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1、Managerial Planning and Goal Setting,Chapter 7,Planning for the Future,Most organizations are facing turbulence and growing uncertaintyEconomic,political,&social turmoil=managers wonder how to copeRenewed interest in organizational planning,Managers Challenge:Europa hotel,Managerial Planning and Goa
2、l Setting,Process of planningHow managers develop effective plansGoal settingTypes of plansNew approaches to planning,Topics Chapter 7,The Importance of Goals and Plans,Guides to action,Rationale for decisions,Standard of performance,Goals and Plans,Goals and Plans,Goal-A desired future state that t
3、he organization attempts to realize.Plan-A blueprint specifying the resource allocations,schedules,and other actions necessary for attaining goalsPlanning determining the organizations goals and the means for achieving themthe most fundamental management functionthe most controversial management fun
4、ction.,Mission Statement,Strategic Goals/Plans Senior Management(Organization as a whole),Tactical Goals/Plans Middle Management(Major divisions,functions),Operational Goals/Plans Lower Management(Departments,individuals),Internal Message Legitimacy,motivation,guides,rationale,standards,External Mes
5、sage Legitimacy for investors,customers,suppliers,community,Levels of Goals/Plans&Their Importance,Benefits for the Organization,LegitimacyWhat the organization stands for-reason for beingSymbolizes legitimacyEmployees identify with overall purpose Source of Motivation and Commitment Employees ident
6、ification with the organizationMotivate by reducing uncertaintyGuides to ActionProvide a sense of direction;focus attention on specific targetsDirect efforts toward important outcomes,Provided from Internal and External Messages Goals and Plans Send,Benefits for the Organization,Rationale for Decisi
7、onsLearn what organization is trying to accomplishMake decisions to ensure that internal policies,roles,performance,structure,products,and expenditures will be made in accordance with desired outcomesStandard of PerformanceServe as performance criteriaProvide a standard of assessment,Provided from I
8、nternal and External Messages Goals and Plans Send,Organizational Mission,Mission=organizations reason for existingMission StatementBroadly states the basic business scope and operations that distinguishes it from similar types of organizationsMay include the market and customersSome may describe co
9、mpany values,product quality,attitudes toward employees,Bristol-Myers Squibb Mission Statement,Our companys mission is to extend and enhance human life by providing the highest-quality pharmaceutical and related health care products.,Strategic Goals and Plans,Strategic GoalsWhere the organization wa
10、nts to be in the futurePertain to the organization as a wholeStrategic Plans Action Steps used to attain strategic goalsBlueprint that defines the organizational activities and resource allocationsTends to be long term,Tactical Goals and Plans,Tactical Goals,Apply to middle managementGoals that defi
11、ne the outcomes that major divisions and departments must achieve,Tactical Plans,Plans designed to help execute major strategic plansShorter than time frame than strategic plans,Operational Goals and Plans,Operational Goals,Specific,measurable results Expected from departments,work groups,and indivi
12、duals,Operational Plans,Organizations lower levels that specify action steps toward achieving operational goalsTool for daily and weekly operationsSchedules are an important component,Goal Attainment,Means-end Chain Attainment of goals at lower levels permits the attainment of high-level goalsTradit
13、ional organizational responsibilityStrategic=top managementTactical middle managementOperational=1st line management&workers,Hierarchy of Goals,Operational Goals,Tactical Goals,Strategic Goals,Mission,Traditional Responsibility,Top Management,Middle Management,1st-line Management&Workers,Shrinking m
14、iddle managementEmployee empowerment,Employees,Today,Characteristics of EffectiveGoal Setting,Specific and measurableCover key result areasChallenging but realisticDefined time periodLinked to rewards,Model of the MBO Process,Step 1:Set Goals,Step 2:Develop Action Plans,Step 3:Review Progress,MBO Be
15、nefits and Problems,Benefits of MBO,Manager and employee efforts are focused on activities that will lead to goal attainmentPerformance can be improved at all company levelsEmployees are motivatedDepartmental and individual goals are aligned with company goals,Constant change prevents MBO from takin
16、g holdAn environment of poor employer-employee relations reduces MBO effectivenessStrategic goals may be displaced by operational goalsMechanistic organizations and values that discourage participation can harm the MBO processToo much paperwork saps MBO energy,Problems with MBO,Single-Use PlansFor G
17、oals Not Likely To Be Repeated,A program is a complex set of objectives and plans to achieve an important,one-time organizational goalA project is similar to a program,but generally smaller in scope and complexity,Standing Plans For Tasks Performed Repeatedly,A policy is a general guide to action an
18、d provides direction for people within the organizationRules describe how a specific action is to be performedProcedures define a precise series of steps to be used in achieving a specific job,Experiential Expercise:Company Crise Wave,Contingency PlansSpecific Situations-unexpected conditions,Identi
19、fy Uncontrollable FactorsEconomic turndownsDeclining marketsIncreases in costs of suppliesTechnological developmentsSafety accidentsMinimize Impact of Uncontrollable FactorsForecast a range of alternative responses to most-likely high-impact contingencies,Building Scenarios,Looking at trends and dis
20、continuities and imagining possible alternative futures to build a framework within which unexpected future events can be managed,Forces managers to rehearse mentally what they would do if their best-laid plans were to collapse,Crisis Management PlanningSudden-Devastating Require Immediate Response,
21、PreventionBuild trusting relationship with key stakeholdersOpen communicationPreparationCrisis Management TeamCrisis Management PlanEstablish an Effective Communications systemContainment,Ethical Dilemma:Completing Project WebFirst,Planning for High Performance,Central Planning=Traditional Departmen
22、t Group of planning specialists who develop plans for the organization as a whole and its major divisions and departments and typically report directly to the president or CEODecentralized Planning=High-Performance Managers work with planning experts to develop their own goals and plans,Planning for
23、 High Performance,Planning comes alive when employees are involved in setting goals and determining the means to reach them,Planning In The New Workplace,Have a strong mission statement and visionSet stretch goals for excellenceEstablish a culture that encourages learningEmbrace event-driven planningUtilize temporary task forcesPlanning still starts and stops at the top,Planning comes alive when employees are involved in setting goals and determining the means to reach them,
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