CHAPTER 7: MANAGERIAL PLANNING AND GOAL

SETTING

*1) What is the definition of goal?

A goal is a desired future state that the organization attempts to realize.
Goals specify future ends. Goals should be aligned using a strategy map
*2) What is the definition of plan?
A plan is a blueprint for goal achievement and specifies the necessary
resource allocations, schedules, tasks, and other actions. Plans specify
today’s means
*3) How many levels of goals and plans?
There are 3 levels:
- Strategic goals/plans:
+ are the responsibilities of top managers
+ reflect a commitment to both organizational efficiency and
effectiveness
+ affect the whole organization
+ long-term (3-5 years)
- Tactical goals/plans:
+ are the responsibilities of middle managers
+ affect major divisions or functional units or departments
+ medium-term (1-3 years)
- Operational goals/plans:
+ are the responsibilities of first-line managers
+ affect employees and staffs
+ short-term (<1 year, daily, monthly, quarterly)
*4) What are the differences between mission and vision?
- Mission:
+ present
+ answer 3 questions:
* who are we?
* about our products?
* our commitment to the customers, the society
+ reason for existence
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 - Vision:
+ future
+ company in the future
5) The organizational planning process
There are 5 steps:
1. Develop the plan
- define vison, mission
- set goals
2. Translate the plan
- define tactical plans and objectives
- develop strategy map
- define contingency plans and scenarios
- identify intelligence teams
3. Plan operations
- define operational goals and plans
- select measures and targets
- set stretch goals
- crisis planning
4. Execute the plan
Use:
- management by objectives
- performance dashboards
- single-use plans
- decentralized responsibility
5. Monitor and learn
- hold planning reviews
- hold operational reviews
*6) What are the planning approaches that managers use?
- Management-by-Objectives (MBO)
- Single-use plans
- Standing plans
*7) What are the characteristics of effective goal setting?
- are specific and measurable
- have a defined time period
- cover key result areas
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 - are challeging but realistic
- are linked to rewards
*8) What is MBO?
- defined in 1954 by Peter Drucker
- method for defining goals and monitoring performance
- 4 major activities make MBO successful:
1. Set goals
+ Corporate strategic goals
+ Departmental goals
+ Individual goals
2. Develop action plans
+ An action plan defines the course of action needed to achieve the
stated goals. Action plans are made for both individuals and departments.
3. Review progress
+ Review progress
+ Take corrective action (if there is something wrong, go back to step
2)
4. Apprise overall performance
+ Evaluate whether annual goals have been achieved for both
individuals and departments.
9) What are the MBO benefits?
- Focuses manager and employee efforts on activities that will lead to
goal attainment
- Can improve performance at all company levels
- Improves employee motivation
- Aligns individual and departmental goals with company goals
10) What is the problem using MBO?
Likely to create unethical cases
*11) What are single-use plans?
- achieve one-time goals
- include:
+ Program
+ Project
*12) What are standing plans?
- ongoing plans
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 - include:
+ Policy
+ Rule
+ Procedure
*13) What are the plans used for a turbulent environment?
- Contingency planning: planning for emergencies, setbacks, or
unexpected conditions
- Building scenarios: a forecasting technique to look at current trends
and discontinuities and visualize future possibilities
- Crisis planning: unexpected events that are sudden and devastating