Chapter 7--Managerial Planning and Goal Setting

Student: ___________________________________________________________________________

1.

Managers must understand no plan is perfect, but should grow and change to meet new conditions. True alse

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" desired future state that the indi#idual or organi$ation attempts to reali$e is a goal. True alse

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Goals specif& toda&'s means( plans specif& future ends. True alse

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Planning is the act of determining the organi$ation goals and the means for achie#ing them. True alse

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Planning cannot tame a turbulent en#ironment. True alse

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" plan tells ,wh&, to achie#e the goal. True alse

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The mission is the basis for the strategic le#el of goals and plans, which in turn shapes the tactical and operational le#el. True alse

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.efining operational goals and plans occurs in the e/ecution phase of the organi$ational planning process. True alse

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Tactical goals and plans are the responsibilit& of front-line managers and super#isors. True alse

11 2perational plans and goals are those that focus on the outcomes that ma3or di#isions and departments . must achie#e in order for the organi$ation to reach its o#erall goals. True alse

11 Tactical plans are designed to help e/ecute the ma3or strategic plans and to accomplish a specific part . of the compan&'s strateg&. True alse 1

1! " broad definition of the organi$ation's #alues, aspiration and reason for being, along with a . recognition of the scope and operations that distinguishes the organi$ation refers to a 4usiness Plan. True alse

1% Goals and plans pro#ide a sense of direction and focus on specific targets and direct emplo&ee efforts . toward important outcomes. True alse

1) Tactical goals are specific, measurable results e/pected from departments, wor5 groups, and . indi#iduals within the organi$ation. True alse

1* Top managers ma5e the broad strategic plan and identif& specific tactical plans. . True alse 1+ 2perational planning specifies plans for department managers, super#isors, and indi#idual emplo&ees. . True alse 17 Goals are t&picall& stated in 6uantitati#e terms. . True alse 1- Pro#iding inno#ati#e solutions to customer needs is a goal that would be placed in the internal business . process categor& on a strateg& map. True alse

10 " #isual representation of the 5e& dri#ers of an organi$ation's success and shows how specific goals . and plans in each area are lin5ed is called a strateg& map. True alse

!1 "n organi$ation's mission describes its reason for e/istence. . True alse !1 4uilding good relationships with suppliers and partners would be considered internal business process . goals. True alse

!! Strategic plans and goals are those that focus on where the organi$ation wants to be in the future and . pertain to the organi$ation as a whole. True alse

!% Management b& ob3ecti#es, single-use plans, and standing plans are all management planning . approaches. True alse

!) Goals are most effecti#e when the& are specific, measurable, challenging and lin5ed to rewards. . True alse !* Goals must be set for e#er& aspect of emplo&ee beha#ior or organi$ational performance to be . effecti#e. True alse

!+ 7n order for goals to be effecti#e, the& should be challenging but realistic. . True alse Step 1 in Management b& 2b3ecti#es is to re#iew progress. True alse

"n action plan defines the course of action needed to achie#e the stated goals. True alse

Managers belie#e the& are better oriented toward goal achie#ement when M42 is used. True alse

7n step 1 of Management 4& 2b3ecti#es, o#erall performance is appraised. True alse

" 5e& benefit of management b& ob3ecti#es is that it aligns indi#idual and departmental goals with compan& goals. True alse

Standing plans define compan& responses to specific situations such as natural emergencies or competiti#e setbac5s. True alse

" ma3or difference between rules and policies is that rules are broad in scope whereas policies are narrow in scope. True alse

The goals should be eas&, for emplo&ees to feel moti#ated, so that the& can achie#e them easil& which in turn increases their moti#ation le#el. True alse %

Three critical planning methods are contingenc& planning, building scenarios, and crisis planning. True alse

2ne of the biggest benefits of planning is that, in turbulent en#ironments, plans create greater organi$ational fle/ibilit&. True alse

