Chapter 7 Week 6 S1 2015

Organisational planning and goal settingDesignated team member to submit to TURNITINProgress on assignment as Group and as individual?Tue 14 April Marae Visit see 5600 lecturer or me for meeting point details, then walk to Marae by 3.15Wed 21 April Graduation at Town Hall

Turnitin 23 registered –Please registerTURNITIN www.turnitin.com Class ID 9692198 Enrolment Password BSNS5390s1 Turnitin – still 23/34 have joined Nervous – Group assignments trials – let me know designated person by noting on Roll please

q.xorro.com/ebzh• I will set up quiz Please wait one moment• When advised then log in• Ten questions – even if you have not read

chapter you should be able to deduce many answers

Lecture Management Challenge p254• Europa Hotel• Why is the hotel infamous?• How do you think the hotel survived / thrived ?• What would you do as a manager to organise to cope with

unexpected problems such as the Christchurch or the Sth American earthquake last semester

• Recent management and organisation news stories ???

Goals, plans and performance• Goal– A desired future state that the organisation

attempts to realise.• Plan– A blueprint specifying the resource allocations,

schedules and other actions necessary for attaining goals.

(Samson, Catley, Cathro and Daft, 2012, p. 255)

Goals, plans and performance• Planning– The management function concerned with

defining goals for future organisational performance and deciding on the tasks and resource use needed to attain them.

(Samson et. al, 2012, p. 255)

7

Goals, plans and performance

Goals, plans and performance• Messages contained in goals and plans– Legitimacy (external and internal): An organisation’s mission

describes what the organisation stands for and its reason for existence.

– Source of motivation and commitment: facilitate employees’ identification with the organisation and help motivate them by reducing uncertainty and clarifying what they should accomplish. (Michael Hill open 7 stores)

– Resource allocation: help managers decide where they need to allocate resources, such as employees, money, and equipment.

Goals, plans and performance• Messages contained in goals and plans– Guides to action: provide a sense of direction.– Rationale for decisions: make decisions to ensure

that internal policies, roles, performance, structure, products and expenditures will be made in accordance with desired outcomes.

– Standard of performance: serve as performance criteria and provide a standard of assessment.

– From Homework reading of Michael Hill case study p.258 “success from Goals” vote

Michael Hill Jeweller• From Homework reading of Michael Hill case

study p.258 “success from Goals” • Bhag – Big hairy audacious goal.• Asked to close eyes• Xorro again Vote – Will he achieve his Bhag of

1000 stores by 2020• Yes No• What makes him so successful ? See final para.

Where have you hear this name?• Michael Hill appoints Icebreaker chair Rob

Fyfe to board

Latest results 15 August 2014• Michael Hill annual profit falls 22% on declinin

g profit margin, Australian tax payment• sharechat.co.nz • 15 Aug. (sharechat.co.nz)Michael Hill

International, the jewellery chain that bears the name of its founder, posted a 22 % drop in annual profit as its profit margin declined and it paid a settlement to the Australian Tax Office Read...

Goals in organisations• Organisational mission– The organisation’s reason for existence – Mission statement

• A broadly stated definition of the organisation’s basic business scope and operations that distinguishes it from similar types of organisations.

• See Avis Vision p.259 “We will lead our industry by defining service excellence and building untouched customer loyalty”

• Mission…stress free car rental experience by ….We try harder spirit…

(Samson et al., 2012, p. 259)

Goals in organisations

• Goals and plans– Strategic goals

• Pertain to the organisation as a whole.– Strategic plans– Tactical goals

• Define the outcomes that major divisions and departments must achieve.

– Tactical plans

Goals in organisations• Goals and plans– Operational goals

• Measurable results expected from departments, work groups and individuals. “improve market share from 10% to 15%”

– Operational plans– Aligning goals with strategy maps

• Effective goals are consistent and mutually supportive – eg “plan for resources, equipment to achieve 15% market share”

Goals in organisations

• Goals and plans– Strategy map• A visual representation of the key drivers of an

organisation’s success, showing the cause and effect relationships among goals and plans (see p. 264)

– Aligned hierarchy of goals• Achieving lower level goals permits the attainment of

higher level goals.

Goals in organisations

Criteria for effective goals• Goal characteristics ….SMaCKRaCRDPLR ?– Specific and measurable– Cover key result areas– Challenging but realistic– Defined period– Linked to rewards (but check “conditions”)– Read about Mager and Pipe “Objective, conditions and

criteria”– Read about SMART objectives in other texts– Read about “Stretch Goals” p. 267

Planning types and models• Management by objectives (MBO)– A method of management whereby managers and

employees define goals for every department, project and person, and use them to monitor subsequent performance.

– See model next slide p. 270

(Samson, Catley, Cathro and Daft, 2012, p. 269)

Planning types and models

Planning types and models• Management by objectives (MBO)Steps:

1. Set goals2. Develop action plans3. Review progress4. Appraise overall performanceDiscussion! What are the benefits and problems with MBO? Summarise for yourself!!!

