MNGT 301 Chapter 7 Planning and Goal Setting

Planning Approaches

MBO, Single-uses plans, Standing Plans

Goal + Plan =

Planning

Below the Mission Statement

Strategic Goals/Plan Senior Management (Organizations as a whole)

Third Level of Goals and Plans

Tactical Goals/Plans Middle Management (Major Divisions, Functions)

Top Level of Goals and Plans

The Mission Statement

Plan

a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions

Goal

a desired future state that the organization attempts to realize

Mission Statment

broadly stated definition of purpose that distinguishes the organization from others of a similar type

Prevention

build relationships, detect signals from the environment

contingency planning

define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions

Strategic Plans

define the action steps by which the company intends to attain strategic goals (long term)

Tactical Plans

define what major departments and organizational subunits will do to implement the organization's strategic plan (short term)

preparation

designate crisis management and spokesperson, create detailed crisis management plan, effective communicative system

Planning

determining organizational goals and a means for achieving them

Operational Plans

developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans (Schedules)

Flexible Goal Setting

enables an organization to react to an environment that changes quickly

scenario building

forecasting technique that looks at current trends and discontinuities and visualizes future possibilities

decentralized planning

planning experts work with managers in major divisions or departments to develop their own goals and plans

single-use plans

plans developed for activities that are not likely to be repeated in the future (programs, projects)

Crisis Planning

preparing organization, managers, and employees to cope with catastrophic events that could destroy the firm

Management by Objectives (MBO)

system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance

Business Performance Dashboard

visual display that helps executives keep track of key performance metrics

Strategy Maps

visual representations of the key drivers of an organization's success

Preformance management

Managers use operational goals to direct employees and resources

Bottom Level of Goals and Plans

Operational Goals/Plans Lower Managements (Departments, Individuals)

management by means

new systematic approach that focuses attention on the methods and processes used to achieve goals

Strategic Goals

official goals, broad statements describing the organization's future

standing plans

ongoing plans that provide guidance for activities performed repeatedly (policies, rules, and procedures)

Essential Stages of Crisis Planning

prevention and preparation

stretch goals

reasonable yet highly ambitious and compelling goals that energize people and inspire excellence

Key preformance indicators

specific and measurable, defined time period, key result areas, challenging but realistic, linked to rewards

operational goals

specific, measurable results that are expected from departments, work groups, and individuals (Precise/Measurable)

Mission

the organization reason for existence

Tactical Goals

the outcomes that major divisions and departments must achieve for the organization to reach its overall goals (middle Management)