Organization Planning and Goal Setting [mre GF Planning is the ongoing process of developing the business’ mission and objectives and determining how they will be accomplished. Planning includes both the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a specific goal. Planning is the first tool of the four functions in the management process. The difference between a successful and unsuccessful manager lies within the planning procedure. Planning is the logical thinking through goals and making the decision as to what needs to be accomplished in order to reach the organizations’ objectives. Managers use this process to plan for the future, like a blueprint to foresee problems, decide on the actions to evade difficult issues and to beat the competition. (Bateman, Snell, 2007). Planning is the first step in management and is essential as it facilitates control, valuable in decision making and in the avoidance of business ruin. HPO companies undertake a strategic planning exercise each year — reviewing their missions, goals, and plans to meet environment changes or the expectation of important stakeholders such as community, owners or stakeholders. Some also develop contingency plans for unexpected circumstances and disaster recovery plans. ‘Special attention is given to goal setting, for that is where planning starts. The managers will plan to help the organization achieve the goals set, with special attention paid to crisis management planning. Overview of Goal and Plan Goal: A desired future state that the organization attempts to realize. Plan: A blueprint specifying the resource allocations, schedule, and other actions necessary for attaining goals. Planning: The act of determining the organization's goals and the means for achieving ‘them. (What, When, Where, Who, How ) Legihimea poh a, Gandy fatenate, shen oodPurpose of Goals and Plan Legitimacy Anorganization’s mission describes what the organization stands for and its reason for ‘existence. It symbolizes legitimacy to external such as investors, customers and suppliers. A strong mission also has impact on employment because they can identify with the ovwrall purpose & reason for existence. For example, a Medtronic, a medical products company, ‘employee are inspired by the mission to “ alleviate pain, restoro health and extend life”. Source of motivation and Commitment Help motivate them by reducing uncertainty and clarifying what they should accomplish. Guides to Action {t's provides a sense of direction. They focus attention on specific targets and direct employee efforts toward important outcomes. Rationale for Decisions Managers can leam what the organization is trying to accomplish. They can make decisions to ensure that internal policies, roles, performance, structure, products and expenditures will be made in accordance with desired outcomes. Decisions throughout the organization will be align with the plan. Standard of Performance They also serve as performance criteria and standard of assessment. Goak in Organizations Organizational Mission ‘The organization's reason for existence. The mission describe the organization's values, aspirations, and reason for being. Without clear mission, goals and plan may not take the organization in the direction it needs to g0. Mission Statement: _A broadly state definition of the organization's basic business scope and ‘operations that distinguishes it from similar types of organizations. For example, UTM’ s mission ... To lead in the development of creative human resource and technology in line with the aspirations of the nation. Goals and Plans‘Strategic goals : Broad statements describing where the organization wants to be in the future; pertain ‘to the organization as a whole rather than to specific divisions or departments. Strategic goals are often called official goals. ‘Strategic Plans: The action steps by which an organization 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 the targets. The purpose of strategic plansis to tum organization goals into realities within that time period. ‘Asan example, a small company wanted to improve its market share from 15 % to 20% over the next, three years. This strategic goal was pursued through the following strategic plans; Allocate resource for the development of new competitive product with high growth potential; Improve production methods to achieve higher output at lower costs; Conduct research to develop alternative uses for current products & services. octical Goats: Goals that define the outcomes that major divisions and departments must achieve in ‘order for the organization to reach its overall goats. Tactical Plans: Plans designed to help execute major strategic plans and to accomplish a specific part of ‘the company’s strategy. Tactical plans typically have a shorter time horizon than strategic plan Operational Goals: Specific, measurable result expected from department, works groups, and individuals within the organization. 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. Goals are stated in quantitative term, and- the department plan describes how goals will be achieved. Schedules are an important component of ‘operational planning. Criteria for Effective Goals Specific and measurable Goals should be expressed in quantitative term, such as increasing profits by 2%. Cover Key Result Area Goals cannot be set for every aspect of employee behavior or organizational performance; perhaps up to 4 or 5 for any organizational department or job. KRA are those activities that contribute most to company performance Challenging but realisticWhen goals are unrealistic, they set employees up for failure and lead to decreasing employee morale. Stretch goals are extremely ambitious but realistic goals that challenge employee to meet high standard. Defined Time Period For example, strategic sales goals could be a RM 165 Million target in year three. Linked to Rewards People who attain goals should be reward such as salary increase, promotions, and awards. Planning Type and Performance Management by Objectives(MBO) MBO is a method of management whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. Dur major activities must occur in order for MBO to be successful; Set Goals What are we trying to accomplish? Setting goals involves employees at ell levels and looks beyond day- to-day activities to answer this question. Mutual agreement between employee and supervisor creates the strongest commitment to achieving goals. In the case of teams, all team members may participate in setting goals. Develop Action Plans ‘An action plan defines the course of action needed to achieve the stated goals. Both individuals and department. Review A periodic progress review is important to ensure that action plans are working; whether we are on reet or corrective action is necessary. The action plan can be changed whenever goals are not being met. Appraise Overall Performance Carefully evaluate whether annual goals frave been achieved for both individuals and departments. Success or failure to achieve goals can become part of the performance appraisal system and the designation of salary increase or other rewards.Coro Step 9: Review Progress ‘Appraise Performance ‘Sten 4: Appraise Overall Contingency plan define company responses to specific situations, such as emergencies, setbacks, or unexpected conditions. “identify uncontroltable factors can forecast the worst case scenarios ~develop contingency plan ‘Crisis management Planning A special type of contingency planning is crisis management planning. Planning in the New Workplace Troditionat Approaches to Planning Central Planning department: A group of planning specialists who develop plans for the organization as ‘a whole and its major divisions and departments and typically report directly to the president or CEO. New workplace Approaches to Planning ‘Mangers works with planning experts to develop their goals and plans. -start with a strong mission -set stretch goats -create a culture that encourages learning design new roles for planning staff se temporary task force -Planning still starts and stops at the top