Plans pro#ide a standard of assessment. True alse

7f 8enae, manager at 9ea5 ree 8oofing, wanted to de#elop a contingenc& plan for 9ea5 ree, she would need to loo5 at factors such as new e6uipment, the econom&, and the compan& wor5ers' compensation cases. True alse

7n a comple/ and competiti#e business world, traditional planning done b& a select few is the onl& planning that wor5s. True alse

Crisis plans define compan& responses to be ta5en in the case of emergencies, setbac5s, or une/pected conditions. True alse

Some firms engage in crisis planning to enable them to cope with une/pected e#ents that are so sudden and de#astating that the& ha#e the potential to destro& the organi$ation. True alse

Pre#ention and preparation are the two stages of crisis management. True alse

The "4C Corporation should create a crisis management group that is not cross-functional, but does wor5 together well under pressure. True alse

The C:2 of "ndre's "utos, 7nc. must do all of the planning for the compan& because that is the wa& to do things in toda&'s wor5place. True alse

Trend management is loo5ing at trends and discontinuities and imagining possible alternati#e futures. True alse

7n centrali$ed planning, managers at all le#els wor5 with planning e/perts to de#elop their own goals and plans. True alse

Managers wor5 with planning e/perts to de#elop their own goals and plans in decentrali$ed planning. True alse

Stretch goals are t&picall& so far be&ond the current le#els that people ha#e to be inno#ati#e to find wa&s to reach them. True alse

Sales in relation to targets is an e/ample of a balanced scorecard metric. True alse

7ntelligence teams are useful when an organi$ation confronts a ma3or intelligence challenge. True alse ;;;;; refers to a desired future state that an organi$ation attempts to reali$e. " P . la n 4<isi on stat eme nt C G . oa l . Mis sion state men t : 7d . ea

;;;;; specif& future ends and ;;;;; specif& toda&'s means. ". Goals( plans Plans( goals

4 . C Planning( . organi$ing . . : . 7deas( beha#iors Mission( #ision

" blueprint specif&ing the resource allocations schedules, and other actions necessar& for attaining goals is referred to as a=n> ;;;;;. ". goa l 4. plan C missio . n . #ision . : ob3ecti . #e 2f the strategic management functions, which is considered the most fundamental? ". :/ ecu tin g "nal& $ing Contro lling Planni ng 9eadi ng

4 . C . . . : .

The planning process starts with@ ". a formal mission that defines the organi$atio nAs purpose. 4. tactical planning. C strategic planning. . . operational planning. . : controlling . performance. ;;;;; is the act of determining the organi$ation's goals and the means for achie#ing them. ". 4rai nstor ming 4 2rgani$i . ng C Plannin . g . .e#elopin ga mission : " . blueprint Bhich t&pe of plan helps managers implement the o#erall strategic plan? ". 2perati onal 4 Contingenc& . C. Tactical .. Crisis : Corporate. le#el

The planning process begins with which of these? ". The de#elo pment of operat ional goals

4The de#elopment of a mission statement Communicatio n of goals to the rest of the organi$ation . " compan&wide meeting : 4rainstormi . ng The ;;;;; is the basis for the strategic le#el of goals and plans which in turn shapes the ;;;;;, and ;;;;; le#el. ". goal( mission, tactical 4 ob3ecti#e( operational, mission . C operational goal( mission and . tactical . mission( tactical, operational . : tactical plan( operational, . mission ;;;;; is primaril& responsible for strategic goalsCplans. ". Middle manage ment 4 4oard of . directors C. Consultants . Top management . : 9ower . management -

;;;;; is primaril& responsible for operational goalsCplans. ". Middle manage ment 4 4oard of . directors C. Consultants . Top management . : 9ower . management Bhich of these is=are> primaril& concerned with tactical goalsCplans? ". 4 . C. . . : . Middle manage ment 4oard of directors Consultants Senior management 9ower management

Bhich of the following is not a step in the organi$ational planning process? ". Monitor and learn 4. Plan operations C Translate the plan . . .e#elop the plan . : Plan mar5eting . tactics

Sherr& is a first-line super#isor at 8ooftop Corporation. She is most concerned with which le#el of goals? ". 2p era tio nal go als 4 Tactic al plans C Strate gic goals .Missi on statem ent : <isi . on Bhich of the following is D2T a tool for e/ecuting a plan? ". Management b& ob3ecti#es 4. 2perations map C Performance dashboards . .. Single use plans : .ecentrali$ed . responsibilit& " statement that identifies distinguishing characteristics of an organi$ation is 5nown as a=n>@ ". 4. C. .. : . goals statement. #alues statement. income statement. mission statement. competiti#e-edge statement.

