Goal Setting.ppt

Goal Setting and Work Planning Pakistan Institute of Management

Model of the Motivation Process

Learning

Needs wants, and desires

Tension

Drive

Behavior

Cognitive processes

Tension reduction

Goal or need fulfillment

Types of Needs 

Innate Needs  Physiological (or biogenic) needs that are considered primary needs or motives

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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

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People are more aware about their goals than needs

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People are more aware about their physiological needs than psychological needs

Motivations and Goals 

Positive Motivation  A driving force toward some object or condition

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Approach Goal  A positive goal toward which behavior is directed  Capitalizing on an opportunity

Negative Motivation A driving force away from some object or condition

Avoidance Goal 

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A negative goal from which behavior is directed away Prevention activities

Rational Versus Emotional Motives 

Rationality implies that people select goals based on totally objective criteria such as size, weight, price, or miles per gallon

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Emotional motives imply the selection of goals according to personal or subjective criteria

The Dynamic Nature of Motivation 

Needs are never fully satisfied

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New needs emerge as old needs are satisfied

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People who achieve their goals set new and higher goals for themselves

Maslow’s Hierarchy of Needs 5 Selfactualization (self-development and realization)

4 Esteem needs (self-esteem, recognition)

Social needs 3 (sense of belonging, love)

2

1

Safety needs (security, protection) Psychological needs (food, water, shelter)

“All good performance starts with clear goals.”

GOALS 

Establish activities.

direction

for

ongoing



Identify expected results.

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Improve teamwork through common sense of purpose.

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Heighten performance levels by setting targets to be achieved.

REASONS FOR NOT HAVING GOALS

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I have done pretty well in my life so far without setting any goals. So why do I need them now ?

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I know what I want. It is all in my head so I really do not need to write it down.

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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 Marketing

VP of Sales

VP of Manufacturing

Purchasing Director

VP of Human Resources

Production Director

Traditional Objective Setting

Top Management’s Objective

Division Manager’s Objective

Department Manager’s Objective

Individual Employee’s © Prentice Hall, 2002 Objective

“We need to improve the company’s performance”

“I want to see a significant improvement in this division’s profits”

“Increase profits, regardless of the means”

“Don’t worry about quality: just work fast” 7-16

Elements Of A Goal 

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

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The outcome is measurable. - Simple and identifiable signs of success.

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The time factor

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

EXAMPLES

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Gain five new customers and increase gross sales to Rs.2 million by 1 October, 2010 within an expense budget of Rs.50,000.

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Expand market share to 5% by 31 Dec, 2010 without increasing advertising expense beyond current levels.

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Increase productivity in our division 5% by 15 August 2010 without adding any personnel.

MISSION

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A mission is a general statement through which a person specifies the overall strategy that governs the goals and objectives.

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A mission statement interprets ‘ reason for being’

EXAMPLES 

We will prepare and distribute fine quality packaged foods to national retailers. ( Food Company)

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We will provide a wide variety of financial services to consumers and commercial customers in Pakistan. (Insurance Company)

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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.

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The functions that it will perform.

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Markets or clients it will serve.

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

Mission Goals

Objectives

Characteristics Of Goals

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There are multiple goals.

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Goals are arranged in a hierarchy.

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The time horizon for goals will vary.

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From an individual manager’s point of view, goals are either dependent or controllable.

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Goals should always specify what, where, and when.

Types of Objectives

Market Standing

Innovation

Productivity

Physical and Financial Resources

Profitability

Managerial Performance and Development

Worker Performance and Attitude

Public Responsibility

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 



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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 of successful teams Clearly defined goals and objectives.

Targets for team Leaders

Targets for Team Members

Development and communication of a team vision.

Understanding process for working together.

Establishing guidelines for communications (eg meetings, presentations) and standards for these.

Contributing to the development of the team vision. Working towards the achievement of team goals.

Working to improve working Methods

Characteristics of successful teams

Appropriate leadership. Opportunities for personal development.

Targets for team Leaders Providing right balance between task and individual focus as leader.

Targets for Team Members Leading the team through expertise in particular areas.

Providing personal development for team members through training, coaching, counseling mentoring, etc.

