Kuliah 3 Perencanaan

Managerial Planning and
Goal Setting
TI 3203 ORGANISASI dan

MANAJEMEN PERUSAHAAN INDUSTRI
Kuliah 3 : Proses Manajemen - Perencanaan

Program Studi Teknik Industri
Institut Teknologi Bandung
@ 2011
Planning for the Future
GOAL PLAN
PLANNING
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

2
Goals and Plans
 Goal - A desired future state that the organization

attempts to realize.
 Plan - A blueprint specifying the resource
allocations, schedules, and other actions necessary
for attaining goals
 Planning – determining the organization’s goals and
the means for achieving them
– the most fundamental management function
– the most controversial management function.

3
Managerial Planning
and Goal Setting
 Process of planning
 How managers develop effective plans
 Goal setting
 Types of plans
 New approaches to planning

4
The Importance of Goals and Plans
Goals and Plans
Rationale for decisions Standard of performance
Guides to action

5
Levels of Goals/Plans & Their Importance
External Message
Legitimacy for
Mission
investors, customers,
Statement suppliers, community
Strategic Goals/Plans
Senior Management
(Organization as a whole)
Internal Message
Legitimacy,
Tactical Goals/Plans motivation,
Middle Management guides,
(Major divisions, functions) rationale,
standards
Operational Goals/Plans
Lower Management
(Departments, individuals)

6
Benefits for the Organization
Provided from Internal and External Messages Goals and Plans Send
• Legitimacy
• What the organization stands for - reason for being
• Symbolizes legitimacy
• Employees identify with overall purpose
• Source of Motivation and Commitment
• Employees’ identification with the organization
• Motivate by reducing uncertainty
• Guides to Action
• Provide a sense of direction; focus attention on specific
targets
• Direct efforts toward important outcomes

7
Benefits for the Organization
Provided from Internal and External Messages Goals and Plans Send
• Rationale for Decisions

• Learn what organization is trying to accomplish
• Make decisions to ensure that internal policies, roles,
performance, structure, products, and expenditures will be
made in accordance with desired outcomes
• Standard of Performance
• Serve as performance criteria
• Provide a standard of assessment

8
Organizational Mission
 Mission = organization’s reason for existing

 Mission Statement
– Broadly states the basic business scope and
operations that distinguishes it from similar types
of organizations
– May include the market and customers
– Some may describe company values, product
quality, attitudes toward employees

9
Visi-Misi PT PERTAMINA
VISI :Menjadi Perusahaan Minyak Nasional Kelas

Dunia
MISI :Menjalankan usaha inti minyak, gas, dan

bahan bakar nabati secara terintegrasi,
berdasarkan prinsip-prinsip komersial yang kuat

10
Strategic Goals and Plans
Strategic Goals
 Where the organization wants to be in the future
 Pertain to the organization as a whole
Strategic Plans
 Action Steps used to attain strategic goals
 Blueprint that defines the organizational
activities and resource allocations
 Tends to be long term
11
Tactical Goals and Plans
●Tactical Goals
- Apply to middle management
- Goals that define the outcomes that major
divisions and departments must achieve
●Tactical Plans
-Plans designed to help execute major strategic plans
-Shorter than time frame than strategic plans

12
Operational Goals and Plans
• Operational Goals
- Specific, measurable results
- Expected from departments, work groups, and
individuals
• Operational Plans
- Organization’s lower levels that specify action
steps toward achieving operational goals
- Tool for daily and weekly operations
- Schedules are an important component
13
Goal Attainment
Means-end Chain
 Attainment of goals at lower levels permits
the attainment of high-level goals
 Traditional organizational responsibility
– Strategic = top management
– Tactical – middle management
– Operational = 1st line management & workers

14
Hierarchy of Goals
Traditional Responsibility Today
Mission
Top Strategic
Management Goals •Shrinking middle
management
Middle Tactical •Employee
Management Goals empowerment
1st-line
Management Operational
& Workers Goals Employees

15
Characteristics of Effective
Goal Setting
 Specific and measurable

 Covered key result area
 Challenging but realistic
● Defined time period
● Linked to rewards

16
VISION

17
OBJECTIVE

18
STRATEGY

19
TACTIC

20
ACTION

21
The Organizational Planning Process

Copyright ©2010 by South-Western, a division of Cengage 22
Learning. All rights reserved.
Aligning Goals
with Strategy Maps
 Goals should be consistent and mutually

supportive
 The achievement of goals at low levels

permits the attainment of high-level goals
 Individuals, teams, and departments should

be working in concert

23
Strategy Map for Aligning Goals
Goals
should be
consistent
and
mutually
supportive

Operational Planning
 Operational goals should direct employees

and resources toward outcomes
 It is important to establish effective goals

– Management by objective
– Single-use plans
– Standing plans
– Contingency plans
25
Management by Objective
Defined by management scholar

