Goal Show
A desired future state that the organization attempts to realize. Plan A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals Planning The act of determining the organization’s goals and the means of achieving them. Goals and plans have become general concepts in our society. A goal is a desired future state that the organization attempts to realize. Goals are important because organizations exist for a ,purpose and goals define and state that purpose. A plan is a blueprint for goal achievement and specifies the necessary resources, allocations, schedules tasks, and other actions. Goals specify future ends; plans specify today’s means. The word planning usually incorporates both ideas; it means determining the organization’s goals and defining the means for achieving them. Exhibit illustrates the levels of goals and plans in an organization. The planning process starts with a formal mission that defines the basic purpose of the organization especially for external audiences. The mission is the basis for the strategic (company) level of goals and plans, which in turn shapes the tactical (divisional ) level and the operational (departments) level. Top managers are typically responsible for establishing strategic goals and plans that reflect a commitment to both organizational efficiency and effectiveness as described. Tactical goals and plans are the responsibility of middle managers, such as the heads of major divisions or functional units. A division manager will formulate tactical plans that focus on the major actions the division must take to fulfill its part in the strategic plan set by top management. Operational plans identify the specific procedures or processes needed at lower levels of the organizations such as individual departments and employees. Front line managers and supervisors develop operational plans that focus on specific tasks and processes and that help to meet tactical and strategic goals. Planning at each level supports the other levels. Levels of Goals / Plans and their Importance Mission statements >> External Message: Legitimacy for investors, customers, suppliers community. Internal message: Legitimacy motivation, resources allocation. Guides rationale standards Strategic Goals/ Plans Senior management (Organizational as whole) >> Tactical Goals / Plans Middle Management) Major divisions functions) >> Operational Goals / Plans / Lower Management (Departments, Individuals). Purposes of goal and plans: The complexity of today’s environment and uncertainty about the future overwhelm many managers and cause them to focus on operational issues and short term results rather than long term goals and plans. However planning generally positively affects a company’s performance. In addition to improving financial and operational performance developing explicit goals and plans at each level illustrated in Exhibit is important because of the external and internal messages they send. These messages go to both external and internal audiences and provide important benefits for the organization. Legitimacy; An organization’s mission describes what the organization stands for and its reason for existence . It symbolizes legitimacy to external audiences such
as investors, customers and suppliers. The mission helps them and the local community to look on the company in a favorable light and hence, accept its existence. A strong mission also has an impact on employees enabling them to become committed to the organization because they can identify with its overall purpose and reason for existence. One of the traits often cited by employees in Fortune magazine’s list of the 10 best Companies to Work For in America is a sense of purpose and meaning . For
example at Medtronic, a medical products company employees are inspired by the mission to alleviate pain, restore health and extend life. Goals and plans have become general concepts in our society. A goal is a desired future state that the organization attempts to realize.2 Goals are important because organizations exist for a purpose and goals define and state that purpose. A plan is a blueprint for goal achievement and specifies the
necessary resource allocations, schedules, tasks, and other actions. Goals specify future ends; plans specify today’s means. The word planning usually incorporates both ideas; it means determining the organization’s goals and defining the means for achieving them.3 Nội dung chính Exhibit 5.1 illustrates the levels of goals and plans in an organization. The planning process starts with a formal mission that defines the basic purpose of the organization, especially for external audiences. The mission is the basis for the strategic (company) level of goals and plans, which in turn shapes the tactical (divisional) level and the operational (departmental) level.4 Top managers typically are responsible for establishing strategic goals and plans that reflect a commitment to both organizational efficiency and effectiveness, as described in Chapter 1. Tactical goals and plans are the responsibility of middle managers, such as the heads of major divisions or functional units. A division manager formulates tactical plans that focus on the major actions the division must take to fulfill its part in the strategic plan set by top manage- ment. Operational plans identify the specific procedures or processes needed at lower levels of the organization, such as individual departments and employees. Front-line managers and supervisors develop operational plans that focus on specific tasks and processes and that help to meet tactical and strategic goals. Planning at each level supports the other levels. 2. Purposes of Goals and PlansThe complexity of today’s environment and uncertainty about the future overwhelm many managers and cause them to focus on operational issues and short-term results rather than long-term goals and plans. Planning, however, generally positively affects a company’s performance.5 In addition to improving financial and operational performance, developing explicit goals and plans at each level illustrated in Exhibit 5.1 is important because of the external and internal messages they send. These messages go to both external and internal audiences and provide important benefits for the organization:6
Companies have to guard their reputations, as evidenced by recent criticism of Wal-Mart. After years of ignoring critics, who targeted the company for everything from its labor practices to its environmental impact to its tactics with suppliers, managers launched a massive public relations campaign to try to mend relationships. As society’s expectations of Wal-Mart change, the company’s mission of bringing everyday low prices to average people is being fine-tuned to emphasize a strong commitment to doing business in an ethical and socially responsible way.7 A strong mission also has an impact on employees, enabling them to become commit- ted to the organization because they identify with its overall purpose and reason for existence. One of the traits often cited by employees in Fortune magazine’s list of the “100 Best Companies to Work For” is a sense of purpose and meaning.8 For example, at mutual fund company Vanguard, helping people pay for a happy retirement is a guiding mission for employees.
