Chapter 7,9,10 & 11

Group 2

Kurt Cheng
Faye Año
Leslie Ranaga-Padua
Satti Ombao
Mar Banta
 Planning and Goal Setting

CHAPTER 7
S.O.
Goals
Desired future circumstance or condition that the organization attempts to realize.
Defines and states the purpose of the organization.
Plans
A blueprint for goal achievement and specifies the necessary resource allocations,
schedule tasks, and other actions.
- William Shakespeare
Organization Planning
Process

1. DEVELOP THE PLAN

5. MONITOR 1. DEVELOP
2.TRANSLATE THE PLAN AND LEARN THE PLAN

3.PLAN OPERATIONS
4. EXECUTE 2. TRANSLATE
THE PLAN THE PLAN
4.EXECUTE THE PLAN
3. PLAN
OPERATIONS
5.MONITOR AND LEARN
Levels of Goals and Plans

Mission

Strategic Goals /
Senior Management
Plans

Tactical Goals / Plans Middle Management

Operational Goals / Plans Lower Management

Goal Setting in Organizations
❑ Mission Statement ❑Goals and Plans
• the organization’s reason for • Strategic Goals (official goals)
existence. ■ Strategic plans
• describes the organization’s values, • Tactical Goals (shorter time
aspirations, and reason for being. horizon)
• describes the company’s basic • Tactical Plans
business activities and purpose, as • Operational Goals
well as the values that guide the
○Operational Plan
company.
Goal Setting in Organizations

Mission
Statement Organizational
Mission
Strategic Goals /Plans

Goals and
Plans Tactical Goals / Plans

Operational Goals/ Plans

Strategy Map

•ALIGNS goals into a hierarchy.

•shows how specific goals and plans in each area
are LINKED.
•to see the CAUSE-AND-EFFECT relationships
among goals and plans.
Operational Planning

Specific and Measurable

Defined Time Period

Criteria for Cover of Result Areas
Effective Goals
Challenging but Specific

Linked to Rewards
Management-by-Objectives

1. SET GOALS
• Corporate Strategic Goals 4. APPRAISE
OVERALL
• Departmental Goals 1. SET GOALS
PERFORMANC
• Individual Goals E

2. DEVELOP ACTION PLAN

• Action Plans

3. REVIEW PROGRESS
• Review Progress or Take Corrective Action *take corrective action
3. REVIEW 2. DEVELOP
4. APPRAISE OVERALL PERFORMANCE PROGRESS ACTION PLAN
• Appraise Performance
Management-by-Objectives

1. Focuses manager and employee efforts and

4. APPRAISE
OVERALL
activities that will lead to GOAL ATTAINMENT. 1. SET GOALS
PERFORMANC
E
2. Can IMPROVE PERFORMANCE at all
company levels.

3. Improves employee MOTIVATION.

*take corrective action
4. ALIGNS INDIVIDUAL and DEPARTMENTAL 3. REVIEW 2. DEVELOP
PROGRESS ACTION PLAN
goals with COMPANY goals
Management-by-Objectives

MEANS
• focuses attention on the methods and processes used to achieve goals .

• focuses people on considering the means rather than just on reaching the
goals.
 Single-use and Standing Plans

●SINGLE-USE PLANS ●STANDING PLANS

• are developed to achieve a set of • are ongoing plans that provide
goals that are not likely to be repeated guidance for tasks or situations that
in the future. occur repeatedly within the
o Programs
o Projects
organization.
o Organizational policies
o Rules
o Procedures
Benefits and Limitation of
Planning

●Goals and plans provide a source of MOTIVATION and

COMMITMENT
●Goals and plans guide RESOURCE ALLOCATION
●Goals and plans are a GUIDE TO ACTION
●Goals and plans set a STANDARD OF PERFORMANCE.
●Goals and plans can create a FALSE SENSE OF CERTAINTY.
●Goals and plans may cause RIGIDITY IN A TURBULENT
ENVIROMENT.
●Goals and plans can GET IN THE WAY ON INTUITION AND
Planning for a Turbulent
Environment

