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MAN1006: Introduction to Management (Groups~BBA1G-I) Lecture 5 – Organizational Goal Setting and Planning Lecturer: Oswy G...
<ul><li>1. Short Recap – Previous Weeks </li></ul><ul><li>2. What is Planning?  </li></ul><ul><li>3. The reasons for plann...
Today we are talking about Organizational Goals and Planning <ul><li>Have you ever hear the adage,  “those who fail to pla...
Planning <ul><li>Of the 4 management function – planning, organizing, leading & controlling -  Planning   is most fundamen...
Planning for the Future <ul><li>Most organizations are facing turbulence and growing uncertainty </li></ul><ul><ul><li>Eco...
Managerial Planning and Goal Setting <ul><li>A fundamental role of managers to decide where the organization is going and ...
Why are Goals and Plans important? <ul><li>Goals  specify future states of being and future ends </li></ul><ul><li>Plans  ...
The Importance of Goals and Plans <ul><li>Guides to action </li></ul><ul><li>Rationale for decisions </li></ul><ul><li>Sta...
Goals and Plans <ul><li>Goal  - A desired future state that the organization attempts to realize .  </li></ul><ul><li>Plan...
Mission  Statement Strategic Goals/Plans  Senior Management  (Organization as a whole) Tactical Goals/Plans  Middle Manage...
Benefits for the Organization <ul><li>Legitimacy </li></ul><ul><ul><li>What the organization stands for - reason for being...
Benefits for the Organization <ul><li>Rationale for Decisions </li></ul><ul><ul><li>Learn what organization is trying to a...
Organizational Mission <ul><li>Mission  = organization’s reason for existing </li></ul><ul><li>Mission Statement </li></ul...
The Power of a well designed Mission Statement <ul><li>1.  Attract high quality employees to your firm </li></ul><ul><li>2...
Bristol-Myers Squibb  Mission Statement Our company’s mission is to extend and enhance human life by providing the highest...
<ul><li>Harper Construction Services, is a well established Project Management, Building and Civil Engineering Constructio...
Harper Construction Services  Mission Statement (cont’d) <ul><li>We offer our clients our experienced services in :  </li>...
Harper Construction Services  Mission Statement (cont’d) <ul><li>  Harper Construction Services  are the agents for: J.H.A...
Strategic Goals and Plans <ul><li>Strategic Goals </li></ul><ul><li>Where the organization wants to be in the future </li>...
Tactical Goals and Plans <ul><li>Tactical Goals </li></ul><ul><li>Apply to middle management </li></ul><ul><li>Goals that ...
Operational Goals and Plans <ul><li>Operational Goals </li></ul><ul><li>Specific, measurable results  </li></ul><ul><li>Ex...
Goal Attainment <ul><li>Means-end Chain   </li></ul><ul><li>Attainment of goals at lower levels permits the attainment of ...
Hierarchy of Goals  Operational Goals Tactical Goals Strategic Goals Mission Traditional Responsibility Top Management Mid...
Characteristics of Effective Goal Setting or (Criteria) <ul><li>Specific and measurable </li></ul><ul><li>Cover Key Areas ...
Characteristics of Effective Goal Setting or (Criteria) <ul><li>Specific and measurable </li></ul><ul><ul><li>Where possib...
Characteristics of Effective Goal Setting or (Criteria) <ul><li>Challenging but realistic </li></ul><ul><ul><li>Should be ...
Types of Planning  - Model of the MBO Process (1) Step 1: Set Goals Step 2: Develop Action Plans Step 3:  Review Progress ...
MBO Benefits and Problems <ul><li>Manager and employee efforts are focused on activities that will lead to goal attainment...
Types of Planning  -  Single-Use Plans  (2) <ul><li>For Goals Not Likely To Be Repeated </li></ul><ul><li>A  program  is a...
Types of Planning  - Standing Plans  – (3) For Tasks Performed Repeatedly <ul><li>A  policy  is a general guide to action ...
