1. Planning Organizational Goal Setting and Planning

4. Levels of Goals Mission Statement Strategic Goals/Plans Tactical Goals/Plans Operational Goals/Plans

9. Organizational Goals Example Figure 7.2 Accounting manager ï Split accounts receivable/payable functions from other areas within two years ï Computerize payroll system for each restaurant this year ï Pay all invoices within thirty days Advertising director ï Develop regional advertising campaigns within one year ï Negotiate 5 percent lower advertising rates next year ï Implement this year í s promotional strategy Restaurant manager ï Implement employee incentive system within one year ï Decrease waste by 5 percent this year ï Hire and train new assistant manager Vice president ñ finance ï Keep corporate debt to no more than 20 percent of liquid assets for next ten years ï Revise computerized accounting system within five years ï Earn 9 percent on excess cash this year President and CEO ï Provide 14 percent return to investors for at least ten years ï Start or purchase new restaurant chain within five years ï Negotiate new labor contract this year Mission: Our mission is to operate a chain of restaurants that will prepare and serve high-quality food on a timely basis and at reasonable prices. Vice president ñ marketing ï Increase per store sales 5 percent per year for ten years ï Target and attract two new market segments during next five years ï Develop new promotional strategy for next year Vice president ñ operations ï Open 150 new restaurants during next ten years ï Decrease food-container costs by 15 percent during next five years ï Decrease average customer wait by thirty seconds this year Strategic Goals Tactical Goals Operational Goals

14. Management By Objectives (MBO) Figure 7.5 Starting the formal goal-setting program Establishment of organiza- tional goals and plans Collaborative goal setting and planning Communicat- ing organiza- tional goals and plans Meeting Verifiable goals and clear plans Counseling Resources Periodic review Evaluation