1. Contingency Planning

2. Building Scenarios

3. Crisis Planning
Innovative Approaches to
Planning

○Decentralized Planning

○Set Stretched Goals for Excellence

○Use Performance Dashboards

○Deploy Intelligence Teams

Organization Planning
Process

1. DEVELOP THE PLAN (Mission and Vision)

2. TRANSLATE THE PLAN

◦ Tactical plans, Strategy Map, Contingency and Scenarios.
5. MONITOR 1. DEVELOP
AND LEARN THE PLAN
3. PLAN OPERATIONS
◦ Measures and Targets, Set Stretched Goals, Crisis Planning.
4. EXECUTE 2. TRANSLATE
4. EXECUTE THE PLAN THE PLAN THE PLAN

◦ MBO, Performance Dashboards, Single use plans, Decentraliz e Responsibility.

3. PLAN
5. MONITOR AND LEARN OPERATIONS

• Planning and Operational Reviews.

“Plan for what is difficult
while it is easy,
do what is great
while it is small”.

- SUN TZU
Decision Making
Chapter 9 Mandyn
Decision Making
● Determines how the organization will solve
problems, allocate resources and accomplish
its goals
● Choice is made from available resource
Categories:
1. Programmed - situations occur often
enough to enable decision rules to be
developed and applied
- For recurring problems
1. Non-programmed - response to unique
situations, poorly defined &
unstructured
- Has important consequence for the
organization
- Related to Strategic Planning
Certainty & Uncertainty
● Certainty - all the info the decision maker
needs is available; Low possibility of failure
● Risk - decision has clear cut goals & good
info is available but future outcome has
some chance of loss
● Uncertainty - Goal is known, incomplete
info on the alternatives & future events
- Some factors that maybe difficult to predict
include price, production cost, volume,
future interest rates
● Ambiguity/Conflict - goal or problem is
unclear, alternatives difficult to define &
info is unavailable
Decision-making Models: - based on rational economic assumptions &
manager’s beliefs on ideal decision making;
Classical Model normative

- Most useful when applied to programmed

decisions

Assumptions:

● Goals known/agreed on; problems defined &

precisely formulated
● Conditions of certainty, gathering complete
info; all alternatives and potential results of
each are calculated
● Criteria for calculating alternatives known,
select max economic return
● Decision maker is rational
 - descriptive, how managers actually make decisions
in complex situations. Recognize human &
Decision-making Models: environmental limitations to pursue rational
decision-making process
Administrative Model
Simon’s 2 concepts:

1. Bounded rationality - people have limits on how

rational they can be
2. Satisficing - choose first solution alternative that
satisfies minimal decision criteria
- Cannot justify the time and expense of obtaining
complete info before decision making

Assumptions:

● Goals are vague, conflicting & lacks consensus

● Rational procedures not always used
● Limited alternatives due to human, information and
resources constraints
● Satisficing over maximizing solution
Decision-making Models: - making non-programmed decisions when
uncertain
Political Model
Coalition - informal alliance among managers who
support specific goal

Assumptions:

● Organizations are of diverse interests, goals

& values, managers disagree
● Info is ambiguous and incomplete
● Managers don’t have the time, resource &
mental capacity to identify all dimensions
● Decisions result from bargaining &
discussion among coalition
Decision Making Steps
1. Recognition of decision requirement
a. Problem - Accomplishment less than
established goal; unsatisfactory
performance
b. Opportunity - Potential
accomplishment that exceed current
goal
2. Diagnosis & Analysis of Cause
3. Development of Alternatives
4. Selection of Desired Alternative
5. Implementation of chosen Alternative
6. Evaluation and Feedback
Personal Decision
Framework Distinction among people how they evaluate
problems, generate alternatives & make choices

1. Directive Style - simple, clear-cut solution to

problems, efficient & rational, rely on existing
rules/procedures in decision making
2. Analytical Style - based on as much data they
can gather, best possible decision based on
available info
3. Conceptual Style - more socially oriented then
analytical, consider many broad alternatives to
solve problem creatively
4. Behavioural Style - deep concern for others as
individual
Why do managers make
bad decisions? 1.
2.
Influenced by initial impression
Justify past decision
3. Seeing what you want to see
4. Perpetuating the status quo
5. Influenced by emotion
6. Overconfidence