Types of Planning  - Contingency Plans (4) -  Specific Situations - unexpected  conditions <ul><li>Identify Uncontrollable...
Building Scenarios –  An extension of Contingency Planning <ul><li>Looking at trends and discontinuities and imagining pos...
Crisis Management Planning Sudden - Devastating –Require Immediate Response  ( An extension of Contingency Planning) <ul><...
Planning for High Performance <ul><li>Central Planning  = Traditional  </li></ul><ul><li>Department’s  Group of planning s...
Planning for High Performance <ul><li>Planning comes alive when employees are involved in setting goals and determining th...
Planning In The New Workplace <ul><li>Have a strong mission statement and vision </li></ul><ul><li>Set stretch goals for e...
The End <ul><li>Any Questions </li></ul><ul><li>Course Test#1 –  </li></ul><ul><li>October 3, 2008 in your Tutorial Sessio...
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Introduction to managment groups g-i - organizational planning and goal setting - oct 1, 2008

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Organizational Planning and Goal Setting

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Introduction to managment groups g-i - organizational planning and goal setting - oct 1, 2008

  1. 1. MAN1006: Introduction to Management (Groups~BBA1G-I) Lecture 5 – Organizational Goal Setting and Planning Lecturer: Oswy Gayle Wednesday October 1, 2008 University of Technology, Jamaica School of Business Administration
  2. 2. <ul><li>1. Short Recap – Previous Weeks </li></ul><ul><li>2. What is Planning? </li></ul><ul><li>3. The reasons for planning </li></ul><ul><li>4. How managers develop effective plans </li></ul><ul><li>5. Goal setting </li></ul><ul><li>6. Describe and Explain 4 types of plans </li></ul><ul><li>7. New approaches to planning </li></ul>Objectives of Session
  3. 3. Today we are talking about Organizational Goals and Planning <ul><li>Have you ever hear the adage, “those who fail to plan, plan to fail” </li></ul><ul><li>What does it mean? </li></ul><ul><li>We all plan – Some of us have things to do list, diaries, PAs </li></ul>
  4. 4. Planning <ul><li>Of the 4 management function – planning, organizing, leading & controlling - Planning is most fundamental as everything stems from planning </li></ul><ul><li>Planning can be very controversial </li></ul><ul><ul><li>How do we get where we want to go? </li></ul></ul><ul><ul><li>Who do we involve in the planning process? </li></ul></ul><ul><ul><li>How do we prepare for an unexpected future? </li></ul></ul><ul><ul><li>What resources will I need? </li></ul></ul>
  5. 5. Planning for the Future <ul><li>Most organizations are facing turbulence and growing uncertainty </li></ul><ul><ul><li>Economic, political, & social turmoil = managers wonder how to cope (USA as we speak) </li></ul></ul><ul><ul><li>Renewed interest in organizational planning </li></ul></ul><ul><ul><li>Successful organizations do not just happen, they are planned for and managed so </li></ul></ul>
  6. 6. Managerial Planning and Goal Setting <ul><li>A fundamental role of managers to decide where the organization is going and how it will get there </li></ul><ul><li>In small organizations planning tends to be informal while in large organizations, planning is formal as there are stakeholders and shareholders to respond to </li></ul>
  7. 7. Why are Goals and Plans important? <ul><li>Goals specify future states of being and future ends </li></ul><ul><li>Plans specify today’s means in getting there (Meaning, to the Goals) </li></ul>
  8. 8. The Importance of Goals and Plans <ul><li>Guides to action </li></ul><ul><li>Rationale for decisions </li></ul><ul><li>Standard of performance </li></ul>Goals and Plans
  9. 9. Goals and Plans <ul><li>Goal - A desired future state that the organization attempts to realize . </li></ul><ul><li>Plan - A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals </li></ul><ul><li>Planning – determining the organization’s goals and the means for achieving them </li></ul><ul><ul><li>the most fundamental management function </li></ul></ul><ul><ul><li>the most controversial management function. </li></ul></ul>
