Planning and Goal Setting in Management

[Music] of the Ford management functions planning organizing leading and controlling plan is considered the most fundamental everything else stems from planning and management the economic political and social turmoil of recent years has sparked a renewed interest in organizational planning particularly planning for crisis and unexpected events a goal is a desired future state that the organization wants to realize goals are important because organizations exist for a purpose and goals define and state that purpose a plan on the other hand is a blueprint specifying the resource allocations schedules and other actions necessary for attaining goals the concept of planning usually incorporates both goals and plans planning means determining the organization's goals and defining the means for achieving them there are four levels of goals and plans in an organization mission strategic tactical and operational goals and plans the formal mission statement is a broadly stated definition of an organization's basic business scope and operations that distinguishes it from similar types of organizations the mission describes an organization's values aspirations and reason for being a well defined mission is the basis for development of all of their subsequent goals and plans without a clear mission goals and plans may be developed haphazardly and not take the organization in the direction it needs to go one of the defining attributes of successful organizations is that they have a clear mission that guides decisions and actions strategic plans then include action steps by which the organization intends to achieve its strategic goals strategic goals are a broad statement of where the organization wants to be in the future pertains to the organization as a whole rather than specific divisions or departments top managers are typically responsible for establishing these strategic goals and plans the reflected commitment to both organizational efficiency and effectiveness these goals pertain to the organization as a whole rather than specific divisions or departments tactical plans are then designed to help execute major strategic plans and accomplish a specific part of the organization strategy tactical goals and plans are the responsibility of middle managers such as the heads of major divisions or functional units a middle manager will formulate tactical plans that focus on the major actions that that division must take to fulfill its part of the strategic plan set by top management operational plans then identify specific procedures or processes needed at lower levels of the organization such as individual departments and employees organizational goals are a specific measurable result that's expected from departments work groups and individuals frontline managers and supervisors develop these operational plans that focus on specific tasks and processes that help meet tactical and strategic goals planning each level supports the other levels the planning process begins when managers develop an overall plan for the organization by clearly defining mission and strategy those company level goals second they translate the plan into action which includes defining tactical objectives and plans defining a strategy map to align goals formulating contingency and scenario plans and applying flexible goal-setting third managers lay out the operational factors needed to achieve goals this involves devising operational goals and plans selecting the measures and targets that will be used to determine if things are on track and identifying stretch goals and crisis plans that might need to be put into action planning helps managers think about the future rather than thinking merely in terms of their day-to-day activities management by objectives or MBO is a method whereby managers and employees define goals for every department project and person and use them to monitor subsequent performance there are four major activities that make MBO successful set goals develop action plans review progress and appraise overall performance setting goals involves employees at all level and looks beyond day-to-day activities to answer the question what are we trying to accomplish mutual agreement between employee and supervisor creates the strongest commitment to achieving goals in the case of teams all team members may participate in setting goals an action plan defines the course of action needed to achieve stated goals action plans are made for both individuals and departments a periodic progress review is important to ensure that action plans are working this periodic checkup allows managers and employees to see whether they're on target or whether corrective action is needed managers and employees should not be locked into predetermined behavior and must be willing to take whatever steps are necessary to produce meaningful results the point of MBO is to achieve goals the action plan can be changed whatever goals are not being met the final step in NBO is to evaluate whether annual goals have been achieved for both individuals and departments then the MBO cycle repeats itself annually many organizations have used MBO and most managers think it's an effective management tool most managers believe that they are better oriented towards goal achievement when MBO is used [Music] you