Chapter 7--Managerial Planning and Goal Setting

Chapter 7--Managerial Planning and Goal SettingStudent: ___________________________________________________________________________1.Managers must understand no plan is perfect, but should grow and change to meet new conditions.TrueFalse2.A desired future state that the individual or organization attempts to realize is a goal.TrueFalse3.Goals specify today's means; plans specify future ends.TrueFalse4.Planning is the act of determining the organization goals and the means for achieving them.TrueFalse5.Planning cannot tame a turbulent environment.TrueFalse6.A plan tells "why" to achieve the goal.TrueFalse7.The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational level.TrueFalse8.Defining operational goals and plans occurs in the execution phase of the organizational planning process.TrueFalse9.Tactical goals and plans are the responsibility of front-line managers and supervisors.TrueFalse10.Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals.TrueFalse11.Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the company's strategy.TrueFalse12.A broad definition of the organization's values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization refers to a Business Plan.TrueFalse13.Goals and plans provide a sense of direction and focus on specific targets and direct employee efforts toward important outcomes.TrueFalse14.Tactical goals are specific, measurable results expected from departments, work groups, and individuals within the organization.TrueFalse15.Top managers make the broad strategic plan and identify specific tactical plans.TrueFalse16.Operational planning specifies plans for department managers, supervisors, and individual employees.TrueFalse17.Goals are typically stated in quantitative terms.TrueFalse18.Providing innovative solutions to customer needs is a goal that would be placed in the internal business process category on a strategy map.TrueFalse19.A visual representation of the key drivers of an organization's success and shows how specific goals and plans in each area are linked is called a strategy map.TrueFalse20.An organization's mission describes its reason for existence.TrueFalse21.Building good relationships with suppliers and partners would be considered internal business process goals.TrueFalse22.Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole.TrueFalse23.Management by objectives, single-use plans, and standing plans are all management planning approaches.TrueFalse24.Goals are most effective when they are specific, measurable, challenging and linked to rewards.TrueFalse25.Goals must be set for every aspect of employee behavior or organizational performance to be effective.TrueFalse26.In order for goals to be effective, they should be challenging but realistic.TrueFalse

Step 1 in Management by Objectives is to review progress.TrueFalse

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

Managers believe they are better oriented toward goal achievement when MBO is used.TrueFalse

In step 1 of Management By Objectives, overall performance is appraised.TrueFalse

A key benefit of management by objectives is that it aligns individual and departmental goals with company goals.TrueFalse

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

A major difference between rules and policies is that rules are broad in scope whereas policies are narrow in scope.TrueFalse

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

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

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

Plans provide a standard of assessment.TrueFalse

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.TrueFalse

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

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

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.TrueFalse

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

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

The CEO of Andre's Autos, Inc. must do all of the planning for the company because that is the way to do things in today's workplace.TrueFalse

Trend management is looking at trends and discontinuities and imagining possible alternative futures.TrueFalse

In centralized planning, managers at all levels work with planning experts to develop their own goals and plans.TrueFalse

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

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

Sales in relation to targets is an example of a balanced scorecard metric.TrueFalse

Intelligence teams are useful when an organization confronts a major intelligence challenge.TrueFalse

_____ refers to a desired future state that an organization attempts to realize.A.PlanB.Vision statementC.GoalD.Mission statementE.Idea

_____ specify future ends and _____ specify today's means.A.Goals; plansB.Plans; goalsC.Planning; organizingD.Ideas; behaviorsE.Mission; vision

A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n) _____.A.goalB.planC.missionD.visionE.objective

Of the strategic management functions, which is considered the most fundamental?A.ExecutingB.AnalyzingC.ControllingD.PlanningE.Leading

The planning process starts with:A.a formal mission that defines the organizations purpose.B.tactical planning.C.strategic planning.D.operational planning.E.controlling performance.

_____ is the act of determining the organization's goals and the means for achieving them.A.BrainstormingB.OrganizingC.PlanningD.Developing a missionE.A blueprint

Which type of plan helps managers implement the overall strategic plan?A.OperationalB.ContingencyC.TacticalD.CrisisE.Corporate-level

The planning process begins with which of these?A.The development of operational goalsB.The development of a mission statementC.Communication of goals to the rest of the organizationD.A company-wide meetingE.Brainstorming

The _____ is the basis for the strategic level of goals and plans which in turn shapes the _____, and _____ level.A.goal; mission, tacticalB.objective; operational, missionC.operational goal; mission and tacticalD.mission; tactical, operationalE.tactical plan; operational, mission

