Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
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Connect® Exercise:
CASE ANALYSIS: The McCloskeys’ Plan to Implement Sustainable Dairy Farming While
Providing Healthier Products
Summary of Activity:
Dr. Mike McCloskey and his wife, Sue, grew a successful veterinarian office in San Diego
during the 1980s. However, they had bigger dreams. Today, they own Fair Oaks Farms,
consisting of 12 family-run dairies and 36,000 cows. This video case discusses their current
activities as well as future plans.
Follow-Up Activity:
Instructor should ask students to think about how managers from all levels must be actively
engaged in planning and strategic management. Some questions to stimulate discussion include:
What tools do managers have at their disposal to navigate and steer their company/organization?
How are business plans and models utilized to persuade a variety of stakeholders?
What happens when there is a breakdown in the business strategy?
5.2 Fundamentals of Planning
POWERPOINT SLIDES:
#13 Fundamentals of Planning
#14 Example: Coca-Cola
#15 Coca-Cola: Vision Statement
#16 Coca-Cola: Values
#17 Three Types of Planning for Three Levels of Management
#18 Question
Section 5.2 discusses mission, vision statements, and values statements, as well as the three types
of planning. Strategic planning determines what the organization’s long-term goals should be for
the next 1–5 years with the expected available resources. Tactical planning determines what
contributions departments or similar work units can make with their given resources during the
next 6–24 months. Lastly, operational planning determines how to accomplish specific tasks with
available resources within the next 1–52 weeks.
One way that you could begin your coverage of these topics is to have the students read the
Harvard Business Review article “The CEO of Levi Strauss on Leading an Iconic Brand Back to
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Growth.” In this article Chip Bergh, CEO of Levi Strauss, outlines his plans for revitalizing their
fading brand.
For an introductory activity, you could have the students provide examples of Levi Strauss’
strategic, tactical, and operational plans aimed at revitalizing the fading brand. Ask your students
how Levi Strauss’ plans are self-reinforcing. Finally, have them evaluate the extent to which the
firm’s strategy is consistent with its mission, vision, and values.
Topics and Tips for Discussion:
● Locate the mission, vision, and values statements for your company, a previous one, or
one for which you want to work after graduation. Evaluate the extent to which these
statements serve their purpose for the company.
● For your company (or a previous one), discuss key issues the firm should address when it
conducts its strategic, tactical, and operational planning.
● Write a mission, vision, and values statement for your academic institution that you think
will best serve your school.
Section 5.2 Key Concepts:
The Mission Statement—“What Is Our Reason for Being?”
● An organization’s mission is its purpose or reason for being.
● A mission statement expresses the purpose of the organization.
The Vision Statement—“What Do We Want to Become?”
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Group Exercise #1: Investigating Corporate Mission and Vision Statements
There is a group exercise available at the end of this manual that allows students to explore the
importance of mission and vision statements.
Exercise Objectives:
Click to view activity.
Interactive Classroom Material:
EXAMPLE: Mission, Vision, and Values at Coca-Cola
This Example profiles the Coca-Cola company and its 500 brands with a specific focus on its
mission, vision, and values. The multi-billion-dollar company is more than 130 years old and
employs about 700,000 people worldwide.
Click for follow-up activity.
SELF-ASSESSMENT 5.1 CAREER READINESS
Assessing Career Behaviors and Future Career Identity
Click for follow-up activity.
The Values Statement—“What Values Do We Want to Emphasize?”
● Values reflect the qualities that represent an organization’s deeply held beliefs, highest
priorities, and core guiding principles.
● A values statement, also called a core values statement, expresses what the company
stands for, its core priorities, the values its employees embody, and what its products
contribute to the world.
● Values statements guide employee behavior and company decisions and actions.
EXAMPLE: Coca-Cola’s Five-Plus Strategies
CAREER
READINESS
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
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This Example first focuses on five of Coca-Cola’s strategies as follows:
Focused on driving revenue and profit growth.
Invested in our brands and business.
Click for follow-up activity.
Strategic Planning
● Strategic planning determines what the organization’s long-term goals should be for the
next 1 to 5 years with the resources managers have available.
Tactical Planning
● Tactical planning determines what contributions departments or similar work units can
make with their given resources during the next 6–24 months.
● Tactical planning is done by middle managers.
Operational Planning
● Operational planning determines how to accomplish specific tasks with available
resources within the next 1–52 weeks.
