Planning and decision making

Planning & Decision making

1. Planning & Decision making

2. Outcome2 : Summarize steps in the formal planning process; Describe the steps in the decision making process; Contents : Definition of Planning Need for Planning Types of Plans Strategic planning vs. operational planning Steps in Planning Meaning and importance of decision-making Types of decisions Process of decision making 2

3. 3 Essential Reading Rao P. and Pande H (2009), Principles and Practice of Management, Global Media. Chapter Four; Link: https ://ebookcentral.proquest.com/lib/ momp / detail.action?docID =3011383&query= Principles+of+management George R.Terry and Stephen G.Franklin , "Principles of Management,“ All India Traveller Bookseller, Delhi, 1987, p. 116.) Recommended Reading Management 6 th Edition by Stephen P Robbins & Mary Coulter published by Prentice Hall International Editions pp. 236-237 Open Educational Resource www.Saylor.org/site/textbooks/Principles%20of20Management .pdf

4. INTRODUCTION Planning  is the primary function of management. It is the outline of the activities to be done in the future predetermined goals. It means looking ahead and chalking out the future course of action . Planning  is concerned with deciding in advance what, when, where, why and how is to be done and who shall do it. Thus, planning is the process of setting goals and choosing the means to achieve those goals. Without plans managers cannot know how to organize people and resources effectively for achieving Simply, planning is the process by which managers define goals and take necessary steps to ensure that these goals are achieved

5. Definition of Planning According to  Koontz and O'Donnell,  "Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges gap from where we are to where we want to go ". In the words of  Mary Cushing Niles , "Planning is the conscious process selecting and developing the best course of action to bridges gap from where we are to where we want to go" accomplish an objective ". ME. Hurley  regards that, "Planning is deciding in advance what is to be done. It involves the selection of objectives, policies, procedures and programs from among alternatives ". According to  Harold Koontz  and  Heinz Weihrich , "Planning involves selecting purposes and objectives of the actions to achieve them; it require decision making, that is choosing from among alternative future courses of action".

6. Importance of Planning 7 (1) OVERLAPPING AND WASTEFUL ACTIVITIES Through planning, the efforts of various individuals and departments are coordinated properly to eliminate overlapping & wasteful activities. It ensures clarity in thoughts and actions, work is carried on smoothly without any confusion and misunderstanding. Useless and wasteful activities are reduced or eliminated. It is easier to detect inefficiencies and take corrective measures to deal with them. (2) PROVIDES DIRECTIONS By stating in advance how work is to be done, planning provides direction for action. Planning guarantees that goals and aim are distinctly defined so that they operate as a pattern for determining what direction should be taken. Planning makes the goals and objectives clear in the minds of all individuals working in different capacities. Lack of planning brings chaos and lack of coordination. Example: A car manufacturing company gives targets to employees who decide their direction of work. (3) INNOVATIVE IDEAS Planning is thinking in advance what to do and how to do it. New ideas can take the shape of concrete plans and innovation. Innovation is required to modify the plans for the growth and expansion of the business. Example: Through innovative products, the companies maintain a competitive edge in the market and it is planning through which it is decided how to innovate. In a company of real estate, there are different departments like Marketing, HR, Sales, and Finance. Each department has assigned targets and jobs. This reduces overlapping of work and wastage of efforts. (4) REDUCES THE RISKS OF UNCERTAINTY Planning is done for the future and the future is full of uncertainties. Planning enables a manager to look forward and take appropriate steps to deal with future uncertainties and changes. Mis-happenings and uncertain events cannot be eliminated completely but their effect on the organisation can be minimised if we plan how to overcome such situations. Example: An organization might ensure its inventory yet an accident can take place and damage its assets. So, the future is uncertain yet we can minimise the risks by proper planning. (5) DECISION MAKING Through planning, managers compare different alternatives with their benefits and limitations. Planning helps make rational decisions by choosing the best most profitable alternative which may bring lower cost, adaptable to the organisation and situations. Example:  A group of marketing experts (deciding for best marketing strategy for the product) chalk out different alternatives evaluates these alternatives and finally selects the best alternative. (6) SET STANDARDS FOR CONTROLLING Planning involves the setting of goals and these predetermined goals are accomplished with the help of managerial functions like planning, organising , staffing, directing and controlling. Planning provides standards against which actual performance is measured. Without standards, the actual performance of each individual, department, and division cannot be measured. With the help of standards, deviations in the performance are found and such deviations become the basis of effective planning for future planning. Planning provides a basis to bring the desired output under controlling function and result of controlling function provides guidelines for effective planning. Example:  A torch manufacturing company decides to manufacture 8000 torches in the month of December. However with the passage of 15 days only 2000 torches were manufactured. So the company decided to revise its standard for production .

