| Term | Definition |
|---|
| Out of the four management functions Planning is considered the most fundamental | Planning is considered the most fundamental. |
| A goal | a desired future state that the organization attempts to realize. |
| Why are goals important | Goals are important because organizations exist for a purpose and goals define and state that purpose. |
| A plan | A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals. |
| What do goals specify | They specify future ends |
| What do plans specify | They specify today's mean. |
| Planning | The act of determining the organization's goals and the means for achieving them. |
| Where do goals start | They start with top managers . The overall planning process begins with a mission statement and strategic goals for the organization as a whole. |
| Mission | The organization's reason for existence. |
| Mission Statement | A broadly stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organizations. The content of a mission statement often focuses on the market and customers and identifies desired fields of endeavor. |
| What can a well designed mission statement do | It can enhance employee motivation and organizational performance |
| What is State Farms Mission | is to help people 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 promies through our marketing partnership; who bring diverse talents and expierence to our work of serving the State Farm customer. our Success is built on foundation of shared values- quality service and relationships, mutual trust, integrity, and financial strength. |
| Stratgic Goals | Broad statements of where the organization wants to be in the future; pertain to the organization as a whole rather than to specific divisions or departments. |
| Strategic Plans | The action steps by which an organization intends to attain strategic goals. It also is the blueprint that defines the organizational activities and resource allocations-in the from of cash, personnel, space, and facilities-required for meeting these targets. |
| Tactical Goals | Goals that define the outcomes that major divisions and departments mush achieve in order for the organization to reach its overall goals. They apply to middle management and describe what major sbuunits must do in order for the organization to achieve its overall goals. |
| Tactical Plans | Plans designed to help execute major strategic plans and to accomplish a specific part of the compan's strategy. Shorter time horizon the strategic plans. It is defined as what majore depratments and organizational subunits will do to implement the organization's strategic plan. |
| Operational Goals | Specific, measurable results expected from departments, work groups, and individuals within the organization. Precise and measurable. |
| Operational Plans | Plans developed at the organization's lower levels that specify action steps toward achieving operational goals and that support tactical planning activities. The operational plan is the department manager's tool for daily and weekly operations. Gaols are stated in quantitative terms, and how will they be achieved. Scheudules are important component. op planning must be coordinated with the budget |
| External and Internal messages( Legitimacy) | - an organization's mission statement describes what the organization stands for and its reason for existence. it symbolizes legitimacy to external audiences such as investors, customer, suppliers, and the local community. |
| EX and Internal messages(source of motivation and commitment) | goals and plans facilitate employee's identification with the organization and help motivate them by reducing uncertainty and clarifying what they should accomplish. ex boeing manufacture design dept. has a goal of moving a plane, once the wins and landing gear are attached , along the assembly line and out the door in only 5 days. |
| ex and internal messages (Resource allocation) | goals help managers decide where they need to allocate resources, such as employees, money , and equipment.ex dupont has a goal of generating 25 % of revenues from renewable resources by 2010. |
| ext and internal messages(guides to action) | goals and plans provide a sense of direction. they focus attention on specific targets and direct employee efforts toward important outcomes. ex mgmt. at guitar center, one of the fastest growing retailers in the united states emphasize sales growth. |
| ext and internal messages (rationale for decisions) | through goal setting and planning, managers learn what the organization is trying to accomplish. they can make decisions to ensure that internal policies, roles, performance, structure, product, and expenditures will be made in accordance with desires outcomes. decisions throughout the organization will be in alignment with the plan. |
| ext and internal messages( standard of performance) | b/c goals define desired outcomes for the organization, they also serve as performance criteria. they provide a standard of assessment. if an organization wishes to grow by 15% and actual growth of 17 % managers will have exceeded their prescribed standard. |
| Alignment of goals | effectively designed organizational goals are aligned into a hierarchy; that is, the achievement of goals at low levels permits the attainment of high-level goals, are called means- ends chain. Operationsal goals lead to the achievement of tactical goals, which , in turn, lead 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 ultimately help the organization fulfill its mission. Strategic goals are traditionally considers the responsibility of top managesment, tactical goals that of middle mgmt. and operational goals that of 1st line managers. |
| Characteristics of effective goal setting | specific and measurable, cover key result areas, challenging but realistic, defined time period, lined to rewards. |
| specific and measurable | when possible, goals should be expressed in quantitative terms, such as increasing profits by 2%, having zero incomplete sales order forms, decreasing scrap by 1 percent, or increasing average teacher effectiveness ratings from 3.5 to 3.7 vague goals have very little motivation power. Important point is that the goals be precisely defined and allow for measurable progress. |
| cover key result areas | goals established based on the ideas of choice and clarity. a few carefully chosen, clear, and direct goals can more powerfully focus organizational attention, energy, and resources. key result areas are those activities that contribute \most to company performance and competitiveness. most companies use a balanced approach to goal setting |
| challenging but realisitic | goals should be challenging but not unreasonably difficult. when goal are unrealisitc, they set employees up for failure and lead to a decrease in employee morale. stretch goal are extremely ambitious but realistic goals that challenge employees to meet high standards. The key to effectiveness is ensuring that goals are set within the existing resource base, not beyond departments' time, equipment, or financial resources. |
| defined time period | goals should specify the time period over which they will be achieved. a time period is a deadline stating the date on which goal attainment will be measured. |
| linked to rewards | the ultimate impact of goals depends on the extent to which salary increases, promotions, and awards are based on goal achievement. |
| Management by objectives(MBO) | is made up of 4 major activities 1. set goals, 2. develop actions plans.3. review progress 4. appraise overall performance. |
| set goals | The most difficult step in MBO. setting goals involves employees at all levels and looks beyond day to day activities to answer the question what are we trying to accomplish? should be concrete and realistic, provide a specific target and time frame, and assign responsibility. may be quantitative or qualitative. Mutual agreement b/w employee and supervisor creates the strongest commitment to achieve goals. |
| develop action plans | defines the course of action needed to achieve the stated goals. action plans are made for both individuals and departments |
| contingency plans | define company responses to be taken in the case of emergencies, setback, or unexpected conditions. |
| scenario building | involves looking at current trends and discontinuities and visualizing future possibilities |
Combine with other sets
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