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How goals facilitate performance

Lesson 2. Planning and Decision Making



1. The planning process. 1

2. The nature of organizational goals. 1

Levels of goals. 1

First level management – operational goals. 1

Middle management – tactical goals. 1

Strategic goals – top management 1

How goals facilitate performance. 2

Five major characteristics of effective goals: 2

Linking goals and plans. 2

3. Strategic management and MBO process. 3

Environmental assessment 4

4. Managerial Decision Making. 5

The planning process


Plan – The means devised to reach a goal

Goal– A future target or end result that an organization wishes to achieve

Mission– The organization’s purpose or fundamental reason for existence

Mission statement (MS) a broad declaration of the basic, unique purpose and scope of operations that distinguishes the organization form others of its type


Mission – Goals – Plans – Goal attainment (organizational efficiency and effectiveness)


M.S. for managers: is a benchmark against which to evaluate the success.

for employees: defines a common purpose.

for external parties – investors, governments – unique insight into an organization’

values, and future directions.


  1. The nature of organizational goals


Use of goals – benefits

a) can increase performance b) help clarify expectations c) facilitate the controlling function – provide benchmarks d) increased motivation


Levels of goals


First level management – operational goals


Targets or future results set by lower management that address specific measurable outcomes required from the lower levels.


Middle management – tactical goals


Targets or future results usually set by middle management for specific departments or units

Spell what must be done to achieve the results outlined in the strategic goals. Tend to be stated in more measurable terms than strategic ones.


Strategic goals – top management


Broadly defined targets or future end results set by top management. Called “official goals”.


Market standing - desired share of present and new markets

Innovation – in products, services, in skills and activities as required

Human resources - supply, development and performance of managers

Physical resources – facilities and how to use ‘em in production process

Productivity – efficient use of resources relative to outcomes

Social responsibility – community and ethical behavior

Profit requirements – level of profitability, other indicators.


How goals facilitate performance


Five major characteristics of effective goals:


  1. Challenging. Difficult goals lead to higher performance
  2. Attainable. Usually work best when they are attainable. At some point, use of maximum skills and abilities and cannot achieve higher performance levels. Even with difficult goals individuals usually attempt to achieve as much as possible – if they are given credit for what they do achieve.
  3. Specific and Measurable. Clear what is expected and when the goal has been achieved. Quantitative goals and qualitative ones.
  4. Time-limited. Should be a defined period of time wihin which the goals must be accomplished.
  5. Relevant. If clearly relevant to the major work of organization and the particular department.


Goal commitment – one’s attachment to, or determination to reach, a goal. To feel committed.


Date: 2016-03-03; view: 2385

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Í. Hesse. DER STEPPENWOLF | Linking goals and plans
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