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Bhich of these are described b& mission statements? ". 4 . C . . . : . Corpo rate #alues Product 6ualit& 9ocation of facilities "ll of these Done of these

,Be respect our emplo&ees and #alue their di#ersit&, is an e/ample of a statement &ou are most li5el& to find in the organi$ation's ;;;;;. ". 4 . C . . . : . missi on strategic goals tactical goals strategic plans tactical plans

,Be see5 to become the premier business school in the west, is an e/ample of a statement &ou are most li5el& to find in the organi$ation's ;;;;;. ". tactical goals 4 operational . goals C. mission . tactical plans . : operational . plans

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;;;;; refers to a broadl& stated definition of the organi$ation's basic business scope and operations that distinguishes it from similar t&pes of organi$ations. ". Mission statement 4. Goal statement C. Management b& ob3ecti#e .. Goal setting : Corporate competiti#e-#alue . statement "t the top of the goal hierarch& is@ ". strategi c goals. 4 tactical goals. . C operational . goals. .. a mission. : emplo&ee . goals. ;;;;; are the broad statements of where the organi$ation wants to be in the future. ". 4 . C . . . : . 2pera tional goals Tactical goals Strategic goals 2perational goals Tactical plans

1!

The official goals of the organi$ation are best represented b& the ;;;;;. ". 4 . C . strate gic goals tactical goals operational goals

. competiti#e . goals : none of . these " long-term time frame is most closel& associated with@ ". 4 . C . . . : . operat ional plans. tactical plans. strategic plans. mission plans. tactical goals.

;;;;; are called the action steps b& which an organi$ation intends to attain its strategic goals. ". 4 . C . . . : . Tactic al goals 2perational goals Tactical plans 2perational plans Strategic plans

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;;;;; goals lead to the attainment of ;;;;; goals, which in turn lead to the attainment of ;;;;; goals. ". 2perat ional( strateg ic( tactica l 4Tactical( operational( strategic CStrategic( tactical( operational .2perational( tactical( strategic : Done of . these. Sarah is a middle manager at St&lin' Snea5ers Corporation. She is most li5el& responsible for the achie#ement of ;;;;; goals. ". ope rati ona l tactic al strateg ic lowerle#el tople#el

4 . C . . . : .

1)

Goals that define the outcomes that ma3or di#isions and departments must achie#e in order for the organi$ation to reach its o#erall goals is called@ ". str ate gi c go als . 4 tactic al goals. Coperat ional goals. .a . missi on. : a . plan . Sil#er Star "utomobiles holds monthl& planning and operational re#iews to ensure that it is on trac5 for meeting organi$ational goals. This in#ol#es which stage of the organi$ational planning process? ". .e#eloping the plan Translating the plan

4 . C. Plan operations . :/ecuting the plan . : Monitoring and . learning

1*

The organi$ation's reason for e/istence is 5nown as the organi$ation's ;;;;;. ". 4 . C . . . : . #al ue #isi on missi on goa l ser#i ce

8o/anne is a manager at Geronimo Gaming. She recentl& attended a seminar on goal setting. She wishes to use goals to pro#ide a sense of direction to her staff. She is using goals as@ ". a wa& to legitimi$e her department . a source of moti#ation. a standard of performance. a guide to action. a wa& to impress others.

4 . C . .. : .

