Bài giảng Management: A Pacific Rim Focus - Chapter 6 Establishing organisational goals & plans

CHAPTER 6ESTABLISHING ORGANISATIONAL GOALS & PLANS1© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Lecture outlineThe planning processThe nature of organisational goalsHow goals facilitate performanceLinking goals & plansManagement by objectives2© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.The planning processMission The organisation’s purpose or fundamental reason for existence.Goal Future target or end result an organisation wishes to achieve.Plan Means devised for attempting to reach a goal.3© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.The planning processmissiongoalsplansGoal attainment(organisational efficiency & effectiveness)4© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.The planning process ‘Setting goals & developing plans leads to goal attainment and ultimately, to organisational efficiency & effectiveness.’ 5© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Organisational mission ‘Essentially, planning builds on the organisation’s mission, the organisation’s purpose or fundamental reason for existence.’ 6© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Organisational missionMission statement may:Be unwritten.Address customers, products/services, location, technology, concern for survival, philosophy, self-concept, concern for public image, concern for employees (David 1989).7© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Nature of organisational goalsBenefits of goalsIncreases performanceClarifies expectationsFacilitates controlIncreases motivationLevels of goalsOperational goals (base)Tactical goals (mid)Strategic goals (top)8© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Levels of goalsTop managers Organisational perspective Middle managers Departmental perspective1st level managers Unit/individual perspectivestrategicgoalsstrategicplanstacticalgoalstactical plansoperationalgoalsoperational plans9© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Goals and performanceKey aspects:Goal contentGoal commitmentWork behaviourOther process componentsPossible problems10© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Goal contentContent should be:ChallengingAttainableSpecific/measurableTime limitedRelevant11© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Goal commitmentInfluenced by:Supervisory authorityPeer & group pressurePublic displayExpectations of successIncentives & rewardsParticipation12© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Goals & work behaviourGoals & commitment affect work behaviour:DirectionEffortPersistencePlanning13© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Goals & other process componentsJob process components affect performance:Job knowledge & abilityTask complexitySituational constraints14© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Goals & possible problemsPossible problems with goals:Excessive risk takingIncreased stressUndermined self-confidenceIgnored non-goal areasExcessive short-run thinkingDishonesty & cheating15© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Linking goals & plansLevels of plansExtent of recurring useTime spans of goals & plansPlans & innovation16© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Linking goals & plansLevels of plans:StrategicOperationalTacticalRecurring use:Single useStanding plans-policies, procedures, rulesTime span of goals/plans:ShortIntermediateLong rangeInnovation supported by:Mission statementGoal content & processPlanning content & process17© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Possible obstacles to planningDomination by specialistsLow levels of manager skill & knowledgePressure of day-to-day workManager hostilityEnvironmental change18© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Management by objectives ‘Process through which specific goals are set collaboratively for the organisation as a whole and every unit within it; the goals are then used as a basis for planning, managing organisational activities, and assessing and rewarding contributions.’19© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Management by objectivesSteps in the MBO process:Develop organisational goalsEstablish specific goals for departmentsFormulate action plansImplement & maintain ‘self-control’Review progress periodicallyAppraise performance20© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Management by objectivesStrengths:Helps link goals & plansClarifies priorities, expectationsFosters organisational communicationBuilds member motivationWeaknesses:Needs strong, enduring commitmentRequires training of managersMay be misused (i.e. for punishment)Risk of dominance of quantitative goals21© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Management by objectivesMBO assessed:Can heighten organisational performanceShort-term focus of US, Australian & NZ organisations limits application20–25% success rate22© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Lecture summaryThe planning process Major components Organisational mission statementThe nature of organisational goals Benefits of goals Levels of goals Goals & performance Work behaviour Other work processes Possible problems with goals23© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.Lecture summaryHow goals facilitate performanceDirection, effort, persistence & planningLinking goals & plansLevels, recurrent use, time spans, promoting innovationPossible obstacles to planningMBO: Management by objectivesThe key steps in MBO processStrengths & weaknesses24© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.