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ppt07.ppt

  1. 1. Slide content created by Joseph B. Mosca, Monmouth University. Copyright © Houghton Mifflin Company. All rights reserved. 7 Ready Notes Basic Elements of Planning and Decision Making For in-class note taking, choose Handouts or Notes Pages from the print options, with three slides per page.
  2. 2. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 2 Organizational Goals • Goals are critical to organizational effectiveness and serve a number of purposes. • Purposes of goals: – Provide guidance. – Promote good planning. – Serve as sources of motivation. – Mechanism for evaluation and control.
  3. 3. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 3 Identification Integration Adaptation Revitalization Collaboration Organizations Have a Purpose— That Is Why They Need Goals Organizational purpose for goals
  4. 4. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 4 Kinds of Goals • Goals vary by level, area, and time frame. • Mission: a statement of an organization’s fundamental purpose. • Strategic goal: a goal set by and for top management of the organization. • Tactical goal: set by and for middle managers of the organization. • Operational goal: set by and for lower managers of the organization.
  5. 5. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 5 Other Goals • Area: organizations also set goals for different areas. • Time frame: organizations also set goals across different time frames.
  6. 6. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 6 Responsibilities for Setting Goals Who sets goals? – All managers should be involved in the goal setting process. – Each manager has responsibilities for setting goals that correspond to their level.
  7. 7. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 7 Managing Multiple Goals • When setting goals organizations sometimes experience conflicts or contradictions among goals. • Conflicts are addressed through the use of the Optimizing concept: – Optimizing: balancing and reconciling possible conflicts among goals.
  8. 8. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 8 The planning function consists of: What is to be accomplished? How is it to be accomplished?
  9. 9. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 9 Planning has 4 elements: Objectives Actions Resources Implementation
  10. 10. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 10 Why Is Planning Important? A task can not be accomplished if the manager is not aware of: How is it to be done What has to be done When is it to be done
  11. 11. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 11 Organizational Planning Kinds of organizational plans: – Strategic plan: a general plan outlining decisions of allocation, priorities, and action steps necessary to reach strategic goals.
  12. 12. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 12 Tactical Plans • A plan aimed at achieving tactical and developed to implement specific parts of a strategic plan. • Operational plan: a plan that focuses on carrying out tactical plans to achieve operational goals.
  13. 13. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 13 Time Frames for Plans • Long-range plan: covers many years, perhaps even decades; common long- range plans are for five years or more. • Intermediate plan: usually covers periods from one to five years. • Short-range plan: generally covers a span of one year or less.
  14. 14. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 14 More Types of Plans • Action plan: used to put into operation any other kind of plan. • Reaction plan: designed to allow the company to react to an unforeseen circumstance.
  15. 15. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 15 Responsibilities for Planning • Planning staff: some large organizations develop a professional planning staff. • Planning task force: often comprised of line managers with special interest in the relevant area of planning. • Board of directors: establish the corporate mission and strategy, and in some companies take part in the planning process.
  16. 16. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 16 Contingency Planning • The determination of alternative courses of action to be taken if an intended plan of action is unexpectedly disrupted or rendered inappropriate.
  17. 17. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 17 Crisis Management • The set of procedures the organization uses in the event of a disaster or other unexpected calamity. • A related concept is the set of procedures the organization uses in the event of a disaster or other unexpected calamity.
  18. 18. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 18 Tactical Planning The development and executing of tactical plans: – Tactical plans are used to accomplish specific parts of a strategic plan. Each strategic plan is generally implemented through several tactical plans. Effective tactical planning involves both development and execution.
  19. 19. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 19 Tactical Plan Development and Execution Development: – Recognize and understand overarching strategic plans and tactical goals. – Specify relevant resource and time issues. – Identify and articulate human resource commitments. Execution: – Evaluate each course of action in light of its goals. – Obtain and distribute information and resources. – Monitor horizontal and vertical communication and integration of activities. – Monitor ongoing activities for goal achievement.
  20. 20. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 20 Types of Operational Planning • Single-use plan: developed to carry out a course of action not likely to be repeated in the future. • For a program, a plan for a large set of activities. • For a project, a plan of less scope and complexity than a program.
  21. 21. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 21 Standing Plan • Developed for activities that recur regularly over a period of time: – For a policy, a standing plan specifying the organization’s general response to a designated problem or situation. – Standard operating procedure: a standing plan outlining steps to be followed in particular circumstances. – Rules and regulations: standing plans describing exactly how specific activities are to be carried out.
  22. 22. Copyright © Houghton Mifflin Company. All rights reserved. 7 - 22 Barriers to Goal Setting and Planning Major Barriers – Inappropriate goals. – Improper reward system. – Dynamic and complex environment. – Reluctance to establish goals. – Resistance to change. – Constraints. Overcoming Barriers – Understanding the purposes of goals and planning. – Communication and participation. – Consistency, revision, and updating. – Effective reward system.

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