Peter Drucker in his 1954 book, The
Practice of Management
Process of defining goals and

monitoring progress

Model of the MBO Process
Step 1: Set Goals Step 2: Develop Action Plans
Corporate Strategic Goals
Departmental goals
Action Plans
Individual goals
Review Progress
Step 3:
Review Progress
Take Corrective Action

Appraise Performance
Step 4: Appraise Overall
Performance
27
MBO Benefits and Problems
Benefits of MBO Problems with MBO
 Manager and employee  Constant change prevents
efforts are focused on MBO from taking hold
activities that will lead to  An environment of poor
goal attainment employer-employee relations
 Performance can be reduces MBO effectiveness
improved at all company  Strategic goals may be
levels displaced by operational goals
 Employees are motivated  Mechanistic organizations and
 Departmental and values that discourage
individual goals are participation can harm the
aligned with company MBO process
goals  Too much paperwork saps
MBO energy
28
Single-Use Plans
For Goals Not Likely To Be Repeated
● A program is a complex set of objectives and

plans to achieve an important, one-time
organizational goal
● A project is similar to a program, but
generally smaller in scope and complexity

29
Standing Plans
For Tasks Performed Repeatedly
● A policy is a general guide to action and

provides direction for people within the
organization
● Rules describe how a specific action is to be
performed
● Procedures define a precise series of steps
to be used in achieving a specific job

30
Contingency Plans
Specific Situations - unexpected conditions
 Identify Uncontrollable Factors

– Economic turndowns
– Declining markets
– Increases in costs of supplies
– Technological developments
– Safety accidents
 Minimize Impact of Uncontrollable Factors
– Forecast a range of alternative responses to
most-likely high-impact contingencies

31
Strategy Formulation and
Implementation
Strategic Planning
 Strategic planning has taken on new
importance in today’s world of
globalization, deregulation, advancing
technology, and changing demographics,
and lifestyles
33
Strategy Formulation and
Implementation
 Strategic Management
– Definition
– Components
– Model of Strategic Management Process
– Models of Strategy Formation
 Managerial Tools to Implement Strategic

Plans
34
Thinking Strategically
 Answers to the following define an overall

direction for the organization's grand strategy
 Where is the organization now?
 Where does the organization want to be?
 What changes are among competitors?
 What courses of action will help us achieve our
goals?

35
Strategic Management
 Set of decisions and actions used to

implement strategies that will provide a
competitively superior fit between the
organization and its environment so as to
achieve organizational goals
 Responsibility = top managers &

chief executive

36
Strategic Management
Managers ask such questions as...

 What changes and trends are occurring?
 Who are our customers?
 What products or services should we offer?
 How can we offer these products or
services most efficiently?

37
Grand Strategy
 General plan of major action to achieve

long-term goals
 Falls into three general categories
1. Growth A separate grand
strategy can be
2. Stability
defined for global
3. Retrenchment operations

38
Grand Strategy: Growth
 Growth can be promoted internally by

investing in expansion or externally by
acquiring additional business divisions
- Internal growth = can include development of new
or changed products
- External growth = typically involves diversification
– businesses related to current product lines or
into new areas

39
Grand Strategy: Stability
 Stability, sometimes called a pause strategy,

means that the organization wants
– to remain the same size or
– to grow slowly and in a controlled fashion

40
Grand Strategy: Retrenchment
 Retrenchment = the organization goes through a

period of forced decline by either shrinking current
business units or selling off or liquidating entire
businesses
 Liquidation = selling off a business nit for the cash

value of the assets, thus terminating its existence
 Divestiture = involves selling off of businesses that

no longer seem central to the corporation

41
Global Corporate Strategies
High Transnational
Globalization Strategy
Strategy • Seeks to balance global
• Treats world as a efficiencies and local
single global market
responsiveness
• Standardizes global
• Combines standardization
products/advertising
and customization for
Need for Global Integration
strategies
product/advertising
strategies
Export
Strategy Multi-domestic Strategy
•Domestically focused • Handles markets
independently for each
•Exports a few country
domestically produced
products to selected • Adapts product/advertising
countries to local tastes and needs
Low
Low Need for National Responsiveness High
42
Global Strategy
 Globalization = product design and

advertising strategies are standardized
around the world
 Multi-domestic = adapt product and
promotion for each country
 Transnational = combine global
coordination with flexibility to meet
specific needs in various countries
43
Purpose of Strategy
 The plan of action that prescribes

resource allocation and other
activities for dealing with the
environment, achieving a
competitive advantage, that help
the organization attain its goals
Strategies focus on:
● Core competencies
● Developing synergy
● Creating value for customers

44
Three Levels of Strategy in Organizations
Corporate-Level Strategy:
What business are we in?
Corporation
Business-Level Strategy:
How do we compete?
Textiles Unit Chemicals Unit Auto Parts Unit
Functional-Level Strategy:
How do we support the business-level
strategy?
Finance R&D Manufacturing Marketing

