1. MAJOR TYPES OF
PLANS

2. 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

3. 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.

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

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)

6. 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

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

8. 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

9. 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

10. 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.

11. 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.

12. 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.

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

14. 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

15. 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.

16. 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.

17. 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.

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

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