Chapter

MMPRINCIPLESANDDYNAMICSOF MANAGEMENT

GROUP3

Deo Ferdie Jo Miguel

Learning Objective
Define goals and plans and explain the relationship

between them.
Explain the concept of organizational mission and how it

influences goal setting and planning.

Describe the types of goals an organization should have and

why they resemble a hierarchy.

Define the characteristics of effective goals. Describe the four essential steps in the MBO process. Explain the difference between single-use plans and standing

plans.
Describe and explain the importance of the three stages of

crisis management planning.

Summarize the guidelines for high-performance planning in a

fast-changing environment.

DEFINEGOAL ANDPLANS
CONCEPTOF ORGANIZATIONAL

Goal 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 for achieving them
Hierarchy of Goals for an Organization
Mission Statement Strategic Goals/ Plans Tactical Goals/ Plans Sr. ManagementOrganization Middle ManagementDivision External Message Internal Message

TYPESOF
GOALS

CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

Internal Message

Operational Goals/ Lower Plans Management Departments

Internal Message

DEFINEGOAL ANDPLANS
CONCEPTOF ORGANIZATIONAL

Level of Goals and Plans

Mission Stateme nt External Message Legitimacy for investors, Customers, suppliers, community

TYPESOF
GOALS

CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

Strategic Goals/ Plan

Tactical Goals/Plans

SeniorManagement (Organizationasa Internal Message whole) Legitimacy, motivation, resource allocation, guides, rationale, standards Middle Management (Majordivisions, functions)

OperationalGoals/ Plan

Lower Management (Departments, Individuals)

DEFINEGOAL ANDPLANS
CONCEPTOF ORGANIZATIONAL

TYPESOF
GOALS

CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

External and Internal messages provide the Organization with: 1. Legitimacy describes what the organization stands for and its reason for existence 2. Source of motivations and commitment lets the employees know what the actions to undertake to achieve the goal 3. Resource allocations help managers to decide where they need to allocate resources such as employees, money and equipment 4. Guides to action provides a sense of direction 5. Rationale for decisions managers learn what the organization is trying to accomplish 6. Standard of performance provide a standard of assessment and performance criteria
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.

Mission the organization's reason for existence CONCEPTOF a well-defined mission is the basis for ORGANIZATIONAL development of all subsequent goals and plans
TYPESOF
GOALS

DEFINEGOAL ANDPLANS

CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

Mission Statement a broadly concept of organizational stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organization a well-designed statement can enhance employee motivation and organizational performance they reveal the company's philosophy as well as purpose

DEFINEGOAL ANDPLANS

CONCEPTOF ORGANIZATIONAL
TYPESOF
GOALS

The Bristol-Myers Squibb Pledge Our companys mission is to extend and enhance human life by providing the highest- quality pharmaceutical and related health care products We pledge to our patients and customers, to our employees and partners, to our shareholders and neighbors, and to the world we serve to act on our belief that the priceless ingredient of every product is the honor and integrity of its maker.

CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

DEFINEGOAL ANDPLANS

CONCEPTOF ORGANIZATIONAL
TYPESOF
GOALS

CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL

Step 1:Strategic 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 Step 2:Strategic Plans - the action steps by which an organization intends to attain strategic goals Step 3:Tactical Goals - goals that define the outcomes the major divisions and departments must achieve in order for the organization to reach its overall goals. Step 4:Tactical Plans- designed to help execute major strategic plans and to accomplish a specific part of the company's strategy

TYPESOF GOALS
CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL

Step 5:Operational Goals - specific measurable results expected from departments, work groups, and individuals within the organization Step 6:Operational Plans - developed at the organization's lower levels that specify action steps toward achieving operational goals and that support tactical planning activities

TYPESOF

GOALS
CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

Effectively designed goals are aligned into a hierarchy; the achievement of low level goals permits the attainment of high -level goalsmeans-ends chain.