Taking opportunities for personal development within team environment, e.g coaching rolemodeling, etc.

Strong inter-team Building relationships relationships.

and understanding with other teams, customers, suppliers,. Increasing the awareness the team’s objectives amongst other teams.

Building relationships outside of the team.

Desirable Behaviors From Team Members

     

Openness Trust and support Assertive communication Listening Questioning Sensitivity

Target Setting In Team Environment

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Balance between departmental goal developmental goal.

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Top down support – Bottom up development - Autocratic model - Democratic model - Laissez-faire model

organizational or and individual’s

Using Targets To Breed Success

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Set realistic but stretchable goals.

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Level of difficulty for a task would vary among different individuals,

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Experience Enthusiasm Confidence Training

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- existing knowledge - Fear - Apparent relevance - 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

Seen by others as successful

Personal development

Successful achievement

Recognition of achievement

Context Analysis

 Internal

 SWOT

versus External

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

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Identify opportunities for goals.

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Write goal statements.

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Develop goals.

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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

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Desires for family

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Desires for society

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Business desire

Other Potential Areas 

Profitability

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Self-improvement

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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.

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They must got accomplished on a routine basis for continuous success.

EXAMPLES

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Review yesterday’ s result by 9.00 am, and correct errors before new work begins.

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Get alpha assignment completed by the end of today’s working day.

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

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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. 

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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.

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Establish standards of performance.

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Identify obstacles to goal accomplishment.

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Resource planning

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Determine what is in it for me?

Step 1. CRITERIA FOR SETTING PRIORITIES

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Relative importance

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Time sequence

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Cost-benefit relationship

Step 2. Establish Standards For Performance

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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.

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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.

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Acceptable. Progress made is consistent with goal achievement during the time allotted.

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Outstanding. More progress than expected was achieved when measured at the milestone date.

EXAMPLE

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Increase secretarial pool letter out put from 24 letters completed per day to 40 letters per day by 31 October, 2010.

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26 letters completed within 3 months.= minimal 31 letters completed within 3 months.= acceptable 34 letters completed within 3 months.= outstanding

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Step 3. Obstacle To Goal Achievement 

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

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Conditional Obstacles 

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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.

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Causes suggest the reasons whereas effects suggest the need for such goals.

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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?)

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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.)

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Inadequate problem specifications

Inadequate Problem Specification 

Poor financial control

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Poor administrative skills

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Poor planning of human resources

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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

Planning

Controlling

Influencing

Organizing

Achieving Objectives

Characteristics Of Well-Conceived Planning 

They identify resources to be used.

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Method, process, and procedures to be employed.

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Tasks to be performed often each with its own standards or goals.

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Sequence or steps to be followed.

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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 objectives STEP 2 Evaluate the external and Internal environments. STEP 3 Establish the procedure

STEP 4

STEP 5 STEP 6

Set a timetable

Assign responsibility

Check the plan for Feasibility and cost

Elements of the Planning Process

How plans interlock: from missions to schedules

Goals Mission

Strategic Plan

Procedures

Policies

Rules and regulations

Budgets

Operating plans

Schedules

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 Breadth

Time Frame

Specificity

Frequency of Use

Strategic Operational

Long term Short term

Directional Specific

Standing Single use

WORK PLANNING OPERATIONAL PLANNING

Operational Planning 

Operational planning converts strategies into specific timetables by using a variety of forecasting and scheduling technique.

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This plan converts input into out put.

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It emphasizes concrete details.

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This plan involves forecasting, capacity and time planning and, scheduling.

Forecasting Methods 

Survey method

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Historical trend forecast

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Statistical analysis forecast

Capacity & Time Planning 

To develop any operational plan, one should know about the capacity of the available facilities, equipment, and labor.

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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

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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.

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Overlap or Parallel Plans arrange tasks so that one or more tasks may be carried out at the same time.

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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

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Set a final deadline

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Break the project down into sub-tasks

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Organize sub-tasks into appropriate order of performance

Project Design & Control Overview

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Set target dates and benchmarks

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Assign sub-tasks to yourself and others

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Monitor progress until completion