Connect® Exercise:
CLICK AND DRAG: Fundamentals of Planning
Summary of Activity:
Connect® Exercise:
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
CLICK AND DRAG: Mission, Vision, and Values
Summary of Activity:
5.3 Goals & Plans
POWERPOINT SLIDES:
#19 Long-Term and Short-Term Goals
#20 The Operating Plan and Action Plan
#21 Example: Means-Ends Chain
#22 Standing Plans and Single-Use Plans
Section 5.3 discusses the two types of goals: short-term and long-term. A goal is a specific
commitment to achieve a measurable result within a stated period of time. Long-term goals focus
on achieving the strategies identified in a company’s strategic plan. Short-term goals are
One way that you could begin your coverage of these topics is to have the students watch the
Topics and Tips for Discussion:
1. Obtain a copy of the most recent annual report from your current employer or a company
about which you would like to learn. Read through the background information in the
report, and identify examples of the long-term and short-term goals discussed in the
report.
Have your students read the CEO’s letter to the shareholder as well the business
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Start off with a familiar example. For instance, your example can be how the exam
process works in your class. After giving an example, open the discussion by asking,”
Has anyone ever worked for a company with a probation period? If so, how did it
work?”
3. Discuss examples of single-use programs and projects that have been developed or
implemented at your current or most recent employer in the past three years. Discuss the
challenges that the organization experienced in implementing these plans.
Section 5.3 Key Concepts:
Long-Term and Short-Term Goals
● A goal, also known as an objective, is a specific commitment to achieve a measurable
result within a stated period of time.
The Operating Plan and Action Plan
● An operating plan breaks long-term output into short-term targets or goals.
● Operational plans turn strategic plans into actionable short-term goals and action plans.
● An action plan defines the course of action needed to achieve a stated goal.
● Whether the goal is long-term or short-term, action plans outline the tactics that will be
used to achieve a goal.
Interactive Classroom Material:
EXAMPLE: Long-Term and Short-Term Goals at Southwest Airlines
Southwest Airlines was ranked as one of Fortune’s Most Admired Companies of 2018. The goal
of Southwest’s top managers is to ensure that the airline is highly profitable, following the
Click for follow-up activity.
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Types of Plans: Standing Plans and Single-Use Plans
● Standing plans are plans developed for activities that occur repeatedly over a period of
time and consist of policies, procedures, and rules.
● Single-use plans are plans developed for activities that are not likely to be repeated in the
future and consist of programs or projects.
o A program is a single-use plan encompassing a range of projects or activities.
o A project is a single-use plan of less scope and complexity than a program.
Connect® Exercise:
CLICK AND DRAG: Types of Plans
Summary of Activity:
Connect® Exercise:
VIDEO CASE: Domino’s New Products
Summary of Activity:
Follow-Up Activity:
Instructor should open the floor for students to discuss the video case:
How did different levels of management promote goals and plan for the unexpected?
What is the role and responsibility of front-line employees? Students should break down the
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5.4 Promoting Consistencies in Goals: SMART Goals,
Management by Objectives, and Goal Cascading
POWERPOINT SLIDES:
#23 SMART Goals
#24 Relationship Between Goal Difficulty and Performance
#25 Management by Objectives: The Four-Step Process for Motivating Employees
#26 Three Types of Objectives Used in MBO
#27 Cascading Goals: Making Lower-Level Goals Align with Top Goals
#28 Question
#29 The Importance of Deadlines
Section 5.4 discusses SMART goals, or goals that are Specific, Measurable, Attainable, Results–
oriented, and have Target dates. A technique that assists in setting goals is known as
management by objectives (MBO), and it is a four-step process for motivating employees. Goal
cascading seeks to ensure that higher-level goals are communicated and aligned with the goals at
the next levels down in the organizational hierarchy.
One way that you could begin your coverage of these topics is to have the students read the
Harvard Business Review online article “When You Give Your Team a Goal, Make It a Range.”
This article profiles how using high-low goals (e.g., lose one to three pounds per week) as
opposed to single number goals (e.g., lose two pounds per week) can positively impact
performance. For a supplemental activity, you can have the students describe the advantages and
disadvantages of using high-low goals rather than single number goals.
Topics and Tips for Discussion:
1. Create at least three examples of SMART goals pertaining to your schoolwork that you
could focus on this academic term. Evaluate the extent to which the goals you created
2. Assume your current employer or a previous one wants to implement a management by
objectives program. Describe the likely benefits of the program and possible challenges
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alignment. The potential drawbacks are that it is time consuming process, too much
attention may be placed on setting the goals not forming a plan, there is considerable
paperwork involved, and the emphasis is on short term goals.
3. Describe the importance of making sure goals cascade through the organization. What
can managers do to make sure that goals cascade?
