Levels of goals and plans The planning process starts with a formal mission that defines the basic purpose of the organization, especially for external audiences. Mission statement: Is a statement of the organization’s purpose what a company wants to accomplish In a larger environment. Top managers are responsible for establishing strategic goals and plans that reflect a commitment to both organizational efficiency and effectiveness. Tactical goals and plans are the responsibility of middle managers, such as the head of major divisions.
A division manager will formulate tactical plans that focus on the ajar actions the division must take to fulfill its part in the strategic plan set by top management. Operational plans Identify the specific procedures or processes needed at lower levels of the organization, such as Individual departments and employees. Front-line managers and supervisors develop operational plans that focus on specific task and processes and that help meet tactical and strategic goals Purpose of goals and plans Legitimacy. He organizations mission describes what the organization stands for and its reason for existence. It symbolizes legitimacy for external audience such as investors, suppliers, customers, and community. Legitimacy: the fact that something is legal. Source of motivation and commitment. Goals and plans enhance (increase) employees’ motivation and commitment by reducing uncertainty and clarifying what they should accomplish. Lack of a clear goal can hamper motivation because people don’t understand what they should do. Resource allocation.
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Goals help managers decide where they need to allocate resources, such as employees, money and equipment. Allocate: decide that something can be used for a specific purpose. Guides to action: goals and plans provide a sense of direction. They focus attention Rationale for decisions. Through goal setting and planning, managers clarify what the organization is trying to accomplish. They can make decisions to ensure that internal policies, roles, performance, structure, products and expenditures will be made in accordance with desired outcomes.
Standard of performance. Because goals define, desired outcomes for the organization, they also serve as performance criteria. They provide a standard of assessment. Organizational planning process The overall planning process 1 develop the plan 2 translate the plan 3 plan operations execute the plan 5 monitor and learn goals in organizations Organizational mission a well defined mission is the basis for development of all subsequent goals and plans.
Without a clear mission, goals and plans may be developed haphazardly and not take the organization in the direction it needs to go. Mission statement: Is a broadly stated definition of purpose that distinguishes the organization from others of a similar type. Goals and plans Strategic goals, sometimes called official goals, are broad statements describing where the organization wants to be in the future. These goals pertain to the organization as a whole rather than to specific divisions.
Strategic plans define the action steps by which the company intends to attain strategic goals. The strategic plan is the blueprint that defines the organizational activities and resource allocations – in the form of cash, personnel, space and facilities – required for meeting these targets. The purpose of strategic planning is to turn organizational goals into reality. After strategic goals are formulated the next step is tactical goals, which are the results that major divisions and departments within the organization intend to achieve.
These goals apply to the middle management and describe what major subunits must do for the organization to achieve its overall goals. Tactical plans are designed to help execute the major strategic plans and accomplish a specific part of the company’s strategy. Tactical plans define what major organization and subunits will do to implement the organization’s strategic plan. The results expected from departments, work groups, and individuals are the operational goals: specific, measurable results expected from departments work groups and individuals within the organization.