Innovative Decision
Making
Brainstorming - face-to-face interactive group to
spontaneously suggest wide range of alternative
Evidence-based decision making - more informed &
intelligent decision based on available facts and
evidences
Rigorous debate
a. Diverse group (age, gender, expertise,
hierarchical level, experience)
b. Devil’s advocate - challenge group’s assertions
and assumptions
c. Point-Counterpoint - divides group to
encourage constructive conflict
Avoid Groupthink (Abilene Paradox)
Know when to Bail (avoid Escalating Commitment)
Do Postmortem / After Action Review (Fu Pan)
 CHAPTER 10:
DESIGNING
ORGANIZATIONAL
STRUCTURE
 ORGANIZING
• The deployment of
organizational resources to
achieve strategic goals.
• Strategy defines what to
do; organizing defines how
to do it.
ORGANIZATION
STRUCTURE
• The framework in which the
organization defines how
a) tasks are divided;
b) resources are deployed; and
c) departments are
coordinated.
FUNDAMENTAL CHARACTERISTICS
OF ORGANIZATION STRUCTURE
1) Organizing the Vertical Structure
2) Departmentalization
3) Organizing for Horizontal Coordination
4) Factors Shaping Structure
1. ORGANIZING THE VERTICAL
STRUCTURE
1. ORGANIZING THE VERTICAL
STRUCTURE
IMPORTANT FEATURES:

Work Specialization Chain of Command Span of Management Centralization and

Decentralization
1. ORGANIZING THE VERTICAL
STRUCTURE
THE PROCESS OF DELEGATION:
1. ORGANIZING THE VERTICAL
STRUCTURE
TALL VS. FLAT
CENTRALIZATION VS. DECENTRALIZATION
2. DEPARTMENTALIZATION
2. DEPARTMENTALIZATION
2. DEPARTMENTALIZATION
2. DEPARTMENTALIZATION
2. DEPARTMENTALIZATION
2. DEPARTMENTALIZATION
3. ORGANIZING FOR HORIZONTAL
COORDINATION
The Need for Coordination
3. ORGANIZING FOR HORIZONTAL
COORDINATION
Task Forces, Teams and Project Management
3. ORGANIZING FOR HORIZONTAL
COORDINATION
Relational Coordination
4. FACTORS SHAPING STRUCTURE
4. FACTORS SHAPING STRUCTURE
Structure Follows Strategy
4. FACTORS SHAPING STRUCTURE
Structure Fits the Technology
Woodward’s Service
Manufacturing Technology
Technology

• Small batch production • Intangible output

• Mass production • Direct contact with customers
• Continuous process production
4. FACTORS SHAPING STRUCTURE
 ATENEO
GRADUATE
SCHOOL OF
BUSINESS

BY:
MAR DONALD B. BANTA
R190072
INNOVATION AND THE CHANGING
WORKPLACE

ORGANIZATIONAL
CHANGE
✔ Is defined as the adoption of a new idea
or behavior by an organization.
✔ Are sometimes spurred by forces
outside the organization, such as when
a powerful customer demands annual
price cuts, when a key supplier goes out
of business, or when new government
regulations go into effect.
✔ Implementing change is typically one of
the most difficult aspects of
management.
 Disruptive Innovation Ambidextrous
Approach
Refers to Means
innovations incorporating
in products, structures and
services, or processes processes that are
that radically change appropriate for both
an industry’s rules of the the creative impulse
game for producers and for the systematic
and consumers. implementation of innovations.

