Human Relations

Goal Setting & Planning

Human Relations
Goal
Goals and Plans A desired future state that the organization wants to achieve. What do we want? A blueprint of the actions necessary to reach the desired goal. How do we get there?

Plan

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Levels of Goals/Plans - NASA
A Mission Statement describes our purpose.
Mission Statement

Everything we do is focused on getting there.

Strategic Goals

Strategic Plans

Strategic level is the Big Picture.

Take a man to the moon by 1970.

Senior Management

Tactical Goals

Tactical Plans

Tactics break strategies into steps.

Build a rocket and launch pad.

Middle Management

Operational Goals

Operational Plans

And smaller steps.

Build part of a rocket.

Lower Management

Human Relations
Mission Statement
Answers the question:
Mission Statement

What drives us?

Honda

Beat GM!

A good Mission Statement: Elicits an emotional, motivational response in company employees. Is easily understood and can be transferred into individual action. Points to a tangible and measurable goal. Speaks to the competitive environment in which the company operates.

Principles of Management
Mission Statement
Mission Statement

A Mission Statement points to goals that are definable, measurable, actionable, and with emotional appeal that everyone understands and can act upon.

An Organizations Mission: Reflects managements vision of who the firm serves. Provides a clear vision of what the firm provides customers. Directs managers where the firm should be staking out a competitive position in the marketplace.

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Mission Statement
To provide any customer a means of moving people and things up, down, and sideways over short distances, with higher reliability than any similar enterprise in the world.

Mission Statement

Elevator

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Mission Statement
To offer food prepared in the same high-quality manner world-wide, tasty, reasonably priced, and delivered in a consistent, low-key and friendly atmosphere.

Mission Statement

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Mission Statement
Mission Statement

To offer all of the fine customers in our territories all of their household needs in a manner in which they continue to think of us fondly.

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Mission Statement
To provide our customers with error-free financial instruments delivered in a timely fashion. Error-free means absolutely no errors. Timely means within 48 hours.

Mission Statement

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Strategic Goals and Plans
Strategic Goals Strategic Plans

Strategic level is the Big Picture.

Senior Management

An Organizations Strategic Goals: Helps managers at lower levels focus. Avoids pitfall of them trying to move in too many directions at once. Senior Management formulates Strategic Goals so: Lower level managers know where the firm is at present. And know where the firm is headed.

Human Relations
Strategic Goals and Plans
Strategic Goals Strategic Plans

Senior Management

Nike

Protect and improve Nikes position as the number one athletic brand in America. Intensify the companys effort to develop products that women want and need. Explore the market for products specifically designed for the requirements of maturing Americans. Continue the drive for increased margins through inventory management and new product development.

Human Relations
Tactical and Operational Goals and Plans
Tactical Goals Tactical Plans

Middle Management

Tactics break strategies into smaller more specific steps .

Operational Goals

Operational Plans

Lower Management

And operational goals are even more specific steps .

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Tactical and Operational Goals and Plans
Strategic Goal: Build momentum in fitness market. Marketing manager works with advertising manager and sales manager to devise point-of-purchase displays for fitness centers. Sales manager incorporates sales calls to fitness centers in each salespersons sales plan. Strategic Goal: Increase margins via inventory management. Purchasing managers evaluate production lead times and tighten ROPs. Information Technology manager assigns inventory analyst to task of updating with more current software.

Human Relations
Cool Bottled Water, Inc.
Cool Bottled Water is a company that sells private label water drawn from the Sammamish Slough near Woodinville, Washington State. Private Label refers to the labeling of the bottles. Major companies and restaurant chains that want to create brand awareness order bottles to be labeled with their own custom brand. Our Mission Statement: Our goal is to help our customers increase the publics awareness of their names by providing them with premium bottled water labeled with their own name.

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Strategic Goal: To develop a source of water, a bottling plant, and a marketing team to develop and promote the product to large companies and restaurant chains in Washington, Oregon, and California, and to launch Day Zero on August 15th, 2002. To achieve ROI of 15%. Strategic Plan: Product development will be the responsibility of the Research and Development team, who are charged with maintaining purity and clarity standards.

Strategic Level

Production will be the responsibility of the Production and Warehouse Team. Plant specifications to be suited to needs.
Marketing Plan development will be the responsibility of the Marketing team.

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Tactical Goal Production Team Produce bottled water per industry specifications for less than 35 cents per unit.

Tactical Level

Tactical Plan Production Team Water will be drawn from two locations along the Slough on properties owned by the Clapping Hands Ranch. Water rights will be secured starting Day Zero minus 90 for 99 years via a mineral rights lease attached to the deed of the Ranch, which will be binding on subsequent owners. The water will be tested monthly for purity, and bottled in the companys bottling plant in Woodinville adjacent to the south source. The north-source water will be piped approximately one mile to the bottling plant. Approximately 500 gallons are available each day, and will be bottled in clear plastic 1/8th gallon bottles with safety caps.

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Operational Level
Operational Goal Bottling Team Sub-unit of Production Team Acquire bottling equipment of sufficient capacity and technology to maintain output and quality standards. Operational Plan Bottling Team Sub-unit of Production Team Prepare RFP for equipment called out in specifications from Research and Development. Consider cost, ease of operation, reliability, and productivity, and choose appropriate equipment. Install equipment per factory specifications by Day Zero 95. Test output for 90 days prior to Day Zero.

