ESTABLISHING ORGANIZATIONAL GOALS AND PLAN CHAPTER 6 ESTABLISHING ORGANIZATIONAL GOALS AND PLAN

Overall planning process Major components of planning Goals: a future target or end result that an organization wishes to achieve Plan: the means devised for attempting to reach a goal Organizational Mission Mission: the organization’s purpose or fundamental reason for existence Mission statement: a broad declaration of the basic unique purpose and scope of operations that distinguish the organization from others of its type

Mission statement It is made of nine components: Customers Products/services Location Technology Concern for survival Philosophy Self concept Concern for public image Concern for employees

MCB Mission Statement To become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work.

Principles of performance Customer Focus Over the years MCB has developed strong relationships with its customers by understanding their needs and treating them with respect, dignity and importance. The driving force behind its commitment and services is its focus on customers, ensuring that it not only meets, but exceeds their expectations. Quest for Quality  We strive to achieve excellence by ensuring that every moment of our time is spent in adding value, making sure that we do things right, first time, every time. With this quest for quality, MCB has always taken initiatives in bringing banking into a new arena; from cash to the convenience of plastic; from branch banking to internet banking and from face-to-face customer interaction to online accessibility.

Contd…. Employees Respect We encourage diversity and treat each of our employees with fairness. We give constructive feedback for their continuous development and seek suggestions from all employees for further improvement. We ensure that quality performance is acknowledged and rewarded and exercise utmost responsibility in decision-making with regards to our employees. Integrity of our employees is the strength of our performance. Team Based Approach  We believe in achieving our Mission and Vision by working together as a combined group. We treat our colleagues as our internal customers and ensure that the requirements of internal customer focus are always met. Equipped with in-depth product knowledge, and recognizing the strengths in each individual, we strive for optimum-results from our co-workers and bringing out peak performances by working towards common goals and objectives in today's environment. Good Corporate Citizenship  We seek to continuously improve the quality of life in our communities, where we live and work. We realize that we have a responsibility to the society in which we operate and we seek ways of playing a positive role for the betterment of the community at large for a progressive environment, better living and a brighter future.

Nature of organizational goals Benefits of goals Increase performance Clarify expectations Facilitate the controlling function Increase motivation Levels of goals Strategic goals: broadly defined targets or future end results set by top management Tactical goals: targets usually set by middle management for specific departments or units Operational goals: targets set by lower management that address specific measurable outcomes

LEVELS OF GOALS

STRATEGIC GOALS BROADLY DEFINED TARGETS OR FUTURE END RESULTS SET BY TOP MANAGEMENT TACTICAL GOALS TARGETS OR FUTURE END RESULTS USUALLY SET BY MIDDLE MANAGEMENT FOR SPECIFIC DEPARTMENTS OR UNITS OPERATIONAL GOALS TARGETS OR FUTURE END RESULTS SET BY LOWER MANAGEMENT THAT ADDRESS SPECIFIC MEASURABLE OUTCOMES REQUIRED FROM LOWER LEVELS

EIGHT MAJOR AREAS FOR STRATEGIC GOALS MARKET STANDING INNOVATION HUMAN RESOURCES FINANCIAL RESOURCES PHYSICAL RESOURCES PRODUCTIVITY SOCIAL RESPONSIBILITY PROFIT REQUIREMENTS

HOW GOALS FACILITATE PERFORMANCE? JOB KNOWLEDGE AND ABILITY TASK COMPLEXITY GOAL CONTENT CHALLENGING ATTAINABLE SPECIFIC MEASURABLE TIME LIMITED RELEVANT WORK BEHAVIOR DIRECTION EFFORT PERSISTENCE PLANNING PERFORMANCE GOAL COMMITMENT SUPERVISORY AUTHORITY PEER & GROUP PRESSURE PUBLIC DISPLAY EXPECTATIONS OF SUCCESS INCENTIVES & REWARDS PARTICIPATION KNOWLEDGE OF RESULTS (FEEDBACK) SITUATIONAL CONSTRAINTS (TOOLS, MATERIALS AND EQUIPMENT) HOW GOALS FACILITATE PERFORMANCE?

Goal content Challenging Attainable Specific and measurable Time limited Relevant

Goal commitment Supervisory authority Peer and group pressure Public display Expectation of success Incentives and rewards Participation

Work Behavior Direction Effort Persistence Planning

Other process components Job knowledge Ability Complexity of the task Situational constraints Knowledge of result

Levels of plans Strategic plans: detailed action steps mapped out to reach strategic goals Tactical plans: the means charted to support implementation of the strategic plan and achievement of tactical goals Operational plans: means devised to support implementation of tactical goals and achievement of operational

Plans according to extent of recurring use Single use plans: plans aimed at achieving a specific goal that, once reached, will most likely not recur in the future . Program: a comprehensive plan that coordinates a complex set of activities related to a major nonrecurring goal . Project: plan that coordinates a set of limited scope activities that do not need to be divided into several major projects in order to reach a major nonrecurring goal Standing plans: plans that provide ongoing guidance for performing recurring activities . Policy a general guideline that specifies the broad parameter within which organization members are expected to operate in pursuit of organizational goals . Procedure: a prescribed series of related steps to be taken under certain recurring circumstances

Time horizons of goals and plans Strategic goals and plans….long range Tactical goals and plans….intermediate range Operational goals and plans….short range

Potential obstacles to planning Changing environment Mangers view planning is unnecessary Day to day work pressure Poor preparation of line managers

Steps to reduces the obstacles to planning Conveying strong top management support for the planning Ensuring planning staff maintain a helping role Involving managers who will be responsible for carrying out the plans

Contingency planning: Planning staff: a small group of individuals who assist top level managers in developing the various components of the planning process Contingency planning: the development of alternative plans for use in the event that environmental conditions evolve differently than anticipated, rendering original plans unwise or unfeasible

Management by objectives (MBO) a process through which specific goals are set collaboratively for the organization as a whole and every unit and individual within it; the goals are then used as a basis for planning managing organizational activities and assessing and rewarding contributions

Steps in MBO process Develop overall organizational goals Establish specific goals for various departments, subunits and individuals Formulate action plan Implement and maintain self control Review progress periodically Appraise performance

Strengths and weaknesses of MBO Aids coordination of goals and plans Help clarify priorities and expectations Facilitates vertical and horizontal communication Fosters employee motivation Weaknesses Tends to falter without strong, continual commitment from top management Necessitates considerable training of managers Can be misused as a punitive device May cause overemphasis of quantitative goals