2. Goals and Plans
A blueprint specifying the resource allocation, schedules,
and other actions necessary for attaining goals.
Planning is considered the most fundamental function.
Planning is the most controversial management function.
A desired future state that the organization attempts to
4. Goals and Plans Purposes
Describes values, aspirations, and reason for being.
Focuses on, customers, corporate values, product quality, and attitude toward employees.
Source of Motivation and Commitment
Facilitate employees’ identification with the organization.
Guides to Action
Provide a sense of direction.
Focus attention on specific targets.
Direct efforts toward important outcomes.
What the organization stands for.
Standard of Performance
Serve as performance criteria.
Provide a standard of assessment.
5. Peter Drucker’s Eight Content Areas in
Physical and financial resources.
Managerial performance and development.
Worker performance and attitude.
7. Goals and Plans
• Where the organization wants to be in the future.
• Pertain to the organization as a whole.
• Action Steps.
• Blueprint that defines the organizational activities
and resource allocations.
8. Tactical Goals and Plans
Goals that define the outcomes that major divisions
and departments must achieve.
Plans designed to help execute major strategic plans.
9. Operational Goals and Plans
Specific, measurable results expected from
departments, work groups, and individuals.
Organization’s lower levels that specify action
steps toward achieving operational goals.
12. Characteristics of
Effective Goal Setting
Specific and measurable.
Cover key result areas.
Challenging but realistic.
Defined time period.
Linked to rewards.
13. Model of the MBO Process
Step 1: Setting Goals Step 2: Developing Action Plans
Corporate Strategic Goals
Step 4: Appraising Overall
Appraisal of Overall Performance
14. MBO Benefits and Problems
Benefits of MBO Problems with MBO
1. Manager and employee efforts are
focused on activities that will lead to
2. Performance can be improved at all
3. Employees are motivated.
4. Departmental and individual goals
are aligned with company goals.
1. Constant change prevents MBO from
2. An environment of poor employer-
employee relations reduces MBO
3. Strategic goals may be displaced by
4. Mechanistic organizations and values that
discourage participation can harm the
5. Too much paperwork saps MBO energy.
16. How Do Managers Plan?
• Establishing Goals
– Approaches to Establishing Goals
• Traditional goal setting - Overall goals established
at the top of the organization
– overall goals broken down into sub goals for each level
of the organization
Problems of traditional goal setting
1. Planners out of touch on day to day basis
2. No flexibility in plans
3. Less creativity and learning
18. The New Planning Paradigm
Six Rules of
at the Top
19. Strategic Management Questions
What changing and trends are occurring?
Who are the customers?
What products or services should we
How can we offer these products or