MAJOR TYPES OF PLANS

Objectives or Goals Are used interchangeably. The intended goal prescribed scope and suggests direction to maximize the efforts of the manager. An objective has to do with the direction in which an individual or organization wants to move Specific, measurable results Expected from departments, work groups, and individuals

Goals and Plans Goal - A desired future state that the organization attempts to realize. Plan - A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals Planning – determining the organization’s goals and the means for achieving them the most fundamental management function the most controversial management function.

The Importance of Goals and Plans Rationale for decisions Standard of performance Guides to action 5

Levels of Goals/Plans & Their Importance External Message Legitimacy for investors, customers, suppliers, community Mission Statement Strategic Goals/Plans Senior Management (Organization as a whole) Internal Message Legitimacy, motivation, guides, rationale, standards Tactical Goals/Plans Middle Management (Major divisions, functions) Operational Goals/Plans Lower Management (Departments, individuals)

Hierarchy of Goals Traditional Responsibility Today Mission Top Management Strategic Goals Shrinking middle management Employee empowerment Middle Management Tactical Goals 1st-line Management & Workers Operational Goals Employees

Characteristics of Effective Goal Setting Specific and measurable Challenging but realistic Defined time period Linked to rewards

Model of the MBO Process Step 1: Set Goals Step 2: Develop Action Plans Corporate Strategic Goals Departmental goals Individual goals Action Plans Review Progress Step 3: Review Progress Take Corrective Action Step 4: Appraise Overall Performance Appraise Performance

Mission organization’s reason for existing Mission Statement Broadly states the basic business scope and operations that distinguishes it from similar types of organizations May include the market and customers Some may describe company values, product quality, attitudes toward employees

Long-Range and Short-Range objectives Long-term objectives define any goal that has a time frame exceeding one year. Business goals that are normally considered long term include developing a new product, growing annual revenue and developing a comprehensive marketing and public relations strategy. Importantly, long-term goals must not go on forever. While they take more time than short-term objectives, long-term goals must be realistic and time bound.

Short-Range Short-term objectives represent the goals an organization sets that are centered on tasks that can be achieved within the next six months or, at the outset, within one year. An example of a short-term goal might be to increase sales by 10 percent. This is an easily measurable goal and employees can be held directly accountable for ensuring that it is met.

Long-Range and Short-Range objectives Long-term objectives define any goal that has a time frame exceeding one year. Business goals that are normally considered long term include developing a new product, growing annual revenue and developing a comprehensive marketing and public relations strategy. Importantly, long-term goals must not go on forever. While they take more time than short-term objectives, long-term goals must be realistic and time bound.

Program is a complex set of objectives and plans to achieve an important, one-time organizational goal. 17

POLICIES A policy is a general guide to action and provides direction for people within the organization. Policies provide the framework within which the decision makers are expected to operate while making decisions related to an organization. Experiential Expercise: Company Crise Wave 18

Procedure Procedures define a precise series of steps to be used in achieving a specific job. Defines in a step – by – step fashion the methods by and through which policies are achieved. Allow little flexibility and deviation.

Rules Rules describe how a specific action is to be performed. Leave little doubt about what is to be done. They permits no flexibility and deviation.

Budget It is an estimate of income and expenditures for a future period The use of budget enables executives to perform their management functions more effectively since budget provides them with proper guidance in matters of disbursement.

Philosophy The values and beliefs an organization holds as the guiding light. These are usually passed on by the founder

Strategy Where the organization wants to be in the future Pertain to the organization as a whole Tends to be long term