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PLANNING PROCESS AND GOAL LEVELS:Types of Plans |
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Principles
of Management MGT503
VU
Lesson
8.23
PLANNING
PROCESS AND GOAL LEVELS
The
overall planning
process
A.
Planning
is a
two-part function--setting goals
and determining how to try to
achieve the
goals.
1.
A
goal
(often
used interchangeably with
"objective") is a future target or
end
result
that an organization wishes to
achieve.
2.
A
plan
is the
means devised for attempting to
reach a goal.
B.
An
organization's mission
is the
organization's purpose or fundamental reason
for
existence.
1.
A
mission statement is a broad
declaration of the basic, unique purpose
and
scope
of operations that distinguishes the organization
from others of this
type.
2.
A
mission statement serves a variety of
purposes.
a.
For
managers, a mission statement
can be a benchmark against
which to
evaluate
success.
b.
For
employees, mission statements
define a common purpose,
nurture
organizational
loyalty, and help foster a
sense of community among
members.
c.
For
external groups, mission statements
help provide unique insights
into
an
organization's values and future
directions.
3.
The
mission statement typically
defines the organization in terms of the
important
attributes
of the organization. Answers to many of
these questions are
answered
using
information and processes
described in the two previous chapters in
the
text.
a.
Customers:
Who are the organization's
customers?
b.
Products
or services: What are the organization's
major products or
services?
c.
Location:
Where does the organization
compete?
d.
Technology:
What is the firms' basic
technology?
e.
Philosophy:
What are the basic beliefs,
values, aspirations,
and
philosophical
priorities of the organization?
f.
Self-concept:
What are the organization's major
strengths and
competitive
advantages?
g.
Concern
for public image: what are
the organization's public
responsibilities
and what image is
desired?
h.
Concern
for employees: What is the organization's
attitude toward its
employees?
Types
of Plans
Plans
can be described by their breadth, time
frame, specificity, and frequency of
use.
a.
Breadth:
strategic versus operational plans.
Strategic
plans are
those that are organization
wide,
establish
overall objectives, and
position an organization in terms of its
environment. Operational
plans
are
plans that specify details
on how overall objectives
are to be achieved.
b.
Time
frame: short-term versus long-term
plans. Short-term
plans are
plans that cover one
year or
less.
Long-term
plans are
those that extend beyond three
years.
Specificity:
specific versus directional
plans. Specific
plans are
those that are clearly
defined and
c.
leave
no room for interpretation.
Directional
plans are
flexible plans that set
out general
guidelines.
The
Nature of organizational Goals
A.
The
use of goals has several
benefits.
1.
Performance
can be
improved.
62
Principles
of Management MGT503
VU
2.
Expectations
can be
improved.
3.
The
Controlling
function can be
facilitated so that progress can be
assessed and
corrective
action taken.
4.
Meeting
goals can increase motivation.
B.
The
three levels of goals within
an organization form a hierarchy of
goals, with lower-level
goals
forming a mean-end chain
with the next level of
goals.
4.
Strategic
goals are
broadly defined targets or
future end results set by
top
management.
5.
Tactical
goals are
the targets or future end
results usually set by
middle
management
for specific departments or
units.
6.
Operational
goals are
those targets or future end
results set by lower
management
that address specific,
measurable outcomes required from the
lower
levels.
How
Goals Facilitate
Performance
The
content of goals should meet five
criteria.
1.
Challenging
goals
usually lead to higher performance
from individuals and
groups.
2.
Attainable
goals,
not impossible demands, are
more likely to
improve
performance.
3.
Specific
and measurable goals
are needed so that it is
clear when they have
been
achieved.
4.
Time-limited
goals
give them meaning.
5.
Relevant
goals
enable employees to see the purpose of
the goals and to
devise
ways
of meeting them.
6.
Measurable
means
the performance and targets
can be measured after an
interval
of
time.
Goal
commitment is
one's attachment to, or
determination to reach, a goal.
Without commitment goals
have
little impact on performance.
Managers can help foster
commitments in a number of ways.
1.
Supervisory
authority should
serve to motivate employees to
meet their goals.
2.
Peer
and group pressure may
serve as motivation.
3.
Expectations
of success can be
improved by managerial coaching
and
instruction.
4.
Incentives
are
offered during the goal-setting
process; rewards occur upon
goal
achievement.
5.
Participation
in the
goal setting process may be
effective in engendering goals
commitment.
Work
behavior may be affected by
four factors influenced by goals
content and goal
commitment.
1.
Goals
provide Direction
by
channeling attention and action
toward activities
related
to those goals, rather than to
other activities.
2.
Goals
to which we are committed
boost
effort by mobilizing
energy.
3.
Persistence
involves
maintaining direction and effort on
behalf of a goal until it
is
reached.
4.
Goal
setting leads to planning
if the
goals are appropriately
challenging.
The
impact of goals on performance of
any specific job can be
influenced by a number of other
process
components.
1.
Job
knowledge and ability are
likely to affect an individual' work
behavior and
prospects
for reaching goals.
63
Principles
of Management MGT503
VU
2.
The
complexity
of the
task may affect the degree to which
goal-directed work
behaviors
influence job performance.
3.
Situation
constraints include
such things as having the proper tools,
materials,
and
equipment.
4.
Knowledge
of results or
feedback about progress
enables individuals to
gauge
their
progress toward goal
attainment.
Strategic
plans typically involve time
periods of 5 years or more,
but the time frame is dependent
upon the
stability
of the industry in question.
