Quản trị kinh doanh - Chapter 8: Setting goals

Chapter 8Setting GoalsDescribe the primary goals of an organizationExplain the principles and different types of goal plans in an organizationOutline different types of goals and the characteristics that make them effectiveIllustrate how managers secure team-level commitment to goalsDescribe how managers track progress of goal plans through performance dashboardsLearning ObjectivesGoals must be set within a strategic framework consisting of mission, vision, and valuesGoals are important because they:Give directionProvide a sense of purpose and achievementReinforce our beliefsEnable reaching our full potentialBoost our self-esteemSetting Goals that Make a Difference (p. 202)Smart goals (p. 204)Specific – clearly defined goals help focus on the taskMeasurable – inform about the extent of progressAchievable – realistic and attainableRelevant – consistent with the organization’s mission, vision, and valuesTime-bound – provides a target for completionSetting Goals that Make a Difference (cont.)When goals go wrong they (p. 207):Involve excessive risk-takingIncrease stressCreate feelings of failureBecome a ceiling for performanceIgnore non-goal areasPromote short-range thinkingPromote dishonesty/cheatingSetting Goals that Make a Difference (cont.)Principles of goal settingClarity – goals must be clear, specific, unambiguous, measurable, and set within a time frameChallenge – people are motivated by difficult but attainable goalsCommitment – ‘buy in’ more likely when:The task and its outcomes are perceived to be importantGoal achievement is perceived to be possible (p. 210)Feedback – clarifies expectations, assesses and adjusts (if necessary) process, and recognizes good performance Task complexity – goals must be appropriate for complex tasksAppropriate resources (e.g., time and training) must be providedGoal Plans (p. 209)Business planInterprets an organizational strategy into a market- or community-based opportunity for division or departmental managersBudget – quantitative part of a plan that allocates available financial resourcesGoal Plan Types and Components (p. 211)Standing plans (p. 211)Designed for repeated use in response to commonly occurring eventsPolicy – describes how an organization and its members should respond to recurring or anticipated situationsProcedures – provides the specific steps to be taken as part of a recurring process or in response to a recurring situationRules and regulations – formal descriptions of how specific actions are to be carried outGoal Plan Types and Components (cont.)Goal plans are essential ways of committing departments, resources, and individuals to a future goal (p. 212)Directional planGeneral, flexible plan that provides guidelines for an organization’s long-term goalsTactical planCovers an intermediate time scale and enacts divisional strategies by allocating people and resourcesOperational planGuides the day-to-day production or delivery of an organization’s goods and services, and which enacts a functional strategySingle-use plan – developed to achieve a particular goal or in response to an event that is not expected to be repeatedOption-based plan (p. 213)preserves flexibility in contexts of uncertainty by investing in several alternative plansGoal Plan Types and Components (cont.)Goal Plan Types and Components (cont.)Goal Plan Types and Components (cont.)Types of goalsDistal goals – primary or long-term goals (p. 214)Proximal goals – short-term goals that increase individual’s ability to reach distal goals by providing motivation and feedbackStretch goal – almost unattainable and requires the full capacity of an individual, manager, team, or organization to accomplishMeans-ends chain (p. 215)Integrated series of goals in which the accomplishment of lower-level goals contributes to the achievement of higher-level goalsEffective Goals (p. 213)Goal commitmentMotivation and determination to achieve a goalTeam members must share the organization’s visionManagement by objectives (MBO; p. 217)Management and employees agree to specific goals that are then used to evaluate individual performance Team Commitment (p. 215)Action plansSpecific actions, people, and resources needed to accomplish a goalIndividual Performance (p. 217)Performance dashboardsVisual representation of an organization’s strategies and goals, which allow managers to track progress toward metrics and goals immediatelyBalanced scorecard – provided managers and information system designers a balanced approach to developing performance dashboards (p. 219)Augments traditional financial measures with nonfinancial areas:Company’s relationship with customersKey internal processesLearning and growthKey performance indicators (KPIs)Measurements that managers identify as vital to the company’s performanceHow Managers Track Progress (p. 218)Balanced scorecardHow Managers Track Progress (cont.)Figure 8.2Dolphin Inn Performance DashboardHow Managers Track Progress (cont.)Figure 8.3