1. ORGANIZATIONAL PLANNING
& GOAL SETTING
Prepared By : ZAREEN SHAIKH, SZABIST Larkana
Session-6
Class-BBA.2

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.
Plan
Goal
A desired future state that the organization attempts to
realize.

3. Levels of Goals/Plans

4. Goals and Plans Purposes
Legitimacy/Mission Statement
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
Developing Goals
Marketing.
Innovation.
Productivity.
Physical and financial resources.
Profitability.
Managerial performance and development.
Worker performance and attitude.
Public responsibility.

6. Overall Planning Process
Begins With:  Mission statement
 Strategic goals

7. Goals and Plans
Strategic Goals
• Where the organization wants to be in the future.
• Pertain to the organization as a whole.
Strategic Plans
• Action Steps.
• Blueprint that defines the organizational activities
and resource allocations.

8. Tactical Goals and Plans
Tactical Goals
Goals that define the outcomes that major divisions
and departments must achieve.
Tactical Plans
Plans designed to help execute major strategic plans.

9. Operational Goals and Plans
Operational Goals
Specific, measurable results expected from
departments, work groups, and individuals.
Operational Plans
Organization’s lower levels that specify action
steps toward achieving operational goals.

10. Planning Time Horizon

11. Means End-Chain
• The achievement of goals at low levels
permits the attainment of high-level goals.

12. Characteristics of
Effective Goal Setting
Goal Characteristics
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
Step 3:
Reviewing Progress
Corporate Strategic Goals
Departmental
Goals
Individual Goals
Step 4: Appraising Overall
Performance
Appraisal of Overall Performance
Corrective Action
Review Progress
Action Plans

14. MBO Benefits and Problems
Benefits of MBO Problems with MBO
1. Manager and employee efforts are
focused on activities that will lead to
goal attainment.
2. Performance can be improved at all
company levels.
3. Employees are motivated.
4. Departmental and individual goals
are aligned with company goals.
1. Constant change prevents MBO from
taking hold.
2. An environment of poor employer-
employee relations reduces MBO
effectiveness.
3. Strategic goals may be displaced by
operational goals.
4. Mechanistic organizations and values that
discourage participation can harm the
MBO process.
5. Too much paperwork saps MBO energy.

15. Plans
Single-Use
Standing
Contingency
Crisis Management
Three Stages
Prevention
Preparation
Containment

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

17. Traditional Objective Setting
Individual
Employee’s
Objective
Top
Management’s
Objective
Department
Manager’s
Objective
Division
Manager’s
Objective
“Increase profits, regardless
of the means”
“I want to see a
significant improvement
in this division’s profits”
“We need to improve
the company’s performance”
“Don’t worry about
quality: just work fast”

18. The New Planning Paradigm
Six Rules of
Planning
Start with
a Strong
Mission
Set Stretch
Goals
Create an
Environment
that
Encourages
Learning
Design
New Roles
for
Planning
Staff
Use
Temporary
Task Forces
Planning
Still Starts
and Stops
at the Top

19. Strategic Management Questions
 What changing and trends are occurring?
 Who are the customers?
 What products or services should we
offer?
 How can we offer these products or
services efficiently?

20. Strategic Management Process
Identify Strategic
Factors
•Strengths
•Weaknesses
Scan Internal
Environment
•Core
Competence
•Synergy
•Value Creation
Identify
Strategic:
•Corporate
•Business
•Functional
Define New:
•Mission
•Goals
•Grand Strategy
Evaluate Current:
•Mission
•Goals
•Strategies
Scan External
Environment
•National
•Global
•Opportunities
•Threats
Identify Strategic
Factors
SWOT
Implementing Strategy
via Changes in:
•Structure
•Human resources
•Information &
control systems

21. Tools for Putting
Strategy into Action

22. –ANY QUESTION