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Cool Bottled Water, Inc.
Cash Flow Analysis
12 Months Ending 12-31-03

Revenue Cost of Goods Sold Beginning Inventory + Purchases = Total Goods Available for Sale - Ending Inventory Total Cost of Goods Sold Gross Profit Operating Expenses Executive Salaries ($50k each) Payroll (20% of Sales) Rent ($5k/mo) Advertising Depreciation Utilities Professional Services Insurance Licenses Total Operating Expenses Net Income Before Federal Tax Federal Income Tax (25%) Net Profit

May (2.25%) June (3.25%) July (5.25%) August (6.25%)September (7%) October (8%) November (9%) December (10%)January (11%) February (12%) $16,734 $24,172 $39,047 $46,484 $52,063 $59,500 $66,938 $74,375 $81,813 $89,250

$20,573 $5,555 $26,128 $20,573 $5,555 $11,180

$20,573 $8,023 $28,596 $20,573 $8,023 $16,148

$20,573 $12,961 $33,534 $20,573 $12,961 $26,086

$20,573 $15,430 $36,003 $20,573 $15,430 $31,055

$20,573 $17,281 $37,854 $20,573 $17,281 $34,781

$20,573 $19,750 $40,323 $20,573 $19,750 $39,750

$20,573 $22,219 $42,792 $20,573 $22,219 $44,719

$20,573 $24,688 $45,261 $20,573 $24,688 $49,688

$20,573 $27,156 $47,729 $20,573 $27,156 $54,656

$20,573 $29,625 $50,198 $20,573 $29,625 $59,625

$20,833 $3,347 $5,000 $15,250 $250 $250 $500 $1,500 $500 $47,430 -$36,251 -$9,063 -$27,188

$20,833 $4,834 $5,000 $0 $250 $250 $0 $0 $0 $31,168 -$15,019 -$3,755 -$11,264

$20,833 $7,809 $5,000 $0 $250 $250 $0 $0 $0 $34,143 -$8,057 -$2,014 -$6,043

$20,833 $9,297 $5,000 $0 $250 $250 $500 $0 $0 $36,130 -$5,076 -$1,269 -$3,807

$20,833 $10,413 $5,000 $0 $250 $250 $0 $0 $0 $36,746 -$1,965 -$491 -$1,473

$20,833 $11,900 $5,000 $0 $250 $250 $0 $0 $0 $38,233 $1,517 $379 $1,138

$20,833 $13,388 $5,000 $0 $250 $250 $500 $0 $0 $40,221 $4,498 $1,124 $3,373

$20,833 $14,875 $5,000 $0 $250 $250 $0 $0 $0 $41,208 $8,479 $2,120 $6,359

$20,833 $16,363 $5,000 $0 $250 $250 $0 $0 $0 $42,696 $11,960 $2,990 $8,970

$20,833 $17,850 $5,000 $0 $250 $250 $500 $0 $0 $44,683 $14,942 $3,735 $11,206

Model of the MBO Process

Step 1: Setting Goals
Corporate Strategic Goals Departmental Goals Individual Goals Step 2: Developing Action Plans

Action Plans

Review Progress Step 3: Reviewing Progress Corrective Action

Appraisal of Overall Performance

Step 4: Appraising Overall Performance

Human Relations
MBO Benefits and Problems
Benefits of MBO
1. Manager and employee efforts are focused on activities that will lead to goal attainment. 2. Performance can be improved at all company levels. 3. Employees are motivated 4. Departmental and individual goals are aligned with company goals.

Problems with MBO

1. Constant change prevents MBO from taking hold. 2. An environment of poor employeremployee relations reduces MBO effectiveness. 3. Strategic goals may be displaced by operational goals. 4. Mechanistic organizations and values that discourage participation can harm the MBO process. 5. Too much paperwork saps MBO energy.

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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.

Human Relations
Standing Plans
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. Total quality management (TQM) to improve quality and production. http://www.dbainc.com/public_html/dba2/library/tqm.ht ml 6 Sigma Continuous evaluation and improvement. http://www.isixsigma.com/sixsigma/six_sigma.asp

Human Relations Contingency Plans

May be defined as scenarios. Define company responses to be taken in case of setbacks or unexpected conditions.

Is just rolling the dice good enough?

Human Relations Strategic Planning

Strategy = The plan of action that describes resource allocation & activities for dealing with the environment to attain organizational goals.

Human Relations
Strategic Management Questions
What changes and trends are occurring? Who are the customers? What products or services should we offer? How can we offer these products or services efficiently?

Strategic Management Process Situation Analysis via SWOT

Scan External Environment National Global Identify Strategic Factors Opportunities Threats Implementing Strategy via Changes in: Structure Human resources Information & control systems

Evaluate Current: Mission Goals Grand Strategy

SWOT

Define New: Mission Goals Grand Strategy

Identify Strategic: Corporate Business Functional

Scan Internal Environment Core Competence Synergy Value Creation

Identify Strategic Factors Strengths Weaknesses

External Opportunities and Threats

The Economy Trends in Technology Competitors what will emerge? Customers what will they want?

Legal and Political Factors