Lesson Plan - Planning and Decision-Making in an Organization
Course Title: Business Management
Session Title: Planning and Decision-Making in an Organization
Performance Objective:
 Upon completion of this lesson, the student will understand planning as an important
management function.
 Upon completion of this lesson, the student will understand the decision-making process.
Approximate Time:
When taught as written, this lesson should take 5-6 days to complete.
Specific Objectives:
 Students will define types of planning in an organization.
 Students will analyze the steps involved in decision-making.
 Students will apply the decision-making process to a variety of situations.
 Students will learn goal-setting using the S.M.A.R.T. goal process.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the
activities may result in the elimination of any or all of the TEKS listed.




130.121(c)(2)(A)
define the term planning
130.121(c)(2)(B)
explain the necessity of proper planning
130.121(c)(2)(C)
define types of planning
130.121(c)(2)(D)
Identify steps of the management decision-making process, including
(i) identify the problem or opportunity;
(ii) gather relevant information or data;
(iii) determine alternative courses of action;
(iv) evaluate each alternative;
(v) compute an optimal decision;
(vi) implement the chosen course of action;
(vii) evaluate the decision feedback and determine if any changes are necessary
Interdisciplinary Correlations:
English:





110.31 (b)(21)(B) organize information gathered from multiple sources to create a variety of
graphics and forms (e.g., notes, learning logs)
110.31 (b)(22)(B) evaluate the relevance of information to the topic and determine the
reliability, validity, and accuracy of sources (including Internet sources) by examining their
authority and objectivity
110.31 (b)(23)(C) uses graphics and illustrations to help explain concepts where
appropriate
110.31 (b)(23)(D) uses a variety of evaluative tools (e.g., self-made rubrics, peer reviews,
teacher and expert evaluations) to examine the quality of the research
110.33(b)(1)(A) – Reading/Vocabulary Development
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


…determine the meaning of grade-level technical academic English words in multiple
content areas (e.g., science, mathematics, social studies, the arts) derived from Latin,
Greek or other linguistic roots and affixes.
110.33(b)(1)(C) – Reading/Vocabulary Development
…infer word meanings through the identification and analysis of analogies and other word
relationships.
110.33(b)(12)(B) – Reading/Media Literacy
…evaluate the interactions of different techniques (e.g., layout, pictures, typeface in print
media, images, text, sound in electronic journalism) used in multi-layered media.
110.33(b)(12)(C) – Reading/Media Literacy
…evaluate the objectivity of coverage of the same event in various types of media.
110.33(b)(12)(D) – Reading/Media Literacy
…evaluate changes in formality and tone across various media for different audiences and
purposes.
Occupational Correlation (O*Net – http://www.onetonline.org/)
Administrative Services Manager 11-3011.00
Similar Job Titles: Administrative Manager, Business Manager, Director of Operations
Tasks:
Set goals and deadlines for the department.
Plan, administer and control budgets for contracts, equipment and supplies.
Direct or coordinate the supportive services department of a business, agency, or organization.
(Soft) Skills:
Problem sensitivity, written expression, judgment and decision making
Accommodations for Learning Differences:
It is important that lessons accommodate the needs of every learner. These lessons may be
modified to accommodate your students with learning differences by referring to the files found on
the Special Populations page of this website.
Teacher Preparation:
References:
1. Business Principles and Management, Everard Burrow, South-Western Thompson Learning
Instructional Aids:
1. “Planning and Decision-Making” PowerPoint Presentation
2. Decision Tree Assignment #1
3. Decision Tree Assignment #1 Rubric
4. SWOT Analysis Assignment #2
5. SWOT Analysis Assignment #2 Rubric
6. Cost/Benefit Analysis Assignment #3
7. Cost/Benefit Analysis Assignment #3 Rubric
8. Business Scenario Report Assignment #4
Copyright © Texas Education Agency, 2012. All rights reserved.
2
9. Business Scenario Report Assignment #4 Rubric
Materials Needed:
1. Poster board
2. Flip chart paper
3. Markers
Equipment Needed:
1. Computers for students to complete projects
2. Projector for presentation
Learner Preparation:
1. Brainstorm with students what their ideas of management are. You can get them started by
naming a specific company with which they are familiar. Record their responses on the
board, flipchart, or a document camera. Ask for a student to volunteer to be the recorder for
this activity. Have a list of the five management functions posted somewhere in the
classroom so students can refer back to the list during this activity.
