-Moumita Pal-Sharma

How To Best Meet Your Mission?

We must plan for the future, because people who stay in the present will remain in the past.

Abraham Lincoln

Planning is deciding the best alternative among others to perform different managerial operations to achieve predetermined goals- By Henry Fayol. Planning A process that involves defining the organizations goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans to integrate and coordinate organizational work.

The Planning Process

GOAL SETTING Identification and formulation of objectives

Reactive Planning
Revision of goals and plans

DEVELOPING PLANS Choices between alternative plans

IMPLEMENTATION Execution of the plan

Vision: Defines the way an organization or enterprise will look in the future. Vision is a long-term view, sometimes describing how the organization would like the world to be in which it operates. For example, a charity working with the poor might have a vision statement which reads "A World without Poverty."

Mission: Defines the fundamental purpose of an organization or an enterprise, succinctly describing why it exists and what it does to achieve its Vision. It is sometimes used to set out a "picture" of the organization in the future. A mission statement provides details of what is done and answers the question: "What do we do? For example, the charity might provide "job training for the homeless and unemployed."

Values: Beliefs that are shared among the stakeholders of an organization. Values drive an organization's culture and priorities and provide a framework in which decisions are made. For example, "Knowledge and skills are the keys to success" or "give a man bread and feed him for a day, but teach him to farm and feed him for life". These example values may set the priorities of self sufficiency over shelter.

Strategy: Strategy, narrowly defined, means "the art of the general" (from Greek stratigos). A combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there. A strategy is sometimes called a roadmap which is the path chosen to plow towards the end vision. The most important part of implementing the strategy is ensuring the company is going in the right direction which is towards the end vision.

Goals and Plans

Goals: specify future ends. Desired future state. Plans: specify the means to future ends. The blueprint for goal achievement specifies the necessary resource allocations, schedules, tasks

Goals denotes what an organization hopes to accomplish in a future period of time. They represent a future state or an outcome of the effort put in now. E.g. Canara Banks goals are growth, innovativeness, high profits, and highly involved employees.

Objectives Objectives make the goals operational. They are the ends that state specifically state how the goals are to be achieved. They are concrete and specific in contrast to goals which are generalized.

Canara Bank achieved its goals through the following objectives Growth in terms of customers, reserves, deposits per branch, priority sector lending, etc. Innovativeness through new schemes, like mutual funds such as Canstock, Canshare, etc. Employee involvement through delegation of authority, change in administrative structure, etc.

Better utilization of resources Helps in achieving objectives Economy in operation Minimizes future uncertainties Improves competitive strength Effective control Motivation Co-operation Promote growth and improvement

Prevents hasty judgment Encourages innovative thought Creates forward looking attitude in management Facilitates delegation of authority Anticipation of crisis

Analysis of external environment Analysis of internal environment Determination of objectives Determining planning premises and constraints. Examination of alternative course of action Weighing alternative course of action Selection of best alternative Establishing sequence of activities

Formulation of action programs Determining secondary plans Securing participation of employees Follow up and evaluation.

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Breadth wiseStrategic (whole org) Operational (a particular operational area) Time frameLong term (over 3 years) Short term ( 1 year or less) Intermediate (between 1 and 3 years)

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1.

2.

SpecificityDirectional (flexible based on general guidelines) Specific- ( clear, no ambiguity or misunderstanding) Frequency of useSingle use ( one time plan to meet needs of a specific situation) Standing (ongoing plans which provide guidance for repeatedly performed activities)

objective are goals, aims or purposes that organisation wish over varying periods of time

method whereby managers and employees define objectives for every department, project, and person and use them to monitor subsequent performance.

THE NATURE & PURPOSE OF MBO

MBO is concerned with goal setting and planning for individual managers and their units. The essence of MBO is a process of joint goal setting between a supervisor and a subordinate. Managers work with their subordinates to establish performance goals that are consistent with higher organizational objectives. MBO helps clarify the hierarchy of objectives as a series of well-defined means-ends chains.

Set Goals

Develop Action Plan

The most difficult step.

For both workgroups and individuals.

Review Progress/ Take corrective action Appraise Overall Performance.

Review Annual Goals.

Periodic during the year.

Essential Steps for MBO

Set

Goals The most difficult step. Concrete Specific target and timeframe Assign responsibility

Develop

Action Plan Course of action For both workgroups and individuals

Review

Progress Periodicity? Course corrections

Appraise

Overall Performance. How are we doing? Do we need to restate our goals?

MAKING MBO PROCESS EFFECTIVE

If MBO is to be successful, it must start at

the top of the organization

Employees must be educated about what MBO is and what their role in it will be. Managers must implement MBO in a way that is consistent with overall organizational goals.

Managers tell their subordinates what organizational and unit goals and plans top management has established. Managers meet with their subordinates on a one-to-one basis to arrive at a set of goals for each subordinate that both develop and to which both are committed.
Goals are refined to be as verifiable as possible and achievable within a specified period of time.

 Goals must be written and very clearly stated. Managers must play the role of counselors in the goal-setting and planning meeting. The meeting should specify the resources that he subordinate will need Conducting periodic reviews

THE EFFECTIVENESS OF MBO - STRENGTHS

Organizations create a powerful motivational system for their employees by adopting MBO. Through the process of discussion and collaboration, communication is greatly enhanced.

With MBO performance appraisal may be done more objectively.

THE EFFECTIVENESS OF MBO - STRENGTHS

MBO helps identify superior managerial talent for future promotion. MBO provides a systematic management philosophy MBO facilitates control through the periodic development and subsequent evaluation of individual goals and plans.

THE EFFECTIVENESS OF MBO WEAKNESSES

The major reason for MBO failure is lack of top

management support

goals and plans cascading throughout the organization may not be those of top management. Some firms may overemphasize quantitative goals

Some managers will not or cannot sit down and work out goals with their subordinates