PLANNING & DECISION MAKING

1.  INTRODUCTION TO PLANNING
 OBJECTIVES OF PLANNING
 IMPORTANCE OF PLANNING
 PRINCIPLES OF PLANNING
 TYPES OF PLANS
 PLANNING PROCESS
 DECISION MAKING
 IMPORTANCE OF DECISION MAKING
 PROCESS OF DECISION MAKING
 TYPES OF MANAGERIAL DECISION
 ADVANTAGES OF DECISION MAKING
 PROBLEMS IN DECISION MAKING
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

2.  The first and the foremost function of management is
planning
 Simply stated, planning is deciding in advance what should
be done
 It is future oriented
 To attain its goal of profit maximization, the business has to
produce and sell goods.
 Organising, staffing, co-ordinating and controlling, which are
the other important functions of management succeed
planning
 The basic objectives of planning is to work in a systematic
manner so that the goal of the enterprise can be achieved
with maximum efficiency. Planning eliminates the tendency
to work at random.
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

3.  Decision making helps to find solution to any problem in a work
place.
 Decision making helps to identify the best course of action in each
give situation and thereby promotes efficiency.
 The conflicts in an organization are resolved through decisions
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

4.  Planning is the primary function of
management
 It is goal- oriented
 It is all- pervasive
 It is an intellectual activity
 It is future oriented
 It requires an integrated approach
 It is a continuous process
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

5.  It forces on objectives
 It helps to avoid , no work’ or ‘ work
pressure’ situation
 It helps to avoid wastage of resources
 It ensures efficiency as well as
effectiveness
 It reduce risk and uncertainty
 It provides for co-ordination
 It facilitates control
 Planning also provide scope for
decentralisation
SRM IST - COMMERCE DEPT - SHIFT I - D Dr.M.Jayashree

6. Identifying business opportunities
Establishment of objectives
Determination of planning premises
Identifying the alternative courses of action
Evaluating the alternatives courses of action

7. Selecting the best course of action
Formulation of derivation plans
Periodic evaluation and review
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

8. Types of
plans
Long Term
planning
1. Introduction
of a new
product
2. Entering a
new market
3. Changing the
technique of
production
Medium-
Term
Planning
1. Market
additions to an
existing plant
2. Expanding
output from its
present level.
3. Appointment
of additional
staff to cope
with the
volume of
work, etc.,
Short- term
planning
1. Purchase of raw
materials
2. Arranging for
employee training
3. Provision of
certain for the staff
with the available
funds, etc.,
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree I

9. Meaning
Decision – Making is the process of
selecting one alternative from among a
number of alternative available. The
need for decision- making will arise only
when there are options. If there is only
one way of doing a task, there is nothing
to decide
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

10. Allen defines “ Decision-making as ‘ the work
a manager performs to arrive at conclusions
and adjustment”
In the words of George Terry, Decision-
making is the selecting of an alternative,
from two or more alternatives, to determines
an opinion or a course of action”
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

11. Lack of knowledge of the alternative courses of action
indecisiveness
Failure to make correct diagnosis
Quick Decision
Unavailability of necessary information
Resistance
Making decision by itself cannot solve any problem
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

12. Identifying and
understanding
the problem
Evaluating
the alternative
solutions
Making an
analysis of the
problem
Selecting the
best solutions
Identifying
alternative
solution
Implementing
the decision Review
SRM IST - COMMERCE DEPT - SHIFT I - Dr. Dr.M.Jayashree

13. SRM IST - COMMERCE DEPT - SHIFT I - Dr. Dr.M.Jayashree
Organisational
decision
Personal
decision
Strategic or
basic
decisions
Routine or
repetitive
decision
Programmed
or structured
decision
Individual
decisions
Group
decision

14.  Decision making make it possible to adopt the best course of
action in carrying out a given task
 By choosing the best method of doing any work, decision making
ensures optimum use of the enterprise resources, namely, men,
machines, materials and money
 Decision making helps to find solution to any problem in a work
place.
 Decision making helps to identify the best course of action in each
give situation and thereby promotes efficiency.
 The conflicts in an organization are resolved through decisions
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree

15.  Decision making helps to find solution to
any problem in a work place.
 Decision making helps to identify the
best course of action in each give
situation and thereby promotes
efficiency.
 The conflicts in an organization are
resolved through decisions
SRM IST - COMMERCE DEPT - SHIFT I - Dr.M.Jayashree