2. Now, going through the list of management functions that students have brainstormed,
identify each as the appropriate management function and have the student volunteer write
the function next to the task. Generally when this is done there are many tasks which
involve planning and decision-making. Explain to the students that this is where
management begins, with goals and planning for the organization.
Lesson Plan
Introduction (LSI Quadrant I)
1. Ask students to write a list of all the decisions they make in an average, ordinary day. Give
them a 5-minute time limit. Ask each student for an item from their list and record either on
the board or document camera. Discuss with students that we actually make hundreds,
even thousands, of decisions in a day.
2. Then discuss the process we use to make those decisions. Some are made in an instant.
Some require much more time. Review with students the types of decisions that require
more thought and the steps involved in reaching the final decision.
3. Next, have students get in pairs and have them write down the types of decisions a
business may have to make. Choose a student to be a recorder and write down one
decision for each pair on the board. Go through the list one by one and ask students if each
is a long-term or a short-term decision.
Important Terms for this Lesson:
 Management – setting forth goals for an organization and the processing for accomplishing
them
 Planning – setting goals, reviewing information, and making decisions
 Organizing – coordinating resources needed to achieve goals
 Staffing – actions necessary for hiring, training, and compensating employees
 Implementing – carrying out leadership activities in an organization
 Controlling – determining the status of whether or not goals from the planning stage have
been met
 Opportunity costs – what is given up to make a choice
 Strategic planning – long term planning with broad goals for a company as a whole
 Operational planning – short term planning with more specific goals for departments or
groups within a company
 SWOT analysis – an analysis of the strengths, weaknesses, opportunities, and threats
affecting an organization internally and externally
Copyright © Texas Education Agency, 2012. All rights reserved.
3
Outline
Outline (LSI Quadrant II)
Instructors can use the presentation slides, handouts, and the Internet in conjunction with the
following outline.
MI
Outline
Notes to Instructor
I. Management Functions
A. Planning
B. Organizing
C. Staffing
D. Implementing
E. Controlling
A. Routine, daily activities
1. Making coffee
2. Checking email
3. Returning business calls
Use presentation as an aid.
Discuss with students the many
reasons we have to make
decisions. Point out that the more
routine the decision, the less
thought given to the process. For
example, whether or not to make
coffee in the morning or check your
email requires little thought.
When a change is imminent, such
as selling your home or business,
much thought and planning is
required.
B. When problems arise
1. Finding someone to repair an
appliance
2. An order of inventory is out of
stock
3. Dissatisfied customer
Have students compose a list of at
least 10 decisions they make in an
average day. Then, in pairs, have
them make a list of 10 decisions
that are made by employees in a
day.
II. Reasons for Decision-Making
C. When change is anticipated
1. Selling a home or selling a
business
2. Introducing a new product
3. A need to create a new
department or layoff staff
III. Types of Planning
A. Strategic
1. Long-term
2. Broad goals
3. Company as a whole
B. Operational
1. Short-term
2. Specific goals
3. Departments or groups within a
company
Using the presentation, explain to
students the differences between
strategic and operational planning.
Give some examples for them to
relate to personally such as how
planning for college or a career
would be strategic planning and
what to wear to school is
operational planning.
Provide examples of each for
business as well such as: strategicbuilding a new factory, expanding
the business, or introducing a new
product; operational-planning a
budget, ordering inventory, or
Copyright © Texas Education Agency, 2012. All rights reserved.
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preparing work schedules.
Using the lists from above, have
students volunteer their decisions
and identify them as either strategic
or operational. Afterward, discuss
that, because strategic planning
involves more time and details,
careful analysis must be done.
IV. Strategic Planning-SWOT Analysis
A. S-Strengths - internal
B. W-Weaknesses - internal
C. O-Opportunities - external
D. T-Threats - external
As a class decide on an event that
requires strategic planning, such as
a pancake breakfast fundraiser.
Then ask students what strengths
are there going into this decision
that can affect the success of the
event. Responses may be things
like: plenty of volunteers and a
large kitchen to work with.