EXAMPLES
1. Smartphones (Iphone) vs. laptop/desktop
computers – in terms of internet use & apps
2. Video streaming (Netflix) vs. cable network
3. Online reference (Wikipedia) vs. traditional
encyclopedias (Encyclopedia Britannica)
4. LEDs vs. incandescent light bulbs
EXAMPLES
1. Apple – exploiting new technologies &
constantly updating their products; exploring
new products emerging from Ipod, Iphone,
Ipad & I-watch.
CHANGING THINGS: NEW PRODUCTS &
TECHNOLOGIES

PRODUCT CHANGE TECHNOLOGY CHANGE

✔ is a change in the organization’s
product or service output;
✔ is the primary way in which
organizations adapt to changes in
markets, technology and
competition.
✔ is a change in the organization’s
production process – how the
organization does its work;
✔ is designed to make the production
of a product or service more
efficient.
3 Innovation Strategies for New Products &
Technologies
EXPLORATION COOPERATION INNOVATION ROLES
▪ Creativity ▪ Horizontal coordination ▪ Idea champions
▪ Bottom-up approach mechanisms ▪ New venture teams
▪ Internal contests ▪ Customers, partners ▪ Skunkworks
▪ Idea incubators ▪ Open innovation ▪ New venture fund

New products,
services and
technologies
Coordination: Horizontal-Linkage
Model
CHANGING PEOPLE AND
CULTURE
PEOPLE CHANGE
✔ refers to a change in the attitudes
and behaviors of a few employees.
✔ i.e., sending a handful of middle
managers to a training course to
improve leadership skills.
CULTURE CHANGE
✔ is a major shift in the norms, values,
and mindset of the entire
organization.
✔ i.e., shift of basic mindset from
organization focused on collection
and compliance to one dedicated to
informing, educating, and serving
customers.
Tools that can Smooth the Culture Change
Process
TRAINING & DEVELOPMENT
O
▪ One of the most frequently used ORGANIZATION DEVELOPMENT Team Building D
approaches to changing people’s ▪ Is a planned, systematic process of
mind-sets. change that uses behavioral science A
▪ A company might offer training knowledge and techniques to Survey- C
programs to large blocks of improve an organization’s health and feedback T
employees on subjects such as effectiveness through its ability to activities I
cope with environmental changes, V
teamwork, diversity, EQ, etc.
improve internal relationships, and
I
increase learning and problem-solving Large-group T
capabilities. interventions
I
E
S

Unfreezing Changing Refreezing

OD STEPS/STAGES
IMPLEMENTING
CHANGE
✔ The final step to be managed in the
change process is IMPLEMENTATION. Why Do People Resist
✔ A new, creative idea will not benefit the
organization until it is in place and
Change?
1. Self-Interest
being fully used. ✔ People typically resist a change they believe conflicts
their self-interests.

NEED FOR CHANGE 2. Lack of Understanding and Trust

✔ Employees often distrust the intentions behind a change
✔ Many people are not willing to change or do not understand the purpose of a change.
unless they perceive a problem or a
crisis.
3. Uncertainty
✔ A need for change is a disparity ✔ Is lack of information about future events; it represents
between existing and desired fear of the unknown.
performance levels.
4. Different Assessment and Goals
✔ People who will be affected may assess situation
differently from managers or promoters of new ideas.
Strategies for Overcoming Resistance to
Change
Force-Field Analysis
✔ Is a technique for determining which
forces drive a proposed change and Implementation
which forces restrain it. Tactics
✔ Driving forces are problems or
opportunities that provide motivation to
change
✔ Restraining forces are barriers such
as lack of resources or inadequate
employee skills.
Case Study
Cleaver’s Sausage House
 - Allison elam, V.P. of operations For Cleaver
Sausage House, employs 350 employees.
Facts of the case - Her department worked for the MRP
(material requirements planning) software
systems, which was purchased by the former
V.P. of operations.
- Cleaver’s executive committee did not agree
to launch the system.
- MRP will increase annual cash flow by
$600,000 and save up to $200,000 annually.
- MRP idea would require a radical overhaul of
Cleaver’s operations.
- Allison decided to plan a course of action to
get the system implemented.
Questions 1. What do you think are the reasons for
people’s resistance to the MRP
implementation? Explain.

2. What is the value of the task force idea

suggested by the CEO as a way to facilitate
implementation? Explain.

3. Which implementation tactics do you think

Elam should follow? Why?