handle a return. Macy’s return policy for online purchases states, “If you’re not completely happy with your macys.com purchase, ship it back to us for free!* It’s easy.” Human resources policies that affect how employees request vacation days, hiring processes, and termination practices are established. Accounting departments may set policies on how to file an expense report or how reimbursement forms are completed. Once established, policies enable middle or supervisory management to resolve issues on their own without the need to consult other levels of management. Procedures A procedure is a description of how to complete a task and how a policy will be applied. Each procedure should outline: • steps needed to complete a task • resources, forms, or documents needed to complete the task and • department or person responsible for completing the task. Procedures improve efficiency and save money because they take the guesswork out of what needs to occur. For example, Figure 3-8 illustrates the procedure for returned merchandise by customer service in a department store. Section 3.2 Review Check Your Understanding 1. Identify the steps in the strategic planning process. 2. Define a situation analysis. 3. List examples of functional areas that might be in a large organization. 4. What is an example of a single-use plan? 5. Identify examples of ongoing plans. Build Your Vocabulary As you progress through this text, develop a personal glossary of key terms. This will help you build your vocabulary and prepare you for a career. Write a definition for each of the following terms and add them to your personal glossary. strategic planning process business plan mission statement vision statement planning tool SWOT analysis PEST analysis tactic budget schedule policy procedure Returned Merchandise Procedure for Customer Service Is merchandise damaged? Yes No refund available No Was payment made with cash? Was payment made with store issued credit card? Was payment made with bank issued card? No Yes Issue cash refund Yes Issue customer credit Yes Issue bank credit No Returned Merchandise Goodheart-Willcox Publisher Figure 3-8 A procedure is a description of how to complete a task and how a policy will be applied. Chapter 3 Planning 51 Copyright Goodheart-Willcox Co., Inc.