Weaknesses could be that most
volunteers are students and may
not know how to cook the
pancakes. Opportunities could
include the timing of the event-if it
is near the holidays, maybe Santa
could attend and have pictures
taken with the children who come
to the breakfast with their parents.
Threats can be the possibility of
running out of food if not enough is
purchased, or not enough
customers so profit cannot be
made.
Next, from a business standpoint,
take suggestions from students to
conduct a SWOT analysis for a
business event they may have
heard about in the news.
V. Decision-Making Process
A. Identify the problem
1. Ask questions
2. Gather information
B. Determine the possible solutions
1. Brainstorm
Using the business event that was
agreed upon in the previous step,
provide students with a blank
decision tree diagram (diagram
templates can be found online and
printed) and proceed through each
step. Students should be following
along and complete the diagram.
Copyright © Texas Education Agency, 2012. All rights reserved.
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2. Make a list
C. Analyze the possible solutions
1. SWOT
2. Cost-benefit analysis
D. Select the best solution
1. Implement the solution
2. Analyze the results
E. Evaluate feedback
1. Make changes as necessary
VI. Importance of Planning
A. Planning for products/services
B. Planning for marketing
C. Planning for human resources
D. Planning for financial issues
E. Planning for legal business
considerations
Next, show students how a SWOT
analysis can also help evaluate the
alternatives. Use the web site
listed to review examples with
students. To help narrow down the
choices, a cost-benefit analysis
should also be conducted as part of
the evaluation. List out the tangible
and intangible costs and benefits of
the narrowed-down alternatives.
Planning is necessary for all
aspects of the business to ensure
success at all levels of the
business.
Copy and Paste Multiple Intelligences Graphic in appropriate place in left column.
Application
Guided Practice (LSI Quadrant III):
 Give the students the “Connect the Numbers” handout. With no instruction tell them to
connect the numbers from 1-60 in 1 minute. Ask if any of them completed the job. Now
give them 1 minute but this time tell them to fold the paper in half. The top half has 1-6;
bottom has 7-12, 13-18 on the top, etc. If they fold their paper again but lengthwise, odd
numbers are on the left and even on the right. This time they should be more successful.
Explain that this can represent the difference between planning and not planning. This is
why planning is so important to any decision.
 Ask students the reasons that we make decisions. Listen to and record their responses.
Then explain that, in the business world, decisions can be made on a daily basis without
much preparation (such as grabbing the morning coffee and returning emails or phone
calls), when there is a problem that arises (such as a delay in a shipment or a dissatisfied
customer), or when a change of some sort is anticipated (new product planning or change in
distribution channel).
 Using a corporate name familiar to students, demonstrate the use of a decision-making grid
as well as a decision tree using the information found within any website you deem
appropriate. Ask students to suggest an event that may require the process of decisionmaking so they can see how the grid or tree can be useful tools to assist in the decision.
After the teacher demonstrates the process, students can decide on a decision that would
require one of these models. Distribute a sample form or show one on the computer
projector so they can create a model in their pairs. They will then present their model to the
Copyright © Texas Education Agency, 2012. All rights reserved.
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class.
 Explain that another tool of decision-making is the SWOT analysis. Using the web site
listed in the reference, go through an example with the students so they understand the
process.
Independent Practice (LSI Quadrant III):
 Decision-Making Model Assignment #1 – Students are to analyze the purchase of a
computer and use either a decision-tree model or a grid to demonstrate their decisionmaking process. Students must compare at least 3 different alternatives (brands) on at
least 4 different criteria (cost, RAM, etc.). Pictures of the comparables are also to be
included. The end result of the student’s analysis must also be clearly identified. They are
to place this decision tree or grid on either a poster board or on a word processing
document if the class has lab access.
 SWOT Analysis Assignment #2 – Students are to select a company with which they are
familiar. If there is computer lab access, students are to conduct Internet research for news
articles related to the company they have selected and locate an event this is currently
occurring with that company or that is mentioned to be happening in the future. If no
computer access, the teacher can bring in newspapers, students can be required to bring in
a paper, or the class may need to schedule library time to research using newspapers.
Then students will conduct their own SWOT analysis, strengths, weaknesses, opportunities,
and threats of that particular event. They may draw the diagram and place on a flipchart (if
available) or poster or they may complete on a Microsoft Word document if there is lab
access. Then they will identify their opinion of the decision to conduct that event based on
their analysis.
