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Managerial Planning: A Blueprint for Goal Achievement

This chapter explores the importance of planning in organizational management. It discusses the levels of goals and plans, the organizational planning process, goal-setting in organizations, operational planning approaches, the MBO process, and the benefits and limitations of planning.

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Managerial Planning: A Blueprint for Goal Achievement

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  1. Chapter 7 Managerial Planning and Goal Setting

  2. Planning is Fundamental • All of the other management functions stem from planning • How do you plan for an undefined future? • No plan is perfect • Without plans and goals, organizations flounder

  3. Goals and Plans A goal is a desired future state that the organization attempts to realize PLANNING A plan is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions

  4. 7.1 Levels of Goals and Plans

  5. 7.2 The Organizational Planning Process

  6. Goal-Setting in Organizations • Organizational mission – the organization’s reason for existence • Strategic goals – official goals, broad statements describing the organization’s future • Strategic plans –define the action steps the company will take • Goals should be aligned using a strategy map

  7. 7.4 A Strategy Map for Aligning Goals

  8. Operational Planning • Direct employees and resources • Guide toward efficient and effective performance • Includes planning approaches: • Management-by-Objectives (MBO) • Single-Use Plans • Standing Plans

  9. 7.5 Characteristics of Effective Goal Setting

  10. 7.6 Model of the MBO Process • Defined in 1954 by Peter Drucker • Method for defining goals and monitoring performance

  11. 7.7 MBO Benefits

  12. Single-Use and Standing Plans Single-Use Plans • Achieve one-time goals • Programs and projects Standing Plans • Ongoing plans • Policies, rules, procedures

  13. Types of Single-Use and Standing Plans • Single-Use Plans • Program: building new headquarters, converting paper files to digital • Project: renovating the office, setting up a new company intranet

  14. Types of Single-Use and Standing Plans • Standing Plans • Policy: Sexual harassment policies, Internet and social media policies • Rule: No eating rule in areas of company where employees are visible to public • Procedure: Procedures for issuing refunds, Procedures for handling employee grievances

  15. 7.8 Major Types of Single Use and Standing Plans

  16. Benefits and Limitations of Planning • Goals and plans provide a source of motivation and commitment • Goals and plans guide resource allocation • Goals and plans are a guide to action • Goals and plans set a standard of performance • Goals and plans can create a false sense of certainty • Goals and plans may cause rigidity in a turbulent environment • Goals and plans can get in the way of intuition and creativity

  17. Planning for a Turbulent Environment • Contingency Planning • Planning for emergencies, setbacks, or unexpected conditions • Building Scenarios • A forecasting technique to look at current trends and discontinuities and visualize future possibilities • Crisis Planning • Unexpected events that are sudden and devastating

  18. 7.9 Essential Stages of Crisis Planning

  19. Set Stretch Goals for Excellence • Stretch goals are highly ambitious • Clear, compelling, and imaginative • Require innovation • Goals must be seen as achievable • Like Big Hairy Audacious Goal (BHAG) from 1996 article on “Building Your Company’s Vision” • As times move faster and become more turbulent, these are important

  20. Use Performance Dashboards • Dashboards • keep track of key performance metrics • align and track goals • can be applied throughout the company on the factory or sales floor.

  21. 7-10 A Performance Dashboard for Planning

  22. Deploy Intelligence Teams • Intelligence teams • cross-functional group of managers • work together • gain a deep understanding of a specific competitive issue • offer insight and recommendations for planning

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