Goal Setting & Planning

Human Relations Goal Setting & Planning

Human Relations Goals and Plans Goal A desired future state that the organization wants to achieve. • What do we want? Plan A blueprint of the actions necessary to reach the desired goal. • How do we get there?

Human Relations Levels of Goals/Plans - NASA • A Mission Statement describes our purpose. Mission Statement Everything we do is focused on getting there. • Strategic level is the “Big Picture”. Strategic Goals Strategic Plans Take a man to the moon by 1970. Senior Management • Tactics break strategies into steps. Tactical Goals Tactical Plans Build a rocket and launch pad. Middle Management • And smaller steps. Operational Goals Operational Plans Build part of a rocket. Lower Management

Human Relations Mission Statement • Answers the question:What drives us? Mission Statement “Beat GM!” Honda A good Mission Statement: • Elicits an emotional, motivational response in company employees. • Is easily understood and can be transferred into individual action. • Points to a tangible and measurable goal. • Speaks to the competitive environment in which the company operates.

Principles of Management Mission Statement • A Mission Statement points to goals that are definable, measurable, actionable, and with emotional appeal that everyone understands and can act upon. Mission Statement An Organization’s Mission: • Reflects management’s vision of who the firm serves. • Provides a clear vision of what the firm provides customers. • Directs managers where the firm should be staking out a competitive position in the marketplace.

Mission Statement Human Relations “To provide any customer a means of moving people and things up, down, and sideways over short distances, with higher reliability than any similar enterprise in the world.” Mission Statement Elevator

Human Relations Mission Statement “To offer food prepared in the same high-quality manner world-wide, tasty, reasonably priced, and delivered in a consistent, low-key and friendly atmosphere.” Mission Statement

Human Relations Mission Statement “To offer all of the fine customers in our territories all of their household needs in a manner in which they continue to think of us fondly.” Mission Statement

Human Relations Mission Statement “To provide our customers with error-free financial instruments delivered in a timely fashion. Error-free means absolutely no errors. Timely means within 48 hours.” Mission Statement

Human Relations Strategic Goals and Plans Strategic Goals Strategic Plans • Strategic level is the “Big Picture”. Senior Management An Organization’s Strategic Goals: • Helps managers at lower levels focus. Avoids pitfall of them • trying to move in too many directions at once. Senior Management formulates Strategic Goals so: • Lower level managers know where the firm is at present. • And know where the firm is headed.

Human Relations Strategic Goals and Plans Nike Strategic Goals Strategic Plans Senior Management • Protect and improve Nike’s position as the number one athletic brand in America. • Intensify the company’s effort to develop products that women want and need. • Explore the market for products specifically designed for the requirements of maturing Americans. • Continue the drive for increased margins through inventory management and new product development.

Human Relations Tactical and Operational Goals and Plans Tactical Goals Tactical Plans • Tactics break strategies into smaller more specific steps . Middle Management • And operational goals are even more specific steps . Operational Goals Operational Plans Lower Management

Human Relations Tactical and Operational Goals and Plans Strategic Goal: Build momentum in fitness market. • Marketing manager works with advertising manager and sales manager to devise point-of-purchase displays for fitness centers. Sales manager incorporates sales calls to fitness centers in each salesperson’s sales plan. Strategic Goal: Increase margins via inventory management. • Purchasing managers evaluate production lead times and tighten ROPs. Information Technology manager assigns inventory analyst to task of updating with more current software.

Human Relations Cool Bottled Water, Inc. Cool Bottled Water is a company that sells private label water drawn from the Sammamish Slough near Woodinville, Washington State. “Private Label” refers to the labeling of the bottles. Major companies and restaurant chains that want to create brand awareness order bottles to be labeled with their own custom brand. Our Mission Statement: Our goal is to help our customers increase the public’s awareness of their names by providing them with premium bottled water labeled with their own name.

