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LECTURER NAME: SIR KAMARULZAMAN GROUP: CHINKY WINKY (ACD3A2) DUE DATE: MARCH 2010 GROUP MEMBERS NAME: KETTY SUHAILAH MOIDI (2008386451) NORIZAYU DANAN (2008591783) ROZIAH SUNARNI RAHMAT (2008) SHAHRIDAH SAIDIH (2008511033) SITI AZAM FARHA AZMAIN (2008300461)
The Organizational Planning Process
At the top of the goal hierarchy is the mission – the organization’s reason for existence. The mission describes the organization’s values, aspirations and reason for being. A well-defined mission is the basis for development of all subsequent goals and plans. Without a clear mission, goals and plans may be developed haphazardly and not take the organization in the direction it needs to go.
The formal mission statement is a broadly stated definition of purpose that distinguishes the organization from others of a similar type. A well-designed mission statement can enhance employee motivation and organizational performance. The content of a mission statement often focuses on the market and customers and identifies desired fields of endeavor. Some mission statements describe company characteristics such as corporate values employees.
As the example of this type of mission statement is that of State Farm Insurance: State Farm’s mission is to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. We are people who make it our business to be like a good neighbor; who built a premier company by selling and keeping promises through our marketing partnership; who bring diverse talents and experiences to our work serving the State Farm customer. Our success is built on a foundation of shared values – quality service and relationships, mutual trust, integrity and financial strength. Because of mission statements such as State Farm, employees as well as customers, suppliers and stockholders know the company’s stated purpose and values.
GOALS AND PLANS
There are three goals and three plans in a managerial planning and goal setting. GOALS i. Strategic goals ii. Tactical goals iii. Operational goals PLANS i. Strategic plans ii. Tactical plans iii. Operational plans
The action steps by which an organization intends to attain strategic goals. Sometimes called official goals, broad statements describing where the organization wants to be in the future.
These goals pertain to the organization as a whole rather than to specific divisions or departments.
Tactical goals Goals that define the outcomes that major divisions and departments must achieve for the organization to reach its overall goals.
This goals apply to middle management and describe what major subunits must do for the organization to achieve its overall goals.
The result expected from department, work groups, and individuals.
They are precise and measurable.
Strategic plans Define the action steps by which the company intends to attain strategic goals.
The blueprint that defines the organizational activities and resource allocations.
The purpose is of strategic plans is to turn organizational goals into realities within that time period. Tactical plans Designed to help execute major strategic plans and accomplish a specific part of the company’s strategy.
In business or nonprofit organization, tactical plans define what major departments and organizational subunits will do to implement the organization’s strategic plan.
Might include cross-training employees so they can switch to different jobs as departmental needs change, allowing order takers to transfer to jobs at headquarters during off- peak times to prevent burnout, using regulars order takers train and supervise temporary workers during peak seasons.
Developed at the lowers level of organization to specify actions steps towards achieving operational goals and to support tactical plans.
Department manager’s tools for daily and weekly operation. Specifies plans for department managers, supervisors, and individuals employees. Must be coordinated with the budget, because resources must be allocated for desired activities.
ALIGNING GOALS WITH STRATEGY MAPS
Strategy map is visual representation of a keys drivers of an organization’s success and show how specific goals and plans in each area are linked.
Four key area that contribute to a firm’s long - term success , that’s is
i. Learning and growth ii. Internal processes iii. Customers service
iv. Financial performance
Learning and growth Include promote employee development via ongoing training, enable continuous and knowledge-sharing and cultivate a culture of innovation and high performance.
Internal processes Include relationships with suppliers and partners, improve cost, quality, flexibility of operations and excel at innovative product development and next – generation market opportunities.
Customers service Include build and maintain good customers relationships, be the leader in quality and reliability and provide innovative solution to customer needs.
Financial performance Include increase revenues in existing markets, increase productivity and efficiency and increase revenues in new markets and products.
An operational planning is a subset of strategic work plan. Managers use operational goals to direct and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively. One consideration is how to establish effective goals. The managers use a number of planning approaches, including management by objectives, single-use plans, and standing plans.
Criteria for Effective Goals
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.
Model of the MBO process
MBO Benefits and Problems
1) M ana
Single-Use and Standing Plans
Single-Use 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.
Major types of Single-Use and Standing Plans
Single-Use Plans Program - Plans for attaining a one-time organizational goal.
Major undertaking that may take several years to complete. Large in scope; may be associated with several projects.
Example: a) Building a new headquarters. b) Converting all paper files to digital. Projects – – – Also a set of plans for attaining a one-time goal. Smaller in scope and complexity than a program; shorter in horizon. Often one part of a larger program.
Example: a) Renovating the office. b) Setting up a company intranet.
Standing Plans Policy – – – Broad in scope-general guide to action. Based on organization’s overall goals/strategic plan. Defines boundaries within which to make decisions.
Example: a) Sexual harassment policies. b) Internet and e-mail usage policies. Rule – – – Narrow in scope. Describes how a specific action is to be performed. May apply to specific setting.
Example: No eating rule in areas of company where employees are visible to the public. Procedure - Sometimes called a standard operating procedure. - Defines a precise series of steps to attain certain goals. Example: a) Procedures for issuing refunds. b) Procedures for handling employee grievances.
Traditional Approaches to planning
Corporate planning has been done entirely by ~top executives ~consulting firms ~central planning departments - A group of planning specialist who develop plans or the organizations as a whole and its major divisions and departments and typically report directly to the president or CEO. *planning specialist were hired to gather data and develop detailed strategic plans for the corporation. This planning approach was top down because goals and plans were assigned to major divisions and departments after approval by the president. *Approached worked well in many applications & still popular. *However, formal planning increasingly is being criticized as inappropriate for today environment. *Central planning departments maybe not constantly with changing realities, which may lead people struggling follow the plan that not suitable with environments and customers’ needs. *It also can inhibit employee innovation and learning.
High-performance Approaches to planning
Fresh approach to planning is to involve everyone in the organization in the planning process.
Evaluation to a new approach began with a shift to decentralized planning; managers
work with planning experts develop their own goals and plans.
As the environment become more volatile, top executives saw the benefits of pushing
decentralized planning even further, by having planning experts work directly with managers and employee to develop dynamic plans that meet fast-changing needs.
Guidelines for planning in the new workplace
A reasonable yet highly ambitious, compelling goal that energizes people and inspires excellence
Typically so far beyond the current levels that people have to be innovative to find ways to reach them.
Big hairy audacious goal or BHAG is an extension of the stretch goal. Managers can use these goals to compel employees to think in new ways that can lead to bold, innovative breakthrough.
Use Performance Dashboard
- Companies use this as a way for executive to keep track of key performance metrics such as; sales in relation to targets, number of product on back order…. - Dashboard is evolving into organization-wide systems that help align and track goals across the enterprise. Deploy Intelligence Teams - A cross functional group of managers and employees who work together to gain a deep understanding of a specific competitive issue and offer insight and recommendations for planning. - Top managers might from an intelligence team to identify when and how this might happen and how it might affect the organization. - It also to devise contingency plans and scenarios related to major strategic issues.
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