Managing in Turbulent Times

Report
MANAGEMENT
RICHARD L. DAFT
Managerial Planning and
Goal Setting
CHAPTER 6
chapter6
Learning Outcomes
• Define goals and plans and explain the relationship between them.
• Explain the concept of organizational mission and how it influences goal
setting and planning.
• Describe the types of goals an organization should have and how
managers use strategy maps to align goals.
• Define the characteristics of effective goals.
• Describe the four essential steps in the management by objectives (MBO)
process.
• Explain the difference between single-use plans and standing plans.
• Describe and explain the importance of contingency planning, scenario
building, and crisis planning in today’s environment.
• Summarize the guidelines for high-performance planning in a fastchanging environment.
3
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Does Goal Setting Fit Your
Management Style?
• Managers must plan where the organization
should go in the future
• Managers must plan for unexpected events
• The company establishes a basic mission and
develops goals and objectives
• Plans should meet environmental changes and
expectations of stakeholders
• Planning is fundamental to all organizations
• Everything stems from planning
4
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6 Overview of Goals and Plans
• A goal is a desired future state that the
organization attempts to realize
• A plan is a blueprint for goal achievement
• There are different levels of planning and
goals in an organization
• Goals at each level of the organization
guide the organization
5
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Levels of Goals/Plans
and their Importance
6
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
Characteristics of
Goals and Plans
chapter6
 Legitimacy
 Source of motivation and commitment
 Resource allocation
 Guides to action
 Rationale for decisions
 Standards of performance
7
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
The Organizational
Planning Process
8
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Organizational Mission
• The mission statement is the reason the
organization exists
– Top of the goal hierarchy
– Describes the values, aspirations and reason
for being
– A well-defined mission is the basis for all other
goals
• Mission statements outline the stated
purpose and values to stakeholders
9
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Types of Goals and Plans
• Strategic Goals – official goals, broad statements
about the organization
– Define the action steps the company intends to attain
– The blueprint that defines activities
• Tactical Goals – help execute major strategic plans
– Specific part of the company’s strategy
– Plans of the divisions and departments
• Operational Goals – results expected from
departments, work groups, and individuals
– Lower levels of the organization
– Specific action steps
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
10
chapter6
Aligning Goals
with Strategy Maps
• Goals should be consistent and mutually
supportive
• The achievement of goals at low levels
permits the attainment of high-level goals
• Individuals, teams, and departments
should be working in concert
11
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Strategy Map for
Aligning Goals
Goals
should be
consistent
and
mutually
supportive
12
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Operational Planning
• Operational goals should direct employees
and resources toward outcomes
• It is important to establish effective goals
– Management by objective
– Single-use plans
– Standing plans
13
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Characteristics of
Effective Goal Setting
14
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6 Management by Objective
Defined by management scholar
Peter Drucker in his 1954 book,
The Practice of Management
Process of defining goals and
monitoring progress
15
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Model of the MBO Process
16
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6 MBO Benefits and Problems
17
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Single-Use and
Standing Plans
18
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Planning for a Turbulent
Environment
• Contingency Planning – plans for
emergencies, setbacks or unexpected
conditions
• Building Scenarios – visualizing future
possibilities
• Crisis Planning – preparing to cope with
unexpected events
19
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter6
Essential Stages of
Crisis Planning
20
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
Planning for High
Performance
chapter6
Traditional Approach:
• Done by top
executives (top down)
• Central planning
departments
• Planning specialist
Stretch Goals and Big
Hairy Audacious
Goals (BHAG) are big
and inspiring
High-Performance
Approach:
• Decentralized planning
• Managers plan
throughout the
organization
• Now involves linemanagers and
employees
• Dynamic plans for fastchanging needs
21
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.
Performance Dashboard
for Planning
chapter6
• Gauge progress
toward goals
• Align and track
goals
• All employees can
track progress
22
Copyright ©2010 by South-Western, a division of Cengage
Learning. All rights reserved.

similar documents