Goal Setting and Work

Planning

Pakistan Institute of Management

 Model of the Motivation Process

Learning

Needs Goal or
wants, need
Tension Drive Behavior
and fulfill-
desires ment

Cognitive
processes

Tension
reduction
Types of Needs
 Innate Needs
 Physiological (or biogenic) needs that
are considered primary needs or
motives

 Acquired needs
 Generally psychological ( psychogenic)
needs that are considered secondary
needs or motives
 The Selection of Goals
 The goals selected by an individual depend on
their:

 Personal experiences
 Physical capacity
 Prevailing cultural norms and values
 Goal’s accessibility in the physical and
social environment
Interdependence of need and goal

 Need and goal are interdependent

 People are more aware about their

goals than needs

 People are more aware about their

physiological needs than
psychological needs
Motivations and Goals
 Positive Motivation  Negative Motivation
 A driving force  A driving force away
toward some from some object or
object or condition condition
 Avoidance Goal
 Approach Goal  A negative goal from
 A positive goal which behavior is
toward which directed away
behavior is directed  Prevention activities
 Capitalizing on an
opportunity
Rational Versus Emotional Motives

 Rationality implies that people select goals

based on totally objective criteria such as
size, weight, price, or miles per gallon

 Emotional motives imply the selection of

goals according to personal or subjective
criteria
The Dynamic Nature of Motivation

 Needs are never fully satisfied

 New needs emerge as old needs are

satisfied

 People who achieve their goals set new

and higher goals for themselves
Maslow’s Hierarchy of Needs
5
Self-
actualization
(self-development
and realization)
4 Esteem needs
(self-esteem, recognition)
Social needs
3 (sense of belonging, love)
Safety needs
2
(security, protection)
Psychological needs
1 (food, water, shelter)
“All good performance
starts with clear
goals.”
GOALS

 Establish direction for ongoing

activities.

 Identify expected results.

 Improve teamwork through common

sense of purpose.

 Heighten performance levels by setting

targets to be achieved.
REASONS FOR NOT HAVING GOALS

 I have done pretty well in my life so far

without setting any goals. So why do I need
them now ?

 I know what I want. It is all in my head so I

really do not need to write it down.

 I will feel like a failure if I set goals and then

do not achieve them.
REASONS FOR NOT HAVING GOALS

• Setting goals and achieving them will

mean people will expect even more of
me.
• I like to be spontaneous in life.

• I just want so much from life,

WHAT IS A GOAL ?

A goal is specific statement about

something to be achieved. A goal can
be defined as a complete description
of a future condition we would like to
see prevail at a particular time, under
specific cost constraints.
A Hierarchy of Organizational Objectives

President’s
Strategic Goals

VP of
VP of VP of VP of
Human
Marketing Sales Manufacturing
Resources

Purchasing Production
Director Director
 Traditional Objective Setting

Top
“We need to improve
Management’s
the company’s performance”
Objective

Division “I want to see a

Manager’s significant improvement
Objective in this division’s profits”

Department
“Increase profits, regardless
Manager’s
of the means”
Objective

Individual “Don’t worry about

Employee’s quality: just work fast”
© Prentice Hall, 2002
Objective 7-16
Elements Of A Goal

 An accomplishment to be achieved.
- Express this accomplishment with an action word.

 The outcome is measurable.

- Simple and identifiable signs of success.

 The time factor

 The cost consideration

- The cost and resources constraint forces you to place a
financial value on the outcome.
EXAMPLES

 Gain five new customers and increase gross

sales to Rs.2 million by 1 October, 2010
within an expense budget of Rs.50,000.

 Expand market share to 5% by 31 Dec, 2010

without increasing advertising expense
beyond current levels.

 Increase productivity in our division 5% by 15

August 2010 without adding any personnel.
MISSION

 A mission is a general statement through

which a person specifies the overall strategy
that governs the goals and objectives.

 A mission statement interprets ‘ reason for

being’
EXAMPLES

 We will prepare and distribute fine quality

packaged foods to national retailers. ( Food
Company)

 We will provide a wide variety of financial

services to consumers and commercial
customers in Pakistan. (Insurance Company)

 We will design and manufacture metal and

plastic valves and fittings and will market them
to home builders through a national network of
industrial distributors. (Manufacturing
Company)
Elements Of A Mission Statement

 A description of the organization’s

basic products or services.

