34. Hierarchy of goals and plans in the organization and explain each of them.

A goal is a desired future state that the organization attempts to realize

A plan is a blueprint for goal achievement

Types of Goals and Plans

• Strategic Goals – official goals, broad statements about the organization

  • D efine the action steps the company intends to attain

  • The blueprint that defines activities

• Tactical Goals – help execute major strategic plans

  • Specific part of the company’s strategy

  • Plans of the divisions and departments

• Operational Goals – results expected from departments, work groups, and individuals

Lower levels of the organization

Specific action steps

One way to look at planning is as a hierarchy of the components of a plan.

• Vision: Where the unit wants to be or how it wants to be viewed at some point in the future

• Mission: Why the organization exists, what services or products it provides

• Values: What is important to the organization at its core

• Goals: Specific accomplishments that will indicate the unit is moving toward its vision

• Strategies: Specific approaches to achieve each accomplishment or goal

• Processes and Actions: What must actually be done on a day to day basis to implement a strategy

• Measures of Performance: Quantitative or qualitative data that will indicate how close a unit has come to accomplishing a goal

35. Planning approaches.

Manager use strategic, tactical, operational goals to direct employees and resources toward achieving specific outcomes that enable the org. to perform effectively and efficiently.

1. MBO is a planning approach in which employees actively participate in setting goals that are tangible,verifiable,measurable. MBO assures that all employees and work groups set goals that are in alignment with achieving the organization’s goals

2. single-use plans-plans that are developed to achieve such goals that are not likely tobe repeated in the future,typically include programs and projects. Examples: building new office, renovating the office, converting all paper files to digital, setting up a company intranet.

3. standing plans-ongoing plans that are used to provide guidance for tasks performaed repeatedly within the org. Standing plans include organizational policies, rules, and procedures. They generally focus on such matters as employee illness, absences, discipline, hiring, and dismissal.

4. contingency plans –plans that define company responses to specific situations and unpredictable events. To develop contingency plans managers must identify important factors in the environment, such as possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents. Managers then forecast a range of alternative responses to the most likely high impact contingencies, focusing on the worst case. Example: if sales fall 20% what will the company do? If market prices drop 8%, what will company do? What the company will do if country’s economic growth slowed by % a year?