Od- Intervention Ppt- Fatema(23) & Jamila( 06)

8/2/2019 Od- Intervention Ppt- Fatema(23) & Jamila( 06)

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ORGANIZATIONAL PLANNING

AND GOAL SETTING

Prepared by:JAMILA. KATAWALA (06)

FATEMA.ZAVERI(23)

MPMIR-14/03/2012


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What is OD?

Organizational development is a set ofbehavioral science techniques designed to plan andimplement change in work settings. The majortechniques of organizational development attempt to

produce some kind of change in individualemployees, work groups, and/or the entireorganization. These change techniques can bedivided into two categories: process and structural.

In this article, four process change techniques andfour structural change techniques.


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OD.

One of the major problems confronting large organizations is alack of identification by the individual organization memberwith the goals of the organization.

With specialization so highly developed in organizations, manygroup members are very much divorced from the direction and

purpose of the larger system. Goal setting is a method of coordinating individual employees

efforts toward overall organization goals.

Getting employees to work toward organization goals is notjust a matter of informing them what the goals are. Rather,

organization members' support for organization-wide goals isincreased if they participate in the goal-setting process.

When goal setting is a mutual management-follower influenceprocess, group members are given some control over theirwork environment


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Objectives: layout of the ppt

Define goals and plans and explain the relationshipbetween them. Explain the concept of organizational mission and

how it influences goal setting and planning. Describe the types of goals an organization should

have and why they resemble a hierarchy. Define the characteristics of effective goals Describe the four essential steps in the MBO

process. Explain the difference between single-use plans and

standing plans. Describe and explain the importance of the three

stages of crisis management planning. Discuss how planning in the new workplace differs

from traditional approaches to planning.


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Overview of goals and plans

Goala desired future state that the organization

attempts to realize

Plana blueprint specifying the resource

allocations, schedules, and other actionsnecessary for attaining goals.


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Mission

Statement

StrategicGoals/PlansSenior Management

(organization as a

whole)

Tactical Goals/PlansMiddle Management

(major divisions, functions)

Operational Goals/PlansLower Management

(departments, individuals)

External MessageLegitimacy for:investors,suppliers,customers,community

Internal Message

legitimacy,motivation,guides,rationale,standards


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Purposes of goals and plans

Legitimacy. An organization missiondescribes what the organization stands forand its reason for existence. Itsymbolizes legitimacy to externalaudiences such as investors, suppliers,

and customers. Source of motivation and commitment.

Goals and plans facilitate employeesidentification with the organization andhelp motivate them by reducinguncertainty and clarifying what theyshould accomplish.

Goal provides the why of an organization

or subunits existence, a plan tells the how.


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Guides to action. Goals and plans providea sense of direction. They focus attentionon specific targets and direct employeeefforts toward important outcomes.

Rationale for decisions. Through goal

setting and planning, managers learnwhat the organization is trying toaccomplish.

Standard of performance. Because goalsdefine desired outcomes for theorganization, they also serve asperformance criteria.


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Mission

Statement

Strategic Goals/PlansSenior Management

(organization as a whole)

Tactical Goals/PlansMiddle Management

(major divisions, functions)

Operational Goals/PlansLower Management

(departments, individuals)


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Goals in organizations

The overall planning process

begins with a mission statementand strategic goals for theorganization as a whole.


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Mission

The organizations reason for existence.

Mission statement

A broadly stated definition of the

organizations basic business scope andoperations that distinguishes it fromsimilar types of organizations.


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Example:

Mission Statement for Mail Boxes Etc.

Our Mission

Making Business Easier Worldwide Through Our Service and

Distribution Network, Delivering Personalized and Convenient

Business Solutions With World-Class Customers Service.

Our Core Values

Caring Honesty Fairness Commitment

Integrity Trust Respect Accountability


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Goals and plans

Strategic goals. Broad statements ofwhere the organization wants to bein the future; pertain to the

organization as a whole rather thanto specific divisions or departments.

Strategic plans. The actions steps bywhich an organization intends toattain strategic goals.


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Tactical goals. Goals that define the

outcomes that major divisions anddepartments must achieve in orderfor the organization to reach its

over-all goals.

Tactical plans. Plans designed to help

execute major strategic plans and toaccomplish a specific part of thecompanys strategy.


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Operational goals. Specific,

measurable results expected fromdepartments, work groups, andindividuals within the organization.

Operational plans. Plans developedat the organizations lower levels

that specify action steps towardachieving operational goals and thatsupport tactical planning activities.


