Chapter 4: Planning and Strategic Management

Provide direction and performance evaluation criteria

Traditional goal setting sets broad goals from the top down, while MBO involves setting specific goals collaboratively.

Goal specificity, participative decision making, explicit performance/evaluation period, feedback

<p>Overemphasis on individual accomplishment may create problems with teamwork</p> Signup and view all the answers

<p>Written in terms of outcomes, measurable, clear time frame, challenging yet attainable, written down, communicated to all necessary members</p> Signup and view all the answers

<p>Review mission statement, evaluate resources, determine goals, write down and communicate goals, review results</p> Signup and view all the answers

<p>The two main types of planning described in the text are informal planning and formal planning.</p> Signup and view all the answers

<p>The four main purposes of planning described in the text are: 1) Providing direction, 2) Reducing uncertainty, 3) Minimizing waste and redundancy, and 4) Setting the standards for controlling.</p> Signup and view all the answers

<p>The text states that formal planning is associated with higher profits, higher returns on assets, and other positive financial results. However, the quality of planning and implementation affects performance more than the extent of planning, and the external environment can reduce the impact of planning on performance. Formal planning must also be used for several years before it begins to affect performance.</p> Signup and view all the answers