1. Establishing Goals Developing Plans

2. Overview Approaches to establishing goals Developing plans
Contemporary issues in planning
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3. Quick Write
If you are working in a group, is it important to you to have a say in setting its goals? Why or why not?
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4. Approaches to Establishing Goals
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5. The Purpose of Goals Provide direction for management decisions
Form the criteria–—the yardsticks–—against which to measure performance
Direct the action of workers and managers within an organization
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6. Traditional Goal Setting
Traditional goal setting is an approach in which goals are set at the top level of the organization and then broken into subgoals for each level of the organization
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7. Problems with Traditional Goal Setting
Management may not see clearly what goals need to be
Process of passing goals down the corporate ladder may not work
Management may define goals too broadly
Workers may misinterpret management goals
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8. Downside of Traditional Goal Setting
“We need to improve the company’s performance.”
“I want to see a significant improvement in this divisions’ profits.”
“Increase profits regardless of the means.”
“Don’t worry about quality; just work fast.”
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Adapted from Management, 9th Ed.
By Robbins/Coulter p. 192
Pearson Prentice Hall, 2007

9. A Means-End Chain A means-end chain is an integrated network of goals
The accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next
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10. Management by Objective
Management by Objective (MBO) approach toward setting goals occurs when managers and workers meet together to establish objectives
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11. Problems with MBO Goal Setting
If goals must be reset every few weeks, no one will have time to measure progress made on the original goals
Can lead to overemphasis on individual goals without regard to others in the work group
Can turn into an annual exercise in paper shuffling that doesn’t really motivate anyone
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12. Steps for MBO Goal Setting
Formulate overall objectives and strategies
Assign major objectives to top managers, divisional and departmental units
Unit managers work with the supervisors below them to set their specific objectives
Supervisors work with
rank-and-file employees to
set their specific objectives
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13. Steps for MBO Goal Setting
Managers and employees write and agree to action plans that define how to meet the goals
Plans are carried out
Managers up and down the corporate ladder review progress toward objectives and give feedback as needed
Those who have helped achieve
the goal share in some form
of reward
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14. Characteristics of Well-Thought-Out Goals
Stated as outcomes (the desired results) rather than inputs (actions or efforts)
Measurable and quantifiable
Have a clear time frame
Challenging but reachable – a stretch, but not an impossible one
Written down
Shared with everyone who needs to know about them
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15. Steps in Goal Setting Review the organization’s mission
Evaluate your resources
Determine your goals on your own and with input from others, as needed
Write down the goals and communicate them to all who need to know them
Review progress
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16. Optional Exercise
Work together in teams of three to five to set three well-thought-out goals for community service for our JROTC Unit following the five steps of goal setting.
Prepare to describe one of your goals for community service with the class and have your described goals evaluated based on the six characteristics of a well-thought-out goal.
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17. Developing Plans
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18. Three Contingency Factors
Level within the organization for the plan
Degree of uncertainty in the environment
Length of future commitments
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19. The Commitment Concept
The commitment concept – the idea that plans should extend far enough ahead to meet those commitments made today
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20. Formal Planning Departments
Some organizations have a formal planning department – a group of specialists whose sole responsibility is helping to write organizational plans
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21. Traditional Planning
Traditional planning, like traditional goal setting, involves handing things down from level to level within the organization
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22. Problems of Traditional Planning
Often results in a lot of heavy ring binders sitting on shelves
The “plan” in such circumstances never really guides anyone’s work
Survey of managers at companies with top-down organizational planning found that 75 percent of them called their system unsatisfactory
“Plans are documents that you prepare for the corporate planning staff and later forget,” is the way one manager put it
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23. One Common View of Traditional Planning
“Plans are documents that you prepare for the corporate planning staff and later forget”
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24. Benefits of a Modern Approach
Involves everyone in the planning
Becomes clear that plans are more than just something put down on paper
Employees see managers use plans in directing and coordinating work
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25. Contemporary Issues in Planning
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26. Two Contemporary Issues
Is formal organizational planning really a good idea?
How can managers possibly plan effectively in today’s often chaotic business environment?
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27. Contemporary Criticisms of Planning
Planning is not relevant in today’s fast-changing environment
Formal planning stifles creativity
Planning is not enough – necessary to move from planning to doing
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28. Effective Planning in Dynamic Environments
Wireless networking technology transforming industries
Companies harnessing the power of the Internet in new ways
Consumers keep eating out more and more
Many countries of the European Union have adopted a new common currency, the Euro
Experts believe that China and India will transform the global economy of the 21st century
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29. Planning in Dynamic Environments
Plans need to be “specific but flexible”
Managers have to learn to keep planning year after year – persistent planning allows managers to learn and improve
Organizational hierarchies need to be flattened with fewer layers – managers must train their employees to set goals and make plans
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30. Optional Exercise
Work together in teams of three to five to make plans for implementing one of the goals we have set for community service for our JROTC Unit.
Prepare to describe one of your plans for implementing a community service goal and have other teams evaluate your described plan based on their consideration of three contingency factors and three characteristics of effective planning in dynamic environments.
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31. Steps to Becoming a Manager
Practice setting goals in areas of your life such as your academic work, career preparation, and family life
Write out plans for achieving those goals
Be prepared to change your goals as circumstances change
Write a personal mission statement
If you have a job, talk to your managers about the planning they do and ask their advice on being a better planner
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32. Review
Goals provide direction for management decisions day by day and establish criteria for measuring performance
Traditional goal setting is an approach in which goals are set at the top level of the organization and then broken into subgoals for each level of the organization
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33. Review
The traditional goal setting approach assumes that top management sees clearly what the goals need to be and that the process of passing goals down the corporate ladder works, and works smoothly – but often these are not valid assumptions
A means-end chain is an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next
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34. Review
Management by objective (MBO) is another approach toward setting goals in which managers and workers meet together to establish objectives
Well-thought-out goals are stated as outcomes, are measurable, have a clear time frame, are challenging, but reachable, are written down, and are shared with everyone who needs to know about them
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35. Review
The five steps of goal setting include (1) reviewing the organization’s mission, (2) evaluating resources, (3) determining your goals on your own and with input from others, as needed, (4) writing down the goals and communicating them to all who need to know them, and (5) reviewing progress
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36. Review
Managers have to consider three contingency factors in planning – the level within the organization that they’re planning for, the degree of uncertainty in the environment, and the length of future commitments
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37. Review
Traditional planning involves handing things down from level to level within the organization and often involves a formal planning department – a group of specialists whose sole responsibility is helping to write organizational plans
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38. Review A more modern approach is to involve everyone in the planning
Effective planning in dynamic (rapidly changing) environments is one of the major contemporary issues of planning
Effective plans in dynamic environments need to be specific, but flexible, evaluated and updated persistently, and developed as both managers and employees work together to set goals and make plans
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39. Review
Learning to manage yourself involves setting personal goals, writing out plans to achieve those goals, and changing your goals as circumstances change
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40. Summary Approaches to establishing goals Developing plans
Contemporary issues in planning
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41. What’s Next… Decision-Making Chapter 4 Lesson 2
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