45
Strategic Management Process
Scan External Identify Strategic

Environment – Factors –
National, Opportunities,
Global Threats Implement
Strategy via
Evaluate Formulate Changes in:
Current Mission, Define new Strategy – Leadership
SWOT Mission culture,
Goals, Corporate,
Strategies Goals, Grand Business, Structure, HR,
Strategy Functional Information &
control
Scan Internal systems
Identify Strategic
Environment – Core
Factors –
Competence,
Strengths,
Synergy, Value
Weaknesses
Creation

46
Strategy Formulation vs.
Implementation
 Strategy Formulation = stage of strategic

management that involves planning and decision
making that lead to the establishment of the
organization’s goals and of a specific strategic plan
 Strategy Implementation = stage of strategic
management that involves the use of managerial
and organizational tools to direct resources toward
achieving strategic outcomes

47
Checklist for Analyzing
Organizational Strengths and Weaknesses
Management and Organization Marketing Human Resources
Management quality Distribution channels Employee experience,
Staff quality Market share education
Degree of centralization Advertising efficiency Union status
Organization charts Customer satisfaction Turnover, absenteeism
Planning, information, Product quality Work satisfaction
control systems Service reputation
Grievances
Sales force turnover
Finance Production Research and Development
Profit margin Plant location Basic applied research
Debt-equity ratio Machinery obsolescence Laboratory capabilities
Inventory ratio Purchasing system Research programs
Return on investment Quality control New-product innovations
Credit rating Productivity/efficiency Technology innovations
Sources: Based on Howard H. Stevenson, “ Defining Corporate Strengths and Weaknesses,” Sloan Management Review 17 (spring 1976), 51-68; and M.L.Kastens,
Long-Range Planning for Your Business (New York: American Management Association, 1976).
48
Portfolio Strategy
BCG Matrix
 Mix of business
units and product
lines that fit
together in a
logical way to
provide synergy
and competitive
advantage

49
Five Forces Affecting Industry Competition
•Internet reduces Potential New

barriers to entry Entrants
Internet blurs differences among

competitors in an industry
Threat of Substitute Rivalry Bargaining

Products among Power of
Competitors Buyers
•Internet expands market size, but •Internet shifts greater power
creates new substitution threats to end consumers
•Internet tends to increase the

bargaining power of suppliers Bargaining Power of Suppliers
Source: Based on Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (New York: Free Press, 1980).

50
Competitive Edge Through
Competitive Strategies
 Differentiation = attempt to distinguish products

or services from that of competitors
 Cost leadership = aggressively seeks efficient
facilities, pursues cost reductions, and uses tight
cost controls to produce products more efficiently
than competitors
 Focus = concentrates on a specific regional
market or buyer group

51
Continuum of Partnership Strategies
Organizational Combination Acquisitions
Mergers
Joint Ventures
Strategic
Alliances
Strategic Business Partnering
Preferred Supplier Arrangements
Low High
Degree of Collaboration
52
Implementing Strategy Tools
 Leadership
 Structural design
 Information and control systems
 Human resources

53
Tools for Putting
Environment
Strategy into Action
Organization
Leadership
 Persuasion
 Motivation
 Culture/values
Structural Design
 Organization Chart Human Resources
 Teams  Recruitment/selection
Strategy  Transfers/promotions Performance
 Centralization
Decentralization,  Training
 Facilities, task design  Layoffs/recalls
Information and Control Systems

 Pay, reward system
 Budget allocations
 Information systems
 Rules/procedures
Source: Adapted from Jay R. Galbraith and Robert K. Kazanjian, strategy Implementation: Structure, Systems and Process, 2d ed. (St. Paul, Minn.: West, 1986), 115,
Used with permission.
54

Kuliah 3 Perencanaan

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Kuliah 3 Perencanaan

Uploaded by

Copyright:

Available Formats

Managerial Planning and

TI 3203 ORGANISASI dan

Kuliah 3 : Proses Manajemen - Perencanaan

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Goal - A desired future state that the organization

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Goals and Plans

Rationale for decisions Standard of performance

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

• Rationale for Decisions

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Mission = organization’s reason for existing

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

VISI :Menjadi Perusahaan Minyak Nasional Kelas

MISI :Menjalankan usaha inti minyak, gas, dan

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Specific and measurable

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Goals should be consistent and mutually

 The achievement of goals at low levels

 Individuals, teams, and departments should

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Operational goals should direct employees

 It is important to establish effective goals

Defined by management scholar

Process of defining goals and

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Take Corrective Action

● A program is a complex set of objectives and

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

● A policy is a general guide to action and

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Identify Uncontrollable Factors

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Strategic planning has taken on new

importance in today’s world of

globalization, deregulation, advancing

technology, and changing demographics,

 Managerial Tools to Implement Strategic

 Answers to the following define an overall

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Set of decisions and actions used to

 Responsibility = top managers &

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Managers ask such questions as...

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 General plan of major action to achieve

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Growth can be promoted internally by

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Stability, sometimes called a pause strategy,