_____ is primarily responsible for strategic goals/plans.A.Middle managementB.Board of directorsC.ConsultantsD.Top managementE.Lower management

_____ is primarily responsible for operational goals/plans.A.Middle managementB.Board of directorsC.ConsultantsD.Top managementE.Lower management

Which of these is(are) primarily concerned with tactical goals/plans?A.Middle managementB.Board of directorsC.ConsultantsD.Senior managementE.Lower management

Which of the following is not a step in the organizational planning process?A.Monitor and learnB.Plan operationsC.Translate the planD.Develop the planE.Plan marketing tactics

Sherry is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of goals?A.Operational goalsB.Tactical plansC.Strategic goalsD.Mission statementE.Vision

Which of the following is NOT a tool for executing a plan?A.Management by objectivesB.Operations mapC.Performance dashboardsD.Single use plansE.Decentralized responsibility

A statement that identifies distinguishing characteristics of an organization is known as a(n):A.goals statement.B.values statement.C.income statement.D.mission statement.E.competitive-edge statement.

Which of these are described by mission statements?A.Corporate valuesB.Product qualityC.Location of facilitiesD.All of theseE.None of these

"We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's _____.A.missionB.strategic goalsC.tactical goalsD.strategic plansE.tactical plans

"We seek to become the premier business school in the west" is an example of a statement you are most likely to find in the organization's _____.A.tactical goalsB.operational goalsC.missionD.tactical plansE.operational plans

_____ refers to a broadly stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organizations.A.Mission statementB.Goal statementC.Management by objectiveD.Goal settingE.Corporate competitive-value statement

At the top of the goal hierarchy is:A.strategic goals.B.tactical goals.C.operational goals.D.a mission.E.employee goals.

_____ are the broad statements of where the organization wants to be in the future.A.Operational goalsB.Tactical goalsC.Strategic goalsD.Operational goalsE.Tactical plans

The official goals of the organization are best represented by the _____.A.strategic goalsB.tactical goalsC.operational goalsD.competitive goalsE.none of these

A long-term time frame is most closely associated with:A.operational plans.B.tactical plans.C.strategic plans.D.mission plans.E.tactical goals.

_____ are called the action steps by which an organization intends to attain its strategic goals.A.Tactical goalsB.Operational goalsC.Tactical plansD.Operational plansE.Strategic plans

_____ goals lead to the attainment of _____ goals, which in turn lead to the attainment of _____ goals.A.Operational; strategic; tacticalB.Tactical; operational; strategicC.Strategic; tactical; operationalD.Operational; tactical; strategicE.None of these.

Sarah is a middle manager at Stylin' Sneakers Corporation. She is most likely responsible for the achievement of _____ goals.A.operationalB.tacticalC.strategicD.lower-levelE.top-level

Goals that define the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals is called:A.strategic goals.B.tactical goals.C.operational goals.D.a mission.E.a plan.

Silver Star Automobiles holds monthly planning and operational reviews to ensure that it is on track for meeting organizational goals. This involves which stage of the organizational planning process? A.Developing the planB.Translating the planC.Plan operationsD.Executing the planE.Monitoring and learning

The organization's reason for existence is known as the organization's _____.A.valueB.visionC.missionD.goalE.service

Roxanne is a manager at Geronimo Gaming. She recently attended a seminar on goal setting. She wishes to use goals to provide a sense of direction to her staff. She is using goals as:A.a way to legitimize her department.B.a source of motivation.C.a standard of performance.D.a guide to action.E.a way to impress others.

Which of the following refer to specific results expected from individuals?A.Operational goalsB.Tactical goalsC.Strategic goalsD.Operational plansE.Mission statements

Which of the following represent plans developed at the organization's lower levels that specify action steps toward achieving operational goals and that support tactical planning activities?A.Tactical plansB.Strategic plansC.Operational plansD.Supervisory plansE.Organizational plans

The _____ is the department manager's tool for daily and weekly operations.A.conventional goalB.strategic goalC.strategic planD.operational planE.targeted plan

Which of the following is a visual representation of the key drivers of an organization's success, showing the cause-and-effect relationships among goals and plans?A.Operational planB.Gantt chartC.Strategy mapD.SWOT analysisE.Strategic plan

Managers use _____ to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively.A.strategic goalsB.operational goalsC.growth goalsD.financial resultsE.internal business process goals

According to the strategy map described in chapter 7, which of the following is NOT a type of goal?A.Financial performance goalsB.Customer service goalsC.Internal business process goalsD.Learning and growth goalsE.External business process goals

In developing a strategy map for her interior design business, Carla has decided to promote employee development by providing online training tools. This involves goals in which strategy map category?A.Financial performance goalsB.Learning and growth goalsC.Internal business process goalsD.Customer service goalsE.Supply chain goals

Kate is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the current quarter. She is unhappy because she knows that the most any salesperson has sold in one quarter in the past is $150,000. Her goal of $265,000 is probably:A.not specific and measurable.B.not realistic.C.irrelevant.D.lacking a specific time period.E.does not cover key result area.

