Deciding in advance what to do, how to do it, when to do it, and who is to do it”.
From above definition, planning must obviously precede doing.
Planning provides a method of identifying objectives and designing a sequence of programs and activities to achieve these objectives.
The Planning/Decision Making Process Recognize problem or opportunity Evaluate alternatives Gather information Follow up and review effectiveness Formulate value (decision) model Define problem, specify premises and constraints Formulate/develop alternatives Implement best alternative Overall mission, long-range objectives and strategy Feedback
A clear vision of the basic purpose or mission for which it exists is essential to the long-term success of any enterprise
In today’s complex and dynamic economy, however, the basic mission of the organization must be communicated clearly and repeatedly to the many managers and professionals whose actions determine whether these purposes are indeed achieved.
Superior and subordinate then meet to establish objectives for the subordinate’s attention over the next six months or year.
In agreeing to an objective proposed by the superior, the subordinate may identify specific resources or authority that need to be supplied by the superior to make it possible.
The subordinate then proceeds over the ensuing period (six months or a year) to carryout his or her job to achieve the objectives. In case of any problem or change in priorities, superior and subordinate can meet at any time to modify the objectives.
Managerial decision making is the process of making a conscious choice between two or more rational alternatives in order to select the one that will produce the most desirable consequence (benefits) relative to unwanted consequences (costs).
Decision making is an essential part of planning.
Required in designing and staffing an organization, developing methods of motivating subordinates, and identifying corrective actions in the control process.