MANAGERIAL PLANNING &

GOAL SETTING
Chapter 7
PLANNING IN A TURBULENT ENVIRONMENT
Building Scenarios
-Scenario building involves looking at current trends and discontinuities
and visualizing future possibilities. Rather than looking only at history and thinking about
what has been, managers think about what could be.
Crisis scenario
-Reduces the incidence of trouble by prevention, preparation and
containment.


THREE TYPES OF CRISIS SCENARIO
Prevention
-Build relationships
-Detect signals from environment
Preparation
-Designate crisis management team and spokesperson
-Create detailed crisis management plan
-Set up effective communication system
Containment
-Rapid response: Activate the crisis management plan
-Get the awful truth out
-Meet safety and emotional needs
-Return to business
PLANNING FOR HIGH PERFORMANCE
-The purpose of planning and goal setting is to help the organization achieve high performance.
Traditional Approaches to planning
-Traditionally, corporate planning has been done entirely by top executives, by
consulting firms , or, most commonly, by central planning departments (CPD.)
High-Performance Approaches to Planning
-A new approach to planning is to involve everyone in the organization, and sometimes
outside stakeholders as well, in the planning process. The evolution to a new approach began with
a shift to decentralized planning. This approach enables managers throughout the company to
come up with their own creative solution to problems and become more committed to following
through on their plans.
GUIDELINES FOR PLANNING IN THE NEW
WORKPLACE
Start with a strong mission and vision
-During times of turbulence and uncertainty, a powerful sense of purpose (mission)
and direction for the future (vision) become even more important.
Set stretch goals for excellence
-Stretch goals are highly ambitious goals that are so clear, compelling, and
imaginative that they fire up employees and engender excellence. Managers can use stretch goals
to compel employees to think in new ways that can lead to bold, innovative breakthroughs.
EMBRACE EVENT-DRIVEN PLANNING
Calendar-Driven Planning
Is based on time
Produces a document
Is declared
Focuses on goals
Creates obstacles to change once set
Creates strategy implementers
Event-Driven Planning
Is based on events-small and large
Produces a sequential process
Is evolutionary and interactive
Focuses on process
Allows for continuous change
Creates organization wide strategists

USE PERFORMANCE DASHBOARDS
People need a way to see how plans are progressing and gauge their progress toward
achieving goals. Companies began using business performance dashboards as a way
for executives to keep track of key performance metrics, such as sales in relation to
targets, number of products on back order , or percentage of customer service calls
resolved within specified time periods.

ORGANIZE TEMPORARY TASK FORCES
A planning task force is a temporary group of managers and employees who takes
responsibility for developing a strategic plan. The task force often includes outside
stakeholders as well, such as customers, suppliers, strategic partners, investors, or even
members of the general community.
PLANNING STILL STARTS AND STOPS AT
THE TOP
Even though planning is decentralized, top managers must show support and
commitment to the planning process. Top managers also accept responsibility when
planning and goal setting are ineffective rather than blaming the failure on lower-level
managers or employees.

MANAGERS CHALLENGE
In todays uncertain environment managers face growing uncertainty, turbulence and
they dont know how to cope with all economic, social and political turmoil.
TOPICS IN CHAPTER 7
Process of planning
How managers develop effective plans.
Goal setting
Types of plans
New approaches to planning
PROCESS OF PLANNING
Before you make plans, you need a goal.
A goal is a desired future state that the organization attempts to realize.
A plan is a blueprint specifying the resource allocations, schedules and other actions
necessary for attaining goals.
PROCESS OF PLANNING
Planning is the act of determining the organizational goals and the means of achieving
them.
- the most fundamental management function.
LEVEL OF GOALS AND PLANS AND RANK OF
IMPORTANCE
PURPOSE OF GOALS AND PLANS
Legitimacy
is the organizational mission.
This involves what the organization stands for; its reason of existence. A
mission statement enables employees to become committed to the
organization.
PURPOSE OF GOALS AND PLANS
Source of motivation/ commitment
motivates employee by reducing or completely removing uncertainty by
clarifying what they should accomplish.
Whereas a goal provides the why of an organization the plan tells how.
It tells of the actions needed to achieve the goal.
PURPOSE OF GOALS AND PLANS
Resource allocations
goals help managers decide where they need to distribute resources such as
money, employees and equipment.
Guides to action
provides a sense of direction.
It focuses on specific area and direct employee effort toward important
outcomes.

PURPOSE OF PLANS AND GOALS
Standard of performance
goals define desired outcomes for an organization.
They serve as performance criteria and assessment standard.
PURPOSE OF PLANS AND GOALS
Rationale for decisions
through goal setting and planning, managers learn what the organization
is trying to accomplish.
they make decisions for internal policies roles, performance, structure,
products and expenditures in accordance for desired outcomes.
ORGANIZATIONAL MISSION
Mission
- reason for the existence of organization.
Mission statement
- broadly states the basic scope of the business that differentiates it from similar types.
- may include market and customers
-some may describe company characteristics such as value, product, quality, location of
facilities and attitude towards employees.
SAMPLE MISSION STATEMENT

STRATEGIC GOALS AND PLANS
strategic goal
-Where the organization wants to be in the future.
-Pertain to the organization as a whole.
Strategic plans
-action steps used to attain strategic goals.
-blueprints for resource allocations
-tends to be long term
TACTICAL GOALS AND PLANS
Tactical goal
-define outcomes that major departments or divisions must achieve in
order to meet organizational goals.
Tactical plans
-Designed to help execute major strategic plans and to accomplish
specific part of company strategy.

OPERATIONAL GOALS AND PLANS
Operational goal
-specific measurable results expected from department, workgroup and
individuals within an organization.
Operational plans
-Developed at organizations lower levels that specify action steps toward
achieving operational goals and support tactical planning.
GOAL ATTAINMENT
Means- end chain
Attainment of goals at lower level permits the attainment
of high level goal.
Traditional organizational responsibility
Strategic goals- top managers
Tactical goals- middle managers
Operational goals- first line management and workers
CHARACTERISTICS OF EFFECTIVE
GOAL SETTINGS
Specific and measurable
Cover key result areas
Challenging but realistic
Define time period
Linked to rewards
PLANNING TYPES
Management by objectives
Single-use Plans
Standing Plans
Contingency Plans

MANAGEMENT BY
OBJECTIVES
Method whereby managers and employees define goals for every project,
person and management and use them to monitor performance.
Includes four major activities and they are setting goals, developing action
plans, reviewing progress and appraising overall performance.
This application must fit the needs of each company.
Managers believe that they are better oriented toward goal achievement.
Also has benefits and problems.
CONT
SINGLE-USE PLANS
Develop to achieve a set of goals that should not be used in the future.
Typically include both programs and projects


Program Project
Take so many years to do
something.
Converting all paper files
to digital.
Something that should be
able to be done.
Renovating the office

STANDING PLANS
FOR TASKS PERFORMED
REPEATEDLY
Three types
Policy is a general guide to action and boundaries within
which to make decisions. (sexual harassment policy)
Rule describes how a specific action is to be performed. ( NO
eating or drinking rule while using computers)
Procedure involves a series of steps to reach goals. (
Procedure issuing refunds)

CONTINGENCY PLAN
THE RESPONSE TO A SITUATION-
UNEXPECTED CONDITIONS
Managers identify important factors in the environment these
includes economic downturns, declining markets, increase the
cost of supplies, new technological developments or safety
accidents.
This happens then they forecast a range of alternative
responses that is suitable.