 The functions that it will perform.

 Markets or clients it will serve.

OBJECTIVES
 Objectives are tactics that you will use to
achieve goals.

Mission

Goals

Objectives
Characteristics Of Goals

 There are multiple goals.

 Goals are arranged in a hierarchy.

 The time horizon for goals will vary.

 From an individual manager’s point of view,

goals are either dependent or controllable.

 Goals should always specify what, where,

and when.
 Types of Objectives

Market Standing Innovation

Physical and
Productivity
Financial Resources

Managerial Performance
Profitability
and Development
Worker Performance
Public Responsibility
and Attitude
Examples of Yardsticks and Goals

Area Yardstick Standard/Goal

•Sales •Sales revenue •$85,000 a month

•Production •Productivity •Five units per hour

•Quality •Number of rejects •Zero defects

•Finances •Profitability •20% ROI

•Expenses •Raw materials •20% of sales

•Customer reactions •Satisfaction •Zero complaints

•Employee behavior •Turnover •Maximum 10%

EXAMPLE

MISSION
We will design and manufacture metal and
plastic valves and fittings and will market
them to home builders through a national
network of industrial distributors
EXAMPLE

 A corporate goal,
- Generate sale revenue of Rs. 50 million from
the current market and product by 2010.
- Make a profit of 10% on total sales.
- Capture 15% of the national market for our
product.

 Production department goal,

- Manufacture 50,000units of product “A” by the
end of each quarter during 2010.
- Have fewer than 2% defects at inspection.
- Reduce production cost by 7% by the end of
2010.
EXAMPLE

• Purchasing department goal,

- Reduce cost of raw materials by 3% by
the end of March 2010.
- Reduce inventory storage cost by 15%
by the end of June 2010.
- Have better than 95% of all shipments
of raw materials arrive on time.
Hierarchy of Goal and Objectives
Goal
Manufacture 50,000units of product “A” by the
end of each quarter during 2010.
Objectives
 Organize the work force in two shifts, each for eight
hours. (Jan 1 – Jan 5 )
 Get production of product “A” at the level of 375
units/shift. ( ongoing )
 Arrange a pool of back up employees for absent
ones by Jan 15.
 Objectives

 Arrange back up generator for power failure by Jan

15.
 Review production report of each shift at 9:00 A.M
on the following day from Jan 3.
 Conduct a weekly meeting with foremen at the end
of each week, starting from Jan 3.
 Arrange a weekly meeting with procurement
department head at the beginning of each week.
First meting is on Jan 2.
 Arrange a monthly meeting with the head of
maintenance department head at the end of each
month, starting from Jan1.
 Who Sets Goals & How Do They Agree?

Discussion

Process
Of
Analysis
Compromise Agreement
CHARACTERISTICS AND RELATED TARGET SUBJECTS WHICH MIGHT
BE SET FOR TEAM LEADERS AND TEAM MEMBER

Characteristics Targets for team Targets for Team

of successful Leaders Members
teams
Clearly defined Development and Contributing to the
goals and communication development of the
objectives. of a team vision. team vision. Working
towards the
achievement of team
Understanding Establishing goals.
process for guidelines for
working together. communications (eg Working to improve
meetings, working Methods
presentations) and
standards for these.
Characteristics of Targets for team Targets for Team
successful teams Leaders Members
Providing right balance Leading the team
Appropriate between task and through expertise in
leadership. individual focus as
particular areas.
leader.

Providing personal Taking opportunities

Opportunities for for personal
development for team
personal members through development within
development. training, coaching, team environment,
counseling mentoring, e.g coaching role-
etc. modeling, etc.
Strong inter-team
relationships. Building relationships
Building
and understanding
with other teams,
relationships outside
customers, suppliers,. of the team.
Increasing the
awareness the team’s
objectives amongst
other teams.
Desirable Behaviors From Team Members

 Openness
 Trust and support
 Assertive communication
 Listening
 Questioning
 Sensitivity
Target Setting In Team Environment

 Balance between organizational or

departmental goal and individual’s
developmental goal.

 Top down support – Bottom up development

- Autocratic model
- Democratic model
- Laissez-faire model
Using Targets To Breed Success

 Set realistic but stretchable goals.

