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    Lecture 3 Organisational Planning and Goal Setting

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    Ihab yassin
    This document discusses organizational planning and goal setting. It covers topics such as the different levels of goals (strategic, tactical, operational), characteristics of effective goals, management by objectives, benefits and limitations of planning, and innovative planning approaches for turbulent environments. Planning is identified as the most fundamental organizational function and involves setting goals and determining how to achieve them through tasks and resource allocation.

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    Lecture 3 Organisational Planning and Goal Setting

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    Ihab yassin
    81 views28 pages
    This document discusses organizational planning and goal setting. It covers topics such as the different levels of goals (strategic, tactical, operational), characteristics of effective goals, management by objectives, benefits and limitations of planning, and innovative planning approaches for turbulent environments. Planning is identified as the most fundamental organizational function and involves setting goals and determining how to achieve them through tasks and resource allocation.

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    Lecture 3 Organisational Planning and Goal Setting (1)

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    This document discusses organizational planning and goal setting. It covers topics such as the different levels of goals (strategic, tactical, operational), characteristics of effective goals, management by objectives, benefits and limitations of planning, and innovative planning approaches for turbulent environments. Planning is identified as the most fundamental organizational function and involves setting goals and determining how to achieve them through tasks and resource allocation.

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    Download as pptx, pdf, or txt
    81 views28 pages

    Lecture 3 Organisational Planning and Goal Setting

    Uploaded by

    Ihab yassin
    This document discusses organizational planning and goal setting. It covers topics such as the different levels of goals (strategic, tactical, operational), characteristics of effective goals, management by objectives, benefits and limitations of planning, and innovative planning approaches for turbulent environments. Planning is identified as the most fundamental organizational function and involves setting goals and determining how to achieve them through tasks and resource allocation.

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    CHAPTER 5

    Organisational planning and


    goal setting
    PLANNING

    • Is the most fundamental of the 4 functions


    – Other functions stem from planning
    • Refers to identifying goals and deciding on the
    tasks and resource use needed to attain them
    GOALS, PLANS AND
    PERFORMANCE
    • Goal
    – A desired future state that the organisation attempts
    to realise.
    • Plan
    – A blueprint specifying the resource allocations,
    schedules and other actions necessary for attaining
    goals.
    LEVELS OF GOALS OR PLANS AND THEIR
    IMPORTANCE

    5
    PLANNING: LEVELS OF GOALS
    • Planning needs to take account of how best to use the
    Internet
    • Goals and plans vary at different levels:
    – Strategic goals
    • Pertain to the organisation as a whole.
    – Tactical goals
    • Relevant to specific part of organisation
    – Operational goals
    • Developed at lower levels that specify action steps
    towards achieving organisational goals that support
    tactical planning activities
    MESSAGES AND VALUES
    CONTAINED IN GOALS AND PLANS
    Important in terms of:
    • Legitimacy (external and internal)
    • Source of motivation and commitment
    • Resource allocation
    • Guides to action
    • Rationale for decisions
    • Standard of performance
    GOALS IN ORGANISATIONS

    • The top goal in an organisation is the mission. It is an


    organisation’s reason for existing.
    • The mission statement is a broad definition of the
    mission.
    • Strategic goals and plans need to be flexible
    • The planning process comprises several steps and
    links all parts of the organisation
    ALIGNING GOALS WITH
    STRATEGY MAPS
    • Effective goals are consistent and mutually supportive
    so that achievements at lower levels logically lead to
    attaining high-level goals
    – Means-ends chain
    • Strategy mapping is an increasingly popular tool for
    planning
    – Shows cause-effect relationships among goals and
    plans
    A STRATEGY MAP
    CRITERIA FOR EFFECTIVE
    GOALS
    • Effective goals share certain
    characteristics
    – Effective goals:
    1. Are specific and measurable
    https://www.youtube.com/watch?v=0Mi9_XEXQqc
    2. Have a defined time period
    3. Cover key result areas
    4. Are challenging yet achievable
    5. Are linked to rewards
    CHARACTERISTICS OF
    EFFECTIVE GOALS
    MANAGEMENT BY OBJECTIVES