 Cost/Benefit Analysis Assignment #3 – Using the business event that the student created
a SWOT analysis for, the students are to prepare a cost/benefit analysis using the form in
this lesson plan. Students may estimate or research costs, trying to list three tangible as
well as intangible costs and benefits, keeping in mind opportunity costs involved in decisionmaking.
 Business Scenario Report Assignment #4 - Individually students will choose between 2
decision-making scenarios and create a thorough report covering all aspects of the
decision-making process. The first scenario is that you are given a budget of $1000 to use
toward a charity event (hosting a dinner, donating and delivering clothes, adopting a family,
etc.). The second scenario is that you own a video store but your sales have decreased
drastically this year. You must decide from several options what actions you can take to
increase your sales and keep up with the competition. Select your scenario. You have
narrowed down your choices for your chosen scenario to 2 alternatives. Now your task is to
write (or type) a report introducing your task, discussing your alternatives, and how your
choice was finally determined. You may include online graphics and/or a table displaying
any form of analysis that you choose such as a decision tree, grid, SWOT, or Cost/Benefit.
Summary
Review (LSI Quadrants I and IV):
Q:
Short-term goals are characteristic of what type of planning?
A:
Operational planning is made up of short-term goals.
Q:
What are characteristics of strategic planning?
A:
Strategic planning involves long-term planning and broad goals for a company.
Q:
What is the first function of management that must take place before objectives are met and
includes decision-making?
A:
Planning is the first function of management and includes decision-making.
Q:
What is a SWOT analysis?
A:
A method of evaluating alternatives using their strengths, weaknesses, opportunities, and
Copyright © Texas Education Agency, 2012. All rights reserved.
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threats.
Evaluation
Informal Assessment (LSI Quadrant III):
1. Instructor will observe students during Independent Practice.
2. Instructor will assist students as needed.
Formal Assessment (LSI Quadrants III and IV):
Use the assigned rubrics to evaluate the two Independent Practice Assignments (LSI Quadrant III).
Extension
Extension/Enrichment (LSI Quadrant IV):
1. Have students talk to a local retail or restaurant manager and ask if they have undergone a
change in their business, such as a new marketing campaign, remodeling the store,
changing to a new menu, or opening a new restaurant. The student will then create a
decision tree that hopefully includes the components of the decision-making process that
was done by that business to implement change. Students should ask the manager to
review and sign off on the decision tree.
2. Students can use the same situation as in #1 but create a SWOT analysis instead of a
decision tree.
3. Tell students they have come in to some money - $10,000 – and now they have to decide
how to spend, or save, the money. Have them conduct a thorough decision-making
analysis using any tools necessary. They should have at least 3 alternatives to analyze.
Copyright © Texas Education Agency, 2012. All rights reserved.
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Copyright © Texas Education Agency, 2012. All rights reserved.
9
COST/BENEFIT ANALYSIS
Alternative #1:
COSTS
Tangible Costs:
1.
2.
3.
Intangible Costs:
1.
2.
3.
BENEFITS
Tangible Benefits:
1.
2.
3.
Intangible Benefits:
1.
2.
3.
Alternative #2:
COSTS
Tangible Costs:
1.
2.
3.
Intangible Costs:
1.
2.
3.
BENEFITS
Tangible Benefits:
1.
2.
3.
Intangible Benefits:
1.
2.
3.
Alternative #3:
COSTS
Tangible Costs:
1.
2.
3.
Intangible Costs:
1.
2.
3.
BENEFITS
Tangible Benefits:
1.
2.
3.
Intangible Benefits:
1.
2.
3.
Copyright © Texas Education Agency, 2012. All rights reserved.
10
Planning and Decision-Making
Independent Practice Assignment Sheet




Decision-Making Model Assignment #1– Students are to analyze the purchase of a
computer and use either a decision-tree model or a grid to demonstrate their decisionmaking process. Students must compare at least 3 different alternatives (brands) on at
least 4 different criteria (cost, RAM, etc.). Pictures of the comparables are also to be
included. The end result of the student’s analysis must also be clearly identified. They
are to place this decision tree or grid on either a poster board or on a word processing
document if the class has lab access.
