Quản trị kinh doanh - Chapter 7: Managerial planning and goal setting

Managerial Planning and Goal SettingChapter 71Planning for the FutureMost organizations are facing turbulence and growing uncertaintyEconomic, political, & social turmoil = managers wonder how to copeRenewed interest in organizational planningManager’s Challenge: Europa hotel2Managerial Planning and Goal SettingProcess of planningHow managers develop effective plansGoal settingTypes of plansNew approaches to planningTopics Chapter 73The Importance of Goals and PlansGuides to actionRationale for decisionsStandard of performanceGoals and Plans4Goals and PlansGoal - A desired future state that the organization attempts to realize. Plan - A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goalsPlanning – determining the organization’s goals and the means for achieving themthe most fundamental management functionthe most controversial management function.5Mission StatementStrategic Goals/Plans Senior Management (Organization as a whole)Tactical Goals/Plans Middle Management (Major divisions, functions)Operational Goals/Plans Lower Management (Departments, individuals)Internal Message Legitimacy, motivation, guides, rationale, standardsExternal Message Legitimacy for investors, customers, suppliers, communityLevels of Goals/Plans & Their Importance6Benefits for the OrganizationLegitimacyWhat the organization stands for - reason for beingSymbolizes legitimacyEmployees identify with overall purpose Source of Motivation and Commitment Employees’ identification with the organizationMotivate by reducing uncertaintyGuides to ActionProvide a sense of direction; focus attention on specific targetsDirect efforts toward important outcomesProvided from Internal and External Messages Goals and Plans Send7Benefits for the OrganizationRationale for DecisionsLearn what organization is trying to accomplishMake decisions to ensure that internal policies, roles, performance, structure, products, and expenditures will be made in accordance with desired outcomesStandard of PerformanceServe as performance criteriaProvide a standard of assessment Provided from Internal and External Messages Goals and Plans Send8Organizational MissionMission = organization’s reason for existingMission StatementBroadly states the basic business scope and operations that distinguishes it from similar types of organizationsMay include the market and customersSome may describe company values, product quality, attitudes toward employees9Bristol-Myers Squibb Mission StatementOur company’s mission is to extend and enhance human life by providing the highest-quality pharmaceutical and related health care products.10Strategic Goals and PlansStrategic GoalsWhere the organization wants to be in the futurePertain to the organization as a wholeStrategic Plans Action Steps used to attain strategic goalsBlueprint that defines the organizational activities and resource allocationsTends to be long term11Tactical Goals and PlansTactical GoalsApply to middle managementGoals that define the outcomes that major divisions and departments must achieveTactical PlansPlans designed to help execute major strategic plansShorter than time frame than strategic plans12Operational Goals and Plans Operational GoalsSpecific, measurable results Expected from departments, work groups, and individuals Operational PlansOrganization’s lower levels that specify action steps toward achieving operational goalsTool for daily and weekly operationsSchedules are an important component 13Goal AttainmentMeans-end Chain Attainment of goals at lower levels permits the attainment of high-level goalsTraditional organizational responsibilityStrategic = top managementTactical – middle managementOperational = 1st line management & workers14Hierarchy of Goals Operational GoalsTactical GoalsStrategic GoalsMissionTraditional ResponsibilityTop ManagementMiddle Management1st-line Management & WorkersShrinking middle managementEmployee empowerment EmployeesToday15Characteristics of EffectiveGoal SettingSpecific and measurableSpecific and measurableChallenging but realisticDefined time periodLinked to rewards16Model of the MBO ProcessStep 1: Set GoalsStep 2: Develop Action PlansStep 3: Review ProgressCorporate Strategic Goals Departmental goals Individual goalsStep 4: Appraise Overall PerformanceAppraise PerformanceTake Corrective ActionReview ProgressAction Plans17MBO Benefits and ProblemsBenefits of MBOManager and employee efforts are focused on activities that will lead to goal attainmentPerformance can be improved at all company levelsEmployees are motivatedDepartmental and individual goals are aligned with company goalsConstant change prevents MBO from taking holdAn environment of poor employer-employee relations reduces MBO effectivenessStrategic goals may be displaced by operational goalsMechanistic organizations and values that discourage participation can harm the MBO processToo much paperwork saps MBO energyProblems with MBO18Single-Use PlansFor Goals Not Likely To Be RepeatedA program is a complex set of objectives and plans to achieve an important, one-time organizational goalA project is similar to a program, but generally smaller in scope and complexity19Standing Plans For Tasks Performed RepeatedlyA policy is a general guide to action and provides direction for people within the organizationRules describe how a specific action is to be performedProcedures define a precise series of steps to be used in achieving a specific jobExperiential Expercise: Company Crise Wave20Contingency PlansSpecific Situations - unexpected conditionsIdentify Uncontrollable FactorsEconomic turndownsDeclining marketsIncreases in costs of suppliesTechnological developmentsSafety accidentsMinimize Impact of Uncontrollable FactorsForecast a range of alternative responses to most-likely high-impact contingencies 21Building ScenariosLooking at trends and discontinuities and imagining possible alternative futures to build a framework within which unexpected future events can be managedForces managers to rehearse mentally what they would do if their best-laid plans were to collapse22Crisis Management PlanningSudden - Devastating –Require Immediate ResponsePreventionBuild trusting relationship with key stakeholdersOpen communicationPreparationCrisis Management TeamCrisis Management PlanEstablish an Effective Communications systemContainmentEthical Dilemma: Completing Project WebFirst23Planning for High PerformanceCentral Planning = Traditional Department Group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEODecentralized Planning = High-Performance Managers work with planning experts to develop their own goals and plans24Planning In The New WorkplaceHave a strong mission statement and visionSet stretch goals for excellenceEstablish a culture that encourages learningEmbrace event-driven planningUtilize temporary task forcesPlanning still starts and stops at the topPlanning comes alive when employees are involved in setting goals and determining the means to reach them25