1.
Organizational Goals,
Planning & Decision Making
References:
• Management (W. Griffin)
• Internet
Chapter #3

2.
Organizational Goals
 “Dream with a deadline,"
 a goal is an observable and measurable
end result to be achieved within a more
or less fixed timeframe.
 Goals are critical to organizational
effectiveness and serve a number of purposes.
a. Provide guidance and a unified direction for
people in the organization.
b. Have a strong affect on the quality of other
aspects of planning.
c. Serve as a source of motivation for
employees of the organization.
d. Provide an effective mechanism
for evaluation and control
of the organization.

3.
Vision
Vision statement answers the
question:
“What do we want to become?”
Your vision statement is your inspiration,
the framework for all your strategic
planning.

4.
“What is our business?”
An enduring statement that distinguishes one
organization from the similar enterprises.
Declares the firm’s reason for being
 A mission statement answers three key questions:
 What do we do?
 For whom do we do it?
 What is the benefit?
Mission Statements

5.
 Centers for Disease Control
 Mission: To promote health and quality of life by
preventing and controlling disease, injury, and
disability
 Vision: Healthy People in a Healthy World
 Pakistan Department of Health
 Mission: To protect, maintain and improve the
health of all Pakistanis.
 Vision: Keeping All Pakistanis Healthy

6.
Kinds of Goals
1. By Level
a. Strategic goals- are goals set by and for top management of the
organization that address broad, general issues.
b. Tactical goals- are set by and for middle managers; their focus is
on how to operationalize actions to achieve strategic goals.
c. Operational goals -are set by and for lower-level managers to
address issues associated with tactical goals.
2. By Area
 Goals set for the different functional areas of the organization.
Eg. Marketing, Finance, HR etc
3. By Time Frame
 Goals may be set for long-term, intermediate-term, or short-term
time frames.
 Short-term goals can be achieved within a year. Medium-term
goals may take from a year to three years to achieve. Long-term
goals require three or more years to achieve.

7.
The planning
function
consists of:
What is to be
accomplished?
How is it to be
accomplished?

8.
Barriers to Goal Setting and Planning
As part of managing the goal-setting and planning process,
managers must understand the barriers that can disrupt them.
Managers must also know how to overcome them.
Major Barriers Inappropriate goals
Improper reward system
Dynamic and complex environment
Reluctance to establish goals
Resistance to change
Overcoming the Barriers Understanding the purposes of goals
and planning
Communication and participation
Consistency, revision, and updating
Effective reward systems

9.
Organizational Planning
 Once organizations sets its goals then next stage is to decide how to
achieve them
Strategic Plans
 Are developed to achieve strategic goals. A general plan
outlining resource allocation, priorities, and action steps to
achieve strategic goals. Address issues related to competitive
advantage and synergy. These plans are set by and for top
management & have extended time horizon
Tactical Plans
 A plan aimed at achieving the tactical goals, is developed to
implement specific parts of a strategic plan, set by and for
middle management & have somewhat moderate time horizon.
These plans are concerned with getting things done.

10.
Operational Plans
 Plans that have a short-term focus. These plans are set by
and for lower-level managers. They deal with a fairly small
set of activities.

11.
Time Frames for Planning
1. Long-range Plans
 cover present and future strategic issues; normally extend beyond
five years in the future.
2. Intermediate Plans
 usually cover period from 1 to 5 years. They parallel tactical
plans, are the principal focus of organizational planning efforts.
3. Short-range Plans
 have a time frame of one year or less. Covers manager’s day to
day activities.
 include action plans and reaction (contingency) plans.
 Action Plan- A plan used to execute any other kind of plan.
 Reaction Plan- A plan developed to react to an unforeseen
circumstance.

12.
Contingency Planning
 Contingency is the determination of alternative courses of
action to be taken if an intended plan is unexpectedly disrupted
or rendered inappropriate. These plans help managers to cope
with uncertainty and change.
Ongoing planning process
Action point 1 Action point 2 Action point 3 Action point 4
Develop plan,
considering
contingency events
Implement plan and
formally identify
contingency events
Specify indicators
for the contingency
events and develop
contingency plans for
each possible event
Successfully complete
plan or contingency
plan
Monitor contingency event indicators and
implement contingency plan if necessary

13.
Three Steps in Planning

14.
Strategy…!
 A strategy is a comprehensive plan of action
designed to achieve a particular goal. The word
strategy has military connotations, because it is
derived from the Greek word for army.
 Strategic management is comprehensive and
ongoing management process aimed at the
conduct of drafting, implementing and
evaluating cross-functional decisions that will
enable an organization to achieve its objectives

15.
 Strategic Management: A comprehensive
and ongoing management process aimed
at formulating and implementing effective
strategies, a way of approaching business
opportunities and challenges.

16.
Strategy Formulation and Implementation
Strategy Formulation
What the Plan is
The set of processes involved in creating or determining
the organization’s strategies; it focuses on the content of
strategies.
Strategy Implementation
How the strategy/plan is achieved
The methods by which strategies are operationalized or
executed within the organization; it focuses on the
processes through which strategies are achieved.

17.
Management by Objectives (MBO)
 Management by Objectives (MBO) is a process of agreeing upon
objectives within an organization so that management and employees
agree to the objectives and understand what they are in the
organization.
 The term "management by objectives" was first popularized by Peter
Drucker in his 1954 book 'The Practice of Management.
 The essence of MBO is participative goal setting, choosing course of
actions and decision making. An important part of the MBO is the
measurement and the comparison of the employee’s actual
performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the choosing
the course of action to be followed by them, they are more likely to
fulfill their responsibilities.

18.
Using Goals to Implement Plans
 A formal goal-setting process such as management by
objectives (MBO) is an effective technique for integrating goal
setting and planning by giving subordinates a voice and
clarifying what they are expected to accomplish.
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

19.
 Management by Objectives
Step 1. Set individual objectives and plans.
Step 2. Give feedback and evaluate performance.
Step 3. Reward according to performance.
 Causes of MBO Failure
 Lack of top management commitment and
follow-up on MBO.
 Employees’ negative beliefs about
management’s sincerity in its efforts to include
them in the decision-making process.

20.
The Basic Planning/Control Cycle

21.
Plans
Proposed Decision
Constraints
Environment

22.
Decision Making
Decision Making:
 The act of choosing one alternative from among a set of
alternatives.
Decision-Making Process:
 Recognizing and defining the nature of a decision situation,
identifying alternatives, choosing the “best” alternative, and
putting it into practice.
Types of Decisions
Programmed decision:
 A decision that is fairly structured or recurs with some frequency (or
both).
Non-programmed decision:
 A decision that is relatively unstructured and occurs much less often
than a PROGRAMMED DECISION.

23.
A View of Decision-Making
Conditions
Certainty Risk Uncertainty
Level of ambiguity and chances of making a bad decision
Lower Moderate Higher
The decision
maker faces
conditions of:

24.
Decision Making Styles
 Autocratic- Centralized authority, unilateral
decisions without input from employees, power is
with chair only.
 Democratic style- delegated authority, participative
decisions.
 Laissez-faire style- complete freedom to employees
to make decision and complete work in whatever
way it fits.
 Consensus- Every one has to agree. Either convince
or get convinced.
 Contingency style- policies are made with
provision to change according to situation.