 Level of difficulty for a task would vary

among different individuals,
- Experience - existing knowledge
- Enthusiasm - Fear
- Confidence - Apparent relevance
- Training - Education
 SETTING ACHIEVEVBLE BUT STRETCHING TARGETS - 1

Unrealistic target set

Seen by others as a failure Employee gives up

Employee sees self as a failure Failure to meet targets

Loss of faith in the process

 SETTING ACHIEVEVBLE BUT STRETCHING TARGETS - 2

Stretching target set

Motivation for new targets Personal development

Seen by others as successful Successful achievement

Recognition of achievement
Context Analysis

 Internal versus External

 SWOT Analysis
Stakeholder Analysis
 Stakeholders are those who are influenced by and
exert an influence on those things that take place into
the goal achievement - directly or indirectly. They can
be individuals or organizations and they can be both
for or against a change.

 Stakeholders can be divided up into four main groups:

1. Beneficiaries/Target group
2. Implementers
3. Decision-makers
4. Financiers
FOUR-TASK PROCESS

 Identify opportunities for goals.

 Write goal statements.

 Develop goals.

 Formulate action plans.

Task One
Identify Opportunities For Goals

Identify key areas of your life

Identify Opportunities For Goals

 Personal desire

- Needs, wants, desires, ideas, ambitions

 Desires for family

 Desires for society

 Business desire
Other Potential Areas

 Profitability

 Self-improvement

 Market conditions
GOAL TYPES

Essential Goals
 They are recurring, ongoing, repetitions, and
necessary activities of business or personal
life.

 Sources of essential goals can be found in

one’s area of responsibility.

 They must got accomplished on a routine

basis for continuous success.
EXAMPLES

 Review yesterday’ s result by 9.00 am, and correct

errors before new work begins.

 Get alpha assignment completed by the end of

today’s working day.

 Send quotation to XYZ company by 12:00 pm today.

 Get office by 8.30 tomorrow to ensure that I will be

on time for an important meeting.
GOAL TYPES

Problem-Solving Goals
 They identify current problem or opportunity along with
a more appropriate or desired condition.

 Problem-solving goals outline the activities necessary to

improve performance. They are vital to growth but may
not be detrimental if not accomplished in the short term.
 Sources
- Aspects of the task that can be improved such as productivity,
efficiency, or accident prevention.
- Less than effective use of time or resources.
- Obstacles in the work place that can be eliminated.
GOAL TYPES

Innovative Goals
 An innovative goal improves the current
condition. Innovative goal is not a problem
but rather the result of thinking about
making something good even better.

 They identify activities to be done better,

cheaper, easier, or more safely.
EXAMPLE

 Introduce a change to the existing

computer-buying system that will reduce
the number of hours needed to determine
promotional quantities by the end of the
second quarter, 2010, using existing
programs to keep development costs
below Rs.
Task Two
Write Your Goals

Write S.M.A.R.T GOALS

 It formalizes,
- What is to be accomplished
- Who will be involved
- When the activity will be completed
- How much resources will be used
Task Three
Five Steps To Effective Goal Development

 Priorities within each type.

 Establish standards of performance.

 Identify obstacles to goal accomplishment.

 Resource planning

 Determine what is in it for me?

Step 1. CRITERIA FOR SETTING PRIORITIES

 Relative importance

 Time sequence

 Cost-benefit relationship
Step 2. Establish Standards For Performance

 Standards for performance indicate the level of

results expected for each goal.
 They serve two purposes,
- Indicate progress made towards the goal.
- Tell when the goal has been achieved.

 These standards should be set before the start of

any activity.
 Time to measure the performance should be
determined.
Three Separate Standards

 Minimal. Indicates that some progress has been

made towards goal achievement but may not be at
a pace sufficient to guarantee goal achievement.

 Acceptable. Progress made is consistent with goal

achievement during the time allotted.

 Outstanding. More progress than expected was

achieved when measured at the milestone date.
EXAMPLE

 Increase secretarial pool letter out put from 24

letters completed per day to 40 letters per day by
31 October, 2010.

 26 letters completed within 3 months.= minimal

 31 letters completed within 3 months.= acceptable
 34 letters completed within 3 months.= outstanding
Step 3. Obstacle To Goal Achievement

 Physical Obstacles
- These are the blocks beyond the immediate control of an
individual.

 Conditional Obstacles
 Are those where current conditions exist that may make it
difficult to attain the goal.

