Planning Process

Topics: Management, Strategic planning, Strategic management Pages: 5 (958 words) Published: August 28, 2013
Chapter six
The overall Planning Process- “well planned” and “well thought out” having good idea of the organization’s overall mission, as well as more specific written goals and carefully configured plan, can be important to an organization’s success. 2 Major component of Planning

1. Goals- a future targets or end result that organization wishes to achieve. 2. Plan- the devised for attempting to reach a goal.
PLANNING- management function that involves setting goals and deciding how best to achieve them. ORGANIZATIONAL MISSION
Mission- organization’s purpose or fundamental reason for existence. Mission Statement- a broad declaration of the basic unique purpose and scope of operation that distinguish the organization’s from other of it’s type.

9 Component of mission statement
1. Customers
2. Product or service.
3. Location.
4. Technology
5. Concern for survival.
6. Philosophy.
7. Self-concept.
8. Concern for public image,
9. Concern for employees.
Benefits of Goal
1. Increase performance
2. Clarify expectations
3. Facilitate the controlling function.
4. Increase motivation
Benefits of Goals
-increase performance
-clarify expectation
-facilitate the controlling function
-increase motivation

Levels of Goals
Strategic Goals- broadly defined targets or future end result set by top management. Also called as Goals
Tactical Goals- targets or future end results usually set by middle management for specific department or unit.
Operational Goals- target or end result set by lower management that address specific measurable outcomes required the lower levels.
Major areas for strategic goals
-Marketing standing
-Innovation
-Human resources
-Financial resources
-Physical resources
-Productivity
-Social responsibility
-Profit requirements

How goals facilitate performance
Goal Content
Challenging- within reasonable limits, challenging, difficult goals lead to higher performance. Goals are accepted, people tend to try harder when faced with a challenge.
Attainable- individuals making maximum use of their skills and abilities, they can’t achieve higher performance levels.
Specific and measurable- goals need to be specific and measurable so that workers clearly understand what is expected and know when the goal has been achieved.
-Quantitative Goals- encompass objective numerical standards that are relatively easy to verify.
-Qualitative Goals- involves subjective judgement about whether or not a goal is reached.
Time Limited- there should be a defined period of time within which a goal must be accomplished.
Relevant- goals are more likely elicit support when they are clearly relevant to the major work of the organization and the particular department or work unit.
Goal Commitment-One’s attachment to, or determination to reach, a goal.g
Supervisory Authority- willing to commit them self to gaol when the goals and reasons for it are explained by a person with supervisory authority, usually one’s boss.
Peer and Group Pressure- can enhance goal commitment when everyone’s efforts are channelled in the same direction.
Public display- evidence suggests that commitment to difficult goals is higher when then commitment is public than its private.
Expectation of Success- individuals tend to become committed when they believe that they have a good chance of performing well on the tasks involved in reached in reaching the goal.
Incentives and Rewards- enhanced by incentives and rewards. Incentives are offered during the goal-setting process, while rewards occur upon goal achievement.
Participation- having participation in the goal-setting process can be an effective means of fostering commitment, helpful in developing plans for implementing goals.

Work Behaviour-
Direction- by channelling attention and action toward activities related to the goals, rather than toward towards other activities....
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