Discussion 7

Planning and Goal Setting

1. Define goals and plans and explain the relationship between them.

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.  The term planning usually incorporates both ideas and means determining the organization’s goals and defining the means for achieving them.

2. Explain the concept of organizational mission and how it influences goal setting and planning.

The overall planning process begins with a mission statement, which describes the organization’s reason for existence.  The mission describes the organization’s values, aspirations and reason for being.  A well-defined mission is the basis for development of all subsequent goals and plans.  Without a clear mission, goals and plans may be developed haphazardly and not take the organization in the direction it needs to go.  Because of mission statements, employees, customers, suppliers, and stockholders know the company’s stated purpose and values.

3. Categorize the types of goals an organization should have.

Within the organization there are three levels of goals: strategic, tactical, and operational. 

· Strategic goals are broad statements of where the organization wants to be in the future.  Strategic goals pertain to the organization as a whole and are the stated intentions of what the organization wants to achieve.  

· Tactical goals define the results that major divisions and departments within the organization must achieve.  Tactical goals apply to middle management and describe what major subunits must do in order for the organization to achieve its overall goals.

· Operational goals describe specific results expected from departments, work groups, and individuals.  Operational goals are precise and measurable.