  10. 10. Mission Statement Strategic Goals/Plans Senior Management (Organization as a whole) Tactical Goals/Plans Middle Management (Major divisions, functions) Operational Goals/Plans Lower Management (Departments, individuals) Internal Message Legitimacy, motivation, guides, rationale, standards External Message Legitimacy for investors, customers, suppliers, community Levels of Goals/Plans & Their Importance
  11. 11. Benefits for the Organization <ul><li>Legitimacy </li></ul><ul><ul><li>What the organization stands for - reason for being </li></ul></ul><ul><ul><li>Symbolizes legitimacy </li></ul></ul><ul><ul><li>Employees identify with overall purpose </li></ul></ul><ul><li>Source of Motivation and Commitment </li></ul><ul><ul><li>Employees’ identification with the organization </li></ul></ul><ul><ul><li>Motivate by reducing uncertainty </li></ul></ul><ul><li>Guides to Action </li></ul><ul><ul><li>Provide a sense of direction; focus attention on specific targets </li></ul></ul><ul><ul><li>Direct efforts toward important outcome </li></ul></ul>Provided from Internal and External Messages Goals and Plans Send
  12. 12. Benefits for the Organization <ul><li>Rationale for Decisions </li></ul><ul><ul><li>Learn what organization is trying to accomplish </li></ul></ul><ul><ul><li>Make decisions to ensure that internal policies, roles, performance, structure, products, and expenditures will be made in accordance with desired outcomes </li></ul></ul><ul><li>Standard of Performance </li></ul><ul><ul><li>Serve as performance criteria </li></ul></ul><ul><ul><li>Provide a standard of assessment </li></ul></ul>
  13. 13. Organizational Mission <ul><li>Mission = organization’s reason for existing </li></ul><ul><li>Mission Statement </li></ul><ul><ul><li>Broadly states the basic business scope and operations that distinguishes it from similar types of organizations </li></ul></ul><ul><ul><li>May include the market and customers </li></ul></ul><ul><ul><li>Some may describe company values, product quality, attitudes toward employees </li></ul></ul>
  14. 14. The Power of a well designed Mission Statement <ul><li>1. Attract high quality employees to your firm </li></ul><ul><li>2. Enhance employees motivation </li></ul><ul><li>3. Improve overall Organizational Performance </li></ul><ul><li>4. Attract Customers </li></ul>
  15. 15. Bristol-Myers Squibb Mission Statement Our company’s mission is to extend and enhance human life by providing the highest-quality pharmaceutical and related health care products.
  16. 16. <ul><li>Harper Construction Services, is a well established Project Management, Building and Civil Engineering Construction company with multi-faceted experience in various sectors of the Jamaican market. </li></ul><ul><li>The niche area that we have successfully </li></ul><ul><li>targeted over the last fifteen years has been as construction facilitators and operatives for foreign investors to Jamaica. </li></ul><ul><li>Our client list includes several International Fortune 500 companies including Hanes/Sarah Lee Corporation, Jockey International, Wyndham Hotels, AT&T, and McDonald's International. </li></ul>Harper Construction Services Mission Statement
  17. 17. Harper Construction Services Mission Statement (cont’d) <ul><li>We offer our clients our experienced services in : </li></ul><ul><li>Design-Build </li></ul><ul><li>Project Development </li></ul><ul><li>Preconstruction Services </li></ul><ul><li>General Contracting </li></ul><ul><li>Project Management </li></ul><ul><li>Our clients can expect from us : </li></ul><ul><li>Quality; Reliability; Realistic Budgets; Accountability ; Customer Focus </li></ul><ul><li>Performance within schedule ; Adept client communication </li></ul><ul><li>Our understanding of the needs of foreign and local investors </li></ul>