Section 5.4 Key Concepts:
SMART Goals
● A SMART goal is one that is Specific, Measurable, Attainable, Results oriented, and has
Target dates.
o Specific: goals should be stated in specific rather than vague terms.
o Measurable: whenever possible, goals should be measurable or quantifiable.
Group Exercise #2: Using SMART Goals to Plan a Student Organization
There is a group exercise available at the end of this manual that allows students to write
SMART goals for a new student-based organization.
Exercise Objectives:
To engage in planning by writing SMART goals and action plans for a new student organization
Click to view activity.
Connect® Exercise:
CLICK AND DRAG: SMART Goals
Summary of Activity:
Effective goals have to be “SMART” goals, which means that they must be specific, measurable,
attainable, results oriented, and have some target date. In this Click and Drag Exercise, students
will match scenarios with the appropriate SMART goal characteristic.
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
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Group Exercise #3: Writing SMART Goals
There is a group exercise available at the end of this manual that allows students to explore
writing SMART goals and understand goal-setting.
Exercise Objectives:
2. To develop SMART goals through group work.
Click to view activity.
Interactive Classroom Material:
EXAMPLE: Setting Goals: Are Snapchat’s Goals Clear?
Snapchat’s user base grew slowly following its first public offering of stock in early 2017, and
investors became concerned that profits might dip. In response, Snapchat’s parent company,
Snap Inc., announced that the app would be redesigned in order to make it easier for a wider
audience to use, with the stated goal of increasing its user base in 2018. By the fall of 2017, the
Click for follow-up activity.
Management by Objectives: The Four-Step Process for Motivating Employees
● Management by objectives (MBO) is a four-step process, and its purpose is to motivate
rather than control subordinates.
● The appeal of MBO is its emphasis on converting general objectives into specific ones
for all members of an organization.
● Step 1: Jointly Set Objectives
o The employee and manager meet and jointly set objectives to be attained by the
employee.
● Step 2: Develop Action Plan
o Managers at each level must prepare an action plan for attaining the objectives.
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
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o Action plans may be prepared for both individuals and work units such as
departments.
● Step 3: Periodically Review Performance
o Managers and employees must periodically review performance.
● Step 4: Give Performance Appraisal and Rewards, If Any
o At the end of 6-12 months, the employee and manager should meet to discuss
results and compare performance with initial objectives.
SELF-ASSESSMENT 5.2
What Is the Quality of Goal Setting Within a Current or Past Employer?
This 13-question Self-Assessment helps to determine the quality of goal setting at students’
employers.
Click for follow-up activity.
SELF-ASSESSMENT 5.3 CAREER READINESS
Do I Have a Proactive Learning Orientation?
This 9-question Self-Assessment is designed to assess the extent to which students possess a
proactive learning orientation.
Click for follow-up activity.
Cascading Goals: Making Lower-Level Goals Align with Top Goals
CAREER
READINESS
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
● Cascading goals is the process of ensuring that the strategic goals set at the top level
align, or “cascade,” downward with more specific short-term goals at lower levels within
an organization, including employees’ objectives and activities.
The Importance of Deadlines
● Because the whole purpose of planning and goals is to deliver to a client specified results
within a specified period of time, deadlines become a great motivator, both for you and
for the people working for you.
Interactive Classroom Material:
PRACTICAL ACTION: Setting Goals for a Small Business
Goal setting can seem like an intimidating process, but it’s both a necessary and a helpful one for
the millions of small businesses in the United States. These firms, officially defined as having
500 or fewer employees, produce almost half of U.S. non-farm GDP and two-thirds of the
nation’s new private-sector jobs.
5.5 The Planning/Control Cycle
POWERPOINT SLIDES:
#30 The Planning/Control Cycle
#31 Example: Tesla’s Long-Awaited Model 3
#32 Question
Section 5.5 discusses the planning/control cycle, which includes the following four steps: (1)
Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
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Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
run small-scale delivery services.” This article discusses Amazon’s new Delivery Service
Partners program. Amazon is trying to expand its network of last-mile package delivery couriers
in response to burgeoning delivery center and transportation costs. For an introductory exercise,
have your students assume that they are responsible for this program. Ask them what Amazon
needs to include in its plan to make sure the company is headed in the right direction.
Topics and Tips for Discussion:
1. Critique the effectiveness of the planning and control processes at your current
2. Discuss the importance of having SMART goals in the planning/control cycle.
Have the students match the components of a SMART goal with the elements of the
3. Discuss how a management by objectives program could enhance the planning/control
cycle.
