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Planning
It involves defining the organization’s goals, establishing strategies for
achieving those goals, and developing plans to integrate and coordinate
work activities.
This traditional perspective assumes that top managers know what’s best
because they see the big picture. The goals passed down to each
succeeding level guide individual employees as they work to achieve
those assigned goals.
Approaches to Setting Goals
MANAGEMENT BY OBJECTIVES (MBO) – a process of setting mutually
agrees-upon goals and using those goals to evaluate employee
performance.
Four elements:
1. Goal specificity
2. Participative decision making
3. Explicit time period
4. Periodically review whether progress was being made toward
achieving those goals.
Steps in MBO
1. The organization’s overall objectives and strategies are formulated.
2. Major objectives are allocated among divisional and departmental units.
3. Unit managers collaboratively set specific objectives for their units with their
managers.
4. Specific objectives are collaboratively set with all department members.
5. Action plans, defining how objectives are to be achieved, are specified and
agreed upon by managers and employees.
6. The action plans are implemented.
7. Progress towards objectives is periodically reviewed, and feedback is provided.
8. Successful achievement of objectives is reinforced by performance-based
rewards.
Well-Written Goals
1. Written in terms of outcomes rather than actions
2. Measurable and quantifiable
3. Clear as to a time frame
4. Challenging yet attainable
5. Written down
6. Communicated to all necessary organizational
members
Developing Plans
Three contingency factors affecting the process
of developing plans:
1. Organizational level
2. Degree of environment uncertainty
3. Length of future commitments