Organizational Goals and Planning OUTLINE 1. The Planning Process 2. The Nature of Organizational Goals 3. Managing the Goal-setting Process 4. Goals and Organizational Planning PERKULIAHAN KE: 5 - 6

1. THE PLANNING PROCESS Planning is a generic activity. All organizations do it, but no two organizations do it in exactly the same fashion. Figure is a general representation of how planning is done. Most firms follow this general framework, but each also has its own nuances and variations. A plan is the means by which goals are pursued. Planning itself is a comprehensive process that includes setting goals, developing plans, and related activities.

1. The Planning Process The Planning Processed of Organization Strategic Goals Tactical Goals Operational Goals Strategic Planning Tactical Planning Operational Planning

Kinds of Goals Goals vary: Goals vary: by level, by level, by area, by area, by time frame. by time frame. Figure 5.2 provides examples of each type of goal for a hypothetical fast- food chain.

Kinds of Organizational Goals for a Regional Fast Food Chain

Level Goals are set for and by different levels within an organization. As noted earlier, the four basic levels of goals are the mission and strategic, tactical, and operational goals. An organization's mission is a statement of its fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business's operations in product and market terms. An organization's mission is a statement of its fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business's operations in product and market terms.

Level Strategic goals are goals set by and for top management of the organization. Their focus is usually on broad, general issues. Strategic goals are goals set by and for top management of the organization. Their focus is usually on broad, general issues. Tactical goals, in contrast, are set by and for middle managers. Their focus is on how to operationalize actions necessary to achieve the strategic goals. Tactical goals, in contrast, are set by and for middle managers. Their focus is on how to operationalize actions necessary to achieve the strategic goals. Operational goals are set by and for lower-level managers. Their concern is with shorter-term issues associated with the tactical goals. Operational goals are set by and for lower-level managers. Their concern is with shorter-term issues associated with the tactical goals.

Area Organizations set goals for different areas. The restaurant chain represented in Figure 5.2 has goals for operations, marketing, and finance.

Time Frame Organizations also set goals across different time frames. In Figure 5.2, three goals are listed in each of the boxes at the strategic, tactical, and operational levels. The first is a long- term goal, the second an intermediate-term goal, and the third a short-term goal. Organizations also set goals across different time frames. In Figure 5.2, three goals are listed in each of the boxes at the strategic, tactical, and operational levels. The first is a long- term goal, the second an intermediate-term goal, and the third a short-term goal.

Other Kinds of Goals Official goals are the goals the organization espouses publicly to its stockholders, the local community, and so forth. Operative goals are goals the organization will not publicly disclose or admit to pursuing.

3. MANAGING THE GOAL- SETTING PROCESS Areas of most concern are: – managing multiple goals, –barriers to effective goal setting, –making the goal-setting process effective.

Managing Multiple Goals The starting point in managing multiple goals is simply to recognize that they exist. This recognition is facilitated by the preparation of a formal statement of organizational goals. A formal goal statement fosters understanding and communication and hence helps everyone in the organization know what's going on. Formal goal statements are a part of most corporate annual reports and should always be a part of strategic planning documents. The manager should also understand the importance and necessity of optimizing. Optimizing involves balancing and reconciling possible conflicts between goals. Because goals may conflict with one another, the manager must look for inconsistencies and decide whether to pursue one goal to the exclusion of another or whether to find a midrange target to aim for.

Barriers to Effective Goal Setting Another key to managing the goal-setting process is to recognize the many barriers that can disrupt things. Four significant barriers are: inappropriate goals, unattainable goals, overemphasis on quantitative or qualitative goals, improper reward systems.

Making Goal Setting Effective Understanding the Purposes of Goals Stating Goals Properly Goal Consistency Goal Acceptance and Commitment Effective Reward Systems

4. GOALS AND ORGANIZATIONAL PLANNING Kinds of Organizational Plans Organizations must to developed Strategic plans, Tactical plans, operational plans.