Managerial

Planning
and
Goal
Setting
Dennis L.Petate
MAED
 OVERVIEW OF GOALS AND
PLANS
GOAL
- is defined as a desired future state
that the organization attempts to
realize
- is important because it defines the
purpose of an organization.
 OVERVIEW OF GOALS AND
PLANS

PLAN
- is a blueprint for goal achievement
and specifies the necessary
resource allocations, schedules,
tasks, and other actions.
 OVERVIEW OF GOALS AND
PLANS

Goals specify future

ends; plans specify
today's means.
 OVERVIEW OF GOALS AND
PLANS
PLANNING
- usually incorporates both ideas; it
means determining the
organization's goals and defining
the means for achieving them.
 Concept of Organizational
Mission
MISSION (Mission Statement)
- The planning process begins with a mission
statement, which describes the organization's
reasons for existence.
- It describes the organization's values and
aspirations.
- It is the basis for development of all subsequent
goals and plans.
- It states the purpose and values of the
organization
 3 TYPES OF GOALS
1. Strategic Goals
- are broad statements of where the
organization wants to be in the
future
- pertain to the organization as a
whole and are the stated intentions
of what the organization wants to
achieve
 3 TYPES OF GOALS
2. Tactical goals
-define the results that major divisions and
departments within the organization intend
to achieve
-apply to middle management and describe
what major subunits must do in order for the
organization to achieve its overall goals.
 3 TYPES OF GOALS

3. Operational goals
-describe specific results expected from
departments, work groups, and
individuals.
-are precise and measurable.
 PURPOSES OF GOALS AND
PLANS
Legitimacy.
An organization's mission describes what the
organization stands for and its reason for existence. It
symbolizes legitimacy to external and internal audiences
such as investors, customers, and suppliers.

Source of motivation and commitment.

Goals and plans facilitate employees' identification with the
organization and help motivate them by reducing
uncertainty and clarifying what they should
accomplish.
 PURPOSES OF GOALS AND
PLANS
Guides to action. Goals and plans provide a
sense of direction by focusing attention on
specific targets and directing employee efforts
toward important outcomes.

Resource allocation. Goals help managers

decide where to allocate resources, such as
employees, money, and equipment.
 PURPOSES OF GOALS AND
PLANS
Rationale for decisions. Through goal setting
and planning, managers learn what the
organization is trying to accomplish and they can
then make decisions that align with the plan.

Standard of performance. Because goals define

desired outcomes for the organization, they also
serve as performance criteria.
 CRITERIA FOR EFFECTIVE
GOALS
Specific and measurable. When possible, goals
should be expressed in quantitative terms.
Vague goals tend not to motivate employees.

Cover key result areas. Key result areas are

those items that contribute most to company
performance. Key result areas should include
both internal and external customers.
 PURPOSES OF GOALS AND
PLANS
Specific and measurable
Cover key result areas
Challenging but realistic
Defined time period
Linked to rewards
 PLANNING TYPE
Planning by Objectives
1.MANAGEMENT BY OBJECTIVES (MBO)
- a method whereby managers and
employees define objectives for every
department, project, and person and use
them to monitor subsequent performance.
Four major activities must occur in order
for MBO to be successful.
 Four Major Activities:

a.Setting goals
b.Developing action plans
c. Reviewing Progress
d.Appraising overall
performance
 Single-Use and Standing Plans

1. Singleuse plans are developed to achieve

objectives that are not likely to be repeated in the future.
Singleuse plans include both programs and projects.
2. Standing plans are used to provide guidance for
tasks performed repeatedly within the organization. The
primary standing plans are organizational policies, rules,
and procedures. Many companies are discovering a need
to develop standing plans regarding the use of email.
 Contingency Plans

Contingency plans, often referred to as

scenarios, define company responses to be
taken in case of emergencies or setbacks.
Contingency plans cover such situations as
catastrophic decreases in sales or prices,
and loss of important managers.
PLANNING IN A TURBULENT
ENVIRONMENT

Building Scenarios
Scenario building involves looking at
trends and discontinuities and imagining
possible alternative futures to build a
framework within which unexpected future
events can be managed.
 Crisis Planning
- Prevention
- Preparation
- Containment
 Traditional Approaches to Planning
- central planning department
High-Performance Approaches to
Planning
- Decentralized planning means that
planning experts work with managers in
major divisions or departments to develop
their own goals and plans
 Six Guidelines for Planning
Start with a strong mission.
Set stretch goals for excellence.
Embrace event-driven planning.
Use performance dashboards
Organize temporary task forces
Planning still starts and stops at the top.