Bhich of the following refer to specific results e/pected from indi#iduals? ". 2peratio nal goals 4. Tactical goals C Strategic goals . . 2perational . plans : Mission . statements

1+

Bhich of the following represent plans de#eloped at the organi$ation's lower le#els that specif& action steps toward achie#ing operational goals and that support tactical planning acti#ities? ". Tactical plans 4. Strategic plans C 2perational plans . . Super#isor& plans . : 2rgani$ational . plans The ;;;;; is the department manager's tool for dail& and wee5l& operations. ". con#e ntion al goal strategic goal strategic plan operational plan targeted plan

4 . C . . . : .

Bhich of the following is a #isual representation of the 5e& dri#ers of an organi$ation's success, showing the cause-and-effect relationships among goals and plans? ". 2pera tional plan 4 Gantt chart . C Strateg& . map . SB2T . anal&sis : Strategic . plan

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Managers use ;;;;; to direct emplo&ees and resources toward achie#ing specific outcomes that enable the organi$ation to perform efficientl& and effecti#el&. ". strategic goals 4. operational goals C. growth goals .. financial results : internal business process . goals "ccording to the strateg& map described in chapter 7, which of the following is D2T a t&pe of goal? ". inancial performance goals 4. Customer ser#ice goals C 7nternal business process . goals . 9earning and growth goals . : :/ternal business process . goals 7n de#eloping a strateg& map for her interior design business, Carla has decided to promote emplo&ee de#elopment b& pro#iding online training tools. This in#ol#es goals in which strateg& map categor&? ". inancia l performa nce goals 4 9earning and . growth goals C 7nternal business . process goals . . : . Customer ser#ice goals Suppl& chain goals

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Eate is a salesperson at a large retail chain. She was assigned a goal of F!+*,111 in sales for the current 6uarter. She is unhapp& because she 5nows that the most an& salesperson has sold in one 6uarter in the past is F1*1,111. Ger goal of F!+*,111 is probabl&@ ". 4. C. . . : . not specific and measurable. not realistic. irrele#ant. lac5ing a specific time period. does not co#er 5e& result area.

Hou are #iolating which of these goal characteristics when &ou attempt to create goals for e#er& aspect of emplo&ee beha#ior? ". 4 . C . . . : . Specific and measurable 9in5ed to rewards .efined time period Co#er 5e& result areas Challenging but realistic

.arren set goals for each of his emplo&ees. :ach emplo&ee ended up with at least twent&-fi#e goals. This process #iolates which of the following criteria for effecti#e goals? ". Specific and measura ble 4 Challenging but . realistic C Co#ers 5e& . result areas . . : . 10 .efined time period 9in5ed to rewards

Bhich of these is lac5ing in the goal ,profits should be increased in the coming &ear?, ". Specif ic and measu rable 4 Challenging but realistic C Co#ers 5e& . result areas . .efined . time period : Done of . these "ll of the following are characteristics of effecti#e goal setting e/cept@ ". goals should be challeng ing but not unreaso nabl& difficult. 4goals should be set for e#er& aspect of emplo&ee beha#ior. C specific and . measurable. . . : . co#er 5e& results area. lin5ed to rewards.

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The ultimate impact of goals depended on the e/tent to which goal achie#ement is lin5ed to@ ". rewards. 4. salar& increases. C. promotions. .. all of these. : salar& increases and . promotions. ocusing manager and emplo&ee efforts on acti#ities that will lead to goal attainment is a benefit of what management method? ". Tactical planning 4. Contingenc& planning C. Single-use planning . Management b& ob3ecti#es . : Management b& wal5ing . around ;;;;; is the first step in the M42 process. ". Settin g goals 4 .e#eloping action plans C"ppraising o#erall performance . 8e#iewing . progress : Done of . these

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Bhich of these is a method of management whereb& managers and emplo&ees define goals for e#er& department, pro3ect, and person and use them to monitor subse6uent performance? ". 2rgani$a tional planning 4 Management b& . ob3ecti#es C. . . : . Goal setting Mission de#elopment <ision de#elopment

Gigh ence Corporation is currentl& implementing an M42 program. Managers and emplo&ees 3ointl& set ob3ecti#es and de#elop action plans, and goal achie#ement is e#aluated on an annual basis. Gigh ence is missing which ma3or acti#it& that must occur in order for M42 to be successful? ". .e#el oping a missio n statem ent 4 .e#eloping tactical goals C 8e#iewing . progress .8e#iewing operational plans : Done of . these

!!

