SETTING AND ACHIEVING GOALS 1
Settingand Achieving Goals
Settingand Achieving Goals
Development of plans is critical because it assists an organizationto follow a route that helps it to arrive at its long term or shortterm goals. The planning process starts with an evaluation of thecontemporary organizational operations and the establishment ofthings that requires operational improvement in the future years.From then on, planning involves not only visualizing the outcome thata company desires to achieve, but also identifying the stepsessential for achieving its purposeful goals (Simic, 2015). Allorganizations engage in planning to achieve success whetherfinancially or in terms of customer satisfaction. Organizationalplanning is of two types including strategic and operationalplanning.
Typesof organizational planning
This type of planning involves the development of both long-rangeobjectives and mission, and the prior establishment of how they willbe executed. It takes more than one year to achieve these long-termobjectives. Although these objectives take long to be achieved, theyare evaluated and revised each year to ensure that the plan is inplace (Esmail, 2015). These plans are designed and accomplished bythe top management such as presidents and CEOs. Strategic planning,therefore, acts as a basic structure for lower level organizationalplanning.
Strategic planning includes activities like setting priorities,establishing a concurrence around the desired results, strengtheningoperations, making sure that all team members work collectivelytowards a common goal, focusing on resources and energy, andanalyzing and modifying the direction of the company to fit with thechanging environment. Esmaeili (2015) observed that the mostappropriate time to use strategic planning is when the organizationloses direction after restructuring or after a merger, when itproduces undesired results, when leaders are stressed when thecompany is in need of a new team or a culture, and when theemployee`s motivation becomes weak.
Operational planning involves the creation of short-term goals andsetting various ways of how to achieve them. According to Simic(2015), plans in this category have short-term objectives and can beachieved within a span of one or less than one year. The lower andmiddle-level managers are responsible for developing and executingoperational plans. Some of the activities involved with operationalplanning include weekly employee schedule, monthly budget creation,and quarterly advertisement to increase sales. This type of planningis used in day to day management of an organization (Simic, 2015).
TheImportance of Developing Plans to Achieve Organizational Goals
Creationof Competitive Advantage
Organizations that develop plans to achievetheir goals acquires a practical perspective of their contemporarystrengths and weaknesses concerning the main competitors(Tarnovskaya, 2015). The team responsible for management recognizessuch areas where their competitors seem to be weak and then designeffective marketing strategies to top on their competitor’s list.Furthermore, having the knowledge about the actions of thecompetitors assists organizations to identify several chances theymight have thought were unnecessary. Such opportunities includetrying to introduce or market an organizational product to diversecustomer groups and also surfacing international markets(Tarnovskaya, 2015).
The crucial aspect of planning in anorganization is to set goals that test each participant’s abilityto make an effort to achieve better performance. Goals must always beaggressive yet realistic. Organizations that seem too comfortable inhow they operate tend to lose market to their competitors. Accordingto Tarnovskaya (2015), the process of setting organizational goalsalso helps an organization to make a comparison between actualresults and forecast results.
Uncertaintyand Risk Management
For an organization to succeed, it must havethe ability to manage risks. Risks come in the form of competitiveand economic environment, which turns out too hard to control formany corporations. Esmaeili (2015) observed that with effectiveplanning, managers could envision viable risk factors and createeffective measures to solve them. A business change can occur at anytime therefore, organizations must have the ability to adapt tothese new conditions.
Planning not only encourages team building, butalso it promotes a spirit of cooperation among employees. Once theplan is created and completed, it is communicated to all stakeholderswho acquire the knowledge about their various responsibilities, andhow they will use their expertise, assistance, and skills to finishthe task allocated to them. Collectively, they see theircontributions to the success of the company, which unites them totake pride in their work (Simic, 2015). Moreover, when the topmanagement cooperates with departmental or divisional managers whensetting the organizational goals, it is likely that less or noconflict would be experienced in such an organization. Planning alsoreduces information imbalances between the top management andemployees from various departments (Tarnovskaya, 2015).
MaximumUse of Resources
All organizations no matter their sizesexperiences limited resources. Therefore, planning ensures that thetop management is equipped with the relevant information that isappropriate for making effective organizational decisions regardingthe allocation of resources in such a way that the firm will be ableto attain its objectives. Furthermore, planning ensures maximizedproductivity and less misuse of available resources because projectswith high chances of failure are eliminated.
As shown above, planning is a vital element inan organization because it enables it to utilize its resources in anefficient manner, encourages team building, and ensures that futurerisks and uncertainties are dealt with beforehand, helps in settingand achieving goals, and also puts an organization in a position thatit can effectively deal with other competitors. Strategic andoperational planning work in cooperation in helping a firm to achieveits future goals.
Esmaeili, N.(2015). Strategic Management and its Application in ModernOrganizations. International Journal of OrganizationalLeadership, 4(2), 118-126.
Simic, S. (2015).Application of Strategic and Operational Controlling Instruments inEnterprises in Bosnia and Herzegovina. Research Journal ofEconomics, Business & ICT, 10(2), 10- 13.
Tarnovskaya, Y.S. (2015). Planning and analysis of the accompanying business asimportant functions of business process management in the enterprise.Management Issues, 36(5), 1-10.