You are violating which of these goal characteristics when you attempt to create goals for every aspect of employee behavior?A.Specific and measurableB.Linked to rewardsC.Defined time periodD.Cover key result areasE.Challenging but realistic

Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals?A.Specific and measurableB.Challenging but realisticC.Covers key result areasD.Defined time periodE.Linked to rewards

Which of these is lacking in the goal "profits should be increased in the coming year?"A.Specific and measurableB.Challenging but realisticC.Covers key result areasD.Defined time periodE.None of these

All of the following are characteristics of effective goal setting except:A.goals should be challenging but not unreasonably difficult.B.goals should be set for every aspect of employee behavior.C.specific and measurable.D.cover key results area.E.linked to rewards.

The ultimate impact of goals depended on the extent to which goal achievement is linked to:A.rewards.B.salary increases.C.promotions.D.all of these.E.salary increases and promotions.

Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of what management method?A.Tactical planningB.Contingency planningC.Single-use planningD.Management by objectivesE.Management by walking around

_____ is the first step in the MBO process.A.Setting goalsB.Developing action plansC.Appraising overall performanceD.Reviewing progressE.None of these

Which of these is a method of management whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance?A.Organizational planningB.Management by objectivesC.Goal settingD.Mission developmentE.Vision development

High Fence Corporation is currently implementing an MBO program. Managers and employees jointly set objectives and develop action plans, and goal achievement is evaluated on an annual basis. High Fence is missing which major activity that must occur in order for MBO to be successful?A.Developing a mission statementB.Developing tactical goalsC.Reviewing progressD.Reviewing operational plansE.None of these

In using MBO, objectives should be set by the:A.supervisor.B.employee.C.supervisor and the employee jointly.D.accounting department.E.top management.

Frostburg Fireplaces has used MBO for the past year. Top management just finished evaluating overall performance. The next step in the MBO process should be:A.to develop new action plans.B.to develop new objectives based on the review of last year's performance.C.to begin a new MBO "cycle", using the same objectives as last year.D.to wait several months to allow information to be digested.E.none of these.

_____ is the final step in the MBO process.A.Appraise overall performanceB.Develop an action planC.Review progressD.Set goalsE.Conduct periodic checkups

Which of the following is NOT one of the benefits of MBO?A.Performance can be improved at all company levels.B.Employees are motivated.C.Efforts are focused on activities that will lead to goal attainment.D.Operational goals are able to displace strategic goals.E.Individual and department goals are aligned with company goals.

Which of these is true about single-use plans?A.They are developed to achieve a set of goals that are unlikely to be repeated in the future.B.They are used to provide guidance for tasks performed repeatedly within the organization.C.They define plans that define company responses to specific situations, such as emergencies or setbacks.D.They are most important in the organizations.E.None of these

Standing plans:A.are developed to achieve a set of goals that are unlikely to be repeated in the future.B.are used to provide guidance for tasks performed repeatedly within the organization.C.define company responses to specific situations, such as emergencies or setbacks.D.are the most important in the organizations.E.are none of these.

A project is an example of a:A.policy.B.standing plan.C.procedure.D.single-use plan.E.rule.

Cheyenne Creamery requires that all absent employees bring a note from their doctor when returning to work. This is an example of a:A.single-plan use.B.standing plan.C.program.D.procedure.E.project.

_____ define boundaries within which to make a decision.A.ProgramsB.PoliciesC.RulesD.ProceduresE.Projects

An example of a _____ is a statement supporting the organization's efforts in the area of sexual harassment.A.procedureB.ruleC.policyD.single-use planE.program

"No food and/or drinks in the classroom" is an example of a _____.A.procedureB.ruleC.policyD.single-use planE.project

Which of the following is a commonly-cited limitation of planning?A.Plans limit employee motivation and commitment.B.Plans make resource allocation more difficult.C.Plans make it more difficult to measure standards of performance.D.Plans boost intuition and creativity.E.Plans can create a false sense of security.

One major limitation of goals and plans is:A.goals and plans guide resource allocation.B.goals and plans may cause rigidity in a turbulent environment.C.goals and plans decrease employee motivation.D.goals and plans decrease employee commitment.E.none of the above.

