managerial planning & goal setting
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Management and organizationTRANSCRIPT
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Managerial Planning &
Goal setting
9 Oct 2014
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Overview of goals & plans
What is planning – it is the first function among the 4 functions of management. It includes 2 criteria such as – (remember 2D’s)Determining organizational goalsDefining means of achieving themGoal – A desirable future state that the organization attempts to realize and achieve.It is measurable & observable end result.Plan – is a blueprint specifying resources required, scheduling and other necessary actions for attaining the goals. Tells of WHY/HOW/WHEN
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Levels of goals & related plans
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Purposes of goals & plans
The external & internal factors influences the message which is sent to the business environment.External elements – Stakeholder, customer, suppliers, community.External message – Legitimacy, mission, vision of the org gives direction, builds trust & encourages the external factors to contribute to the organization.Eg. Medical product mission statement is – “removes pain, restores health and extends life”…this phrase with powerful visual aid will inspire the emotion.Internal elements – Employees, motivation, seeing the objective, resource allocation, reason for decision making and set standards of performance.
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Purposes of goals & plans
Legitimacy – The honesty, commitment, mission inspires and brings faith for the organizationSource of Motivation & commitment – Goals & plans gives a visual identity for people to pursue their dreamsResource Allocation – helps decide the quantity, skill and area where to allocateGuides to Action – Brings direction of where to emphasize for better performanceRationale for Decisions – Managers can reason & logically define why this decision was takenStandards of Performance - Enables managers to define performance standards.
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Goals in organizations
1. Organizational MissionDefines the values & philosophyReasons for existenceUnderstands and expresses the customers pulse(eg. Talks about comfort about the product, quality, locations of facilities to avail services)2. Goals & Plans • Strategic goals – broad statements of where the org wants to be in
future 1. Strategic Plan 2. Tactical Plan 3. Operational Plan• Strategic plans – Steps by which the org intends to attain goals.3. Hierarchy of goals – levels of goals. How strategic goals, leads to accomplishment of tactical goals & how achievement of operational goals lead to overall success.
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Goals in organizations
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Criteria for Effective Goals
1. Specific & measurable2. Quantitative terms – increasing profit but 2% or reducing
scrap by 5%. Performance rating no less than 3/53. KRA (key result areas, based on competency) impact on
company balance score card4. Challenging but realistic – easy goals leads to employee
demotivation & underperformance. Stretched goals leads to employee burnout
5. Define time period – Defined & set deadline6. Linked to rewards - People who attain goals or respective
performance standard (KRA) should be rewarded
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Planning types
1. MBO (management by objective) i) Set goals ii) Develop actions plans iii) Review Progress iv) Appraise overall performance2. Single-use/ standing plans – are one time use plans3. Eg. Disciplinary or reduce resource wastage due to
sudden shortage of resources, like printing ink4. Contingency plans – In highly uncertain environs,
unexpected setbacks, or deliveries
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Types of planning
• Traditional approaches to planning• High-performance approaches to planning• Start with strong mission & vision• Set stretch goals for excellence• Create culture that encourage learning
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Planning in turbulent environment
Building scenariosCrisis management planning1. Prevention2. Preparation3. Containment
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Planning in turbulent environment
Building scenariosCrisis management planning1. Prevention2. Preparation3. Containment