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