Lecture Management (2nd edition) – Chapter 8: Setting goals

This chapter’s objectives are to: Describe the primary goals of an organization, explain the principles and different types of goal plans in an organization, outline different types of goals and the characteristics that make them effective, illustrate how managers secure team-level commitment to goals, describe how managers track progress of goal plans through performance dashboards.

MANAGEMENT SECOND EDITION Chapter Setting Goals Learning Objectives § § § § § Describe the primary goals of an organization Explain the principles and different types of goal plans in an  organization Outline different types of goals and the characteristics that  make them effective Illustrate how managers secure team­level commitment to  goals Describehowmanagerstrackprogressofgoalplansthrough performancedashboards Copyrightâ2017JohnWiley&Sons,Inc SettingGoalsthatMakeaDifference (p.202) Đ Đ Goalsmustbesetwithinastrategicframework consistingofmission,vision,andvalues Goalsareimportantbecausethey: • • • • • Give direction Provide a sense of purpose and achievement Reinforce our beliefs Enable reaching our full potential Boost our self­esteem Copyrightâ2017JohnWiley&Sons,Inc SettingGoalsthatMakeaDifference (cont.) Đ Smartgoals(p.204) ã ã ã ã ã Specific – clearly defined goals help focus on the  task Measurable – inform about the extent of progress Achievable – realistic and attainable Relevant – consistent with the organization’s  mission, vision, and values Time­bound – provides a target for completion Copyright ©2017 John Wiley & Sons, Inc Setting Goals that Make a Difference  (cont.) § When goals go wrong they (p. 207): • • • • • • • Involve excessive risk­taking Increasestress Createfeelingsoffailure Becomeaceilingforperformance Ignorenonưgoalareas Promoteshortưrangethinking Promotedishonesty/cheating Copyrightâ2017JohnWiley&Sons,Inc GoalPlans(p.209) Đ Principlesofgoalsetting • • • Clarity – goals must be clear, specific, unambiguous, measurable, and  set within a time frame Challenge – people are motivated by difficult but attainable goals Commitment – ‘buy in’ more likely when: § § • ã Thetaskanditsoutcomesareperceivedtobeimportant Goalachievementisperceivedtobepossible(p.210) Feedbackclarifiesexpectations,assessesandadjusts(ifnecessary) process,andrecognizesgoodperformance Taskcomplexitygoalsmustbeappropriateforcomplextasks Đ Appropriateresources(e.g.,timeandtraining)mustbeprovided Copyrightâ2017JohnWiley&Sons,Inc GoalPlanTypesandComponents (p.211) Đ Businessplan ã ã Interpretsanorganizationalstrategyintoamarketư orcommunityưbasedopportunityfordivisionor departmentalmanagers Budgetquantitativepartofaplanthatallocates availablefinancialresources Copyrightâ2017JohnWiley&Sons,Inc GoalPlanTypesandComponents (cont.) Đ Standingplans(p.211) ã ã ã ã Designedforrepeateduseinresponseto commonly occurring events Policy – describes how an organization and its  members should respond to recurring or  anticipated situations Procedures – provides the specific steps to be  taken as part of a recurring process or in response  to a recurring situation Rules and regulations – formal descriptions of  how specific actions are to be carried out Copyright ©2017 John Wiley & Sons, Inc GoalPlanTypesandComponents (cont.) Đ Đ Goalplansareessentialwaysofcommittingdepartments,resources,and individualstoafuturegoal(p.212) Directionalplan ã Đ Tacticalplan • § Covers an intermediate time scale and enacts divisional strategies by allocating  people and resources Operational plan • • § General, flexible plan that provides guidelines for an organization’s long­term  goals Guidesthedayưtoưdayproductionordeliveryofanorganizationsgoodsand services,andwhichenactsafunctionalstrategy Singleưuseplandevelopedtoachieveaparticulargoalorinresponsetoan eventthatisnotexpectedtoberepeated Optionưbasedplan(p.213) ã preservesflexibilityincontextsofuncertaintybyinvestinginseveral alternativeplans Copyrightâ2017JohnWiley&Sons,Inc GoalPlanTypesandComponents (cont.) Copyrightâ2017JohnWiley&Sons,Inc GoalPlanTypesandComponents (cont.) Copyrightâ2017JohnWiley&Sons,Inc EffectiveGoals(p.213) Đ Typesofgoals ã ã • § Distal goals – primary or long­term goals (p. 214) Proximal goals – short­term goals that increase  individual’s ability to reach distal goals by providing  motivation and feedback Stretch goal – almost unattainable and requires the full  capacity of an individual, manager, team, or organization to  accomplish Means­ends chain (p. 215) ã Integratedseriesofgoalsinwhichtheaccomplishmentof lowerưlevelgoalscontributestotheachievementofhigherư levelgoals Copyrightâ2017JohnWiley&Sons,Inc TeamCommitment(p.215) Đ Goalcommitment ã ã Đ Motivationanddeterminationtoachieveagoal Teammembersmustsharetheorganizations vision Managementbyobjectives(MBO;p.217) ã Managementandemployeesagreetospecific goalsthatarethenusedtoevaluateindividual performance Copyrightâ2017JohnWiley&Sons,Inc IndividualPerformance(p.217) Đ Actionplans ã Specificactions,people,andresourcesneededto accomplishagoal Copyrightâ2017JohnWiley&Sons,Inc HowManagersTrackProgress(p.218) Đ Performancedashboards • • Visual representation of an organization’s strategies and goals, which  allow managers to track progress toward metrics and goals  immediately Balanced scorecard – provided managers and information system  designers a balanced approach to developing performance dashboards  (p. 219) § Augments traditional financial measures with nonfinancial areas: § § § § Company’s relationship with customers Key internal processes Learning and growth Key performance indicators (KPIs) § Measurements that managers identify as vital to the company’s  performance Copyrightâ2017JohnWiley&Sons,Inc HowManagersTrackProgress(cont.) Đ Balancedscorecard Figure8.2 Copyrightâ2017JohnWiley&Sons,Inc HowManagersTrackProgress(cont.) DolphinInnPerformanceDashboard Figure8.3 Copyright ©2017 John Wiley & Sons, Inc  ... Copyrightâ2017JohnWiley&Sons,Inc SettingGoalsthatMakeaDifference (cont.) Đ Smartgoals(p.204) ã ã • • • Specific? ?–? ?clearly defined? ?goals? ?help focus on the  task Measurable? ?–? ?inform about the extent of progress Achievable? ?–? ?realistic and attainable... Copyrightâ2017JohnWiley&Sons,Inc EffectiveGoals(p.213) Đ Typesofgoals ã ã ã Đ Distalgoalsprimaryorlongưtermgoals(p.214) Proximalgoalsshortưtermgoalsthatincrease individualsabilitytoreachdistalgoalsbyproviding motivationandfeedback... Achievable? ?–? ?realistic and attainable Relevant? ?–? ?consistent with the organization’s  mission, vision, and values Time­bound? ?–? ?provides a target for completion Copyrightâ2017JohnWiley&Sons,Inc SettingGoalsthatMakeaDifference