SWOT Analysis Assignment #2– Students are to select a company with which they are
familiar. If there is computer lab access, students are to conduct Internet research for
news articles related to the company they have selected and locate an event this is
currently occurring with that company or that is mentioned to be happening in the future.
If no computer access, the teacher can bring in newspapers, students can be required to
bring in a paper, or the class may need to schedule library time to research using
newspapers. Then students will conduct their own SWOT analysis - strengths,
weaknesses, opportunities, and threats of that particular event. They may draw the
diagram and place on a flipchart (if available) or poster or they may complete on a word
processing document if there is lab access. Then they will identify their opinion of the
decision to conduct that event based on their analysis.
Cost/Benefit Analysis Assignment #3– Using the business event that the student
created a SWOT analysis for, the students are to prepare a cost/benefit analysis using
the form in this lesson plan. Students may estimate or research costs, trying to list three
tangible as well as intangible costs and benefits, keeping in mind opportunity costs
involved in decision-making.
Business Scenario Report Assignment #4 - Individually students will choose between
2 decision-making scenarios and create a thorough report covering all aspects of the
decision-making process. The first scenario is that you are given a budget of $1000 to
use toward a charity event (hosting a dinner, donating and delivering clothes, adopting a
family, etc.). The second scenario is that you own a video store but your sales have
decreased drastically this year. You must decide from several options what actions you
can take to increase your sales and keep up with the competition. Select your scenario.
You have narrowed down your choices for your chosen scenario to 2 alternatives. Now
your task is to write (or type) a report introducing your task, discussing your alternatives,
and how your choice was finally determined. You may include online graphics graphic
and/or a table displaying any form of analysis that you choose such as a decision tree,
grid, SWOT, or Cost/Benefit.
Copyright © Texas Education Agency, 2012. All rights reserved.
11
Planning and Decision-Making
Decision-Making Model Assignment #1
Student Name:
________________________________________
20
10
5
Required
Elements
The decision tree or
grid includes all
required elements as
well as additional
information.
All required
elements are
included on the
decision tree or grid.
All but 1 of the
Several required
required elements is elements were
included on the
missing.
decision tree or grid.
Attractiveness
The decision tree or
grid is exceptionally
attractive in terms of
design, layout, and
neatness.
The decision tree or
grid is attractive in
terms of design,
layout and neatness.
The decision tree or
grid is acceptably
attractive though it
may be a bit messy.
The decision tree or
grid is distractingly
messy or very poorly
designed. It is not
attractive.
Graphics Relevance
All graphics are
related to the topic
and make it easier to
understand. All
borrowed graphics
have a source
citation.
All graphics are
related to the topic
and most make it
easier to
understand. All
borrowed graphics
have a source
citation.
All graphics relate to
the topic. Most
borrowed graphics
have a source
citation.
Graphics do not
relate to the topic
OR several
borrowed graphics
do not have a source
citation.
Grammar
There are no
grammatical
mistakes on the
decision tree or grid.
There is 1
grammatical mistake
on the decision tree
or grid.
There are 2
grammatical
mistakes on the
decision tree or grid.
There are more than
2 grammatical
mistakes on the
decision tree or grid.
Organization
Content is wellorganized using
labels where
necessary and
process is easy to
understand.
Content is organized
with appropriate
labels but flow is
somewhat flawed.
Ideas are present
but flow of
information is
confusing.
There was no
organization to ideas
and labels were
missing from
decision tree or grid.
CATEGORY
1
Total Score _____________
Maximum 100 Points
Copyright © Texas Education Agency, 2012. All rights reserved.
12
Planning and Decision-Making
SWOT Analysis Assignment #2
Student Name:
________________________________________
20
10
5
1
Labels
Every item that
needs to be
identified has a label
(SWOT). It is clear
which label goes with
which structure.
Almost all items
(75%) that need to
be identified have
labels. It is clear
which label goes with
which structure.
Most items (50%)
that need to be
identified have
labels. It is clear
which label goes with
which structure.
Less than 50% of the
items that need to be
identified have labels
OR it is not clear
which label goes with
item.
Label Details
All assigned details
have been added.
The details are clear
and easy to identify.
Almost all assigned
details (at least 75%)
have been added.
The details are clear
and easy to identify.
Almost all assigned
details (at least 50%)
have been added. A
few details are
difficult to identify.