  18. 18. Harper Construction Services Mission Statement (cont’d) <ul><li>  Harper Construction Services  are the agents for: J.H.A. Associates ,Installers and Manufacturers of Panel, .Accordion and Roller Hurricane  Shutters. </li></ul><ul><li>We are committed to a high standard of performance to meet the expectations of our local and international clients within a framework of trust, responsibility and reliability. </li></ul>
  19. 19. Strategic Goals and Plans <ul><li>Strategic Goals </li></ul><ul><li>Where the organization wants to be in the future </li></ul><ul><li>Pertain to the organization as a whole </li></ul><ul><li>Strategic Plans </li></ul><ul><li>Action Steps used to attain strategic goals </li></ul><ul><li>Blueprint that defines the organizational activities and resource allocations </li></ul><ul><li>Tends to be long term </li></ul>
  20. 20. Tactical Goals and Plans <ul><li>Tactical Goals </li></ul><ul><li>Apply to middle management </li></ul><ul><li>Goals that define the outcomes that major divisions and departments must achieve </li></ul><ul><li>Tactical Plans </li></ul><ul><li>Plans designed to help execute major strategic plans </li></ul><ul><li>Shorter than time frame than strategic plans </li></ul>
  21. 21. Operational Goals and Plans <ul><li>Operational Goals </li></ul><ul><li>Specific, measurable results </li></ul><ul><li>Expected from departments, work groups, and individuals </li></ul><ul><li>Operational Plans </li></ul><ul><li>Organization’s lower levels that specify action steps toward achieving operational goals </li></ul><ul><li>Tool for daily and weekly operations </li></ul><ul><li>Schedules are an important component </li></ul>
  22. 22. Goal Attainment <ul><li>Means-end Chain </li></ul><ul><li>Attainment of goals at lower levels permits the attainment of high-level goals </li></ul><ul><li>Traditional organizational responsibility </li></ul><ul><ul><li>Strategic = top management </li></ul></ul><ul><ul><li>Tactical – middle management </li></ul></ul><ul><ul><li>Operational = 1 st line management & workers </li></ul></ul>
  23. 23. Hierarchy of Goals Operational Goals Tactical Goals Strategic Goals Mission Traditional Responsibility Top Management Middle Management 1st-line Management & Workers <ul><li>Shrinking middle management </li></ul><ul><li>Employee empowerment </li></ul>Employees Today
  24. 24. Characteristics of Effective Goal Setting or (Criteria) <ul><li>Specific and measurable </li></ul><ul><li>Cover Key Areas </li></ul><ul><li>Challenging but realistic </li></ul><ul><li>Defined time period </li></ul><ul><li>Linked to rewards </li></ul>Formerly SMART
  25. 25. Characteristics of Effective Goal Setting or (Criteria) <ul><li>Specific and measurable </li></ul><ul><ul><li>Where possible, goals should be expressed quantitatively (2% increase in sales) </li></ul></ul><ul><ul><li>This allows measurable progress </li></ul></ul><ul><li>Cover Key Areas </li></ul><ul><ul><li>Choose areas that contribute most to the organizational performance (Critical Success Factor [CSF]) Say 5 per department </li></ul></ul><ul><ul><li>One method is – Balanced Score Card Method </li></ul></ul><ul><ul><li>E.g. Financial, Customer service; internal processes; innovation and learning </li></ul></ul>
  26. 26. Characteristics of Effective Goal Setting or (Criteria) <ul><li>Challenging but realistic </li></ul><ul><ul><li>Should be challenging but not unreasonably difficult </li></ul></ul><ul><ul><li>Goals fall within department’s resources and time </li></ul></ul><ul><li>Defined time period </li></ul><ul><ul><li>Specify time (deadline) for goal to be achieved </li></ul></ul><ul><li>Linked to rewards </li></ul><ul><ul><li>Ultimate impact on goals most times depends on the extent to which they are linked to promotions, salary increases and rewards </li></ul></ul><ul><ul><li>People who achieve goals should be rewarded </li></ul></ul>
  27. 27. Types of Planning - Model of the MBO Process (1) Step 1: Set Goals Step 2: Develop Action Plans Step 3: Review Progress  Corporate Strategic Goals  Departmental goals  Individual goals Step 4: Appraise Overall Performance Appraise Performance Take Corrective Action Review Progress Action Plans
