Management 201 Chapter 7 Essay

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Management 201
October 1, 2013

Chapter 7: Managerial Planning and Goal Setting

Planning is Fun (damental):
All of the other management functions stem from planning.
How do you plan for an undefined future?
No plan is perfect.
Without plans and goals, organizations flounder.
Goals and plans:
A goal is a desired future state that the organization attempts to realize.
A plan is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.
Levels of Goals and Plans:

The Organizational Planning Process:

Goal Setting in Organizations:
Organizational Mission: the organization’s reason for existence.
Strategic goals: official goals, broad statements describing the organization’s future.
Strategic plans: define the action steps the company will take.
Goals should be aligned.
A Strategy Map for Aligning Goals:

Operational Planning:
Direct employees and resources
Guide efficient and effective performance
Includes planning approaches:
Management by Objectives (MBO)
Single-Use Plans and Standing Plans
Criteria for Effective Goal Setting:
Goal characteristics:
Specific and measurable
Defined time period
Cover key result areas
Challenging but realistic
Linked to rewards
Model of the MBO Process:
Defined in 1954 by Peter Drucker
Method for defining and monitoring goals
MBO Benefits:

Single-Use and Standing Plans:
Single-Use Plans:
Achieve one-time goals
Programs and Projects
Standing Plans:
Ongoing plans
Policies, Rules, Procedures

Types of Single-Use and Standing Plans:
Single-Use Plans:
Program: building new headquarters, converting paper files to digital
Project: renovating the office, setting up a new company intranet.
Standing Plans:
Benefits and Limitations of Planning:
Goals and plans provide a source of motivation…