Management Ch 7:

Chapter 7: Planning and Goal Setting

2. Goal Setting and Planning Overview

Goal: A desired future circumstance or condition an organization seeks to attain.Plan: A structured blueprint for achieving goals, detailing necessary resources, schedules, tasks, and actions.Planning: The process of defining organizational goals and determining how to achieve them.Formula: Goal + Plan = Planning

3. Levels of Goals and Plans

A. Strategic Goals

Broad, official descriptions of an organization’s aspirations for the future.

B. Tactical Goals

Specific results intended for major divisions or departments within the organization, focused on middle management.

C. Operational Goals

Expected results from departments, workgroups, and individuals, characterized by precision and measurability.

4. The Organizational Planning Process

A. Mission Statement

Defines the organization’s purpose, guiding all future goals and plans.Addresses market focus, customer identification, company characteristics, and corporate values.

B. Managing Goal Conflict

Techniques include coalition building, goal modification, dialogue, barrier elimination, and potential managerial changes.

C. Strategy Maps

Visual tools that illustrate the connections between various organizational goals, ensuring alignment and support across different levels.

5. Performance Management

Operational Goals: Used to guide employee actions and resource allocation.Management by Objectives (MBO): Collaborative goal-setting approach for departments, projects, and individuals.Key Performance Indicators (KPIs): Metrics assessing organizational progress towards strategic aims.

6. Characteristics of Effective Goals

Goals need to be SMART: Specific, Measurable, Achievable, Relevant, Time-bound.

7. Types of Plans

A. Single-Use Plans

Plans designed for specific, non-recurring objectives, such as formal projects.

B. Standing Plans

Ongoing plans for routine guidance, including policies and procedures.

8. Benefits and Limitations of Planning

A. Benefits

• Boosts motivation and commitment.

• Aids in resource allocation and action direction.

• Establishes performance standards.

B. Limitations

• Risks of excessive pressure or false certainty.

• Can introduce rigidity in changing environments.

9. Planning for a Turbulent Environment

Contingency Planning: Prepares responses for emergencies or unexpected conditions.Scenario Building: Analyses current trends to forecast future possibilities.Stretch Goals: Ambitious aims that challenge and inspire excellence.Crisis Planning: Equips personnel to deal with catastrophic events.