Mgt 101Planning
Decision Making Process    Identification of a problem                                       Decision – A choice from Iden...
Making DecisionsRational Decision Making – Decision-making  behaviour where choices are consistent and  value-maximizing w...
Decide?Structured Problems – Straightforward, familiar, and   easily defined problems.Procedure – A series of interrelated...
Decision Making ConditionsCertainty – A situation in which a manager can  make accurate decisions because all outcomes  ar...
Common Decision-Making ErrorsAnchoring Effect – Describes when decision makers  fixate on initial information as a startin...
Common Decision-Making Errors           • Self serving         • Overconfidence      • Immediate Gratification           •...
Types of Plans
PlansStrategic Plans – Plans that apply to the entire   organization, establish the organization’s overall goals   and see...
What is Planning?Defining organization’s goals, establishing overall  strategy and developing plans.Reasons:  1. Provides ...
Upcoming SlideShare
Loading in …5
×

Mgt 101 planning

411 views

Published on

Published in: Technology, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
411
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
6
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Mgt 101 planning

  1. 1. Mgt 101Planning
  2. 2. Decision Making Process Identification of a problem Decision – A choice from Identification of Decision Criteria two or more alternatives Allocation of weights to criteria Decision Making Process – A set of eight steps that Development of alternatives include identifying a problem, selecting an alternative and evaluating Analysis of Alternatives the decision’s effectiveness. Selection of an Alternative Problem – A discrepancy between an existing and aImplementation of the Alternative desired state of affairs.Evaluation of Decision Effectiveness
  3. 3. Making DecisionsRational Decision Making – Decision-making behaviour where choices are consistent and value-maximizing within specified constraints.Intuitive decision making – Making decisions on the basis of experience, feelings and accumulated judgment.Programmed Decision – A repetitive decision that can be handled by a routing approach.
  4. 4. Decide?Structured Problems – Straightforward, familiar, and easily defined problems.Procedure – A series of interrelated sequential steps that can be used to respond to a well-structured problem.Rule – An explicit statement that tells managers what they can or cannot do.Policy – A guideline for making decisions.
  5. 5. Decision Making ConditionsCertainty – A situation in which a manager can make accurate decisions because all outcomes are known.Risk – A situation in which the decision maker is able to estimate the likelihood of certain outcomes.Uncertainty –A situation in which a decision maker has neither certainty nor reasonable probability estimates available.
  6. 6. Common Decision-Making ErrorsAnchoring Effect – Describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.Selective Perception Bias – Decision makers selectively organize and interpret events based on their biased perceptions.Availability Bias – Decision makers tend to remember events that are the most recent and vivid in their memory.
  7. 7. Common Decision-Making Errors • Self serving • Overconfidence • Immediate Gratification • Randomness
  8. 8. Types of Plans
  9. 9. PlansStrategic Plans – Plans that apply to the entire organization, establish the organization’s overall goals and seek to position the organization in terms of its environment.Operational Plans – Plans that specify the details of how the overall goals are to be achieved.=============================================Long-term – Plans with a time frame beyond 3 years.Short-term – Plans covering 1 year or less.
  10. 10. What is Planning?Defining organization’s goals, establishing overall strategy and developing plans.Reasons: 1. Provides Direction 2. Reduces Uncertainty 3. Minimizes waste and redundancy 4. Establishes goals and objectives 5. Is associated with positive financial results.

×