Application of Skills Directions: Apply the Knowledge You Have Gained from Chapter 6

question 7

Multiple Choice

Application of Skills
Directions: Apply the knowledge you have gained from Chapter 6 to select the best answer to the questions about the following reading passage.
How to Make a Plan That Works
¹ Planning is a double-edged sword. If done right, planning brings about tremendous increases in individual and organizational performance. If planning is done wrong, however, it can have just the opposite effect and harm individual and organizational performance. In this article, you will learn to make a plan that works.
²The first step in planning is to set goals. To direct behavior and increase effort, goals need to be specific and challenging. For example, deciding to "increase sales this year" won't direct and energize workers as much as deciding to increase North American sales by 4 percent in the next 6 months. Specific, challenging goals provide a target for which to aim and a standard against which to measure success. Just because a company sets a goal doesn't mean that people will try to accomplish it. If workers don't care about a goal, that goal won't encourage them to work harder or smarter. Thus the second step in planning is to develop commitment to goals. Goal commitment is the determination to achieve a goal. Managers and workers must choose to commit themselves to a goal. Goals are more likely to be realistic and attainable if employees participate in setting them.
³The third step in planning is to develop effective action plans. An action plan lists the specific steps (how) , people (who) , resources (what) , and time period (when) for accomplishing a goal. Unlike most CEOs, Randy Papadellis has a unique goal that requires an extraordinary plan. As the CEO of Ocean Spray, Papadellis has to buy all of the cranberries that his farmers produce and buy the crop at the highest possible price. Then, it's Papadellis's job to figure out how to sell the entire crop of high-cost berries. Under Papadellis's direction, Ocean Spray began looking for alternative uses for cranberries beyond the traditional juice and canned products, uses that would involve new methods, people, and resources. The company invented dried-fruit Craisins. Ocean Spray also developed a set of light drinks that had just 40 calories. Because of these effective actions, Ocean Spray has been able to increase the price it pays its farmers over 100 percent in the past three years.
⁴The fourth step in planning is to track progress toward goal achievement. There are two accepted methods of tracking progress. The first is to set proximal goals and distal goals. Proximal goals are short-term goals or subgoals, whereas distal goals are long-term or primary goals. The second method of tracking progress is to gather and provide performance feedback. Regular, frequent performance feedback allows workers and managers to track their progress toward goal achievement and make adjustments in effort, direction, and strategies.
-Williams, Management , pp. 163-166
The phrase "for example" in the second paragraph announces

• A) what a specific and challenging goal should look like.
• B) that companies need a plan that works.
• C) the strategy Ocean Spray used to develop new products.
• D) none of the above

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Definitions:

Nazi Germany

The period in German history from 1933 to 1945 when the country was ruled by Adolf Hitler and the National Socialist German Workers' Party.

Nationalistic

Related to advocating for or demonstrating strong support and pride in one's country, often at the expense of disregarding international considerations.

Military Goods

Military goods are products and services designed specifically for use by armed forces, including weapons, equipment, and support services.

External Cost

Costs incurred by a third party who did not agree to the action causing the cost, typically associated with environmental, health, and social impacts.