Discussion Topic
wtfbm69
Daft12ePPT_Ch07.pptxChapter 7
Managerial Planning and Goal Setting
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
2
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Goals and Plans
3
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.1 Levels of Goals and Plans
4
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.2 The Organizational Planning Process
5
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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 using a strategy map
6
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.4 A Strategy Map for Aligning Goals
7
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Operational Planning
Direct employees and resources
Guide toward efficient and effective performance
Includes planning approaches:
Management-by-Objectives (MBO)
Single-Use Plans
Standing Plans
8
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.5 Characteristics of Effective Goal Setting
9
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.6 Model of the MBO Process
Defined in 1954 by Peter Drucker
Method for defining goals and monitoring performance
10
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.7 MBO Benefits
11
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Single-Use and Standing Plans
Single-Use Plans
Achieve one-time goals
Programs and projects
Standing Plans
Ongoing plans
Policies, rules, procedures
12
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
13
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Single-Use and Standing Plans
Standing Plans
Policy: Sexual harassment policies, Internet and social media policies
Rule: No eating rule in areas of company where employees are visible to public
Procedure: Procedures for issuing refunds, Procedures for handling employee grievances
14
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.8 Major Types of Single Use and Standing Plans
15
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
16
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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 discontinuities and visualize future possibilities
Crisis Planning
Unexpected events that are sudden and devastating
17
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7.9 Essential Stages of Crisis Planning
18
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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 Goal (BHAG) from 1996 article on “Building Your Company’s Vision”
As times move faster and become more turbulent, these are important
19
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Use Performance Dashboards
Dashboards
keep track of key performance metrics
align and track goals
can be applied throughout the company on the factory or sales floor.
20
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7-10 A Performance Dashboard for Planning
21
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Deploy Intelligence Teams
Intelligence teams
cross-functional group of managers
work together
gain a deep understanding of a specific competitive issue
offer insight and recommendations for planning
22
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
