1. Planning and Goal Setting
Chapter 7
Planning and Goal Setting

2. Planning is Fundamental
All of the other management functions stem from planning
How do you plan for an undefined future?
No plan is perfect
Without plans and goals, organizations flounder
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3. Goals and Plans
A goal is a desired future state that the organization attempts to realize
PLANNING
A plan is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions
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4. 7.1 Levels of Goals and Plans
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5. 7.2 The Organizational Planning Process
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6. Goal Setting in Organizations
Organizational Mission – the organization’s reason for existence
Strategic goals – official goals, broad statements describing the organization’s future
Strategic plans – define the action steps the company will take
Goals should be aligned
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7. 7.4 A Strategy Map for Aligning Goals
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8. Operational Planning Direct employees and resources
Guide efficient and effective performance
Includes planning approaches:
Management by Objectives (MBO)
Single-Use Plans
Standing Plans
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9. 7.5 Criteria for Effective Goal Setting
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10. 7.6 Model of the MBO Process
Defined in 1954 by Peter Drucker
Method for defining and monitoring goals
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11. 7.7 MBO Benefits
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12. Single-Use and Standing Plans
Single-Use Plans
Achieve one-time goal
Programs and Projects
Standing Plans
Ongoing plans
Policies, rules, procedures
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13. Types of Single-Use and Standing Plans
Single-Use Plans
Program: building new headquarters, converting paper files to digital
Project: renovating the office, setting up a new company intranet
Standing Plans
Policy
Rule
Procedure
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14. Benefits and Limitations of Planning
Goals and plans provide a source of motivation and commitment
Goals and plans guide resource allocation
Goals and plans are a guide to action
Goals and plans set a standard of performance
Goals and plans can create a false sense of certainty
Goals and plans may cause rigidity in a turbulent environment
Goals and plans can get in the way of intuition and creativity
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15. Planning for a Turbulent Environment
Contingency Planning
Planning for emergencies, setbacks, or unexpected conditions
Building Scenarios
A forecasting technique to look at current trends and visualize future possibilities
Crisis Planning
Sudden, devastating, unexpected events
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