Managerial Planning &

Goal setting

9 Oct 2014

Overview of goals & plans

What is planning – it is the first function among the 4 functions of management. It includes 2 criteria such as – (remember 2D’s)Determining organizational goalsDefining means of achieving themGoal – A desirable future state that the organization attempts to realize and achieve.It is measurable & observable end result.Plan – is a blueprint specifying resources required, scheduling and other necessary actions for attaining the goals. Tells of WHY/HOW/WHEN

Levels of goals & related plans

Purposes of goals & plans

The external & internal factors influences the message which is sent to the business environment.External elements – Stakeholder, customer, suppliers, community.External message – Legitimacy, mission, vision of the org gives direction, builds trust & encourages the external factors to contribute to the organization.Eg. Medical product mission statement is – “removes pain, restores health and extends life”…this phrase with powerful visual aid will inspire the emotion.Internal elements – Employees, motivation, seeing the objective, resource allocation, reason for decision making and set standards of performance.

Purposes of goals & plans

Legitimacy – The honesty, commitment, mission inspires and brings faith for the organizationSource of Motivation & commitment – Goals & plans gives a visual identity for people to pursue their dreamsResource Allocation – helps decide the quantity, skill and area where to allocateGuides to Action – Brings direction of where to emphasize for better performanceRationale for Decisions – Managers can reason & logically define why this decision was takenStandards of Performance - Enables managers to define performance standards.

Goals in organizations

1. Organizational MissionDefines the values & philosophyReasons for existenceUnderstands and expresses the customers pulse(eg. Talks about comfort about the product, quality, locations of facilities to avail services)2. Goals & Plans • Strategic goals – broad statements of where the org wants to be in

future 1. Strategic Plan 2. Tactical Plan 3. Operational Plan• Strategic plans – Steps by which the org intends to attain goals.3. Hierarchy of goals – levels of goals. How strategic goals, leads to accomplishment of tactical goals & how achievement of operational goals lead to overall success.

Goals in organizations

Criteria for Effective Goals

1. Specific & measurable2. Quantitative terms – increasing profit but 2% or reducing

scrap by 5%. Performance rating no less than 3/53. KRA (key result areas, based on competency) impact on

company balance score card4. Challenging but realistic – easy goals leads to employee

demotivation & underperformance. Stretched goals leads to employee burnout

5. Define time period – Defined & set deadline6. Linked to rewards - People who attain goals or respective

performance standard (KRA) should be rewarded

Planning types

1. MBO (management by objective) i) Set goals ii) Develop actions plans iii) Review Progress iv) Appraise overall performance2. Single-use/ standing plans – are one time use plans3. Eg. Disciplinary or reduce resource wastage due to

sudden shortage of resources, like printing ink4. Contingency plans – In highly uncertain environs,

unexpected setbacks, or deliveries

Types of planning

• Traditional approaches to planning• High-performance approaches to planning• Start with strong mission & vision• Set stretch goals for excellence• Create culture that encourage learning

Planning in turbulent environment

Building scenariosCrisis management planning1. Prevention2. Preparation3. Containment

Planning in turbulent environment

Building scenariosCrisis management planning1. Prevention2. Preparation3. Containment