7n using M42, ob3ecti#es should be set b& the@ ". super#i sor. 4. emplo&ee. Csuper#isor and the emplo&ee 3ointl&. . accounting . department. : top . management. rostburg ireplaces has used M42 for the past &ear. Top management 3ust finished e#aluating o#erall performance. The ne/t step in the M42 process should be@ ". to de#el op new action plans. to de#elop new ob3ecti#es based on the re#iew of last &ear's performance. to begin a new M42 ,c&cle,, using the same ob3ecti#es as last &ear. to wait se#eral months to allow information to be digested. : none of . these.

!%

;;;;; is the final step in the M42 process. ". "ppraise o#erall performance 4 .e#elop an action plan . C. 8e#iew progress .. Set goals : Conduct periodic . chec5ups Bhich of the following is D2T one of the benefits of M42? ". 4. C . . . : . Performance can be impro#ed at all compan& le#els. :mplo&ees are moti#ated. :fforts are focused on acti#ities that will lead to goal attainment. 2perational goals are able to displace strategic goals. 7ndi#idual and department goals are aligned with compan& goals.

!)

Bhich of these is true about single-use plans? ". The& are de#el oped to achie# e a set of goals that are unli5e l& to be repeat ed in the future. The& are used to pro#ide guidance for tas5s performed repeatedl& within the organi$ation. The& define plans that define compan& responses to specific situations, such as emergencies or setbac5s. . The& are most important in the organi$ations. : Done of . these

!*

Standing plans@ ". are de#elop ed to achie#e a set of goals that are unli5el& to be repeated in the future. are used to pro#ide guidance for tas5s performed repeatedl& within the organi$ation. define compan& responses to specific situations, such as emergencies or setbac5s. .are the most important in the organi$ations. : are none of . these.

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" pro3ect is an e/ample of a@ " p . o li c &. 4stan ding plan . C pro ced ure. .sing leuse plan . : ru . le. Che&enne Creamer& re6uires that all absent emplo&ees bring a note from their doctor when returning to wor5. This is an e/ample of a@ ". sin gle pla n use . 4 standi ng plan. C progr . am. . proce . dure. : pro3e . ct.

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;;;;; define boundaries within which to ma5e a decision. ". 4 . C . . . Pro gra ms Polici es 8ule s Proce dures

: Pro3e . cts "n e/ample of a ;;;;; is a statement supporting the organi$ation's efforts in the area of se/ual harassment. ". pro ced ure 4. rule C polic . & . single. use plan : progra . m ,Do food andCor drin5s in the classroom, is an e/ample of a ;;;;;. ". pr oc ed ur e 4. rul e C poli . c& .single -use plan : pro3e . ct

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Bhich of the following is a commonl&-cited limitation of planning? ". Plans limit emplo&ee moti#ation and commitment. 4 Plans ma5e resource allocation more . difficult. C Plans ma5e it more difficult to measure . standards of performance. . Plans boost intuition and creati#it&. . : Plans can create a false sense of . securit&. 2ne ma3or limitation of goals and plans is@ ". goals and plans guide resource allocatio n. 4goals and plans ma& cause rigidit& in a turbulent en#ironment. Cgoals and plans decrease emplo&ee moti#ation. .goals and plans decrease emplo&ee commitment. : none of the . abo#e.

!0

Bhich of these are true about contingenc& plans? ". The& are de#el oped to achie# e a set of goals that are unli5e l& to be repeat ed in the future. The& are used to pro#ide guidance for tas5s performed repeatedl& within the organi$ation. The& define compan& responses to specific situations, such as emergencies or setbac5s. . The& are most important in the organi$ations. : Done of . these

%1

Contingenc& plans are also referred to as@ ". 4. C. .. : . standing plans. rules. scenarios. procedures. operationall& tactical plans.

