MGT 305 1st Edition Lecture 12 Outline of Last Lecture I Self Determination Theory II Wrapping up motivation Outline of Current Lecture I Types of goals II Types of plans a Breadth b Time Frame c Specificity d Frequency of Use III Approaches to Setting Goals IV Manager s steps to goal setting V Planning Tools and Techniques Current Lecture Chapter 8 Foundations of Planning Types of Goals A single goal can t adequately define an organization s success Stated Official statements about the organization s goal Real Goals the organization is actually pursuing Example Locks of Love has goal of helping people with alopecia but get way more hair pieces than they are giving away and the books don t account for why Types of Plans 1 Breadth Strategic will apply to entire organization o Example organizational culture change Operational applies to only part of the organization o Example different board structure 2 Time Frame Long term more than 3 years Short term less than a year Intermediate less than three years 3 Specificity Specific no ambiguity clearly defined o Reducing lunch break time Directional more flexible general guidelines o Cutting costs o More advantageous because it s better when people set their own goals or are at least involved 4 Frequency of Use Single use plan only needs to be used once o Example BP oil spill Standing plan plan in place to be used again and again o Example Air traffic control issues ex what to do when there is a weather event Traditional Goal Setting goals set by top managers flow down through the organization Goals set by top managers flow down through the organization These goals are passed to the next organizational level and written tor reflect responsibilities of that level passes to the next level and so forth Performance is evaluated in relation to these goals Approaches to Setting Goals Management by objectives MBO a process of setting mutually agreed upon goals and using those goals to evaluate employee performance Steps Overall organizational goal strategies are defined Divisional and department objectives defined Unit managers set specific objectives with their department managers Plans are set with managers and their employees Plan is implemented Progress is periodically reviewed Success is rewarded Progress is periodically reviewed Success is rewarded 1 2 3 4 5 Manager s Steps to Goal Setting Review the organizational mission purpose Evaluate available resources Determine goals in most cases solicit input of others a Using SMART goals Write them down and communicate them to all who need to know a Better to give people information they don t need than not give them enough Evaluate whether goals are met Planning Tools and Techniques Environmental Scanning The screening of large amounts of information to anticipate and interpret changes in the environment Research suggests companies that use this more have higher financial performance Most common application is competitor analysis Forecasting Using quantitative and qualitative data to predict future events Generations are nearing retirement so companies have to plan for this and incorporate knowledge transfer Benchmarking Search for best practices among other organizations that lead to t heir superior performance Part Technique Program Evaluation and Review Technique PERT o Events Milestones deliverables endpoints for completion o Activities Time and Activities required for each event o Slack Time that completed activity waits for another activity to finish to that the next activity which depends on the completion of both activities can start o Critical path the path ordering of activities that allows all tasks to be completed with the least slack time o End with a diagram that shows pathway