9e daftchapter6

MANAGEMENT

RICHARD L. DAFT

Managerial Planning and Goal Setting

CHAPTER 6

Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.

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chapter6

• 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 fast-changing environment.

Learning Outcomes


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chapter6Does 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


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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


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chapter6 Levels of Goals/Plans and their Importance


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chapter6 Characteristics of Goals and Plans

Legitimacy

Source of motivation and commitment

Resource allocation

Guides to action

Rationale for decisions

Standards of performance


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chapter6 The Organizational Planning Process


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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


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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


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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


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chapter6 Strategy Map for Aligning Goals

Goals should be consistent

and mutually

supportive


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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


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chapter6 Characteristics of Effective Goal Setting


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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


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chapter6 Model of the MBO Process


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chapter6 MBO Benefits and Problems


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chapter6 Single-Use and Standing Plans


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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


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chapter6 Essential Stages of Crisis Planning


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chapter6 Planning for High Performance

Traditional Approach:• Done by top

executives (top down)• Central planning

departments• Planning specialist

High-Performance Approach:

• Decentralized planning• Managers plan

throughout the organization

• Now involves line-managers and employees

• Dynamic plans for fast-changing needs

Stretch Goals and Big Hairy Audacious

Goals (BHAG) are big and inspiring


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chapter6 Performance Dashboard for Planning

• Gauge progress toward goals

• Align and track goals

• All employees can track progress

9e daftchapter6

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