;;;;; in#ol#es loo5ing at trends and discontinuities and imagining possible alternati#e future to build a framewor5 within which une/pected future e#ents can be managed. ". Scenari o buildin g Crisis planning Contingenc& planning Trend management Caution planning

4 . C . . . : .

Ierrica, a finance manager at 98< industries, is as5ed b& her boss to de#elop a plan in the e#ent that compan& sales drop b& !1 percent or more. This t&pe of plan is 5nown as ;;;;;. ". contingenc & planning financial planning

4 . C. crisis planning . consumer protection . : en#ironmental . planning

%1

;;;;; enables firms to cope with une/pected e#ents that are so sudden and de#astating that the& ha#e the potential to destro& the organi$ation if managers aren't prepared with a 6uic5 and appropriate response. ". 7ncident planning 4 Contingenc& . planning C Strategic planning . . Crisis planning . : :mergenc& . planning The two stages of crisis planning include@ ". 4 . C . . . : . pre#ention and control. planning and leading. pre#ention and preparation. preparation and control. leading and organi$ing.

The crisis management plan should be a ;;;;; that specifies the actions to be ta5en, and b& whom, if a crisis occurs. ". 4 . C . . . : . #ague, #erbal plan detailed, #erbal plan long, difficult to read plan #ague, written plan detailed, written plan

%!

Bhich of the following is D2T in#ol#ed in the stages of crisis planning? ". Setting up effecti#e communic ation s&stems 4 Creating detailed crisis management plans C 7n#estigating all . sta5eholders ..esignating a crisis management team and spo5esperson : 4uilding . relationships Traditionall&, if Stephanie, C:2 of 4utterfl& Pillows, needed to conduct corporate planning, it would be performed b& all of the following e/cept@ ". 4 . C. .. : . central planning departments. decentrali$ed planning groups. top e/ecuti#es. consulting groups. the president of the compan&.

%%

The traditional approach to corporate planning was to@ ". ha#e a decentral i$ed planning staff. 4ha#e a centrali$ed planning department. C set up a planning . tas5 force. . set up planning . committees. : use TJM . approach. Ieff is a top manager at a te/tile factor&. Ge is de#eloping a crisis plan in the e#ent that the compan& has a to/ic spill or accident. Bhich of the following should Ieff underta5e to prepare for such a crisis? ". 4uilding relationships with neighboring businesses 4 .etecting signals from the natural en#ironment . C Polling emplo&ees on the li5elihood of an . en#ironmental disaster . .esignating a crisis management team in the e#ent . of an en#ironmental disaster : .ismantling the compan&As ties to the e/ternal . media

%)

"labama "irlines has three planning specialists who help di#ision managers de#elop their own di#ision plans. Ser#ing as consultants to the di#isions, the planning specialists gi#e ad#ice about strengths, wea5nesses, opportunities, and threats. "labama "irlines is utili$ing what approach to the planning function? " . C en tr al i$ ed pl an ni n g de pa rt m en t .ece ntrali $ed plann ing staff CPlann ing tas5 force Centr ali$ed plann ing com mitte e : TJ . M

%*

;;;;; are reasonable &et highl& ambitious goals that are so clear, compelling, and imaginati#e that the& fire up emplo&ees and engender e/cellence. ". 4 . C . . . : . 2perati onal goals Stretch goals Strategic goals Tactical goals 4ottom-up goals

Sam is in charge of strateg& control at 9anserAs, a large clothing retailer. Ge regularl& trac5s sales in relation to targets, number of products on bac5 order, and percentage of customer ser#ice calls resol#ed within specified time periods. These metrics are 5nown as@ ". 4. C . . . : . financial indicators. tactical goals. performance dashboards. balanced scoreboards. operational standards.

