Professional Documents
Culture Documents
of them in the organisation. The process also measures the employee's actual performance against the set standards. It increases organizational performance by aligning goals and subordinate objectives throughout the organization. The employees get strong input to identifying their objectives, time lines for completion and it includes ongoing trac ing and feedbac in the process to reach objectives.
In M!", the management focus is on the result, not the activity. The tas s are delegated through negotiations and there is no fi#ed roadmap for the implementation. The implementation is done dynamically and to suit the situation.
$ goal is a desired result a person or a system envisions, plans and commits to achieve a personal or organizational desired end%point in some sort of assumed development. Many people endeavor to reach goals within a finite time by setting deadlines.
'onsumer goals& this refers to supplying a product or service that the mar et(consumer wants )roduct goals& this refers to supplying a product outstanding compared to other products perhaps due to the li es of quality, design, reliability and novelty "perational goals& this refers to running the organization in such a way as to ma e the best use of management s ills, technology and resources.
*inds of goals in management +trategic ,oals +trategic goals are goals made to achieve and support the mission and vision of the company. +trategic goals effect and focus on an entire company and not just a department or wor function within the company. +trategic goals include goals relating to innovation, mar et standing, productivity, efficiency in utilizing company resources in the form of wor force and finances, bottom line profit, management development and performance, employee conduct and morale and public and social responsibility. +trategic goals are set by organization leaders and apply to everyone within the organization to wor on concurrently and will often benefit both the employee as well as the organization when goals are completed within the assigned time frame.
"perational ,oals
"perational management goals are goals set to impact the running of an organization, where management s ills, technology and resources can be utilized in the most efficient ways possible. "perational goals are determined at the lower management level within an organization and are specific to certain employees or a department in the company versus the entire company. "perational goals focus on individual employee responsibilities and performance and the position's overall impact within the company. Tactical ,oals Tactical management goals relate to the strategic goals set by the company. Tactical goals are bro en into divisions or department levels and outline the steps necessary for each department within the organization to contribute to the larger strategic goals. Tactical goals are usually short term goals that contribute to the long%term company goal and can be analyzed and measured more easily.
Types of )lans "n the basis of frequency of use STANDING PLANS& Policies, Procedures and Rules& $ )"-I'. is a standing plan that furnishes broad guidelines for ta ing action consistent with reaching organizational objectives. $ )/"'012/0 is a standing plan that outlines a series of related actions that must be ta en to accomplish a particular tas .)rocedures outline more specific actions than policies do. $ /2-0 is a standing plan that designates specific required action. $ rule indicates what an organization member should or should not do and allows no room for interpretation.
SINGLE USE PLANS& Programs & Budgets& $ )/",/$M is a single use plan to carry out a special project within an organization. The )roject itself is not intended to remain in e#istence over the entire life of the organization. /ather, it e#ists to achieve some purpose that if accomplished, will contribute to the organization3s long term success. $ !21,0T is a single user financial plan that covers a specified length of time. It details how funds will be spent on labor, raw materials, capital goods, information systems, mar eting and so on, as well as how the funds will be obtained.
On the basis of Breadth. Strategic Plans Strategic plans are designed with the entire organization in mind and begin with an organization's mission. Top%level managers, such as '0"s or presidents, will design and e#ecute strategic plans to paint a picture of the desired future and long%term goals of the organization. Tactical Plans Tactical plans support strategic plans by translating them into specific plans relevant to a distinct area of the organization. Tactical plans are concerned with the responsibility and functionality of lower%level departments to fulfill their parts of the strategic plan. perational Plans perational plans sit at the bottom of the totem pole4 they are the plans that are made by frontline, or low%level, managers. $ll operational plans are focused on the specific procedures and processes that occur within the lowest levels of the organization. Managers must plan the routine tas s of the department using a high level of detail. "perational plans can be either single%use or ongoing plans. Single!use plans are those plans that are intended to be used only once. They include activities that would not be repeated and often have an e#piration. 'reating a monthly budget and developing a promotional advertisement for the quarter to increase the sales of a certain product are e#amples of how 5ran would utilize single%use planning.
ngoing plans are those plans that are built to withstand the test of time. They are created with the intent to be used several times and undergo changes when necessary. "utlining an employee's performance goals for the year would be considered an ongoing plan that 5ran must develop, assess and update, if necessary. "ngoing plans are typically a polic", procedure or rule. )olicies are general statements, or guidelines, that aid a manager in understanding routine responsibilities of his or her role as a manager. 0#amples of policies include things such as hiring, training, outlining and assessing performance appraisals and disciplining and terminating subordinates. $ procedure details the step%by%step process of carrying out a certain tas , such as assessing, ordering and stoc ing inventory. $ rule provides managers and employees with specific and e#plicit guidelines of behavior that is what they should and should not do as a member of the organization.
"n the basis of time frame -ong range plan, intermediate plan, and short range In general, a short%range plan is a plan for less than a year. It could be a daily plan, wee ly, or monthly plan. $n intermediate%range plan generally loo s one to three years ahead, while a long%range plan involves outlining objectives and activities three or more years in the future. *eep in mind, these are only estimates. -ong%Term In the long term, companies want to solve problems permanently and to reach their overall targets. It e#amines major capital e#penditures such as purchasing equipment and facilities, and implements policies and procedures that shape the company's profile to match top management's ideas.
In fast moving industries such as telecommunications, short%range plans may be three months, intermediate plans three months to a year and half, and long%range plans anything over 67 months. In contrast, in the slower moving electric power utility industry, a short%range plan is anything less than three years, an intermediate plan three to seven years, and a long%range plan as long as 89 years. .ou must be aware of the speed at which the industry is changing. 5ast moving industries have compressed planning cycles.
"n the basis of specificiality 1irectional plan and specific plan +pecific plans& )lans that have clearly defined objectives and leave no room for misinterpretation. 1irectional plans& 5le#ible plans that set out general guidelines +pecific plans have clearly defined objective. They eliminate ambiguity and reduce problems that come from misunderstanding. 5or e#ample a manager who see s to increase her firm3s sales by 6: percent over a given 68 month period might establish specific procedures, budget allocations and schedules of activities to reach that objective. These actions represent specific plans. 1irectional plans on the other hand identify general guidelines. They provide focus but not loc managers into specific objective or specific courses of action. Importance of planning )lanning is the first and most important function of management. It is needed at every level of management. In the absence of planning all the business activities of the organization will become meaningless. The importance of planning has increased all the more in view of the increasing size of organizations and their comple#ities. The following facts show the advantages of planning and its importance for a business organization& ;6< )lanning )rovides 1irection ;8< )lanning /educes /is s of 2ncertainty ;=< )lanning /educes "verlapping and >asteful $ctivities ;?< )lanning )romotes Innovative Ideas ;9< )lanning 5acilitates 1ecision Ma ing ;@< )lanning 0stablishes +tandards for 'ontrolling