  28. 28. MBO Benefits and Problems <ul><li>Manager and employee efforts are focused on activities that will lead to goal attainment </li></ul><ul><li>Performance can be improved at all company levels </li></ul><ul><li>Employees are motivated </li></ul><ul><li>Departmental and individual goals are aligned with company goals </li></ul><ul><li>Constant change prevents MBO from taking hold </li></ul><ul><li>An environment of poor employer-employee relations reduces MBO effectiveness </li></ul><ul><li>Strategic goals may be displaced by operational goals </li></ul><ul><li>Mechanistic organizations and values that discourage participation can harm the MBO process </li></ul><ul><li>Too much paperwork saps MBO energy </li></ul>Benefits of MBO
  29. 29. Types of Planning - Single-Use Plans (2) <ul><li>For Goals Not Likely To Be Repeated </li></ul><ul><li>A program is a complex set of objectives and plans to achieve an important, one-time organizational goal </li></ul><ul><li>A project is similar to a program, but generally smaller in scope and complexity </li></ul>
  30. 30. Types of Planning - Standing Plans – (3) For Tasks Performed Repeatedly <ul><li>A policy is a general guide to action and provides direction for people within the organization </li></ul><ul><li>Rules describe how a specific action is to be performed </li></ul><ul><li>Procedures define a precise series of steps to be used in achieving a specific job </li></ul>
  31. 31. Types of Planning - Contingency Plans (4) - Specific Situations - unexpected conditions <ul><li>Identify Uncontrollable Factors </li></ul><ul><ul><li>Economic turndowns </li></ul></ul><ul><ul><li>Declining markets </li></ul></ul><ul><ul><li>Increases in costs of supplies </li></ul></ul><ul><ul><li>Technological developments </li></ul></ul><ul><ul><li>Safety accidents </li></ul></ul><ul><li>Minimize Impact of Uncontrollable Factors </li></ul><ul><ul><li>Forecast a range of alternative responses to most-likely high-impact contingencies </li></ul></ul>
  32. 32. Building Scenarios – An extension of Contingency Planning <ul><li>Looking at trends and discontinuities and imagining possible alternative futures to build a framework within which unexpected future events can be managed </li></ul>Forces managers to rehearse mentally what they would do if their best-laid plans were to collapse
  33. 33. Crisis Management Planning Sudden - Devastating –Require Immediate Response ( An extension of Contingency Planning) <ul><li>Prevention </li></ul><ul><ul><li>Build trusting relationship with key stakeholders </li></ul></ul><ul><ul><li>Open communication </li></ul></ul><ul><li>Preparation </li></ul><ul><ul><li>Crisis Management Team </li></ul></ul><ul><ul><li>Crisis Management Plan </li></ul></ul><ul><ul><li>Establish an Effective Communications system </li></ul></ul><ul><li>Containment </li></ul>
  34. 34. Planning for High Performance <ul><li>Central Planning = Traditional </li></ul><ul><li>Department’s Group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEO </li></ul><ul><li>Decentralized Planning = High-Performance ( Managers work with planning experts to develop their own goals and plans) </li></ul>
  35. 35. Planning for High Performance <ul><li>Planning comes alive when employees are involved in setting goals and determining the means to reach them </li></ul>
  36. 36. Planning In The New Workplace <ul><li>Have a strong mission statement and vision </li></ul><ul><li>Set stretch goals for excellence </li></ul><ul><li>Establish a culture that encourages learning </li></ul><ul><li>Embrace event-driven planning </li></ul><ul><li>Utilize temporary task forces </li></ul><ul><li>Planning still starts and stops at the top </li></ul>
  37. 37. The End <ul><li>Any Questions </li></ul><ul><li>Course Test#1 – </li></ul><ul><li>October 3, 2008 in your Tutorial Session (Lectures 1- 4) </li></ul><ul><li>Have a great Week </li></ul>

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