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CLEP Principles of Management 1

Problem solving works well when conflict results from

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Problem solving works well when conflict results from communication difficulties. 88. 89. Groupthink – occurs when members of a group think similarly and conform to each other's views, often at the expense of ignoring reality. It usually results in decisions being made from a narrow point of view. Members with doubts and alternate ideas do not speak out because dissenting opinions are not tolerated. Illusion of invulnerability, illusion of unanimity, self-censorship, inherent morality. ignoring data: rationalized away, mind-guards, direct pressure, stereotyping 90. 91. PLANNING in organizations and public policy is both the organizational process of creating and maintaining a plan ; and the psychological process of thinking about the activities required to create a desired goal on some scale. This thought process is essential to the creation and refinement of a plan , or integration of it with other plans, that is, it combines forecasting of developments with the preparation of scenarios of how to react to them. The principle known as Primacy of Planning states that planning must occur before other management functions can take place.
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The planning process consists of developing the organization's mission, goals, solutions/strategies/alternative course of action--basically planning where the company is going and strategies for how it's going to get there. The hierarchy of plans is the idea that planning is top-down--it progresses from a generalized overall plan to more specific/detailed plans. i.e, a company would first state a mission, then strategic (long-range) plans, and finally operations (short- term) plans. The mission is at the top of the hierarchy of plans--the beginning of the planning process--and sets an overall purpose for the organization. In the planning process, after the mission statement comes the setting of goals towards accomplishing the mission. First is the mission statement , second is setting of goals, and next is strategic planning, in the hierarchy of plans. Strategic planning comes after setting the goals. In this stage is where a broad idea of how to achieve the set goals is determined. Strategic planning is also known as long-range planning, and comes after goals in the hierarchy of plans. Strategic planning is the responsibility of the highest levels of management. The strategic plans are broad, and fairly general. There is no set time duration for strategic plans; rather, how long such plans are applicable is determined by how accurate the forecast of the future environment is considered to be. Strategic plans, which are long-term plans, do not have a standard time-frame, although they generally cover a period of more than one year into the future. The length of the period depends on how accurate the forecasting of the future business environment proves to be.
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