1. ESTABLISHING ORGANIZATIONAL GOALS AND PLAN
CHAPTER 6
ESTABLISHING ORGANIZATIONAL GOALS AND PLAN

2. 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

3. 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

4. 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.

5. 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.

6. 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.

7. 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

8. LEVELS OF GOALS

10. 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

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

12. 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?

13. Goal content Challenging Attainable Specific and measurable
Time limited
Relevant

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

15. Work Behavior
Direction
Effort
Persistence
Planning

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

17. 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

18. 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

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

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

21. 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

22. 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

23. 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

24. 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

25. 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