Which of these are true about contingency plans?A.They are developed to achieve a set of goals that are unlikely to be repeated in the future.B.They are used to provide guidance for tasks performed repeatedly within the organization.C.They define company responses to specific situations, such as emergencies or setbacks.D.They are most important in the organizations.E.None of these

Contingency plans are also referred to as:A.standing plans.B.rules.C.scenarios.D.procedures.E.operationally tactical plans.

_____ involves looking at trends and discontinuities and imagining possible alternative future to build a framework within which unexpected future events can be managed.A.Scenario buildingB.Crisis planningC.Contingency planningD.Trend managementE.Caution planning

Jerrica, a finance manager at LRV industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of plan is known as _____.A.contingency planningB.financial planningC.crisis planningD.consumer protectionE.environmental planning

_____ enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response.A.Incident planningB.Contingency planningC.Strategic planningD.Crisis planningE.Emergency planning

The two stages of crisis planning include:A.prevention and control.B.planning and leading.C.prevention and preparation.D.preparation and control.E.leading and organizing.

The crisis management plan should be a _____ that specifies the actions to be taken, and by whom, if a crisis occurs.A.vague, verbal planB.detailed, verbal planC.long, difficult to read planD.vague, written planE.detailed, written plan

Which of the following is NOT involved in the stages of crisis planning?A.Setting up effective communication systemsB.Creating detailed crisis management plansC.Investigating all stakeholdersD.Designating a crisis management team and spokespersonE.Building relationships

Traditionally, if Stephanie, CEO of Butterfly Pillows, needed to conduct corporate planning, it would be performed by all of the following except:A.central planning departments.B.decentralized planning groups.C.top executives.D.consulting groups.E.the president of the company.

The traditional approach to corporate planning was to:A.have a decentralized planning staff.B.have a centralized planning department.C.set up a planning task force.D.set up planning committees.E.use TQM approach.

Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis? A.Building relationships with neighboring businessesB.Detecting signals from the natural environmentC.Polling employees on the likelihood of an environmental disasterD. Designating a crisis management team in the event of an environmental disasterE.Dismantling the companys ties to the external media

Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function?A.Centralized planning departmentB.Decentralized planning staffC.Planning task forceD.Centralized planning committeeE.TQM

_____ are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence.A.Operational goalsB.Stretch goalsC.Strategic goalsD.Tactical goalsE.Bottom-up goals

Sam is in charge of strategy control at Lansers, a large clothing retailer. He regularly tracks sales in relation to targets, number of products on back order, and percentage of customer service calls resolved within specified time periods. These metrics are known as: A.financial indicators.B.tactical goals.C.performance dashboards.D.balanced scoreboards.E.operational standards.

A(n) _____ is a cross-functional group of managers and employees who work together to gain a deep understanding of a specific business issues, with the aim of presenting insights related to that issue.A.espionage teamB.functional teamC.task forceD.project teamE.intelligence team

At Save-tech, Sophia, director of marketing, is a member of a cross-functional group of managers and employees. The purpose of the group is to gain a deep understanding companys competitive environment and periodically present these findings to top management. Sophia is involved in what type of team?A.Intelligence teamB.Functional teamC.Task forceD.Project teamE.Espionage team

Scenario - Katelynn Kareem

Managers at WXYZ just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at WXYZ for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment.

In the MBO process, after the first step of setting objectives is accomplished, the next step that Katelynn should expect is:a.reviewing progress toward company goals.b.appraising overall performance.c.developing action plans.d.having a company party to celebrate.e.none of these.

Scenario - Katelynn Kareem

Managers at WXYZ just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at WXYZ for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment.

What can Katelynn expect to be doing during the final step of the MBO process? a.Setting goalsb.Reviewing progressc.Appraising overall performanced.Defining missione.Developing action plans

Scenario - Katelynn Kareem

Managers at WXYZ just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at WXYZ for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment.

Katelynn can anticipate enjoying the advantages of MBO which include:a.increased orientation toward goal achievement.b.performance can improve at all company levels.c.employees are more motivated.d.increased orientation toward goal achievement and motivation.e.all of these.

