Chapter 7 - Planning and Goal Setting

Which of the following are good examples of mission statements? Check all that apply.

- A computer on every desk and in every home. - Create economic opportunity for every member of the global workforce. Explanation: "A computer on every desk and in every home" was Microsoft's first mission statement, while "Create economic opportunity for every member of the global workforce" is LinkedIn's mission statement. Picking up a new hobby and shadowing a coworker are both short term goals, so they cannot be mission statements.

As a manager, you have been asked to work with your employees to develop goals. What can you expect from this process? Check all that apply.

- When deciding whether goals and plans will be beneficial, managers should consider whether the environment is more stable or more dynamic. - One of the drawbacks of plans is that they can create a false sense of security.

On September 30, the manager reports that call center hold times for the summer construction season averaged 42 seconds, with 30 percent of all calls not being put on hold at all but 2 percent of calls exceeding 90 seconds of hold time. The plan is rated mostly successful.

Appraising performance

Last winter, a guest at a nearby motel fell through the ice and was not rescued in time. The motel's name was included in news coverage of the death, resulting in negative publicity. Also, since the incident, the motel has not been able to rent out the room where the dead guest stayed. What should Dave and Betsy do with this information?

Develop a crisis plan that includes a notification system, so anyone using the lake can notify Kozy Korner of an emergency and a supply of rescue equipment like ropes. Explanation: The incident described is a crisis. The precise event could not be foreseen, and it had drastic consequences. Dave and Betsy should develop a crisis plan that can go into effect if any lake user's life is in danger. By having and using such a plan, Kozy Korner will be seen as caring for its guests and the fishing community at large, may garner positive publicity, and may save a life someday.

A pool of twelve contingent call center workers who work at home will be hired and trained before April 15. These employees can be activated anytime hold times threaten to exceed 90 seconds.

Developing an action plan Explanation: The four main steps of MBO are setting goals, developing action plans, reviewing progress, and appraising performance. The manager sets a goal of a maximum hold time of 90 seconds, develops a plan involving standby call center workers, measures progress in terms of workers hired and customer hold times, and appraises the performance of the plan against the goal at the end of construction season.

Any veteran who asks me for a dog will have one within one month of the request.

Goal

Sameera has the goal of getting her work done, while her parents have the goal of getting work done around the house. Which of the following conflict resolution techniques would be most effective in this situation?

Modify goals by time or location Explanation: The best way to resolve this conflict is to modify goals by time or location. Both Sameera's goal and her parent's goal are important, but if they worked together, they could change the goals slightly so that both could be accomplished effectively. It doesn't make sense to debate the goals because both are important, and it doesn't make sense to try and use coalitional management because both parties see their goals as important, and that is unlikely to change. Finally, because this is a family unit during a time of crisis, it is unlikely that one or the other of them would depart the home.

To buy a new set of Michelin tires and change the oil using four quarts of 10W-30 oil in my car by September 15

Not Result-Oriented Explanation: This goal is not result-oriented. By splitting your attention between buying tires and changing the oil in your car, you may not accomplish either goal.

To erect a four-foot-high stone retaining wall around the outer perimeter of the pool

Not Time-Bound Explanation: This goal is not time-bound. When will you finish the wall?

We will increase production by 10 percent per week to meet holiday demand.

Operational

I can get dogs from the pound. There are so many abandoned animals; it will be quicker, less expensive, and easier than trying to get dogs from breeders.

Plan

I'll train the dogs myself. That way, I can have them ready for placement more quickly.

Plan

On April 1, the manager sees that nine contingent call center workers have been hired and completed training. On June 30, call center data show 5 percent of calls are on hold for more than 90 seconds.

Reviewing Process

Based on data on how long people wait before hanging up, the manager decides the maximum time on hold should be 90 seconds.

Setting a goal Explanation: The four main steps of MBO are setting goals, developing action plans, reviewing progress, and appraising performance. The manager sets a goal of a maximum hold time of 90 seconds, develops a plan involving standby call center workers, measures progress in terms of workers hired and customer hold times, and appraises the performance of the plan against the goal at the end of construction season.

The entry on your to-do list to "buy a cake for Susan's going away party":

Single use plan Explanation: Buying a cake for a specific party is a nonrecurring task. Once you cross it off the to-do list, you will not do that task again. This makes it a single use plan.

We will reduce our environmental footprint and continually seek out renewable resources to use in our products.

Strategic

We will reduce our marketing budget by $10,000.

Tactical

To energize employees and inspire excellence, an organization may set __________, which are reasonable yet highly ambitious.

stretch goals Explanation: Stretch goals are ambitious objectives, attainable only through imagination and innovation. Strategic goals describe any end result desired for the organization as a whole.

Although they are assigned specific territories, sales people at Gibson & Associates contact clients outside of their territories. They are hoping to make additional sales which will increase their chances to meet their goals. One reason that might explain this behavior is that goals and plans __________.

can create too much pressure Explanation: Goals and plans can create too much pressure. If goals are seen as overly ambitious or unattainable, employees may resort to dysfunctional or unethical actions in order to meet their targets. Calling clients outside of their assigned territories is one way that sales people may try to boost their numbers in order to meet their goals. Goals that provide a source of motivation do not cause employees to act unethically. Goals may get in the way of intuition and creativity when by too much routine planning.

As the Board of Governors of the American Red Cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. Another option is to have planning specialists help managers across the organization make their own plans. Why might this organization's executives opt for the latter approach? Check all that apply.

- When managers come up with their own plans, they are likely to be more committed to following through on them. - The environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. Explanation: Decentralized planning can be useful in a dynamic environment by allowing those managers closest to the customer for the organization's product or service to make plans based on current information. Furthermore, when managers are involved in making plans, they feel ownership and are likely to be highly motivated to make the plans succeed. Decentralization of the planning process does mean that different parts of the organization may go in different directions and resources may not be as well-coordinated across the organization.