 Psychological Obstacles
 exist only in one’s mind.
Step 4. Resource planning

 Before the plan for goal is made, a resource

plan must be made. It might include,
 Technical expertise
 Equipments, spare parts
 Training
 Building
 Funds
 Time
 Others
Problem-Solving Goals

 Analyze the focal problem, its causes, and

effects.

 Causes suggest the reasons whereas effects

suggest the need for such goals.

 Each cause could represent a goal, and

therefore priorities must be set.
Problem-Solving Goals

The basic questions that a problem analysis

should answer are the following:

 What is the main/focal problem that shall be

solved with the accomplishment of a goal?
(Why is a change/a goal needed?)

 What are the causes of this problem? (Why

does it exist?)
Problem-Solving Goals

 What effects does the problem have?

(Why is it important to solve the
problem?)

 Who is affected by the problem and who

“owns” the problem?
Problem Tree
Mistakes

 Absent solution ( lack of funds.)

 Inadequate problem specifications

Inadequate Problem Specification

 Poor financial control

 Poor administrative skills

 Poor planning of human resources

 Weak IT strategy
Relationship b/w problem analysis and
objective analysis
Problem tree Objective tree

Effects Over all objectives

Focal Problem Objective

Causes Immediate Results

Activities
TASK FOUR

 ACTION PLAN
 Action steps along with the time line and
sequence of activities.
 Planning

Planning is the process of determining

how the management system will
achieve its objectives. In other words,
it determines how the organization can
get where it wants to go.
Planning as the Foundation for
Organizing, Influencing, and
Controlling

Achieving Objectives

Influencing
Organizing

Controlling
Planning
Characteristics Of Well-Conceived Planning

 They identify resources to be used.

 Method, process, and procedures to be

employed.

 Tasks to be performed often each with its

own standards or goals.

 Sequence or steps to be followed.

 Individuals who are to perform the tasks

Characteristics Of Well-Conceived
Planning
 The location where the plan’s activities
are to take place.
 Associate deadline, timetables, and
schedules.
 Points along the way at which progress
is to be checked.
 Designation of measurements to be used
in gauging progress and verifying goal
attainment.
STEP 1 Stating organizational Elements of
objectives
the Planning
STEP 2 Evaluate the external and Process
Internal environments.

STEP 3 Establish the procedure

Set a timetable
STEP 4

Assign responsibility
STEP 5

STEP 6 Check the plan for

Feasibility and cost
 How plans interlock:
from missions to schedules

Goals
Mission Strategic Procedures
Plan Budgets
Rules and
Policies regulations Schedules
Operating
plans
Strategic Plans

 Plans that frame the big picture painted by

the mission statement.
 Long term and conceptual in nature that lay
out the general guidelines.

“ A manufacturing company may say that its strategy is

to limit investment by purchasing rather than
fabricating parts, and to assemble them for sale.”

“ A fast-Food chain’s strategic plan can be to maintain

our number 1 position by out advertising all
competitors.”
 Types Of Plans
Frequency
Breadth Time Frame Specificity of Use

Strategic Long term Directional Standing

Operational Short term Specific Single use
WORK PLANNING

OPERATIONAL PLANNING
Operational Planning

 Operational planning converts strategies into

specific timetables by using a variety of
forecasting and scheduling technique.

 This plan converts input into out put.

 It emphasizes concrete details.

 This plan involves forecasting, capacity and

time planning and, scheduling.
Forecasting Methods

 Survey method

 Historical trend forecast

 Statistical analysis forecast

Capacity & Time Planning

 To develop any operational plan, one should

know about the capacity of the available
facilities, equipment, and labor.

 Capacity is always expressed in units per

time period.
- Gallons per week, pounds per hour, feet per
minute, or copies per second.
From Master To Departmental Schedule

 Organizational schedule start at the very

top and then cascade downward to each
division, department, section, and
individual.
Scheduling Techniques

 Point-to-point plans arrange for tasks to be

performed in sequence.

 Overlap or Parallel Plans arrange tasks so

that one or more tasks may be carried out at the
same time.

 Network Plans Combine the concept of

overlap with a number of time and sequence
factors to obtain the most efficient scheduling of
most complex project.
Project Design & Control Overview

 Set a goal

 Set a final deadline

 Break the project down into sub-tasks

 Organize sub-tasks into appropriate order of

performance
Project Design & Control Overview

 Set target dates and benchmarks

 Assign sub-tasks to yourself and others

 Monitor progress until completion