Management 309 Chapter 7

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• Barriers to Goal Setting and Planning - As part of managing the goal-setting and planning process, managers must understand the barriers that can disrupt them. - Managers must also know how to overcome them. • ___ barriers - Inappropriate goals, improper reward system, dynamic and complex environment, reluctance to establish goals, resistance to change • ______ the barriers - Understanding the purposes of goals and planning, communication and participation, consistency, revision, and updating, effective reward system - _____ goal setting: manager tells people what to do.

• Barriers to Goal Setting and Planning - As part of managing the goal-setting and planning process, managers must understand the barriers that can disrupt them. - Managers must also know how to overcome them. • Major barriers - Inappropriate goals, improper reward system, dynamic and complex environment, reluctance to establish goals, resistance to change • Overcoming the barriers - Understanding the purposes of goals and planning, communication and participati - Tradital goal setting: manager tells people what to do.

- ______ Plans - Did not anticipate to doing it again. - ____ plans - things are going to continue to happen - Follow steps and rules to accomplish a certain objective.

- Single-use Plans - Did not anticipate to doing it again. - Standing plans - things are going to continue to happen - Follow steps and rules to accomplish a certain objective.

- _____the formal goal-setting program - ______ of organizational goals and plans - _____ goal setting and planning - _____ organizational goals and plans. _____ . ____ goals and clear plans. ______. ______. - _____ review - _______. Goes back to step two.

- Starting the formal goal-setting program - Establishment of organizational goals and plans - Collaborative goal setting and planning - Communicating organizational goals and plans. Meeting. Verifiable goals and clear plans. Counseling. Resources. - Periodic review - Evaluation.

Action point 1: ______plan, considering contingency events --------> Action point 2: _____plan and formally identify contingency events. --------> Action 3: ____ indicators for the contingency events and develop contingency plans for each possible event -------------> Action point 4: Successfully _____ plan or contingency plan.

Action point 1: Develop plan, considering contingency events --------> Action point 2: Implement plan and formally identify contingency events. --------> Action 3: Specify indicators for the contingency events and develop contingency plans for each possible event -------------> Action point 4: Successfully complete plan or contingency plan.

Criteria for Effective Goals - ____ and ______ - Increase profits by 2%, etc. - ___ key result areas - Financial performance, customer satisfaction, etc. - ____ but realistic - Defined ___ period - _____ to rewards - Pay increase, promotion

Criteria for Effective Goals - Specific and measurable - Increase profits by 2%, etc. - Cover key result areas - Financial performance, customer satisfaction, etc. - Challenging but realistic - Defined time period - Linked to rewards - Pay increase, promotion

Developing tactical plans - _____ and ______ overarching strategic plans and tactical goals - _____ relevant resource and time issues - Recognize and identify ____ resource commitments -----------------> Executing tactical plans - ____ each course of action in light of its goal - Obtain and distribute _____ and resources - Monitor ____ and _____ communication and integration of activities - Monitor _____ activities for goal achievement

Developing tactical plans - Recognize and understand overarching strategic plans and tactical goals - Specify relevant resource and time issues - Recognize and identify human resource commitments -----------------> Executing tactical plans - Evaluate each course of action in light of its goal - Obtain and distribute information and resources - Monitor horizontal and vertical communication and integration of activities - Monitor ongoing activities for goal achievement

________________ - Inappropriate goals - Improper reward system - Dynamic and complex environment - Reluctance to establish goals - Resistance to change - constraints

Major barriers

_______: Our mission is to operate a chain of restaurants that will prepare and serve high-quality food on a timely basis and at reasonable prices.

Mission: Our mission is to operate a chain of restaurants that will prepare and serve high-quality food on a timely basis and at reasonable prices.

