The overall planning process
is a two-part function—setting goals and
determining how to try to achieve the
1. A goal
(often used interchangeably with “objective”) is a
future target or end
result that an organization wishes to achieve.
2. A plan
is the means devised for attempting to reach a goal.
B. An organization’s mission
is the organization’s purpose or fundamental
1. A mission statement
is a broad declaration of the basic, unique purpose
scope of operations that distinguishes the organization from others of
2. A mission statement serves a variety of purposes.
a. For managers, a mission statement can be a benchmark against which to
b. For employees, mission statements define a common purpose, nurture
organizational loyalty, and help foster a sense of community among
c. For external groups, mission statements help provide unique insights
an organization’s values and future directions.
3. The mission statement typically defines the organization in terms of
attributes of the organization. Answers to many of these questions are
using information and processes described in the two previous chapters
a. Customers: Who are the organization’s customers?
b. Products or services: What are the organization’s major products or
c. Location: Where does the organization compete?
d. Technology: What is the firms’ basic technology?
e. Philosophy: What are the basic beliefs, values, aspirations, and
philosophical priorities of the organization?
f. Self-concept: What are the organization’s major strengths and
g. Concern for public image: what are the organization’s public
responsibilities and what image is desired?
h. Concern for employees: What is the organization’s attitude toward its
Types of Plans
Plans can be described by their breadth, time
frame, specificity, and frequency of use.
a. Breadth: strategic versus operational plans.
Strategic plans are those that are
establish overall objectives, and position an organization in terms of
Operational plans are plans that
specify details on how overall objectives are to be achieved.
b. Time frame: short-term versus long-term plans.
Short-term plans are plans that cover
one year or
Long-term plans are those that extend
beyond three years.
c. Specificity: specific versus directional plans.
Specific plans are those that are
clearly defined and
leave no room for interpretation.
Directional plans are flexible plans
that set out general
The Nature of organizational Goals
A. The use of goals has several benefits.
can be improved.
Expectations can be improved.
Controlling function can be facilitated
so that progress can be assessed and
corrective action taken.
4. Meeting goals can increase
B. The three levels of goals within an
organization form a hierarchy of goals, with lower-level
goals forming a mean-end chain with the next level of goals.
4. Strategic goals
are broadly defined targets or future end results set
5. Tactical goals
are the targets or future end results usually set by
management for specific departments or units.
6. Operational goals
are those targets or future end results set by lower
management that address specific, measurable outcomes required from the
How Goals Facilitate Performance
The content of goals should meet five
goals usually lead to higher performance from
goals, not impossible demands, are more likely to
3. Specific and measurable
goals are needed so that it is clear when they have
goals give them meaning.
goals enable employees to see the purpose of the
goals and to devise
ways of meeting them.
means the performance and targets can be measured
after an interval
is one’s attachment to, or determination to
reach, a goal. Without commitment goals
have little impact on performance. Managers can help foster commitments
in a number of ways.
1. Supervisory authority
should serve to motivate employees to meet their
2. Peer and group pressure
may serve as motivation.
3. Expectations of success
can be improved by managerial coaching and
are offered during the goal-setting process; rewards
occur upon goal
in the goal setting process may be effective in
engendering goals commitment.
Work behavior may be affected by four factors influenced by goals
content and goal commitment.
1. Goals provide
by channeling attention and action toward
related to those goals, rather than to other activities.
2. Goals to which we are
boost effort by mobilizing energy.
involves maintaining direction and effort on behalf
of a goal until it is
4. Goal setting leads to planning
if the goals are appropriately challenging.
The impact of goals on performance of any specific job can be influenced
by a number of other process
1. Job knowledge and ability
are likely to affect an individual’ work
prospects for reaching goals.
complexity of the task may affect the
degree to which goal-directed work
behaviors influence job performance.
3. Situation constraints include such
things as having the proper tools, materials,
4. Knowledge of results
or feedback about progress enables individuals
their progress toward goal attainment.
Strategic plans typically involve time periods of 5 years or more, but
the time frame is dependent upon the
stability of the industry in question.
The planning process can be used to promote
3. The organizational mission statement can be a primary means of
4. The goals component can translate the mission in a way supporting
5. The plans component can provide actual plans for achieving innovative
Obstacles to planning
exist, but may be countered by organizations.
1. Obstacles to planning threaten the ability of organizations to
a. Plans in a rapidly changing environment require frequent revisions.
Manager may resist formalized planning if they believe planning is
unnecessary. The pressure of day-to-day responsibilities may keep
managers from planning. Managers may be poorly prepared.
Staff specialists may come to dominate the planning process
2. Organizations can take steps to reduce the obstacles to planning.
a. Top-level managers may demonstrate their support of the planning
b. A planning staff
is a small group of individuals who assist top-level
managers in developing the various components of the planning process.
This staff should focus on helping rather than taking over the planning
c. Contingency planning
is the development of alternative plans for use in
the event that environmental conditions evolve differently than
anticipated, rendering original plans unwise or unfeasible.