"=n> ;;;;; is a cross-functional group of managers and emplo&ees who wor5 together to gain a deep understanding of a specific business issues, with the aim of presenting insights related to that issue. ". espiona ge team 4 functional . team C. tas5 force . pro3ect team . : intelligence . team

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"t Sa#e-tech, Sophia, director of mar5eting, is a member of a cross-functional group of managers and emplo&ees. The purpose of the group is to gain a deep understanding compan&As competiti#e en#ironment and periodicall& present these findings to top management. Sophia is in#ol#ed in what t&pe of team? ". 7ntellig ence team 4 unctional . team C. Tas5 force . Pro3ect team . : :spionage . team Scenario - Katelynn Kareem Managers at BKHL 3ust announced that the new management program would be focused around M42 concepts. Eatel&nn Eareem had been a manager at BKHL for ten &ears and she was not certain if this new M42 approach was going to fit her department. She had strong commitment to achie#ing the compan&'s ob3ecti#es, but she also 5new her emplo&ees well enough to 5now that some didn't share the same commitment. 7n the M42 process, after the first step of setting ob3ecti#es is accomplished, the ne/t step that Eatel&nn should e/pect is@
a. b. c. d. e. appraising o#erall performance. de#eloping action plans. ha#ing a compan& part& to celebrate. none of these.

re#iewing progr

%7

Scenario - Katelynn Kareem Managers at BKHL 3ust announced that the new management program would be focused around M42 concepts. Eatel&nn Eareem had been a manager at BKHL for ten &ears and she was not certain if this new M42 approach was going to fit her department. She had strong commitment to achie#ing the compan&'s ob3ecti#es, but she also 5new her emplo&ees well enough to 5now that some didn't share the same commitment. Bhat can Eatel&nn e/pect to be doing during the final step of the M42 process?
a. b. c. d. e. Setting goals 8e#iewing progress "ppraising o#erall performance .efining mission .e#eloping action plans

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Scenario - Katelynn Kareem Managers at BKHL 3ust announced that the new management program would be focused around M42 concepts. Eatel&nn Eareem had been a manager at BKHL for ten &ears and she was not certain if this new M42 approach was going to fit her department. She had strong commitment to achie#ing the compan&'s ob3ecti#es, but she also 5new her emplo&ees well enough to 5now that some didn't share the same commitment. Eatel&nn can anticipate en3o&ing the ad#antages of M42 which include@
a. b. c. d. e. performance can impro#e at all compan& le#els. emplo&ees are more moti#ated. increased orientation toward goal achie#ement and moti#ation. all of these.

increased orient

"=n> ;;;;; is a desired future state that the organi$ation attempts to reali$e. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; "=n> ;;;;; is a blueprint for goal achie#ement and specifies the necessar& resource allocations, schedules, tas5s, and other actions. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; The act of determining the organi$ation's goals and the means for achie#ing them is referred to as ;;;;;. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;; and plans are the responsibilities of middle managers. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; 2perational plans that focus on specific tas5s and processes that help to meet tactical and strategic goals are de#eloped b& ;;;;; managers and super#isors. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; %0

;;;;; describes the organi$ation's reason for e/istence. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; "=n> ;;;;; is a broadl& stated definition of basic business scope and operations that distinguishes the organi$ation from others of a similar t&pe. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; 4road statements describing where the organi$ation wants to be in the future are called ;;;;;. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;; define the action steps b& which an organi$ation intends to attain its strategic goals. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; Goals that define the outcomes that ma3or departments must achie#e in order for the organi$ation to reach its o#erall goals are 5nown as ;;;;; goals. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;; are designed to help e/ecute ma3or strategic plans and to accomplish a specific part of the compan&'s strateg&. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; The specific results e/pected from departments, wor5 groups, and indi#iduals are the ;;;;; goals. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;; plans are de#eloped at the lower le#els of the organi$ation to specif& action steps toward achie#ing operational goals and to support tactical plans. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;; is a method whereb& managers and emplo&ees define goals for e#er& department, pro3ect, and person and use them to monitor subse6uent performance. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; Managers belie#e that the& are better oriented toward goal achie#ement when ;;;;; is used. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;; plans are used to pro#ide guidance for wor5-related tas5s that are performed repeatedl& within the organi$ation. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;; plans are de#eloped to achie#e a set of goals that are not li5el& to be repeated in the future. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; )1

