PLANNING AND DECISIONMAKING

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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.