A(n) _____ is a desired future state that the organization attempts to realize.________________________________________

A(n) _____ is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.________________________________________

The act of determining the organization's goals and the means for achieving them is referred to as _____.________________________________________

_____ and plans are the responsibilities of middle managers.________________________________________

Operational plans that focus on specific tasks and processes that help to meet tactical and strategic goals are developed by _____ managers and supervisors.________________________________________

_____ describes the organization's reason for existence.________________________________________

A(n) _____ is a broadly stated definition of basic business scope and operations that distinguishes the organization from others of a similar type.________________________________________

Broad statements describing where the organization wants to be in the future are called _____.________________________________________

_____ define the action steps by which an organization intends to attain its strategic goals.________________________________________

Goals that define the outcomes that major departments must achieve in order for the organization to reach its overall goals are known as _____ goals.________________________________________

_____ are designed to help execute major strategic plans and to accomplish a specific part of the company's strategy.________________________________________

The specific results expected from departments, work groups, and individuals are the _____ goals.________________________________________

_____ plans are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans.________________________________________

_____ is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.________________________________________

Managers believe that they are better oriented toward goal achievement when _____ is used.________________________________________

_____ plans are used to provide guidance for work-related tasks that are performed repeatedly within the organization.________________________________________

_____ plans are developed to achieve a set of goals that are not likely to be repeated in the future.________________________________________

_____ are ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization.________________________________________

Plans that define company responses to specific situations, such as emergencies, setbacks, or unexpected conditions are called _____ plans.________________________________________

A special type of contingency plan that is used when events are sudden and devastating and require immediate response is called _____.________________________________________

The crisis management plan should be a(n) _____ that specifies the actions to be taken, and by whom, if a crisis occurs.________________________________________

A group of planning specialists assigned to major departments and divisions to help managers develop their own strategic plans is called _____.________________________________________

List the five characteristics of effective goals.

List the four major activities that must occur in order for MBO to succeed.

List four reasons why planning generally positively affects a companys performance?

What are the two stages of crisis management?

Compare the four levels of goals and plans.

Briefly define the characteristics of an effective goal.

List and define the four major activities that must occur in order for management by objectives (MBO) to succeed.

In what ways do plans and goals benefit an organization?

List three innovative approaches to planning.

Chapter 7--Managerial Planning and Goal Setting Key1.TRUE2.TRUE3.FALSE4.TRUE5.TRUE6.FALSE7.TRUE8.FALSE9.FALSE10.FALSE11.TRUE12.FALSE13.TRUE14.FALSE15.FALSE16.TRUE17.TRUE18.FALSE19.TRUE20.TRUE21.TRUE22.TRUE23.TRUE24.TRUE25.FALSE26.TRUEFALSETRUETRUEFALSETRUEFALSEFALSEFALSETRUEFALSETRUETRUEFALSEFALSETRUETRUEFALSEFALSEFALSEFALSETRUETRUEFALSETRUECABDACCBDDEAEABDDACADCACEDBBECDACDCBEBBDCABDDABCCBADABDBBCBEBCCAADCECBBDBBCEAccegoalplanplanningTactical goalsfront-lineMissionmission statementstrategic goalsStrategic planstacticalTactical plansoperationalOperationalManagement by objectivesmanagement by objectivesStandingSingle-useStanding planscontingencycrisis management planningdetailed, written plandecentralized planning staffGoals should be (1) specific and measurable; (2) they should cover key result areas; (3) they should be challenging but realistic; (4) they should have a defined time period; and (5) they should be linked to rewards.(1) Set goals, (2) develop action plans, (3) review progress, and (4) appraise overall performance.Explicit goals and plans can serve the following functions: resource allocation, source of motivation and commitment, guide to action, rationale for decisions, and set a standard of performancePrevention and PreparationThe highest level is the mission statement, which defines the organization's basic business scope and operations and specifies its reasons for existence. The second level is the level of strategic goals and plans. Those pertain to the organization as a whole and specify where the organization wants to be in the future. The third level is the tactical level, with a focus on outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. The fourth and lowest level is the operational level, involving specific measurable results for departments, work groups, and individuals.Effective goals are precisely defined and allow for measurable performance. They focus on the key result areas that contribute most to desired performance. They should be challenging but not unreasonably difficult. Finally, they should specify the time period that they cover and they should be tied to valued rewards.The first step is setting goals. The setting of goals involves employees at all levels and should incorporate the principles of effective goal setting. Goals should be jointly determined by manager and employee, so as to increase the employee's level of commitment. The second step is developing action plans. These action plans will specify how the goals are to be achieved. Next, a progress review is important to make sure that the action plans are working. They may be formal or informal and the action plan should be changed if necessary. The last step is to determine if the goals have been achieved within the specified time period. This appraisal should factor into the setting of the next period's goals, allowing for feedback into the setting of the next set of goals.Plans and goals benefit the organization in several ways. First they provide legitimacy and a reason for existence. They also provide a source of motivation and commitment, provide guides for action and decision making, and they set a standard of performance.Set stretch goals for excellence, use performance dashboards, and deploy intelligence teams.