Chapter 5: Planning & Goal Setting 🔹 What is Planning? Planning is deciding: What goals to achieve How to achieve them When to achieve them Planning helps reduce uncertainty and improves success. 🔹 Vision Statements A vision statement describes what the organization wants to become in the future. Effective vision statements are: Clear Inspiring Future-focused ✅ Easy to understand 🔹 Types of Goals 1️⃣ Strategic Goals Long-term (1–5 years) Set by top management Big-picture direction Example: Reduce company costs by 12% in 4 years. 2️⃣ Tactical (Operational) Goals Usually about 12 months ✅ Set by managers Help achieve strategic goals 3️⃣ Short-Term Goals 12 months or less Specific and action-oriented 🔹 Types of Plans 📌 Strategic Plan Long-term Overall direction of the company 📌 Operating Plan ✅ Short-term Daily or weekly targets Example: Weekly sales goals 📌 Business Model ✅ Explains: Services/products offered Expected profits and costs Employee roles How money is made 🔹 Correcting Performance Managers must: Compare results to goals Correct deviations in the plan ✅ 🔹 Learning Objectives Focus on training and skill development. Example: Employees complete training on new software ✅ 🔹 Effective Goal Setting Goals must: Be applied organizationwide ✅ Be clear and measurable Align with company strategy 📘 Chapter 7: Managerial Decision-Making 🔹 What is Decision-Making? Decision-making is choosing the best solution from alternatives. 🔹 Decision-Making Styles 1️⃣ Analytical Style ✅ Task-focused Tolerates ambiguity Seeks data and opposing views 2️⃣ Conceptual Style Big-picture thinker Creative Long-term focus 3️⃣ Behavioral Style Focused on people Supportive Avoids conflict 🔹 Group Decision-Making Advantages ✅ More knowledge Different perspectives Stronger commitment Disadvantages ✅ Groupthink Satisficing Goal displacement 🔹 Preventing Groupthink Encourage doubts and criticism ✅ Allow disagreement Don’t pressure members 🔹 When to Use Group Decisions Use groups when: You need acceptance and buy-in ✅ Avoid groups when: Time is very limited 🔹 Biases in Decision-Making Framing Bias ✅ People are influenced by how information is presented. Example: Political ads presenting the same candidate differently. 🔹 Problems Problems are: Obstacles that prevent goals from being achieved ✅ 🔹 Reflecting on Decisions Helps by: Giving more options for solving future problems ✅ 🔹 Technology & Decision-Making Artificial Intelligence (AI) ✅ Helps with: Automation Data analysis Customer engagement Weaponized AI ✅ Examples: Autonomous weapons Deepfakes Warned about by Stephen Hawking

Planning

Deciding what goals to achieve, how to achieve them, and when to achieve them.

Vision Statement

Describes what the organization wants to become in the future; it should be clear, inspiring, future-focused, and easy to understand.

Strategic Goals

Long-term goals set by top management, usually spanning 1-5 years, that provide big-picture direction.

Tactical Goals

Usually short-term goals set by managers, typically about 12 months, that help achieve strategic goals.

Short-Term Goals

Goals with a duration of 12 months or less, which are specific and action-oriented.

Strategic Plan

A long-term plan outlining the overall direction of the company.

Operating Plan

A short-term plan detailing daily or weekly targets, such as weekly sales goals.

Business Model

Explains the services/products offered, expected profits and costs, employee roles, and how money is made.

Correcting Performance

The process by which managers compare results to goals and correct deviations in the plan.

Learning Objectives

Focus on training and skill development; for example, training employees on new software.

Effective Goal Setting

Goals must be applied organization-wide, be clear and measurable, and align with the company's strategy.

Decision-Making

Choosing the best solution from alternatives.

Analytical Decision-Making Style

A style that is task-focused, tolerates ambiguity, and seeks data and opposing views.

Conceptual Decision-Making Style

A style characterized by big-picture thinking, creativity, and a long-term focus.

Behavioral Decision-Making Style

A style focused on people, supportive in nature, and aimed at avoiding conflict.

Group Decision-Making Advantages

Benefits include more knowledge, different perspectives, and stronger commitment.

Groupthink

A disadvantage of group decision-making where conformity prevents critical thinking.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution.

Preventing Groupthink

Encouraging doubts and criticism, allowing disagreement, and not pressuring members to conform.

Framing Bias

Occurs when people are influenced by how information is presented, such as in political ads.

Problems

Obstacles that prevent goals from being achieved.

Reflecting on Decisions

A process that helps by providing more options for solving future problems.

Artificial Intelligence (AI)

Technology that aids in automation, data analysis, and customer engagement.

Weaponized AI

Examples include autonomous weapons and deepfakes, which pose ethical concerns.