;;;;; are ongoing plans that are used to pro#ide guidance for tas5s performed repeatedl& within the organi$ation. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; Plans that define compan& responses to specific situations, such as emergencies, setbac5s, or une/pected conditions are called ;;;;; plans. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; " special t&pe of contingenc& plan that is used when e#ents are sudden and de#astating and re6uire immediate response is called ;;;;;. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; The crisis management plan should be a=n> ;;;;; that specifies the actions to be ta5en, and b& whom, if a crisis occurs. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; " group of planning specialists assigned to ma3or departments and di#isions to help managers de#elop their own strategic plans is called ;;;;;. ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; 9ist the fi#e characteristics of effecti#e goals.

9ist the four ma3or acti#ities that must occur in order for M42 to succeed.

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9ist four reasons wh& planning generall& positi#el& affects a compan&As performance?

Bhat are the two stages of crisis management?

Compare the four le#els of goals and plans.

4riefl& define the characteristics of an effecti#e goal.

9ist and define the four ma3or acti#ities that must occur in order for management b& ob3ecti#es =M42> to succeed.

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7n what wa&s do plans and goals benefit an organi$ation?

9ist three inno#ati#e approaches to planning.

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Chapter 7--Managerial Planning and Goal Setting Ee&

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planning Tactical goals front-line Mission mission statement strategic goals Strategic plans tactical Tactical plans operational 2perational Management b& ob3ecti#es management b& ob3ecti#es Standing Single-use Standing plans contingenc& crisis management planning detailed, written plan decentrali$ed planning staff Goals should be =1> specific and measurable( =!> the& should co#er 5e& result areas( =%> the& should be challenging but realistic( =)> the& should ha#e a defined time period( and =*> the& should be lin5ed to rewards. =1> Set goals, =!> de#elop action plans, =%> re#iew progress, and =)> appraise o#erall performance. :/plicit goals and plans can ser#e the following functions@ resource allocation, source of moti#ation and commitment, guide to action, rationale for decisions, and set a standard of performance Pre#ention and Preparation The highest le#el is the mission statement, which defines the organi$ation's basic business scope and operations and specifies its reasons for e/istence. The second le#el is the le#el of strategic goals and plans. Those pertain to the organi$ation as a whole and specif& where the organi$ation wants to be in the future. The third le#el is the tactical le#el, with a focus on outcomes that ma3or di#isions and departments must achie#e in order for the organi$ation to reach its o#erall goals. The fourth and lowest le#el is the operational le#el, in#ol#ing specific measurable results for departments, wor5 groups, and indi#iduals. :ffecti#e goals are precisel& defined and allow for measurable performance. The& focus on the 5e& result areas that contribute most to desired performance. The& should be challenging but not unreasonabl& difficult. inall&, the& should specif& the time period that the& co#er and the& should be tied to #alued rewards. The first step is setting goals. The setting of goals in#ol#es emplo&ees at all le#els and should incorporate the principles of effecti#e goal setting. Goals should be 3ointl& determined b& manager and emplo&ee, so as to increase the emplo&ee's le#el of commitment. The second step is de#eloping action plans. These action plans will specif& how the goals are to be achie#ed. De/t, a progress re#iew is important to ma5e sure that the action plans are wor5ing. The& ma& be formal or informal and the action plan should be changed if necessar&. The last step is to determine if the goals ha#e been achie#ed within the specified time period. This appraisal should factor into the setting of the ne/t period's goals, allowing for feedbac5 into the setting of the ne/t set of goals.

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Plans and goals benefit the organi$ation in se#eral wa&s. irst the& pro#ide legitimac& and a reason for e/istence. The& also pro#ide a source of moti#ation and commitment, pro#ide guides for action and decision ma5ing, and the& set a standard of performance. Set stretch goals for e/cellence, use performance dashboards, and deplo& intelligence teams.

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