The
planning process can be used
to promote innovation
in
organizations.
3.
The
organizational mission statement can be a
primary means of encouraging
innovation.
4.
The
goals component can translate the
mission in a way supporting
innovation.
5.
The
plans component can provide
actual plans for achieving
innovative outcomes.
Obstacles
to planning exist,
but may be countered by
organizations.
1.
Obstacles
to planning threaten the ability of
organizations to develop effective
plans.
a.
Plans
in a rapidly changing environment require
frequent revisions.
Manager
may resist formalized planning if they
believe planning is
unnecessary.
The pressure of day-to-day
responsibilities may keep
managers
from planning. Managers
may be poorly
prepared.
Staff
specialists may come to dominate the
planning process
2.
Organizations
can take steps to reduce the
obstacles to planning.
a.
Top-level
managers may demonstrate
their support of the
planning
process.
b.
A
planning
staff is a
small group of individuals
who assist top-level
managers
in developing the various components of the
planning process.
This
staff should focus on helping rather than
taking over the
planning
process.
c.
Contingency
planning is the development
of alternative plans for use
in
the
event that environmental conditions
evolve differently than
anticipated,
rendering original plans unwise or
unfeasible.
64
Table of Contents:
- HISTORICAL OVERVIEW OF MANAGEMENT:The Egyptian Pyramid, Great China Wall
- MANAGEMENT AND MANAGERS:Why Study Management?
- MANAGERIAL ROLES IN ORGANIZATIONS:Informational roles, Decisional roles
- MANAGERIAL FUNCTIONS I.E. POLCA:Management Process, Mistakes Managers Make
- MANAGERIAL LEVELS AND SKILLS:Middle-level managers, Top managers
- MANAGEMENT IDEAS: YESTERDAY AND TODAY, Anthropology, Economics
- CLASSICAL VIEW OF MANAGEMENT:Scientific management
- ADMINISTRATIVE VIEW OF MANAGEMENT:Division of work, Authority
- BEHAVIORAL THEORIES OF MANAGEMENT:The Hawthorne Studies
- QUANTITATIVE, CONTEMPORARY AND EMERGING VIEWS OF MANAGEMENT
- SYSTEM’S VIEW OF MANAGEMENT AND ORGANIZATION:Managing Systems
- ANALYZING ORGANIZATIONAL ENVIRONMENT AND UNDERSTANDING ORGANIZATIONAL CULTURE
- 21ST CENTURY MANAGEMENT TRENDS:Organizational social Responsibility
- UNDERSTANDING GLOBAL ENVIRONMENT WTO AND SAARC
- DECISION MAKING AND DECISION TAKING
- RATIONAL DECISION MAKING:Models of Decision Making
- NATURE AND TYPES OF MANAGERIAL DECISIONS:Decision-Making Styles
- NON RATIONAL DECISION MAKING:Group Decision making
- GROUP DECISION MAKING AND CREATIVITY:Delphi Method, Scenario Analysis
- PLANNING AND DECISION AIDS-I:Methods of Forecasting, Benchmarking
- PLANNING AND DECISION AIDS-II:Budgeting, Scheduling, Project Management
- PLANNING: FUNCTIONS & BENEFITS:HOW DO MANAGERS PLAN?
- PLANNING PROCESS AND GOAL LEVELS:Types of Plans
- MANAGEMENT BY OBJECTIVE (MBO):Developing Plans
- STRATEGIC MANAGEMENT -1:THE IMPORTANCE OF STRATEGIC MANAGEMENT
- STRATEGIC MANAGEMENT - 2:THE STRATEGIC MANAGEMENT PROCESS
- LEVELS OF STRATEGIES, PORTER’S MODEL AND STRATEGY DEVELOPMENT (BCG) AND IMPLEMENTATION
- ENTREPRENEURSHIP MANAGEMENT:Why Is Entrepreneurship Important?
- ORGANIZING
- JOB DESIGN/SPECIALIZATION AND DEPARTMENTALIZATION
- SPAN OF COMMAND, CENTRALIZATION VS DE-CENTRALIZATION AND LINE VS STAFF AUTHORITY
- ORGANIZATIONAL DESIGN AND ORGANIC VS MECHANISTIC VS VIRTUAL STRUCTURES
- LEADING AND LEADERSHIP MOTIVATING SELF AND OTHERS
- MASLOW’S NEEDS THEORY AND ITS ANALYSIS
- OTHER NEED AND COGNITIVE THEORIES OF MOTIVATION
- EXPECTANCY, GOAL SETTING AND RE-ENFORCEMENT THEORIES
- MOTIVATING KNOWLEDGE PROFESSIONALS LEADERSHIP TRAIT THEORIES
- BEHAVIORAL AND SITUATIONAL MODELS OF LEADERSHIP
- STRATEGIC LEADERSHIP MODELS
- UNDERSTANDING GROUP DYNAMICS IN ORGANIZATIONS
- GROUP CONCEPTS, STAGES OF GROUP DEVELOPMENT AND TEAM EFFECTIVENESS
- UNDERSTANDING MANAGERIAL COMMUNICATION
- COMMUNICATION NETWORKS AND CHANNELS EFFECT OF ICT ON MANAGERIAL COMMUNICATION
- CONTROLLING AS A MANAGEMENT FUNCTION:The control process
- CONTROLLING ORGANIZATIONAL PERFORMANCE THROUGH PRODUCTIVITY AND QUALITY