Managers are revising processes and procedures, mechanics are coming up with innovative machine adjustments, and assembly-line workers are trying new techniques to meet this ambitious goal.9 Lack of a clear goal can damage employees’ motivation and commitment because people don’t understand what they’re working toward. Whereas a goal provides the “why” of an organization or subunit’s existence, a plan tells the “how.” A plan lets employees know what actions to undertake to achieve the goal.
As another example, following the new goals of fighting domestic terrorism, the Fed- eral Bureau of Investigation (FBI) pulled more than 600 agents off their regular beats and reassigned them to terrorist-related cases. The FBI also is allocating resources to rebuild an archaic computer network, open foreign offices, and form terrorism task forces.10
The overall planning process prevents managers from thinking merely in terms of day-to- day activities. When organizations drift away from goals and plans, they typically get into trouble. 3. Goals in OrganizationsSetting goals starts with top managers. The overall planning process begins with a mission statement and strategic goals for the organization as a whole. 3.1. ORGANIZATIONAL MISSIONAt the top of the goal hierarchy is the mission—the organization’s reason for existence. The mission describes the organization’s values, aspirations, and reason for being. A well-defined mission is the basis for development of all subsequent goals and plans. Without a clear mission, goals and plans may be developed haphazardly and not take the organization in the direction it should be going. The formal mission statement is a broadly stated definition of purpose that distin-guishes the organization from others of a similar type. A well-designed mission statement can enhance employee motivation and organizational performance.12 The content of a mis- sion statement often focuses on the market and customers and identifies desired fields of endeavor. Some mission statements describe company characteristics such as corporate values, product quality, location of facilities, and attitude toward employees. Mission state- ments often reveal the company’s philosophy as well as purpose. An example is the mission statement for Bristol-Myers Squibb Company, presented in Exhibit 5.2. Such short, straightforward mission statements describe basic business activities and purposes, as well as the values that guide the company. Another example of this type of mission statement is that of State Farm Insurance. State Farm’s mission is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams. We are people who make it our business to be like a good neighbor; who built a premier company by selling and keeping promises through our marketing partnership; who bring diverse talents and experiences to our work of serving the State Farm customer. Our success is built on a foundation of shared values—quality service and relationships, mutual trust, integrity, and financial strength.13 Mission statements such as those of Bristol-Myers Squibb and State Farm let employees, as well as customers, suppliers, and stockholders, know the company’s stated purpose and values. 3.2. GOALS AND PLANSBroad statements describing where the organization wants to be in the future are called strategic goals. They pertain to the organization as a whole rather than to specific divi- sions or departments. Strategic goals often are called official goals, because they are the stated intentions of what the organization wants to achieve. For example, a strategic goal for the Wm. Wrigley Jr. Co., which for more than 100 years made only gum, now is to become a major player in the broader candy market.14 Strategic plans define the action steps by which the company intends to attain strategic goals. The strategic plan is the blueprint that defines the organizational activities and resource allocations—in the form of cash, personnel, space, and facilities—required for meeting these targets. Strategic plan-ning tends to be long-term and may define organizational action steps from 2 to 5 years in the future. The purpose of strategic plans is to turn organizational goals into realities within that time period. Elements of the strategic plan at Wrigley, for example, included acquiring candy brands from food companies such as Kraft and invest- ing in a global innovation center. As another example, consider the strategic goals and plans at Nintendo in the Benchmarking Box below. After strategic goals are formulated, the next step is to define tactical goals, the results that major divisions and departments within the organization intend to achieve. These goals apply to middle management and describe what major subunits must do for the organi- zation to achieve its overall goals. Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the company’s strategy.15 Tactical plans typically have a shorter time horizon than strategic plans—covering the next year or so. The word tactical originally comes from the military. In a business or nonprofit organiza- tion, tactical plans define what major departments and organizational subunits will do to implement the organization’s strategic plan. For example, the overall strategic plan of a large florist might involve becoming the Number 1 telephone and Internet-based purveyor of flowers, which requires high- volume sales during peak seasons such as Valentine’s Day and Mother’s Day. Human resource managers will develop tactical plans to ensure that the company has the dedicated order takers and customer service representatives it needs during these critical periods. Tactical plans might include cross-training employees so they can switch to different jobs as departmental needs change, allowing order takers to transfer to jobs at headquarters during off-peak times to prevent burnout, and using regular order takers to train and supervise temporary workers during peak seasons.16 These actions help top managers implement their overall strategic plan. Normally, it is the middle manager’s job to take the broad strategic plan and identify specific tactical plans. The results expected from departments, work groups, and individuals are the opera-tional goals. They are precise and measurable. Examples of operational goals are: “Pro- cess 150 sales applications each