Benefits

• Efforts focused on activities that lead to goal attainment

• Performance can be improved at all levels

• Employees are motivated

• Departmental and individual goals are aligned with company goals

Problems

• Constant change prevents MBO from taking hold

• Environment of pooremployer–employee relations reduces MBO effectiveness

• Strategic goals may be displaced by operational goals

• Mechanistic organisations and values that discourage participation can harm MBO

• Too much paperwork saps MBO energy

Planning types and models: MBO

Planning types and models• Single-use plans:– Plans that are developed to achieve a set of goals

that are unlikely to be repeated in the future.– e.g. Programme (NASA space station) or project

(NASA rocket booster for space station).

Planning types and models

• Standing plans:– Ongoing plans used to provide guidance for tasks

performed repeatedly within the organisation.– Policy (e.g. drug-free workplace policies).– Rule (e.g. no-smoking rule in areas of plant where

hazardous materials are stored).– Procedure (e.g. practice for issuing refunds).Recent by-election in Northland Election manual for staff answers questions such as Who can enrol?

Enrolled ? Deadline 20 Aug

• Who can enrol?• In New Zealand the law says that you must be enrolled on the

electoral roll. You must enrol if you:• are 18 years or older, and• have lived in New Zealand for more than one year continuously

at some time in your life, and• are a New Zealand citizen, or• are a permanent resident of New Zealand*.• * Cook Island Maori, Niueans and Tokelauans can enrol once

they have lived in New Zealand continuously for 12 months. They do not require permanent residency to be eligible to enrol and vote.

Planning types and models• Quality planning and the Shewhart cycle p. 274– Standing plans for quality improvement TQM Total quality management(TQM)– PDCA • Plan• Do• Check • Act

Planning in a turbulent environment• Contingency plans:– Plans that define organisation responses to specific

situations, such as emergencies, setbacks or unexpected conditions

– Identify uncontrollable factors.• e.g. Recession, inflation, technological developments,

safety accidents.

• Scenario planning– Plans that anticipate various situations that could

impact the organisation.

Crisis Planning• A good crisis management plan can be used to

respond to any disaster at anytime• Three essential stages of crisis management– Prevention– Preparation– ContainmentPaint spill Western Motorway truck stopped under Spaghetti junction, 1000 litres spilt paint

Planning time horizons• Long-term planning– Strategic goals and plans (five years and beyond)

• Intermediate-term planning– Tactical goals (between one and two years)

• Short-term planning– Operational goals (one year or less)– Specific departments and individualsNote some texts call these short term goals “objectives”

Planning time horizons• Uncertain environments tend to emphasise on

short-term results (thus short-term planning).– Typical of financial analysis (quarterly)

• However, long-term planning is needed for future growth.– e.g. Matsushita Electric (now Panasonic) 250-year

plan in 1932!

The new planning approach• Traditional approaches to planning:– Centralised planning department• A group of planning specialists who develop plans

for the organisation as a whole and its major divisions and departments, and typically report to the CEO.

• Modern approaches to planning:– Decentralised planning staff• A group of planning specialists assigned to major

departments and divisions to help managers develop their own strategic plans.

The new planning approach

• The high performance planning paradigm:

– Start with a strong mission– Deploy intelligence teams – cross functional group mgr

& employees– Set stretch goals for excellence– Create an environment that encourages learning– Design new roles for planning staff

The new planning approach

• The high performance planning paradigm continued:

– Embrace event-driven planning (right now)– Make continuous improvement a way of life– Use performance dashboards– Organise temporary taskforces– Planning still starts and stops at the top

Sustainable development and goal setting

• Sustainable organisations set goals for their environmental performance– e.g. Reducing carbon footprint by 20% over 3

years– NZ Government chastised for goal of a only 5%

reduction• This achieves systematic and disciplined

implementation rather than “talk and no action”

“Defining your brand” Workshop 1-3 pm Wednesday 22 April Building 76

• RSVP at • http://bit.ly/UnitecPPD20• Part of the 2015 Personal and Professional

development programmeAlso “Moving from good to great” Business forum 29 April 4-6pm rsvp tohttp://bit.ly/Unitecbetterbusiness1Follow on facebook UnitecYoungMinds – photos job opportunities….https://www.facebook.com/UnitecYoungMinds?fref=ts

Break before time in groups - teams• Critical to get on with assignment, check spelling, grammar, use

TURNITIN to check for plagiarism• Examine the marking rubric when posted• Check Rolls – Turnitin member?• Progress by group? Decision on who will submit group

assignment? Indicate on Roll• Week 7 Read Chapter 9 particularly case study Management

Challenge p.330: If you were Marjorie Yang, what decision would you make and why, considering the proposed $150m factory

• Complete Management self test p.340 and bring results to class