Purposes of organizational goals are to provide direction to employees of the organization. It is also called as Planning-horizon. There are three types of organizational goals called as strategic, tactical, and operational goals.
Strategic plans are designed with the entire organization in mind and begin with an organization’s mission. Top-level managers, such as CEOs or presidents, will design and execute strategic plans to paint a picture of the desired future and long-term goals of the organization. Essentially, strategic plans look ahead to where the organization wants to be in three, five, even ten years.
Once we have an idea of how an organisation if planning to evolve; Tactical plans support strategic plans by translating them into specific plans relevant to a distinct area of the organization.
These plans are carried out by Low-level management & these plans are focused on specific procedure and processes.
Lets review below case study to understand these different plans.
Lets assume Person “A” is a CEO for “XYZ Burger”. As a top-level manager, “A” must use strategic planning to ensure the long-term goals of the organization should achieve. For “A”, that means developing long-term strategies for achieving growth would be
- Improving productivity and increasing profitability
- Increasing ROI (Return on Investment)
- Improving customer Service
When Person “B” mid-level manager learns about CEO strategic plan for increasing productivity, “B” immediately start to think about the possible tactical plan for increasing productivity. Possible Tactical planning could be
- Testing a new process in making Burger that will take short time.
- Possibility of purchasing a better oven
- Optimizing the delivery time with the help of Map navigation.
Lets say “C” person works as a manager for operational planning. Some of the operational plans for “C” would be
- Scheduling employees duty each week for 24×7 support (Depends on business requirement)
- Evaluating, ordering and stocking inventory
- Preparing for monthly budget.
- Defining employee’s performance goal for the month/year.