________ Goals - Restaurant manager - Advertising director - Accounting manager

Operational Goals - Restaurant manager - Advertising director - Accounting manager

______________ - Understanding the purposes of goals and planning - Communication and participation - Consistency, revision, and updating - Effective reward system

Overcoming the barriers

_____________ - Developed to carry out a course of action not likely to be repeated in the future - Single-use plan for a large set of activities - Single-use plan of less scope and complexity than a program - Program - Project

Single-use plan

_____________ - Developed for activities that recur regularly over a period of time - Standing plan specifying the organization's general response to a designated problem or situation - Standing plan outlining steps to be followed in particular circumstances - Standing plan outlining steps to be followed in particular circumstances - Standing plans describing exactly how specific activities are to be carried out - Policy - Standard operating procedure - Rules and regulations

Standing plan

President and CEO - Proved 14 percent return to investors for a least ten years - Start or purchase new restaurant chain within five years - Negotiate new labor contract This is an example of _______ goals

Strategic Goals

__________ Goals - Vice president-operations - Vice president-marketing - Vice president-finance

Tactical Goals - Vice president-operations - Vice president-marketing - Vice president-finance

________ - Brings people from different departments and meets at a specific time and purpose. People from planning staff can be in the planning task force.

Task Force

The organization's mission - _______ - ______ - _______ - ______

The organization's mission - Purpose - Premises - Values - Directions

• By Level - _______ ______ is a statement of an organization's fundamental purpose. - ____ goals are goals set by and for top management of the organization that address broad, general issues. - ____ goals are set by and for middle managers; their focus is on how to operationalize actions to strategic goals. - ______ goals are set by and for lower-level managers to address issues associated with tactical goals. • By _______ - Different functional areas of the organization. • By _____ _____ - Long-term, intermediate-time, or short-term time frames and explicit time frames or open -ended.

• By Level - Mission statement is a statement of an organization's fundamental purpose. - Strategic goals are goals set by and for top management of the organization that address broad, general issues. - Tactical goals are set by and for middle managers; their focus is on how to operationalize actions to strategic goals. - Operational goals are set by and for lower-level managers to address issues associated with tactical goals. • By Area - Different functional areas of the organization. • By Time Frame - Long-term, intermediate-time, or short-term time frames and explicit time frames or open -ended.

• ______ Planning - The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate. - These plans help managers to cope with uncertainty and change. - Anticipate what might happen • ______ Management - The set of procedures the organization uses in the event of a disaster or other unexpected calamity - Difficult to anticipate

• Contingency Planning - The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate. - These plans help managers to cope with uncertainty and change. • Crisis Management - The set of procedures the organization uses in the event of a disaster or other unexpected calamity - Difficult to anticipate

• ________ - Is the cornerstone of planning. - Is the catalyst that drives the planning process. - Underlies every aspect of setting goals and formulating plans. • ________ - All _______ plan, but not in the same fashion. - All _____ occurs within an environmental context. - All _____ require plans to guide in their achievement. - All _____ are tied higher goals and plans.

• Decision Making - Is the cornerstone of planning. - Is the catalyst that drives the planning process. - Underlies every aspect of setting goals and formulating plans. • Planning - All organizations plan, but not in the same fashion. - All planning occurs within an environmental context. - All goals require plans to guide in their achievement. - All goals are tied higher goals and plans.

• _____ Committee - Is composed of top executives. - Meets regularly with the CEO to review strategic plans. • _____ Management - Have formal authority and responsibility for management of the organization. - Help to formulate strategy by providing information. - Are responsible for executing the plans of top management.

• Executive Committee - Is composed of top executives. - Meets regularly with the CEO to review strategic plans. • Line Management - Have formal authority and responsibility for management of the organization. - Help to formulate strategy by providing information. - Are responsible for executing the plans of top management.

• _____________ (MBO) - A technique for integrating formal goal setting and planning by giving subordinates a voice and clarifying what they are expected to accomplish.

• Management by Objectives (MBO) - A technique for integrating formal goal setting and planning by giving subordinates a voice and clarifying what they are expected to accomplish.