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MISSION

Finance V.P.Keep outstanding accounts below $500,000Keep borrowing below $2 millionProvide monthly budget statements for departmentsHave delinquent accounts of no more than 2% oftotal

Supervisor Automatic MachinesProduce 150,000 standard units at average cost of $16Have machine downtime of less than 7%Respond to employee grievances within 24 hours

STRATEGIC GOALS

President12% return on investment; 5% growthNo employee layoff; Excellent service to customer

TACTICAL GOALS

Production V.P.Manufacture 1,200,000 products at average cost of $19Increase manufacturing productivity by 2%Resolve employee grievances within 3 working days

OPERATIONAL GOALS

Accounts Receivable ManagerIssue invoices within 5 days of saleCheck new customers credit within 1 working dayAllow no account to be overdue more than 5 monthsCall delinquent accounts weekly

Manufacture both standard and custom metal products for various applications in themachine tool industry


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Criteria of effective goals

Specific and measurable. Whenpossible, goals should be expressedin quantitative terms, such as

increasing profits by 2 percent. Cover key result areas. Goals cannot

be set for every aspect of employeebehavior or organizationalperformance; if they were, theirsheer number would render themmeaningless.


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Challenging but realistic. Goalsshould be challenging but not

unreasonably difficult.

Defined time period. Goals shouldspecify the time period over which

they will be achieved. Linked to rewards. The ultimate

impact of goals depends on the

extent to which salary increases,promotions, and awards are basedon goal achievement.


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Planning types and performance

Purpose of planning and goalsetting is to help the organization

achieve high performance.

1.Management by Objectives (MBO)

2.Single-use Plans3.Standing Plans

4.Contingency (or scenario) Plans


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Management by Objectives(MBO)

Is a method whereby managers andemployees define goals for everydepartment, project, and person and usethem to monitor subsequentperformance.

4 major activities:

1. Set goals2. Develop action plans

3. Review progress

4. Appraise overall performance


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Step 1: Set Goals

Take Corrective Action

Review Progress

Step 3: Review Progress

Appraise Performance

Step 4: Appraise Overall Performance

Action Plans

Step 2: Develop Action Plans

Corporate Strategic Goals Departmental Goals Individual Goals


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Benefits of MBO Problems with MBO

1. Manager and employee efforts

are focused on activities that will

lead to goal attainment.

1. Constant change prevents MBO from

taking hold.

2. Performance can be improved at

all company levels.2. An environment of poor employer-

employee relations reduces MBO

effectiveness.

3. Employees are motivated. 3. Strategic goals may be displaced byoperational goals.

4. Departmental and individual

goals are aligned with companygoals.

4. Mechanistic organizations and values

that discourage participation canharm the MBO process.

5. Too much paperwork saps MBO

energy.


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Single-use Plans

Plans that are developed to achieve a

set of goals that are unlikely to berepeated in the future.


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SINGLE-USE PLANS

Program

Plans for attaining a one-time organizational goal

Major undertaking that may take several years to complete

Large in scope; may be associated with several projects

Examples: Building a new headquarters

Converting all paper files to digital

Project

Also a set of plans for attaining a one-time goal

Smaller in scope and complexity than a program; shorter timehorizon

Often one part of a larger program

Examples: Renovating the office

Setting up a company intranet


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Standing Plans

Ongoing plans that are used toprovide guidance for tasks performedrepeatedly within the organization.


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STANDING PLANS

Policy

Broad in scopea general guide to action

Based on organizations overall goals/strategic plan

Defines boundaries within which to make decisionsExamples: Drug-free workplace policies

Sexual harassment policies

Rule

Narrow in scope

Describes how a specific action is to be performed

May apply to specific setting

Example: No-smoking rule in areas of plant where hazardous materials are stored

Procedure

Sometimes called a standard operating procedure (SOP)

Defines a precise series of steps to attain certain goals

Examples: Procedures for issuing refunds

Procedures for handling employee grievances


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Contingency Plans

Plans that define company responsesto specific situations, such asemergencies, setbacks, orunexpected conditions.

Crisis Management Planning

A special type of contingency plan.


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STAGES OF CRISIS MANAGEMENT

Prevention

Build relationships

Detect signals from environment.

Preparation

Designate crisis management team and spokesperson.

Create detailed crisis management plan.

Set up effective communications system.

Containment

Rapid response: Activate the crisis management plan.

Get the awful truth out.

Meet safely and emotional needs.

Return to business.


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Traditional approaches to

planning Top executives

Consulting firms

Central planning department A group of planning specialists who

develop plans for the organization as a

whole and its major divisions anddepartments and typically report directlyto the president or CEO.


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New workplace approaches toplanning

Involvement of everyone in theorganization

Sometimes outside stakeholders

Decentralized planning

Managers work with planning experts todevelop their own goals and plans.


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THANK-YOU

Od- Intervention Ppt- Fatema(23) & Jamila( 06)

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