PLANNING AND DECISION
MAKING
Six Steps of Effective Decision Making
Step 1: Define the Problem or Opportunity
Step 2: Set Objectives and Criteria
Step 3: Generate Alternatives
Step 4: Select the Most Feasible Alternative
Step 5: Implement the Decision
Step 6: Control the Results
Types of Problems and Decisions
> Structured problems
( programmed decisions )
> Unstructured problems
( unprogrammed decisions )
Decision-Making Conditions
> Certainty
> Risk
> Uncertainty
Decision Styles
> The reflexive decision making style
> The reflective decision making style
> The consistent decision making style
Problem Solving vs.Decision Making
DECISION MAKING
the process of selecting a course of action that will solve a problem/ making a choice from two or more alternatives.
PROBLEM SOLVING
the process of taking corrective action to meet objectives.
Main topic
TYPES OF PLANS
1.Strategic Plans
2.Operational Plans
> Single use operational plans
> Standing operational plans
3.Contingency plans
4.Functional Plans
BENEFITS OF PLANNING
1. A “road map,”
2.Better coordination,
3.A focus on forward thinking
4.More effective control systems.
POOR PLANNING
> Failure to survive
> failure to reach desired objectives
> failure to operate within budget
> failure to maximize the use of resources
GOOD PLANNING
> Minimize problems
> Efficiency and effectiveness
> Help guide and control performance
DEFINITION OF PLANNING
Planning is an essential management responsibility that proceeds other managerial functions.
PLANNING SHOULD BE
> Formally prepared
> Factual, logical and realistic
> Planning may cover a long-term or short-term period.
