Organisational Planning and Goal Setting Flashcards
goal
a desired future state that the organisation attempts to realise
plan
a blueprint specifying the resource allocations, schedules and other actions necessary for attaining goals
mission
the organisation’s reason for existence
mission statement
a broadly stated definition of the organisation’s basic business scope and operations that distinguishes it from similar types of organisations
strategic goals
broad statements describing where the organisation want to be in the future
strategic planning
a 3-5 years planning process that is generally conducted by senior managers and involves the development of long term goals and objectives
tactical planning
a 1-2 years planning process that is generally conducted by middle management in order to create objectives and plans. Tactical planning usually involves achieving the goals of each department rather than the overall organisation
operational planning
a day-to-day planning process that is generally conducted by frontline managers to specify action steps towards achieving operational goals and to support tactical plans
criteria for effective goals
- specific
- measurable
- achievable
- realistic
- timely
- linked to rewards
key performance indicator (KPI)
a measure or a set of data that allows a business to determine whether it is meeting its business objectives
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
steps in MBO
- set goals. Goals are set collaboratively between managers and employees. Mutual agreement between employee and supervisor creates the strongest commitment to achieving goals
- 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
- review progress. A periodic progress review is important to ensure action plans are working. Periodic check-ups allow managers and employees to see whether they are on target or whether corrective action is necessary. The action plan can be changed whenever goals are not met
- appraise overall performance. The final step in MBO is to evaluate whether annual goals have been achieved for both individuals and departments. Successful or failure to achieve goals can become part of the performance appraisal system and the designation of salary increases and other rewards.
advantages of MBO
- focuses manager and employee efforts on activities that will lead to goal achievement
- can improve performance at all company levels
- improves employee motivation
- aligns individual and department goals with company goals
disadvantages of MBO
- an overemphasis on ‘meeting the goals’ can obscure the means that people use to get there. People may cut corners, ignore potential problems and behave unethically just to meet the targets
- cannot stand alone; it is only a part of effectively managing people to achieve goals
- feedback is typically infrequent enough for any chance at meaningful corrective action and sustained motivation
- it can be incredibly time consuming for the manager to sit down with each individual employee and give regular feedback
advantages of goals and plans
- provide a source of motivation and commitment
- guide resource allocation
- are a guide to action
- set a standard of performance
