Organizational Goal Setting

Having a plan for a business is always important. Planning do bring great benefits.It do provides a clear direction for how the firm operates. A good planning could reduce uncertainty, minimizes waste and redundancy. So how to make a plan ? To begin with , organization’s goals are needed to be defined. Secondly, an overall strategy will needed to be established in order to achieve the goals defined. After having an overall strategy , plans for organization work activities could be developed afterwards . Goal setting is the first step for planning and it is essential.Traditional goal setting is one of the approach for establishing goals.Broad goals are set at the top of the organization for example the share holders or the owners of the firm , the goals will then broken into sub-goals for each organization level to guide and direct the employees in different levels. By using the traditional goal setting , it creates a means-end chain,which means the achievements of lower-level goals is the means by which to reach higher-level goals. However, the goals may lose its clarity and focus as the managers at lower level tries to interpret the goals for their areas of responsibility and finally it may not be able to achieve the goals set by the top of the organization. Furthermore ,Management By Objectives (MBO) is also another approach for establishing goals , it is different from traditional goal setting , employees and managers would determined specific performance goals jointly. There are 5 steps in goal setting.The first step is to review the organization's mission statement and see whether the goal reflects the mission.In this case , we will need to review what is the mission statement of the new cafe, for example to provide a relaxing place for people or offering coffee with great quality in a affordable price.Secondly, we will need to evaluate available resources in different aspects, like capital , human resources.We will then estimate how much resources we can