Question 26. Goals are most effective when they are specific, measurable, challenging and linked to rew

26. Goals are most effective when they are specific, measurable, challenging and linked to rewards.

27. Goals must be set for every aspect of employee behavior or organizational performance to be effective.

28. The goals should be easy, for employees to feel motivated, so that they can achieve them easily which in turn increases their motivation level.

29. An action plan defines the course of action needed to achieve the stated goals.

30. Standing plans define company responses to specific situations such as natural emergencies or competitive setbacks.

31. Three critical planning methods are contingency planning, building scenarios, and crisis planning.

32. Crisis plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions.

33. If Renae, manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she would need to look at factors such as new equipment, the economy, and the company workers’ compensation cases.

34. Contingency plans can also be considered as scenarios.

35. Some firms engage in crisis planning to enable them to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization.

36. The first stage in crisis prevention includes setting up effective communication system.

37. Prevention and preparation are the two stages of crisis management.

38. The ABC Corporation should create a crisis management group that is not cross-functional, but does work together well under pressure.

39. In a complex and competitive business world, traditional planning done by a select few is the only planning that works.

40. Managers work with planning experts to develop their own goals and plans in decentralized planning.

41. In centralized planning, managers work with planning experts to develop their own goals and plans.

42. Planning cannot tame a turbulent environment.

43. Defining operational goals and plans occurs in the plan development phase of the organizational planning process.

44. Strategic planning tends to be long-term and may define organizational action steps from two to five years in the future.

45. Goals are typically stated in quantitative terms.

46. Managers use strategic goals to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively.

47. In order for goals to be effective, they should be challenging but realistic.

48. One of the biggest benefits of planning is that, in turbulent environments, plans create greater organizational flexibility.

49. Crisis planning forces managers to mentally rehearse what they would do if their best laid plans collapse.

50. When detecting signals from the external environment as a part of crisis planning, managers are in the preparation stage.

51. Stretch goals are typically so far beyond the current levels that people have to be innovative to find ways to reach them.

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52. Goals and plans are valuable to an organization because they provide rationale for decisions, a guide to action, and an increase in motivation and commitment.

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53. Strategic management largely determines which organizations succeed and which ones struggle.

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