An MBO program can enhance the planning/control cycle in the following ways: It
enhances the effectiveness of the plan by achieving employee buy in. The frequent
Section 5.5 Key Concepts:
The Planning/Control Cycle
● The planning/control cycle is designed to make sure you stay in control and to make sure
you’re headed in the right direction.
● The planning/control cycle has two planning steps (1 and 2) and two control steps (3 and
4), as follows:
o Step 1: Make the plan.
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
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● The planning/control cycle has a constant feedback loop designed to ensure plans stay
headed in the right direction.
● The planning/control cycle loop exists for each level of planning—strategic, tactical, and
operational.
● Taking corrective action in Step 4 can include:
● The corrective action in Step 4 of the cycle (a) can get a project back on track before it’s
too late, or (b) if it’s too late, can provide data for improving future plans.
Connect® Exercise:
CLICK AND DRAG: The Planning/Control Cycle
Summary of Activity:
In this Click and drag students will properly match the different steps of the planning/control
cycle with their descriptions.
Interactive Classroom Material:
EXAMPLE: The Planning/Control Cycle: Tesla’s Long-Awaited Model 3
By early 2018, Tesla’s Model 3, the electric-car company’s long-anticipated, more affordable
new vehicle (whose prices begins at $35,000) had missed its announcement production goals at
5.6 Career Corner: Managing Your Career Readiness
POWERPOINT SLIDES:
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
#33 Model of Career Readiness
#34 Managing Your Career Readiness
Section 5.6 discusses the process of developing a proactive learning orientation which includes
the following steps: 1) Become intentionally proactive, 2) Keep an open mind and 3) Suspend
judgement.
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
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o Being “intentionally proactive” is the first step to becoming a proactive learner.
o Four recommendations:
• Keeping an Open Mind and Suspending Judgment
o Step 1—Make a list of your current tasks, projects, or commitments at school or
work.
Connect® Exercise:
CLICK AND DRAG: Applying the Four Key Skills of Being Open-Minded
Summary of Activity:
This Click and Drag Exercise provides students with an opportunity to match the four key skills
of being open-minded with their correct attributes.
Career Corner Group Exercise #1: Building the Competency of Understanding the
Business
Learning Objectives:
Click to view activity.
Career Corner Group Exercise #2: Building the Competency of Positive Approach
Learning Objectives:
1. To enhance students’ career readiness competency of having a positive approach at work.
CAREER
READINESS
CAREER
READINESS
CAREER
READINESS
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MANAGEMENT IN ACTION: FENDER REBRANDS TO STAY IN TUNE
WITH THE TIMES
FENDER REBRANDS TO STAY IN TUNE WITH THE TIMES
Problem-Solving Perspective
1. What is the underlying problem in this case from Fender CEO Andy Mooney’s
perspective?
2. What are some of the causes of this problem?
3. Do you believe Fender’s strategy and plans will turn around the company? Explain.
Application of Chapter Content
1. Using the steps in Figure 5.1, describe how Fender is transforming into a digital
company.
Students should use the following figure:
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
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Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
The case in essence starts with step 2, which is Fender’s assessment of the high quit rate
and the causes behind it (e.g. the way beginners learn and the cost associated with it.
Their strategy includes utilizing different apps that will provide bite-sized lessons at a
low cost. They implemented the strategy and are monitoring results. Students may also
want to point out that Fender is not taking advantage of online sales as part of its strategy
(possible missed opportunity).
2. Define one specific strategic, tactical, and operational plan that Fender can utilize for its
transformation.
An example strategy can be based on doing more online sales, though students may focus
on other issues as well:
3. Develop a simple strategic goal, operational goal, and action plan for Fender Play: The
goals need to be SMART. Then utilize a means-ends chain to illustrate the relationship
among the three.
Student examples will vary, but here are some examples staying with the online sales
scenario described in question 2:
Kinicki/Williams, Management, 9e: Chapter 5 Planning: The Foundation of Successful Management
4. Assume 8% of Fender’s current customers are women. Would it be wise for the company
to set a strategic goal of increasing this number to 40% in the next 12 months? Why or
why not? Explain your response using Figure 5.4.
This is the figure students should be using:
If only 8% of the company’s current customers are women, the strategic goal of
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5. Based on CEO Mooney’s standard for success in making sure beginners stick with their
guitars, develop a planning/control cycle to make sure Fender is headed in the right
direction.
Students should use Figure 5.5:
The plan is for a 10% increase in the number of beginners who stick with their guitar.
There is no timeline, so let’s assume one-year. The plan of creating the apps for a cheap