Management 12e richard draft chapter 07

Chapter 1: The World of Innovative Management Chapter 2: The Evolution of Management Thinking Chapter 3: The Environment and Corporate Culture Chapter 4: Managing in a Global Environment Chapter 5: Managing Ethics and Social Responsibility Chapter 6: Managing Start-Ups and New Ventures Chapter 7: Planning and Goal Setting Chapter 8: Strategy Formulation and Execution Chapter 9: Managerial Decision Making Chapter 10: Designing Organization Structure Chapter 11: Managing Change and Innovation Chapter 12: Managing Human Resources Chapter 13: Managing Diversity Chapter 14: Understanding Individual Behavior Chapter 15: Leadership Chapter 16: Motivating Employees Chapter 17: Managing Communication Chapter 18: Leading Teams Chapter 19: Managing Quality and Performance Appendix: Managing the Value Chain, Web 2.0, and E-

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Chapter 7

Managerial Planning and Goal Setting

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Goals and Plans

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A goal is a desired future state that

the organization attempts to realize

A plan is a blueprint for goal

achievement and specifies the

necessary resource allocations, schedules, tasks,

and other actions

PLANNING

7.1 Levels of Goals and Plans

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7.2 The Organizational

Planning Process

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Goal-Setting in Organizations

 Organizational mission – the organization’s

reason for existence

 Strategic goals – official goals, broad

statements describing the organization’s future

 Strategic plans – define the action steps the

company will take

 Goals should be aligned using a strategy map

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7.4 A Strategy Map for

Aligning Goals

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Operational Planning

 Direct employees and resources

 Guide toward efficient and effective performance

 Includes planning approaches:

 Management - by - Objectives (MBO)

 Single-Use Plans

 Standing Plans

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7.5 Characteristics of Effective Goal Setting

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7.6 Model of the MBO Process

 Defined in 1954 by Peter Drucker

 Method for defining goals and monitoring

performance

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7.7 MBO Benefits

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Single-Use and Standing Plans

Single-Use Plans

 Achieve one-time goals

 Programs and projects

Standing Plans

 Ongoing plans

 Policies, rules, procedures

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Types of Single-Use and

Standing Plans

 Single-Use Plans

 Program: building new headquarters, converting

paper files to digital

 Project: renovating the office, setting up a new

company intranet

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Types of Single-Use and

Standing Plans

 Standing Plans

 Policy: Sexual harassment policies, Internet and

social media policies

 Rule: No eating rule in areas of company where

employees are visible to public

 Procedure: Procedures for issuing refunds,

Procedures for handling employee grievances

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7.8 Major Types of Single Use

and Standing Plans

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Benefits and Limitations

of Planning

• Goals and plans provide a source of motivation and

commitment

• Goals and plans guide resource allocation

• Goals and plans are a guide to action

• Goals and plans set a standard of performance

• Goals and plans can create a false sense of certainty

• Goals and plans may cause rigidity in a turbulent

environment

• Goals and plans can get in the way of intuition and

creativity

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Planning for a Turbulent

 A forecasting technique to look at current trends and

discontinuities and visualize future possibilities

 Crisis Planning

 Unexpected events that are sudden and devastating

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7.9 Essential Stages of

Crisis Planning

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Set Stretch Goals for

Excellence

 Stretch goals are highly ambitious

 Clear, compelling, and imaginative

 Require innovation

 Goals must be seen as achievable

 Like Big Hairy Audacious Goal (BHAG) from 1996

article on “Building Your Company’s Vision”

 As times move faster and become more

turbulent, these are important

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Use Performance Dashboards

 Dashboards

 keep track of key performance metrics

 align and track goals

 can be applied throughout the company on

the factory or sales floor.

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7-10 A Performance

Dashboard for Planning

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Deploy Intelligence Teams