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS

Specific and Measurable

when possible, goals should be expressed in

quantitative terms
Cover key results areas
Goals must be based on the idea of choice

and clarity
Challenging but realistic
Goals should be challenging but not

CHARACTERISTICS OFEFFECTIVE GOALS

STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

unreasonably difficult
Defined time period
Goals should specify the time period over

which they will be achieved.

Linked to rewards
The ultimate impact of goals depends on the

extent to which salary increases, promotions, and awards are based on goal achievement. Rewards give meaning and significance to goals and help commit employees to achieving goals.

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS

Management by Objectives (MBO)

A method of management whereby managers

and employees define goals for every department, project, and person and use them to monitor subsequent performance.
1. Set goals - what are we trying to accomplish;

STEPSINTHEMBO PROCESS
DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

the goal should be concrete and realistic, provide a specific target and time frame, and assign responsibility
2. Develop Action Plans - defines the course of

action needed to achieve the stated goals

3. Review Progress - a periodic progress review to

ensure that action plans are working

4. Appraise overall Performance - evaluate

whether annual goals have been achieved for both individuals and department.

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS

MBO Benefits and Problems

Benets 1.Managerandemployee eortsarefocusedon activitiesthatwillleadto goalattainment. 2.Performancecanbe improvedatallcompany levels 3.Employeesaremotivated. Problems 1.Constantchangeprevents MBOfromtakinghold.

STEPSINTHEMBO PROCESS
DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

2.Anenvironmentofpoor employeremployeerelations reducesMBOeectiveness. 3.Mechanisticorganizations andvaluesthatdiscourage participationcanharmthe MBOprocess. 4.Toomuchpaperworksaps MBOenergy.

4.Departmentaland individualgoalsarealigned withcompanygoals.

DEFINEGOAL GOALAND ANDPLANS

PLANS CONCEPTOF ORGANIZATIONAL ORGANIZATIONAL TYPESOF GOALS GOALS CHARACTERISTICS OFEFFECTIVE STEPSINTHEMBO GOALS STEPSINTHEMBO DIFFERENCEBETWEEN PROCESS
PROCESS CHARACTERISTICSOF EFFECTIVEGOALS TYPESOF CONCEPTOF

Single Plans plans that are developed to achieve a set of goals that are unlikely to be repeated in the future Standing Plans ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization

SINGLEUSEPLANS ANDSTANDINGPLANS DIFFERENCE

STAGESOFCRISIS BETWEENSINGLE MANAGEMENTPLANNING USEPLANSAND GUIDELINESFORHIGH STANDINGPLANS PERFORMANCEPLAN

CASESAMPLE
CASESAMPLE

DEFINEGOAL GOALAND ANDPLANS

Major Types of Single Use and Standing Plan

SingleUsePlan Program Plans for attaining a one timeorganizationalgoal Major undertaking that may t a k e s e v e r a l y e a r s t o complete L arge in scope; may be associated with several projects StandingPlan Policy Broadinscopegeneral guidetoaction Basedonorganizations overallgoals/strategicplan Denesboundarieswithin whichtomakedecision

PLANS CONCEPTOF ORGANIZATIONAL ORGANIZATIONAL

TYPESOF TYPESOF GOALS GOALS CHARACTERISTICSOF EFFECTIVEGOALS CHARACTERISTICS CONCEPTOF

BETWEENSINGLE STAGESOFCRISIS USEPLANSAND MANAGEMENTPLANNING STANDINGPLANS GUIDELINESFORHIGH

PERFORMANCEPLAN CASESAMPLE CASESAMPLE

SINGLEUSEPLANS DIFFERENCE ANDSTANDINGPLANS

PROCESS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN

OFEFFECTIVE GOALS STEPSINTHEMBO

Role Narrowinscope Project Describeshowaspecic Also a set of plans for actionistobeperformed attainingaonetimegoal S m a l l e r i n s c o p e a n d Procedure complexity than a program, Sometimescalledastandard shorterinhorizon operatingprocedure Often one part of a larger Denesapreciseseriesof program stepstoattaincertaingoals

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS

Prevention - through relationship building and being able to detect signals from the environment, the aim is to prevent crisis from happening; also important to be able to respond more effectively to unavoidable crises Preparation - the stage is composed of:
1. Designation of crisis management team and

spokesperson
2. Creation of a detailed crisis management plan 3. Setting up of an effective communications

system Containment - if crises does hit, rapid response is crucial- implementation and practice of preparations made and the crisis management plan

STAGESOFCRISIS MANAGEMENT PLANNING

GUIDELINESFORHIGH PERFORMANCEPLAN CASESAMPLE

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENTPLANNING

Decentralized planning - managers work with

planning experts to develop their own goals and plans.

