chapter 8 setting goals. 8- 2 management 1e 8- 2 management 1e 8- 2 management 1e 8- 2 management 1e...

Chapter 8

Setting Goals

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Learning Objectives

Describe the primary goals of an organization Explain the principles and different types of goal plans

in an organization Outline different types of goals and the characteristics

that make them effective Illustrate how managers secure team-level

commitment to goals Construct action plans consistent with goals to achieve

individual-level performance Describe how managers track progress of goal plans

through performance dashboards

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Setting Goals that Make a Difference (p. 202)

Goals must be set within a strategic framework consisting of mission, vision, and values

Goals are important because they:• Give direction• Provide a sense of purpose and achievement• Reinforce our beliefs• Enable reaching our full potential• Boost our self-esteem


Setting Goals that Make a Difference (cont.)

Smart goals (p. 204)• Specific – clearly defined goals help focus on the task• Measurable – inform about the extent of progress• Achievable – realistic and attainable• Relevant – consistent with the organization’s mission,

vision, and values• Time-bound – provides a target for completion


Setting Goals that Make a Difference (cont.)

When goals go wrong they (p. 207):• Involve excessive risk-taking• Increase stress• Create feelings of failure• Become a ceiling for performance• Ignore non-goal areas• Promote short-range thinking• Promote dishonesty/cheating


Goal Plans (p. 209)

Principles of goal setting• Clarity – goals must be clear, specific, unambiguous,

measurable, and set within a time frame• Challenge – people are motivated by difficult but attainable

goals• Commitment – ‘buy in’ more likely when:

The task and its outcomes are perceived to be important Goal achievement is perceived to be possible (p. 210)

• Feedback – clarifies expectations, assesses and adjusts (if necessary) process, and recognizes good performance

• Task complexity – goals must be appropriate for complex tasks Appropriate resources (e.g., time and training) must be provided


Goal Plan Types and Components (p. 211)

Business plan• Interprets an organizational strategy into a market-

or community-based opportunity for division or departmental managers

• Budget – quantitative part of a plan that allocates available financial resources


Goal Plan Types and Components (cont.)

Standing plans (p. 211)• Designed for repeated use in response to

commonly occurring events• Policy – describes how an organization and its

members should respond to recurring or anticipated situations

• Procedures – provides the specific steps to be taken as part of a recurring process or in response to a recurring situation

• Rules and regulations – formal descriptions of how specific actions are to be carried out



Goal plans are essential ways of committing departments, resources, and individuals to a future goal (p. 212)

Directional plan• General, flexible plan that provides guidelines for an organization’s

long-term goals Tactical plan

• Covers an intermediate time scale and enacts divisional strategies by allocating people and resources

Operational plan• Guides the day-to-day production or delivery of an organization’s goods

and services, and which enacts a functional strategy• Single-use plan – developed to achieve a particular goal or in response

to an event that is not expected to be repeated Option-based plan (p. 213)

• preserves flexibility in contexts of uncertainty by investing in several alternative plans

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Effective Goals (p. 213)

Types of goals• Distal goals – primary or long-term goals (p. 214)• Proximal goals – short-term goals that increase

individual’s ability to reach distal goals by providing motivation and feedback

• Stretch goal – almost unattainable and requires the full capacity of an individual, manager, team, or organization to accomplish

Means-ends chain (p. 215)• Integrated series of goals in which the accomplishment of

lower-level goals contributes to the achievement of higher-level goals


Team Commitment (p. 215)

Goal commitment• Motivation and determination to achieve a goal• Team members must share the organization’s vision

Management by objectives (MBO; p. 217)• Management and employees agree to specific goals

that are then used to evaluate individual performance


Individual Performance (p. 217)

Action plans• Specific actions, people, and resources needed to

accomplish a goal

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How Managers Track Progress (p. 218)

Performance dashboards• Visual representation of an organization’s strategies and

goals, which allow managers to track progress toward metrics and goals immediately

• Balanced scorecard – provided managers and information system designers a balanced approach to developing performance dashboards (p. 219) Augments traditional financial measures with nonfinancial areas:

Company’s relationship with customers Key internal processes Learning and growth

Key performance indicators (KPIs) Measurements that managers identify as vital to the company’s

performance

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How Managers Track Progress (cont.)

Balanced scorecard

Figure 8.2

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How Managers Track Progress (cont.)

Dolphin Inn Performance Dashboard

Figure 8.3

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Copyright

Copyright © 2014 John Wiley & Sons, Inc.

All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein.

chapter 8 setting goals. 8- 2 management 1e 8- 2 management 1e 8- 2 management 1e 8- 2 management 1e...

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