
Standing Plans
A policy is a general guide to action and provides direction A policy is a general guide to action and provides direction for people within the organization. for people within the organization. Rules describe how a specific action is to be performed. Rules describe how a specific action is to be performed. Procedures define a precise series of steps to be used in Procedures define a precise series of steps to be used in achieving a specific job. achieving a specific job. Total quality management (TQM) to improve quality and Total quality management (TQM) to improve quality and production. production. http://www.dbainc.com/public_html/dba2/library/tqm.html http://www.dbainc.com/public_html/dba2/library/tqm.html 6 Sigma Continuous evaluation and improvement. 6 Sigma Continuous evaluation and improvement. http://www.isixsigma.com/sixsigma/six_sigma.asp http://www.isixsigma.com/sixsigma/six_sigma.asp

Human Relations Contingency Plans

May be defined as scenarios. May be defined as scenarios. Define company responses to be taken in case Define company responses to be taken in case of setbacks or unexpected conditions. of setbacks or unexpected conditions.
Is just rolling the dice good enough?

Human Relations Strategic Planning

Strategy = The plan of action that describes Strategy = The plan of action that describes resource allocation & activities for dealing resource allocation & activities for dealing with the environment to attain organizational with the environment to attain organizational goals. goals.

Human Relations
Strategic Management Questions
What changes and trends are occurring? What changes and trends are occurring? Who are the customers? Who are the customers? What products or services should we offer? What products or services should we offer? How can we offer these products or services How can we offer these products or services efficiently? efficiently?

Strategic Management Process Situation Analysis via SWOT

Scan External Environmen National t Global Identify Strategic Factors Opportun ities Threats Evaluate Current: Mission Goals Grand Strategy Scan Internal Environmen Core t Competenc e Synergy Value Creation Identify Strategic Factors Strength s Weaknes ses Define New: Mission Goals Grand Strategy Identify Strategi c:Corpor ate Busine ss Functio nal Implementing Strategy via Changes in: Structure Human resources Information & control systems

SWO T

External Opportunities and Threats

The Economy Trends in Technology Legal and Political Factors Competitors what will emerge? Customers what will they want?