Planning experts work with managers in major

divisions or departments do develop their own goals and plans.

Strong Mission and Vision - during times of

turbulence or uncertainty, a powerful sense of purpose (mission) and direction for the future (vision) will guide employee thinking and behavior to coordinate the resources of the company in the right direction
Set Stretch Goals for Excellence- ambitious goals

GUIDELINESFORHIGH PERFORMANCEPLAN
CASESAMPLE

of improvement, that are still realistic and achievable, to motivate employees to think out of the box and increase their performance

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENT PLANNING

Embrace Event-Driven Planning - long range

strategic planning is supplemented with 'right now' event-driven planning, which responds to the current reality of what the environment and the marketplace demands.
Use Performance Dashboards- a tool that

measures and gauges the progress towards achieving the set goals
Organize Temporary Task Forces- a temporary

group of managers and employees who take responsibility for developing a strategic plan
Planning Still Starts and Stops at the Top- top

GUIDELINESFOR HIGHPERFORMANCE PLAN

CASESAMPLE

managers crease a mission and vision worthy of employees' best efforts and that provides a framework for planning and goal setting; these managers must show support and commitment to the planning process

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENT PLANNING GUIDELINESFORHIGH PERFORMANCEPLAN

Chapter

GROUP CASE

GROUPCASE

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENT PLANNING GUIDELINESFORHIGH PERFORMANCEPLAN

Note:Theentiretextofthecaseisfoundonpages 233234ofthetextbook: Question: What are the causes of the confusion confronting Keith Houck? Is H.I.D. ready to formulate a strategic plan? Why or why not? Answer: The cause of the confusion is that although everyone knows the end goal (mission), no one knew 'how' to achieve this goal. The company should be ready to formulate the strategic goals first, before the strategic plan. Top management should first be able to formulate measurable goals that can be targeted by the organization.

GROUPCASE

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENT PLANNING GUIDELINESFORHIGH PERFORMANCEPLAN

Question: If you were Keith Houck, what questions would you ask the managers? What steps would recommend in your effort to help H.I.D. successfully formulate strategic goals and plans? Answer: He started of in the right foot by going through the vision of each of the managers, what is missing is how all these expectations contribute to the overall goal of the organization... if there is one. My recommendation is for management to set targets and goals for the organization as a whole followed by how each major division will contribute to the achievement of the set goal. Keeping in mind that the goals should be specific and measurable, that cover key results areas, that is challenging but realistic, that there are defined time period and that they are linked to rewards.

GROUPCASE

DEFINEGOAL ANDPLANS CONCEPTOF ORGANIZATIONAL TYPESOF GOALS CHARACTERISTICSOF EFFECTIVEGOALS STEPSINTHEMBO PROCESS DIFFERENCEBETWEEN SINGLEUSEPLANSAND STANDINGPLANS STAGESOFCRISIS MANAGEMENT PLANNING GUIDELINESFORHIGH PERFORMANCEPLAN

Question: If you were Bill Collins, what might you have done differently during your tenure as H.I.D. president? Answer: I would have set the direction in which the organization will focus on. All existing organizations or companies will have goals of profit, to be number one, to exceed customer expectations... its already a given. As the head, I would have to focus on key areas that I believe will give the best return on resources, will give the biggest impact. Once that is determined, I would have made sure that the goals are measurable and specific so we can determine our progress and achievement. All the goals will then be discussed by the heads so we can plan on the next steps to be taken.

GROUPCASE

GROUP3

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