• Planning _______ - Gather information, coordinate planning activities, and take a broader view than individual managers. • Planning ______ - Created when the organization wants a specific circumstance addressed • Board of ______ - Establishes corporate mission and strategy. - May engage in strategic planning. • ___ ________Officer - May serve as president or board chair; has a major role in planning and implementing the strategy.

• Planning Staff - Gather information, coordinate planning activities, and take a broader view than individual managers. • Planning Task Force - Created when the organization wants a specific circumstance addressed • Board of Directors - Establishes corporate mission and strategy. - May engage in strategic planning. • Chief Executive Officer - May serve as president or board chair; has a major role in planning and implementing the strategy.

• Purposes of Goals - Provide _____ and a unified direction for people in the organization. - Strong affect on the quality of other aspects of _____. - Serve as a source of _____ for employees. - Provide a mechanism for _____ and control of the organization

• Purposes of Goals - Provide guidance and a unified direction for people in the organization. - Strong affect on the quality of other aspects of planning. - Serve as a source of motivation for employees. - Provide a mechanism for evaluation and control of the organization

• _____ Plans - A general plan set by and for top management that outlines resource allocation, priorities, and action steps to achieve strategic goals. • ____ Plans - A plan aimed at achieving the tactical goals set by and for middle management. • ______ Plans - Short-term focus plans that are set by and for lower-level managers.

• Strategic Plans - A general plan set by and for top management that outlines resource allocation, priorities, and action steps to achieve strategic goals. • Tactical Plans - A plan aimed at achieving the tactical goals set by and for middle management. • Operational Plans - Short-term focus plans that are set by and for lower-level managers.

The Effectiveness of Formal Goal Setting • Strengths (Success) - ______ employee motivation - ____ communication - _______ more objective performance appraisals - ______ attention on appropriate goals and plans - _____ identify managerial talent - Provides a ___ management philosophy - _____ control of the organization

• Strengths (Success) - Improved employee motivation - Enhances communication - Fosters more objective performance appraisals - Focuses attention on appropriate goals and plans - Helps identify managerial talent - Provides a systematic management philosophy - Facilitates control of the organization

• The ___ Dimension of Planning - Planning must provide sufficient time to fulfill the managerial commitments involved. • ____ Plans (Strategic) - Plans of 5 or more years • ______ Plans - Usually cover from 1 to 5 years and parallel tactical plans. • ______ Plans - Short-range (operational) action and contingency plans of 1 year or less

• The Time Dimension of Planning - Planning must provide sufficient time to fulfill the managerial commitments involved. • Long-range Plans (Strategic) - Plans of 5 or more years • Intermediate Plans - Usually cover from 1 to 5 years and parallel tactical plans. • Short-range Plans - Short-range (operational) action and contingency plans of 1 year or less

The Effectiveness of Formal Goal Setting • Weaknesses (Failure) - ___implementation of the goal setting process - Lack of ______ support for goal setting - _____ of the goal-setting process to lower levels - _____ on quantitative goals - Too much _____ and record keeping - _____ resistance to goal setting

• Weaknesses (Failure) - Poor implementation of the goal setting process - Lack of top-management support for goal setting - Delegation of the goal-setting process to lower levels - Overemphasis on quantitative goals - Too much paperwork and record keeping - Managerial resistance to goal setting

• Who Sets Goals? - All _____ - Managerial responsibility for goal setting should correspond to the manager's level in the organization. • Managing Multiple Goals - ______ allows managers to balance and reconcile inconsistent or conflicting goals. - Managers can pursue ____ goal and exclude all others or to seek a mid-range goal.

• Who Sets Goals? - All managers - Managerial responsibility for goal setting should correspond to the manager's level in the organization. • Managing Multiple Goals - Optimizing allows managers to balance and reconcile inconsistent or conflicting goals. - Managers can pursue one goal and exclude all others or to seek a mid-range goal.


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