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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 are implemented. 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 long term plans, and (c) specific or
directional plans.
Students’ responses to this question will, of course, vary. Students may mention their planning
to meet educational and career goals. Encourage your students to think about their everyday lives
and the types of daily, weekly, monthly, and yearly planning they do.
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.
Of all of the material presented in this chapter, most students will readily recall this acronym for
goal setting. These qualities from Drucker have remained basically unaltered and have been
cited in numerous texts and studies. As a part of student discussion, try to find other application
for Drucker’s work in this area beyond the management of employees. What about for school
children? Volunteers working for a community program?
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.
It should also be stressed to students that plans must be accepted by top management and as well
as employees at lower levels if it is to be effectively implemented. Have students discuss the
difficulty of implementing a plan such as this across levels. How could students increase buy-in
of the plan? How would such a plan be ultimately evaluated to determine its success? Using
criteria discussed in the previous question, have students check that their goals match the
SMART format.
Ethics Dilemma
Students are asked to assess the ethical concerns of a company protecting its employees at the
expense of public protection. This exercise could be a short written assignment or serve as a
group activity in class. Obviously, students may have their opinion on the matter, but should be
able to provide support for their stance on the issue.
4. What planning challenges do you think Habitat executives face with getting the most use out
of this gift? How should they cope with those challenges?
A plan involving such a large amount of money would be quite challenging. Very likely, not all
the executives will agree on specifically how the money should be utilized. Reaching consensus
on the actual use of the gift could be a difficult process. In addition, once agreed, others (the
media, Habitat employees, volunteers, and even needy families benefitting from Habitat homes)
may view the use of the gift in a negative fashion – in other words, executives might face some
scrutiny. Students should be able to identify the importance of effective communication
throughout the organization once the plans and goals are set. Getting buy-in from others will
facilitate the plan’s acceptance by constituents.
Answers to Case Application 2 Questions
Icelandic Volcano, 1; Global Commerce, 0
1. Could a company even plan for this type of situation? If yes, how? If not, why not?
This situation epitomizes the importance of understanding environmental uncertainty. A
company may not be able to plan specifically for a volcano eruption that interrupts air traffic;
however, a company’s plans should remain flexible in the event of sudden, unexpected
obstacles. Students should be able to explain how a firm develops specific plans, but builds in a
degree of flexibility to those plans.
2. Would goals be useful in this type of situation? What types of goals might a manufacturing
company like BMW have in such a situation? How about a global airline? How about a small
flower grower in Kenya?
Goals are important in situations of this type – especially short-term goals. An organization’s
quick response to the volcanic eruption will lessen the negative impact of the delays on shipping,
communication, travel, etc. All three situations (BMW, global airline, and Kenyan flower
grower) would set both strategic and financial goals. Specific strategic goals would assist each
organization with how it adapts to the air traffic delays, while financial goals would attempt to
lessen the financial hit each organization suffers.
3. What types of plans could companies use in this type of situation? Explain why you think
these plans would be important.
A sudden, unexpected event such as a volcanic eruption would create a need for several different
kinds of plans. Though long-term plans would be in place, some flexibility in those plans would
probably be necessary. Students should be able to identify the importance of short-term plans in
handling the situation. Again, flexibility would be key. Additionally, students may point to
operational plans to provide specifics on certain areas of an organization and directional plans
that ensure flexibility during the crisis.
4. What lessons about planning can managers learn from this crisis?
Students should grasp the importance of flexibility with the planning process. Environmental
uncertainty is the expectation and not the exception, therefore, rigid adherence to any plan could
create challenges for managers. The ability to quickly adapt to a crisis is also critical as it
enables managers to assess a situation and work with his or her team to overcome the
obstacles.