week”; “Achieve 90 percent of deliveries on time”; “Reduce overtime by 10 percent next month”; “Develop two new online courses in accounting.” An example of an operational goal at the Internal Revenue Service (IRS) is to “give accurate responses to 85 percent of taxpayer questions.”17 Operational plans are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans. The opera- tional plan is the department manager’s tool for daily and weekly operations. Goals are stated in quantitative terms, and the department plan describes how goals will be achieved. Operational planning specifies plans for department managers, supervisors, and individual employees. Schedules are an important component of operational planning. Schedules define precise time frames for the completion of each operational goal required to meet the orga- nization’s tactical and strategic goals. Operational planning also must be coordinated with the budget, because resources must be allocated for desired activities. For example, Apogee Enterprises, a window and glass fabricator with 150 small divisions, is rigorous in opera- tional planning and budgeting. Committees are set up to review and challenge budgets, profit plans, and proposed expenditures. Assigning the dollars makes the operational plan work for everything from hiring new salespeople to increasing travel expenses. 3.3. ALIGNMENT OF GOALSEffectively designed organizational goals are aligned into a hierarchy in which the achieve- ment of goals at low levels permits the attainment of high-level goals, also called a means- ends chain. Achievement of operational goals leads to the achievement of tactical goals, which in turn leads to the attainment of strategic goals. Organizational performance is an outcome of how well these interdependent elements are aligned, so that individuals, teams, departments, and so forth are working in concert to attain specific goals that ultimately help the organization fulfill its mission.18 Traditionally, strategic goals are considered the responsibility of top management, tactical goals that of middle management, and opera- tional goals that of first-line supervisors and workers. Today, some companies are pushing greater involvement of all employees in goal setting and planning at each level. Microsoft, facing greater competition and new threats from the shifting technological and economic environment, developed a goal-setting process that emphasizes individual commitments and alignment of goals. An example of a goal hierarchy is illustrated in Exhibit 5.3. Note how the strategic goal of “excellent service to customers” translates into “Open one new sales office” and “Respond to customer inquiries within two hours” at lower management levels. 4. Criteria for Effective GoalsTo ensure goal-setting benefits for the organization, certain characteristics and guidelines should be adopted. The characteristics of both goals and the goal-setting process are listed in Exhibit 5.4. These characteristics pertain to organizational goals at the strategic, tactical, and operational levels:
Stretch goals are extremely ambitious but realistic goals that challenge employees to meet high standards. An example comes from 3M, where top managers set a goal that 30 percent of sales must come from products introduced during the past 4 years (the old standard was 25 percent). Setting ambitious goals helps to keep 3M churning out inno- vative new products—more than 500 in one recent year alone—and has entrenched the company as a leader in some of today’s most dynamic markets.24 The key to attaining ef- fective stretch goals is to ensure that goals are set within the existing resource base, not beyond departments’ time, equipment, or financial resources.
Source: Daft Richard L., Marcic Dorothy (2009), Understanding Management, South-Western College Pub; 8th edition. LoginWhich of these types of goals represent the broad statements of where the organization wants to be in the future?Vision. A vision statement identifies where the organization wants or intends to be in future or where it should be to best meet the needs of the stakeholders. It describes dreams and aspirations for future. What are the types of planning involved in the strategic management process?The 4 Types of Plans. Operational Planning. “Operational plans are about how things need to happen,” motivational leadership speaker Mack Story said at LinkedIn. ... . Strategic Planning. “Strategic plans are all about why things need to happen,” Story said. ... . Tactical Planning. ... . Contingency Planning.. Is primarily responsible for strategic goals plans?The top management is primarily concerned with the strategic goals and plans of an organization. They are specifically responsible for strategic planning which is a process of identifying the organization's strategy and making decisions with respect to setting of objectives and proper allocation of resources. Which of the following is a visual representation of the key drivers of an organization's success?strategy map a visual representation of the key drivers of an organization's success that shows how specific outcomes in each area are linked. What is the basis for the strategic level of goals and plans?The mission is the basis for the strategic (company) level of goals and plans, which in turn shapes the tactical (divisional ) level and the operational (departments) level.
Is primarily responsible for strategic goals plans?The top management is primarily concerned with the strategic goals and plans of an organization. They are specifically responsible for strategic planning which is a process of identifying the organization's strategy and making decisions with respect to setting of objectives and proper allocation of resources.
What has primarily responsibility in an organization for strategic goals?Top managers are typically responsible for establishing strategic goals and plans that reflect a commitment to both organizational efficiency and effectiveness. Tactical goals and plans are the responsibility of middle managers- heads of major divisions or functional units.
Is the act of determining the organization's goals and defining the means for achieving them?Planning is the act of determining the organization goals and the means for achieving them.
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