University of the Cordilleras

Graduate School

MSDM EOO4; Dynamics of Management

Professor: Galilee Faith D. Guinto, MBA
Prepared by: Jessie Gaspar

Module 2
Types of Goals and Plans

UNIT II: Planning and Organizing

Definition:

Goal
Desired future circumstances or condition
that the organization attempts to realize.
(Daft, 2014)
Synonyms: aim, objective, object, end,
target
Plan
Blueprint for goal achievement and
specifies the necessary resource
allocations, schedule, tasks, and other
actions. (Daft, 2014)
Synonym: scheme, plan of action, idea,
master plan, game plan

Types of Goals and Plans

Goal
Strategic Goals are broad statement
describing where the organization wants
to be in the future.
The outcomes that major divisions and
department must achieve for the
organization to reach its overall goals are
called Tactical Goals
Operational Goals are specific,
measurable results that are expected
from departments, work groups, and
individuals.
Plan
Strategic Plans are the action steps by
which the organization intends to attain
the strategic goals.
Tactical Plans are designed to help
execute major strategic plans and to
accomplish a specific part of the
company strategy.
Operational Plans specify the action
steps toward achieving operational goals
and support tactical activities.
 University of the Cordilleras
Graduate School

Levels of Goals and Plans

Figure 1: Illustrates the levels of goals and plans in an organization. The planning process
starts with a formal mission that defines the basic purpose of the organization, especially
for the external audiences. The mission is the basis for the strategic (company) level of
goals and plans, which in turn shapes the tactical (divisional) level and the operational
(departmental) level.

Benefits and Limitation

Here are some reasons why planning ahead has positively affects a company’s
performance:

✓ Goals and plans provide a source of motivation and commitment.

Planning can reduce uncertainty for employees and clarify what they
should accomplish.
✓ Goals and plans guide resource allocation. Planning helps managers
decide where they need to allocate resources, such as employees,
money, and equipment.
✓ Goals and plans are a guide to action. Planning focuses attention on
specific targets and direct employee efforts toward important outcomes.
It helps managers and other employees know what actions they need to
take to achieving goals.
✓ Goals and plans set a standard of performance. Because planning and
goal setting define desired outcomes, they also establish performance
criteria so that managers can measure whether things are on-or off track.
Goal and plans provide a standard of assessment.
 University of the Cordilleras
Graduate School

Here are some reasons why managers should understand the limitations to
planning, particularly when the organization is operating in a turbulent
environment:

✓ Goals and plans can create a false sense of certainty. Having a plan can
give managers a false sense that they know what the future will like.
However, all planning is based on assumptions, and managers can’t know
what the future holds for their industry or their competitors, suppliers, and
customers.
✓ Goals and plans may cause rigidity in a turbulent environment. A related
problem is that planning can lock the organization into specific goals,
plans, and time frames, which may no longer be appropriate. Managing
under conditions of change and uncertainty requires a degree of
flexibility.
✓ Goals and plans can get in the way of intuition and creativity. Success
often comes from creativity and intuition, which can be hampered by too
much routine planning.

Case Analysis:
1. Situation
The Oppo phone company plans to release a new shape of their phones.
The owners of the company aim to be the first ones to introduce this new
phone shape in the market. The middle management takes the
opportunity to send and propose their designs. While on the other hand,
the lower management is waiting on the design of the phone they will
create.

2. Problem
The company was only focusing on releasing a phone with a new shape
as a design. The employee has a lack of coordination they only do their
task.

3. Solution
Must adopt the Smart, Measurable, Attainable, Realistic, and Timely
method. The higher management must discuss what specific shape they
aim to have. Also, give criteria to have a pattern on the target design. But
they must set a deadline on purposing their design.

References:
Richard Daft, Management (2014) Cengage Learning