Purposes of Goals
-Provide guidance and a unified direction
-Practices strongly affect other aspects of planning
-Can serve as a source of motivation for employees
-Provide an effective mechanism for evaluation and control
Mission Statement Principles
-Provide a great work environment
-Embrace diversity as an essential component in business
-Apply highest standards of excellence
-Develop enthusiastically satisfied customers all of the time
-Contribute positively to our communities and our environment
-Recognize that profitability is essential to our future success
Organization’s Mission
Statement of its fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business’s operations in product and market terms
Strategic Goals
-Focuses on broad, general issues
-Goals set by and for top managers of the organization
Level Goals
Goals set for and by different levels within an organization
Operational Goals
-Focuses on short term issues associated with tactical goals
-Goals set by and for lower-level managers
Tactical Goals
-Focuses on how to operationalize actions necessary to achieve the strategic goals
-Goals set by and for middle managers
Balancing and reconciling possible conflicts among goals
Strategic Plans
-Plans developed to achieve strategic goals; general plan that outlines decisions of resource allocation, priorities, and action steps necessary to reach strategic goals
-Set by the board of directors and top management
Tactical Plans
-Typically involve upper and middle management
-Aimed at achieving tactical goals, developed to implement specific parts of a strategic plan
-Shorter time horizon and a more specific and concrete focus
Operational Plans
-Focuses on carrying out tactical plans to achieve operational goals
-Developed by middle and lower-level managers
-Short-term focus and typically narrow in scope
Long-Range Plans
Covers many years, possibly even decades; varies from one organization to another
Intermediate Plans
Usually covers periods from one to five years and are especially important for middle and first-line managers
Short-Range Plans
Covers a period of one year or less and greatly affect manager’s day to day activities
Action Plan
Plan that operationalizes any other kind of plan; short term
Reaction Plan
Plan designed to allow the company to react to an unforeseen circumstance; short term
Planning Staff
Used to reduce workload of individual managers, help coordinate planning activities of individual managers, bring to a particular problem many different tools and techniques, take a broader view than individual managers, and go beyond pet projects and particular departments
Planning Task Force
Helps develop plans, comprises line managers with a special interest in the relevant area of planning
Board of Directors
Establishes the corporate mission and strategy; sometimes takes an active role in planning process
Chief Executive Officer
Usually is the president or chair of the board of directors. Probable the single most important individual in any organization’s planning process
Executive Committee
Usually composed of top executives in organization working together as a group
Line Management
Those persons with formal authority and responsibility for the management of the organization; play an important role in organization’s planning process because they are a valuable source of inside info for other managers and usually must execute the plans developed by top managers
Contingency Planning
Determination of alternative courses of action to be taken if an intended plan of action is unexpectedly disrupted or rendered inappropriate
Crisis Management
Set of procedures the organization uses in the event of a disaster or other unexpected calamity; difficult to anticipate
Single-Use Plan
Developed to carry out a course of action that is not likely to be repeated in the future
Single-use plan for a large set of activities
Single-use plan of less scope and complexity than a program
Standing Plan
Developed for activities that recur regularly over a period of time
Standing plan specifying the organization’s general response to a designated problem or situation
Standard Operating Procedure
Standing plan outlining steps to be followed in particular circumstances
Rules andRegulations
Standing plans describing exactly how specific activities are to be carried out
Inappropriate Goals
Goals that may be unattainable or place too much emphasis on quantitative or qualitative measures of success
Improper Reward System
Acts as a barrier to goal setting and planning
Dynamic and Complex Environment
The nature of an organization’s environment is also a barrier to effective goal setting and planning
Reluctance to Establish Goals

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