A- Z Planning (Scenario)
Organizations ABC and XYZ are both in the same industry and compete for the same set of customers in the marketplace. At ABC, the plans are made at the top level of management each year and then are formulated for and announced to each of the mid- level and first- level managers. At XYZ, the plans are made at the top, and then those managers meet with their subordinates at the next level and mutually agreed- to goals are established with them. The mid- level managers then meet with their first- level managers and mutually agreed- to goals are established with them. Finally, the first- level managers meet with each of their employees and mutually agreed- to goals are established with them.
-Which organization is more likely to have higher employee performance and organizational productivity?
A) Organization XYZ, because the employees participated in the planning process and know specifically what their objectives are.
B) Neither, as they are both in the same industry and facing the same environments.
C) Organization ABC, because the plans are formulated by management for each level of the organization.
D) Neither, because the hierarchy of organizational goals is clearly defined at each level.

Question

Quizplus · Accepted Answer

Organization XYZ is more likely to have higher employee performance and organizational productivity because the employees participated in the planning process and have a clear understanding of their goals. This can lead to increased motivation and commitment towards achieving those goals. In contrast, Organization ABC has a top-down approach to planning, which may result in less employee engagement and ownership of the goals.