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Fundamental of Management.Lecture 4a

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Fundamental of Management.Lecture 4a

  1. 1. Lecture 4A Planning and Goal Setting
  2. 2. Planning is Fundamental • All of the other management functions stem from planning • How do you plan for an undefined future? • No plan is perfect – Without plans and goals, organizations flounder Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2
  3. 3. Goals and Plans 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 Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 3
  4. 4. 7.1 Levels of Goals and Plans Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 4
  5. 5. 7.2 The Organizational Planning Process Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 5
  6. 6. 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 Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 6
  7. 7. 7.4 A Strategy Map for Aligning Goals Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 7
  8. 8. Operational Planning • Direct employees and resources • Guide efficient and effective performance • Includes planning approaches: – Management by Objectives (MBO) – Single-Use Plans – Standing Plans Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 8
  9. 9. 7.5 Criteria for Effective Goal Setting Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 9
  10. 10. 7.6 Model of the MBO Process • Defined in 1954 by Peter Drucker • Method for defining and monitoring goals Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 10
  11. 11. 7.7 MBO Benefits Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 11
  12. 12. Single-Use and Standing Plans Single-Use Plans – Achieve one-time goal – Programs and Projects Standing Plans – Ongoing plans – Policies, rules, procedures Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 12
  13. 13. 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 • Standing Plans – Policy – Rule – Procedure Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 13
  14. 14. 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 Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 14
  15. 15. Planning for a Turbulent Environment • Contingency Planning – Planning for emergencies, setbacks, or unexpected conditions • Building Scenarios – A forecasting technique to look at current trends and visualize future possibilities • Crisis Planning – Sudden, devastating, unexpected events Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 15
  16. 16. 7.9 Essentials Stages of Crisis Planning Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 16
  17. 17. 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 Goals (BHAG) from 1996 article on building your vision • As times move faster and become more turbulent, these are important Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 17
  18. 18. 7.10 A Performance Dashboard for Planning Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 18

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