Lecture management a pacific rim focus chapter 6 establishing organisational goals and plans

PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition.. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition.. PowerPoint Slides t/a Management: A Paci

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Slides t/a Management: A Pacific Rim Focus

Enhanced Edition Slides prepared by David

Meacheam & George Sansbury

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Lecture outline

• The planning process

• The nature of organisational goals

• How goals facilitate performance

• Linking goals & plans

• Management by objectives

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The planning process

Goal attainment (organisational efficiency

& effectiveness)

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The planning process

‘Setting goals & developing plans leads to goal attainment and ultimately, to

organisational efficiency & effectiveness.’

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Organisational mission

‘Essentially, planning builds on the

organisation’s mission, the organisation’s

purpose or fundamental reason for existence.’

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Organisational mission

Mission statement may:

• Be unwritten.

• Address customers, products/services,

location, technology, concern for survival, philosophy, self-concept, concern for public image, concern for employees (David 1989).

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– Operational goals (base)

– Tactical goals (mid)

– Strategic goals (top)

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strategic plans

tactical goals

tactical plans

operational goals

operational plans

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Goals & work behaviour

Goals & commitment affect work behaviour:

• Direction

• Effort

• Persistence

• Planning

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Goals & other process components

Job process components affect performance:

• Job knowledge & ability

• Task complexity

• Situational constraints

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Goals & possible problems

Possible problems with goals:

• Excessive risk taking

• Increased stress

• Undermined self-confidence

• Ignored non-goal areas

• Excessive short-run thinking

• Dishonesty & cheating

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Linking goals & plans

• Levels of plans

• Extent of recurring use

• Time spans of goals & plans

• Plans & innovation

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• Goal content & process

• Planning content & process

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Possible obstacles to planning

Domination by specialists Low levels of manager skill & knowledge

Pressure of day-to-day work

Manager hostility Environmental change

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Management by objectives

‘Process through which specific goals are set collaboratively for the organisation as a whole and every unit within it; the goals are then

used as a basis for planning, managing

organisational activities, and assessing and rewarding contributions.’

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Steps in the MBO process:

• Develop organisational goals

• Establish specific goals for departments

• Formulate action plans

• Implement & maintain ‘self-control’

• Review progress periodically

• Appraise performance

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• May be misused

(i.e for punishment)

• Risk of dominance of

quantitative goals

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MBO assessed:

• Can heighten organisational performance

• Short-term focus of US, Australian & NZ

organisations limits application

• 20–25% success rate

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Lecture summary

• The planning process

– Major components

– Organisational mission statement

• The nature of organisational goals

– Benefits of goals

– Levels of goals

– Goals & performance

– Work behaviour

– Other work processes

– Possible problems with goals

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Lecture summary

• How goals facilitate performance

– Direction, effort, persistence & planning

• Linking goals & plans

– Levels, recurrent use, time spans, promoting

innovation

– Possible obstacles to planning

• MBO: Management by objectives

– The key steps in MBO process

– Strengths & weaknesses

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