Management

CHAPTER 5

ORGANIZATIONAL GOALS SETTING AND PLANNING

Define goals and plans and explain the relationship between them.

A Goal is a desired future state that am organization attempts to realize. Organization exists for a purpose and gals define and state that purpose.

A Plan is a blueprint for gal achievement and specifies the necessary resource allocations, schedules, tasks and other actions.

They are all aimed at determining the organization´s goal. Goals specifies future ends and plan specifies today´s means.

How is planning changing in today´s organizations? Do you think planning becomes more important or less in a world where everything is changing quickly and crisis have become a regular part of organizational life? Why?

Today´s organization focuses more on operational issues and short term results rather than long term goals due to the complexity and uncertainty of today´s environment.

Yes planning becomes more important in a turbulent environment in other to allocate properly the limited resources available. In such environment, plans are made for a short terms only since the future is unstable and not guaranteed.

Explain the concept of organizational mission and how it influences goal setting and planning.

The concept of a mission is to describe the organization´s values, aspirations, and reason for being.

The mission gives a clear development of the goals and plans of an organization.

What are the criteria’s for effective goals?

Specific and measurable

Covered key result areas

Challenging but realistic

Defined time period

Linked to rewards

Describe the model of the MBO process

Step 1. determining what the company is trying to accomplish that is setting the goals. This goals could be (corporate strategic goals , departmental goals or individual goals)

Step 2. Develop action plans. An action plan defines the course of action needed to achieve the stated goals. Action plans are made for individuals and departments

Step 3. Review progress ensure that action plans

are working. These reviews can occur informally between managers and subordinates.

This periodic check-up allows managers and employees to see

Whether they are on target or whether corrective action is

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