Management Lecture: Week 4
Management Lecture: Week 4 Organisational planning and goal setting
Definitions Goal -‐ A desired future state that the organisation attempts to realise Aim -‐ The intent of an organisation Objective -‐ Aspiration of an organisation Target -‐ Desired destination point Planning The management function concerned with defining goals for future organisational performance and deciding on the tasks and resource use needed to attain them – by deciding in advance what you want to do/achieve -‐ Goals and sub-‐goals -‐ Tasks and processes -‐ Resources – physical, financial, human What? How? Who? When? Where? Plan A blueprint specifying the resource allocations, schedules and other actions necessary for attaining organisational goals “To fail to plan is to plan to fail” Goals in organisations
Organisational Mission Statements -‐ The organisation’s reason for existence -‐ A broadly stated definition of the organisation’s basic business scope and operations that distinguishes it from similar organisations
ACU Mission Statement • Within the Catholic intellectual tradition and acting in Truth and Love, Australian Catholic University is committed to the pursuit of knowledge, the dignity of the human person and the common good. ETC.
Goals and plans in organisations -‐ Strategic goals -‐ Strategic plans Pertain to the organisation as a whole -‐ Tactical goals -‐ Tactical plans Define the outcomes that major divisions and departments must achieve -‐ Operational goals – Operational plans Measurable results expected from sections, work, groups and individuals Effective goals are consistent and mutually supportive. Planning types and models 1. Single use plans 2. Standing plans 3. Quality planning 4. Contingency plans 5. Crisis planning 6. Management by Objectives (MBO) Single use plans Plans that are developed to achieve a set of goals that are unlikely to be repeated in the future e.g. program (NASA space station) or project (NASA rocket booster for space station). Standing plans Ongoing plans used to provide guidance for tasks performed repeatedly within the organisation e.g. course enrolment, fee payment, examinations, graduation etc. -‐ Policies – e.g. accident-‐free workplace policies -‐ Rules – e.g. no smoking rule in areas of plant where hazardous materials are stored -‐ Procedures – e.g. process for deferring your course Quality control plans Total quality management (TQM) An organisation wide commitment to infusing quality into every activity through
continuous improvement Contingency plans -‐ Plans that anticipate various situations tht could impact the organisation -‐ Plans that define organisations responses to specific situations, such as emergencies, setbacks or unexpected conditions – fire, chemical spills. -‐ Identify uncontrollable factors e.g. recession, inflation, technological development and safety accidents Crisis planning • A good crisis management plan can be used to respond to any disaster at any time • Sometimes called DISPLANS • Three essential stages of crisis management: -‐ Prevention -‐ Preparation -‐ Containment Management by objectives (MBO) A method of management whereby managers and employees define goals for every department, project and person, and use them to monitor subsequent performance Steps: 1. Set goals 2. Develop action plans 3. Review progress 4. Appraise overall performance Ideally recognise or reward above average/excellent performance Summary diagram:
Planning time horizons • Long term planning -‐ Strategic goals and plans (five years and beyond) • Intermediate term planning -‐ Tactical goals (between one and two years) • Short term planning -‐ Operational goals (one year or less) -‐ Specific departments and individuals Will vary according to the type and size of business – e.g. Myer compared to a corner milk bar The new planning approach Traditional approaches to planning Modern approaches to planning Centralised Planning Department Decentralised Planning Staff -‐ A group of planning specialists who develop -‐ A group of planning specialists plans for the organisation as a whole and its assigned to major departments and major divisions and departments, and divisions to help managers develop typically report to the CEO their own strategic plans
Definitions Goal -‐ A desired future state that the organisation attempts to realise Aim -‐ The intent of an organisation Objective -‐ Aspiration of an organisation Target -‐ Desired destination point Planning The management function concerned with defining goals for future organisational performance and deciding on the tasks and resource use needed to attain them – by deciding in advance what you want to do/achieve -‐ Goals and sub-‐goals -‐ Tasks and processes -‐ Resources – physical, financial, human What? How? Who? When? Where? Plan A blueprint specifying the resource allocations, schedules and other actions necessary for attaining organisational goals “To fail to plan is to plan to fail” Goals in organisations
Organisational Mission Statements -‐ The organisation’s reason for existence -‐ A broadly stated definition of the organisation’s basic business scope and operations that distinguishes it from similar organisations
ACU Mission Statement • Within the Catholic intellectual tradition and acting in Truth and Love, Australian Catholic University is committed to the pursuit of knowledge, the dignity of the human person and the common good. ETC.
Goals and plans in organisations -‐ Strategic goals -‐ Strategic plans Pertain to the organisation as a whole -‐ Tactical goals -‐ Tactical plans Define the outcomes that major divisions and departments must achieve -‐ Operational goals – Operational plans Measurable results expected from sections, work, groups and individuals Effective goals are consistent and mutually supportive. Planning types and models 1. Single use plans 2. Standing plans 3. Quality planning 4. Contingency plans 5. Crisis planning 6. Management by Objectives (MBO) Single use plans Plans that are developed to achieve a set of goals that are unlikely to be repeated in the future e.g. program (NASA space station) or project (NASA rocket booster for space station). Standing plans Ongoing plans used to provide guidance for tasks performed repeatedly within the organisation e.g. course enrolment, fee payment, examinations, graduation etc. -‐ Policies – e.g. accident-‐free workplace policies -‐ Rules – e.g. no smoking rule in areas of plant where hazardous materials are stored -‐ Procedures – e.g. process for deferring your course Quality control plans Total quality management (TQM) An organisation wide commitment to infusing quality into every activity through
continuous improvement Contingency plans -‐ Plans that anticipate various situations tht could impact the organisation -‐ Plans that define organisations responses to specific situations, such as emergencies, setbacks or unexpected conditions – fire, chemical spills. -‐ Identify uncontrollable factors e.g. recession, inflation, technological development and safety accidents Crisis planning • A good crisis management plan can be used to respond to any disaster at any time • Sometimes called DISPLANS • Three essential stages of crisis management: -‐ Prevention -‐ Preparation -‐ Containment Management by objectives (MBO) A method of management whereby managers and employees define goals for every department, project and person, and use them to monitor subsequent performance Steps: 1. Set goals 2. Develop action plans 3. Review progress 4. Appraise overall performance Ideally recognise or reward above average/excellent performance Summary diagram:
Planning time horizons • Long term planning -‐ Strategic goals and plans (five years and beyond) • Intermediate term planning -‐ Tactical goals (between one and two years) • Short term planning -‐ Operational goals (one year or less) -‐ Specific departments and individuals Will vary according to the type and size of business – e.g. Myer compared to a corner milk bar The new planning approach Traditional approaches to planning Modern approaches to planning Centralised Planning Department Decentralised Planning Staff -‐ A group of planning specialists who develop -‐ A group of planning specialists plans for the organisation as a whole and its assigned to major departments and major divisions and departments, and divisions to help managers develop typically report to the CEO their own strategic plans