    • Originated by Peter Drucker


    • Manager and employees jointly set goals
    • Comprises 4 major activities:
    – Set goals (involves all employees at all levels)
    – Develop action plans
    – Review progress
    – Appraise overall performance
    MODEL OF THE MBO PROCESS
    BENEFITS OF MBO

    • Focuses manager and employee efforts on activities


    that will lead to goal attainment
    • Can improve performance at all levels
    • Improves employee motivation
    • Aligns individual and departmental company goals
    PROBLEMS WITH MBO

    • Problems occur when MBO is used inappropriately


    – Over-emphasis on goal attainment can lead to
    cutting corners
    • MBO is not a stand-alone plan
    • Alternative is MBM
    – Management by means which focuses attention on
    the methods and processes used to achieve goals
    SINGLE-USE AND STANDING
    PLANS
    • Single-use plans
    – set of goals that are not likely to used again
    • Events not likely to recur
    • Standing plans
    – provide on-going guidance for tasks performed
    repeatedly in the organisation
    • Processes and procedures
    BENEFITS OF PLANNING

    • Planning is generally beneficial


    • Goals and plans:
    – Provide a source of motivation and commitment
    – Guide resource allocation
    – Are a guide to action
    – Set a standard of performance
    LIMITATIONS OF PLANNING

    • Planning can also hurt organisations


    • Goals and plans:
    – Can create a false sense of security or certainty
    – Cause inflexibility in turbulent times
    – Limits the benefit of intuition and creativity
    PLANNING IN A TURBULENT
    ENVIRONMENT
    Types of planning to counter the effects of today’s
    turbulent environment:
    • Contingency planning
    • Scenario planning
    • Crisis planning
    CONTINGENCY PLANNING

    • Defines organisation response to specific situations


    such as emergencies, setbacks or unexpected
    conditions
    • Brain storm worst case scenarios
    • Develop strategies to counter impacts
    SCENARIO PLANNING

    • A forecasting technique
    – Is future-focused
    • Possible scenarios based on extrapolating from current
    trends and considering future discontinuities
    • Two to five possible scenarios for each factor
    • Strategies to deal with each scenario
    • Shell Scenarios:
    • https://www.youtube.com/watch?time_continue=3&v=n
    wub4Bhr-aM
    CRITICAL PLANNING

    • Firms engage in crisis planning to help them cope with


    serious and unexpected events or disaster.
    • Crisis planning enhances a company’s ability to
    respond to events that may significant or even crippling
    repercussions.
    • Good crisis planning may well reduce the incidence of
    trouble.
    • Exhibit 7.7 on the next slide outlines the three primary
    stages of a crisis.
    CRITICAL INFRASTRUCTURE
    DISTURBANCE PROCESS (CIDP)
    CRISIS MANAGEMENT
    PLANNING
    • A good crisis management plan (CMP) can mitigate
    the effects of sudden and devastating events. It should
    cover:
    – Pre-event preparation and planning
    – Response and Recovery, and
    – Post event strategies.
    THE NEW PLANNING APPROACH
    • Traditional approaches to planning:
    – Centralised planning department
    • A group of planning specialists who develop
    plans for the organisation as a whole and its
    major divisions and departments, and typically
    report to the CEO.
    • Modern approaches to planning:
    – Decentralised planning staff
    • A group of planning specialists assigned to
    major departments and divisions to help
    managers develop their own strategic plans.
    INNOVATIVE APPROACHES TO
    PLANNING
    • Involving every one in the organisation
    • Sometimes outside stakeholders are involved
    • Guidelines for innovative planning:
    – Set stretch goals
    – Use performance dashboards
    – Deploy intelligence teams
    SUSTAINABLE DEVELOPMENT AND
    GOAL SETTING

    • Sustainable organisations set goals for their


    environmental performance
    – e.g. Reducing carbon footprint by 20% over 3 years
    • This achieves systematic and disciplined
    implementation rather than talk and no action

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