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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.

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.

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


General Questions,general business data bank,54. Research has shown that

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