7. Types of Plans (based on Breadth ) 9

8. Types of Plans (based on Time-frame) 10

9. Types of Plan (based on Frequency) 11

10. Types of Plan (based on Specificity) 12

11. BASIS FOR COMPARISON STRATEGIC PLANNING OPERATIONAL PLANNING Meaning The planning for achieving the vision of the organization is Strategic Planning. Operational Planning is a process of deciding in advance of what is to be done to achieve the tactical objectives of business? Time Horizon Long term planning Short term planning Approach Concerned the internal as well as the external environment of business. Concerned with the internal environment of business Modifications Generally, the plan lasts longer. The plan changes every year. Performed by Top level management Middle level management Scope Wide Narrow Emphasis on Planning of vision, mission and objectives. Planning the routine activities of the company. Key Differences Between Strategic Planning and Operational Planning

12. Strategic & Operational Planning Examples Take Meta, for example (formerly Facebook). The company  recently announced  that an important part of its strategy will be building a new computing platform called a metaverse —a shared virtual world environment. This is a long-term goal that leader Mark Zuckerberg says is “critical to [the company’s] mission.” The creation of this new metaverse would be considered part of the company’s  strategic plan. To accomplish that goal, Meta needs to derive an  operational plan  outlining tasks that need to be done. Numerous components are involved in creating such a platform—everything from creating standards and protocols for the virtual world to developing the necessary hardware and software to determining how to monetize the experience, and much, much more. Meta has to detail  which  specific activities its people need to do in each area and  when  they’ll need to do them. This operational plan will ensure they meet certain milestones and that the company continues moving in the right direction over the long term. A simpler strategic and operational planning example: Say you have a strategic plan modeled after the Balanced Scorecard. It names the high-level goals your organization is trying to accomplish in each of the four perspectives. It also includes aligned and linked measures and projects designed to help you achieve your objectives. Based on that strategic plan, each department in your company will then need to develop an operational plan for the projects they are responsible for to determine how the work will get done. Completing those projects will help you stay on track to accomplish your goals. 14

13. Planning Process

14. Planning Process

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16. You're a decision-maker every single day.  From the moment you wake up, you start making decisions. You decide what to eat for breakfast, what to wear, and whether to spend 15 minutes on a workout, meditation, or extra sleep. These decisions, large and small, continue all day long.  Some decisions aren't too complicated. We make them with barely a thought. Other decisions should be  more intentional . If you are a manager or want to be one, the decision-making process in management positions demands more attention to detail . If you’re a manager who sometimes fears making decisions, it's understandable. When you lead the decision-making process, there's a lot at stake. Your team members count on you to be a  good leader . Sometimes, you may not have a significant amount of time to best decide.  19 Why is it so hard to make a decision? Having too much information Being overconfidence Not identifying the problem correctly

17. Meaning of Decision-Making Decision-making is an integral part of management. Every manager takes hundreds and hundreds of decisions subconsciously or consciously making it as the key component in the role of a manager. Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem ” According to P. F. Drucker – “What­ever a manager does he does through making decisions.” All matters relating to planning, organising , direction, co-ordination and control are settled by the managers through decisions which are executed into practice by the operators of the enterprise. Objectives, goals, strate­gies, policies and organisational designs are all to be decided upon in order to regulate the performance of the business. The entire managerial process is based on decisions. Decisions are needed both for tackling the problems as well as for taking maximum advantages of the opportunities available. Correct decisions reduce complexities, uncertainties and diversities of the organisational environments.

18. D efinitions of Decision-Making Decision-making is the selection based on some criteria from two or more possible alternatives . “-—George R.Terry A decision can be defined as a course of action consciously chosen from available alternatives for the purpose of desired result —J.L. Massie A decision is an act of choice, wherein an executive forms a conclusion about what must be done in a given situation. A decision represents a course of behaviour chosen from a number of possible alternatives. -—D.E. Mc. Farland

19. Types of Decision Making in an Organization Every organization needs to take distinct types of decisions for carrying out their activities efficiently.

20. 23 Source: www.Saylor.org/site/textbooks/Principles%20of20Management .pdf Programmed And Non-Programmed Decisions

21. 24 Source: www.Saylor.org/site/textbooks/Principles%20of20Management .pdf Routine And Strategic Decisions

22. 25 Source: www.Saylor.org/site/textbooks/Principles%20of20Management .pdf Tactical And Operational Decisions

23. 26 Source: www.Saylor.org/site/textbooks/Principles%20of20Management .pdf Individual And Group Decisions

24. 27 Source: www.Saylor.org/site/textbooks/Principles%20of20Management .pdf Major And Minor Decisions

25. 28 Source: www.Saylor.org/site/textbooks/Principles%20of20Management .pdf Organizational And Personal Decisions

26. Process of decision-making 29

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