Study Guide
Chapter 5:
Planning and decision making:
Benefits of Planning: * Intensified effort * Persistence * Direction * Creation of task strategies
Pitfalls of planning * Impedes change and prevents or slows adaptations * Creates a false sense of certainty * Detachment of planners
How to make a plan that works: 1. Setting goals a. S.M.A.R.T • Specific • Measurable • Attainable • Realistic • Timely 2. Developing Commitment to Goals • Goal commitment – the determination to achieve a goal • Set goals collectively • Make the goal public • Obtain top management’s support 3. Developing Effective Action Plans an action plan lists… • Specific steps (how) • People (who) • Resources (what) • Time period (when) …for accomplishing a goal 4. Tracking Progress • Proximal goals and distal goals • Performance feedback 5. Effects of Goal Setting, Training, and Feedback on Safe Behavior in a Bread Factory

6. Maintaining Flexibility * Options-based planning – keep options open by making, small simultaneous investments in many alternative plans. * Slack resources – a cushion of resources, like extra time or money, that can be used to address and adapt to unanticipated changes.

Example: Top managers- Bride/ Groom
Starting at the Top: * Strategic plans – make clear how the company will serve customers and position itself against competitors in the next 2 to 5 years * Purpose statement – a statement of a company’s purpose or reason for existing * Strategic objective – a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possess a finish line and a time frame.
Purpose Statement or Mission: * Review Mission Statements * Short/Long * Provide Company purpose in words to set stage for culture,