Fewer than 50% of
the assigned details
are present OR most
details are difficult to
identify.
Accuracy
Each component is
accurately
categorized as S, W,
O, or T
3 of 4 components
are accurately
categorized as S, W,
O, or T
Only 2 of 4
components are
accurately
categorized as S, W,
O, or T
Less than 2
components are
accurately
categorized as S, W,
O, or T
Spelling
All words are spelled All common words
correctly in the title, are spelled correctly
labels and details.
in the title, labels and
detail. 1-2 words
may be misspelled.
75% of the words are
spelled correctly in
the title, labels, and
details.
Fewer than 75% of
the words are
spelled correctly in
the title, labels, and
details.
Content
Covers topic in-depth Covers topic
in each component
adequately in each
with a great deal of
component.
information.
1-2 components
covered adequately.
More than 2
components are
inadequately
covered.
CATEGORY
Total Score _____________
Maximum 100 Points
Copyright © Texas Education Agency, 2012. All rights reserved.
13
Planning and Decision-Making
Cost/Benefit Analysis Assignment #3
Student Name:
________________________________________
20
10
5
Spelling and
Capitalization
Spelling and
capitalization were
checked by another
student and are
correct throughout.
Spelling and
capitalization were
checked by another
student and were
mostly correct.
Spelling and
There were many
capitalization were
spelling and
mostly correct, but
capitalization errors.
were not checked by
another student.
Content/Facts
Facts were accurate Facts were accurate
for all items on the
for almost all events
analysis.
reported on the
analysis.
Facts were accurate
for most (75%) of the
events reported on
the analysis.
Facts were often
inaccurate for events
reported on the
analysis.
Learning of
Content
The student can
accurately describe
75% (or more) of the
activities on the
analysis without
referring to it.
The student can
describe any activity
on the analysis if
allowed to refer to it.
The student cannot
use the analysis
effectively to
describe activities.
Time Use
Classroom time was Classroom time was
used to work on the used to work on the
project.
project the majority
of the time.
Student did not use
much of the
classroom time
effectively.
Student did not use
classroom time to
work on the project.
Amount of
Information
Every blank on form
was thoroughly
completed.
50-75% of the items
on the form were
completed.
Less than 50% of the
blanks were
completed on the
form.
CATEGORY
The student can
accurately describe
50% of the activities
on the analysis
without referring to it.
At least 75% of the
items were
completed on the
form.
1
Total Score _____________
Maximum 100 Points
Copyright © Texas Education Agency, 2012. All rights reserved.
14
Planning and Decision-Making
Business Scenario Report Assignment #4
Student Name:
________________________________________
20
10
5
1
Amount of
Information
All topics are
addressed fully.
All topics are
addressed
adequately.
Most topics
addressed.
One or more topics
were not addressed.
Mechanics
No grammatical,
spelling or
punctuation errors.
Almost no
A few grammatical,
grammatical, spelling spelling, or
or punctuation
punctuation errors.
errors.
Many grammatical,
spelling, or
punctuation errors.
Paragraph
Construction
All paragraphs
include introductory
sentence,
explanations or
details, and
concluding sentence.
Most paragraphs
include introductory
sentence,
explanations or
details, and
concluding sentence.
Paragraphs included
related information
but were typically not
constructed well.
Paragraphing
structure was not
clear and sentences
were not typically
related within the
paragraphs.
Illustrations
Illustrations are neat,
accurate and add to
the reader's
understanding of the
topic.
Illustrations are
accurate and add to
the reader's
understanding of the
topic.
Illustrations are neat
and accurate and
sometimes add to
the reader's
understanding of the
topic.
Illustrations are not
accurate OR do not
add to the reader's
understanding of the
topic.
Quality of
Information
Information clearly
relates to the main
topic. It includes
several supporting
details and/or
examples.
Information clearly
relates to the main
topic. It provides 1-2
supporting details
and/or examples.
Information clearly
Information has little
relates to the main
or nothing to do with
topic. No details
the main topic.
and/or examples are
given.
Required
Elements
Report includes all
All required elements
required elements as are included in the
well as additional
report.
information.
CATEGORY
All but 1 of the
Several required
required elements is elements were
included in the
missing.
report.
Total Score _____________
Maximum 120 Points
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