Planning and Goal Setting Flashcards
Difference between a goal and a plan?
Goal: desired future state the org. wants to achieve
Plan: blueprint for goal achievement and has necessary specifications on how to achieve it
What is a mission statement?
it helps distinguish the organization from others of the same type
What are the three questions a mission statement must answer?
Who are we, what business are we in, what do we want to become
What are the three levels of goals?
Strategical[long time], tactical [intermediate, 1-3 years], operational[less than a year]
Who sets these goals?
Strategical: Top Managers
Tactical: Middle Managers
Operational: First-line managers and supervisors
What are the benefits of planning?
- Builds motivation
- guides resource allocation
- guide to action
- sets performance standards.
How are goals defined?
Identification of any SMART characteristics
What does SMART stand for?
Specific, Measurable, Attainable, Relevant, Time-limited
What steps are in the basic planning process?
- Stating goals
- listing alternatives
- developing premises
- choosing best alternatives
- developing plans
- putting plans into action
What is cognitive bias(confirmation bias and overconfidence bias)?
Confirm: People tend to seek out information that confirms their existing beliefs.
Overconfidence: Individuals often overestimate their own abilities and the likelihood of positive outcomes.
What is decision framing (loss aversion and reference dependence)?
Loss Aversion: People tend to prefer avoiding losses rather than acquiring equivalent gains.
Reference Dependence: How a goal is framed can affect how it is perceived.
What is the anchoring effect?
Individuals may be influenced by the first piece of information they encounter when setting goals.
What is availability heuristic?
People often rely on readily available information when making decisions.
What is temporal discounting?
Individuals may prioritize short-term goals over long-term goals due to the tendency to value immediate rewards more than delayed rewards.
What is reference dependence?
It is the framing of a goal
