Week 5

Managing Information and

Decision-Making

(Theme: Managing)
Key question for this theme: What do managers do, and how do I
become a good manager?

Main Source: Schermerhorn (2020), Chapter 7,8

 Vision Statement
• Vision
 The ability to predict opportunities and threats in the
future.
 A vision statement is intended to guide the
organization in the future, what the organization
wants to become or where it wants to be.
 Vision is derived from a careful analysis of the
external and internal environments

© 2016 Wessex Press, Inc. All rights reserved.

 Assessing the Mission of an Organization

• The mission of an organisation reflects its

fundamental reasons for existence.
• Three primary questions every mission
statement should answer:
1. WHO will the organization serve?
2. WHAT needs will the organization fulfill?

3. HOW will the organization fulfill those needs?

5–3
© 2016 Wessex Press, Inc. All rights reserved.
 Examples of Mission Statements

5–4
© 2016 Wessex Press, Inc. All rights reserved.
 Audi’s Vision and Mission Statement

© 2016 Wessex Press, Inc. All rights reserved.

6
EXAMPLES OF STRATEGIC GOALS

7
 Types of Plans Used by Managers

Operational plans — identify short-term

activities to implement strategic plans
 Policies are standing plans the communicate
guidelines for decisions
 Procedures are rules that describe actions to
be taken in specific situations
 Budgets are plans the commit resources to
projects or activities

Copyright ©2015 John Wiley & Sons, Inc.

 EXAMPLES OPERATIONAL GOALS

• To increase our pledge to Charity Homes by 15 per cent over last

year’s (2018) contribution.

• To donate to education, including both higher and secondary

education, 1 per cent of the company’s net profits for fiscal year
2018.

• To develop a formal company policy on environmental protection and

energy conservation by 31 December 2018.

• To require that all new machinery purchased after 1 January 2010 to

meet all requirements laid down by the EPA for anti-pollution
standards and energy usage by 31 December 2017.

9
EXAMPLE OF OPERATIONAL PLAN

10
Implementing Plans to Achieve Results

Goal Setting – SMART goals

E.g. To donate to education, both primary and secondary

schools in Sunway City, 5 per cent of the company’s net
profits for fiscal year 2019.
Implementing Plans to Achieve Results

Participation and Involvement

 Planning Tools and Techniques
Forecasting
• Attempts to predict the
future
• Qualitative forecasting
uses expert opinions
• Quantitative forecasting
uses mathematical models
and statistical analysis of
historical data and surveys
Contingency planning
• Identifying alternative
courses of action to take
when things go wrong
• Contingency plans
anticipate changing
conditions
• Contingency plans
contain trigger points
 Planning Tools and Techniques
Scenario planning
• A long-term version of
contingency planning
• Identifying alternative
future scenarios
• Plans made for each future
scenario
• Increases organization’s
flexibility and preparation
for future shocks
Benchmarking
• Use of external and internal
comparisons to plan for future
improvements
• Adopting best practices:
things people and
organizations do that lead to
superior performance
• Staff planners assist in all
steps of the planning process