Human Relations Strategic Level Strategic Goal: To develop a source of water, a bottling plant, and a marketing team to develop and promote the product to large companies and restaurant chains in Washington, Oregon, and California, and to launch “Day Zero” on August 15th, 2002. To achieve ROI of 15%. • Strategic Plan: • Product development will be the responsibility of the Research and Development team, who are charged with maintaining purity and clarity standards. • Production will be the responsibility of the Production and Warehouse Team. Plant specifications to be suited to needs. • MarketingPlan development will be the responsibility of the Marketing team.

Human Relations Tactical Level • Tactical Goal – Production Team • Produce bottled water per industry specifications for less than 35 cents per unit. • Tactical Plan– Production Team • Water will be drawn from two locations along the Slough on properties owned by the Clapping Hands Ranch. Water rights will be secured starting Day Zero minus 90 for 99 years via a mineral rights lease attached to the deed of the Ranch, which will be binding on subsequent owners. The water will be tested monthly for purity, and bottled in the company’s bottling plant in Woodinville adjacent to the south source. The north-source water will be piped approximately one mile to the bottling plant. Approximately 500 gallons are available each day, and will be bottled in clear plastic 1/8th gallon bottles with safety caps.

Human Relations Operational Level • Operational Goal – Bottling Team Sub-unit of Production Team • Acquire bottling equipment of sufficient capacity and technology to maintain output and quality standards. • Operational Plan– Bottling Team Sub-unit of Production Team • Prepare RFP for equipment called out in specifications from Research and Development. Consider cost, ease of operation, reliability, and productivity, and choose appropriate equipment. • Install equipment per factory specifications by Day Zero 95. • Test output for 90 days prior to Day Zero.

Human Relations

Model of the MBO Process Step 2: Developing Action Plans Step 1: Setting Goals Corporate Strategic Goals Departmental Goals Individual Goals Action Plans Review Progress Step 3: Reviewing Progress Corrective Action Appraisal of Overall Performance Step 4: Appraising Overall Performance

Human Relations MBO Benefits and Problems Benefits of MBO Problems with MBO 1. Constant change prevents MBO from taking hold. 1. Manager and employee efforts are focused on activities that will lead to goal attainment. 2. An environment of poor employer-employee relations reduces MBO effectiveness. 2. Performance can be improved at all company levels. 3. Strategic goals may be displaced by operational goals. 3. Employees are motivated 4. Mechanistic organizations and values that discourage participation can harm the MBO process. 4. Departmental and individual goals are aligned with company goals. 5. Too much paperwork saps MBO energy.

Human Relations Single-Use Plansfor Goals not Likely to be Repeated • A program is a complex set of objectives and plans to achieve an important, one-time organizational goal. • A project is similar to a program, but generally smaller in scope and complexity.

Human Relations Standing Plans • A policy is a general guide to action and provides direction for people within the organization. • Rules describe how a specific action is to be performed. • Procedures define a precise series of steps to be used in achieving a specific job. • Total quality management (TQM) to improve quality and production. http://www.dbainc.com/public_html/dba2/library/tqm.html • 6 Sigma – Continuous evaluation and improvement. http://www.isixsigma.com/sixsigma/six_sigma.asp

Human Relations Contingency Plans • May be defined as scenarios. • Define company responses to be taken in case of setbacks or unexpected conditions. Is just rolling the dice good enough?

Strategic Planning Human Relations “Strategy” = The plan of action that describes resource allocation & activities for dealing with the environment to attain organizational goals.

Human Relations Strategic Management Questions • What changes and trends are occurring? • Who are the customers? • What products or services should we offer? • How can we offer these products or services efficiently?

Scan External Environment Identify Strategic Factors • National • Global • Opportunities • Threats Implementing Strategy via Changes in: Identify Strategic: Evaluate Current: Define New: • Mission • Goals • Grand Strategy • Structure • Human resources • Information & control systems • Mission • Goals • Grand Strategy SWOT • Corporate • Business • Functional Scan Internal Environment Identify Strategic Factors • Core Competence • Synergy • Value Creation • Strengths • Weaknesses Strategic Management Process Situation Analysis via SWOT

External Opportunities and Threats Competitors – what will emerge? The Economy Customers – what will they want? Trends in Technology Legal and Political Factors

Goal Setting & Planning