第一篇：Chapter 8 Planning_Answers to review questions

1.Explain what studies have shown about the relationship between planning

and performance.It should be noted that one cannot say that organizations that formally plan always outperform those that don’t plan.However, studies have indicated that formal planning is often associated with positive financial results.Generally, performance is also higher in those organizations where planning is present.And, when higher performance is not the result of formal planning, often the reason is due to something in the external environment.Finally, studies indicate that at least four years of formal planning are necessary before performance is affected.2.Discuss the contingency factors that affect planning.The first contingency factor is a manager’s level in the organization.Typically, lower-level managers are operational planners, while upper-level managers are strategic planners.Second, with environmental uncertainty, plans should be specific, but flexible.And third, the length of future commitments can greatly affect planning.3.Describe how managers can effectively plan in today’s dynamic

environment.Environmental uncertainty is a constant.Therefore, managers should develop plans that are specific yet remain flexible.If managers recognize that planning is an ongoing process, then when a dynamic environment is encountered, managers can adapt readily.Another way to assist with planning is to craft an organizational hierarchy that is relatively flat.Allowing lower level managers to set goals and develop plans is an effective way to deal with a dynamic environment.4.Will planning become more or less important to managers in the future?

Why?

Planning will become more important to managers in the future because of the uncertainty in an increasingly dynamic environment.Changes constantly occur in both the general and specific environments of organizations, and many of these changes take place rapidly.Planning helps managers cope with the uncertainty by forcing managers to look ahead, anticipate change, consider the impact of the change, and develop appropriate responses.5.If planning is so crucial, why do some managers choose not to do it? What

would you tell these managers?

Managers may choose not to devote time to planning because they do not know how to plan or feel that they do not have the necessary time.Others may say that planning is a waste of time, that the future is going to happen whether or not they plan.However, these reasons do not discount the importance of planning.Every manager should engage in planning.6.Explain how planning involves decisions today that will have an impact later.As managers plan, they make decisions that influence how activities are organized, how

employees are managed, and what control mechanisms areimplemented.As managers look to

the future by planning, the decisions they make as they plan will have an impact on their other managerial activities.7.How might planning in a not-for-profit organization such as the American

Cancer Society differ from planning in a for-profit organization such as Coca-Cola?

The process of planning is similar, but the content of the plans will differ.The types of

objectives that are established and the plans that are formulated will be influenced by the fact that a not-for-profit organization does not have profit as its major objective.However, a not-for-profit organization must devote efforts and resources to planning how to raise funds and to recruit volunteers to achieve its mission.8.What types of planning do you do in your personal life? Describe these plans

in terms of being(a)strategic or operational plans,(b)short or longterm plans, and(c)specific or directional plans.To be discussed in class

9.The late Peter Drucker, an eminent management author, coined the SMART

format for setting goals back in 1954: S(specific), M(measurable), A

(attainable), R(relevant), and T(time bound).Are these still relevant today? Discuss.To be discussed in class

10.Many companies have a goal of becoming more environmentally sustainable.One of the most important steps they can take is controlling paper waste.Choose a company—any type, any size.Imagine that you’ve been put in charge of creating a program to control paper waste for the company.Set goals and develop plans.Prepare a report for your boss(that is, your

professor), outlining these goals and plans.To be discussed in class