Planning and Decision Making

1. PLANNING AND
DECISION MAKING
Lesson 8

2. Recall the things you do to prepare yourself for a day
in school and answer the following questions:

3. What are the things you prepare when packing your
bag for school?

4. Why are these things important for your day in
school?

5. What activities do you look forward to in school?

6. Aside from school activities, what other tasks or
activities do you prepare for?

7. Do you believe that planning and organizing your
activities for the day is beneficial for you? Why or
why not?

9. PLANNING
- Is a primary management function
- Involves setting the direction and goals of an organization,
establishing a system that will define the activities of the
organization and formulating a plan to ensure that the system
works toward achieving the goals of the organization
- Initial task that defines all the other management functions
- An intellectual exercise
- A continuous process

10. VISION AND MISSION STATEMENTS

11. VISION
- Describes what the company wants to achieve and
where it wants to go in the future

12. CHARACTERISTICS OF EFFECTIVELY
WORDED VISION STATEMENTS:
1. Graphic
2. Directional
3. Focused
4. Flexible
5. Feasible
6. Desirable
7. Easy to communicate

13. MISSION
- Describes a company’s reason for its existence
- Answers the question why the company exists
- Identifies the company’s goods and services; the customers’
needs that the company seeks to satisfy; the target markets
that it wants to serve; and the approach to be taken to
satisfy customers’ needs
- Should present the company’s unique identity that
distinguishes itself from competitors

14. GOALS AND OBJECTIVES

15. GOALS
- Specific accomplishments or action plans that are usually attained
after a long period
- Broader in scope because the intentions are more general and involve
outputs that are intangible and non-measurable
OBJECTIVES
- Action plans that involve shorter periods and more measurable
outputs
- More specific and result in tangible outcomes

16. TYPES OF PLANS
1. Strategic
2. Tactical
3. Operational
a. Policy – principle that guide managers in addressing a
particular issue
b. Rule – regulation which describes and regulates the
functions of an organization
c. Procedure – a step-by-step process in accomplishing a task
or achieving an objective

17. CONTINGENCY PLANNING
- A special plan created for unexpected scenarios or changes
Crisis Management Plan – a plan made in preparation for any kind of
crisis such as industrial disasters like fire, or natural disasters like
typhoon
Scenario Planning – formulating plans for both positive and negative
scenarios that may arise from the implementation of plans

18. PLANNING PROCESS
1. Formulate the goals and objectives
2. Identify the courses of action
3. Assign responsibilities
4. Document the plan and distribute to people concerned
5. Review the plan and adjust accordingly

19. PLANNING TECHNIQUES AND TOOLS
Qualitative Techniques
1. Brainstorming
2. Nominal group technique
3. Delphi technique
Quantitative Technique
1. Decision Tree
2. Payback Method

25. DECISION MAKING AND COMMON TYPES OF
DECISION MODELS
1. Rational or Logical
- involves a logical step-by-step analysis of several
possible contributing factors in making the decision
2. Intuitive
- uses “gut feeling”
3. Predisposed
- no longer look for alternative solutions after deciding on
a solution

26. CONTEMPORARY STRUCTURED DECISION
MAKING MODELS
1. Kepner-Tregoe Matrix Model (Charles Kepner and Benjamin
Tregoe in 1960)
Steps:
a. Situation Appraisal
b. Problem Analysis
c. Decision Analysis
d. Potential Problem Analysis

27. 2. Vroom-Yetton-Jago Decision Model (Victor Vroom, Philip Yetton, and Arthur
Jago)
Leadership Styles:
a. Autocratic I (A1) – the leader is the sole decision maker
b. Autocratic II (A2) – the manager gathers information from the members of
the group without knowing the purpose of such information and decides
c. Consultative I (C1) – the members know the problem but the final decision
still rests on the manager
d. Consultative II (C2) – the manager discusses the situation and gather
suggestions from the group. The manager makes the final decision
e. Group II (G2) – all the members are responsible for coming up with the
final decision

28. 3. Observe-Orient-Decide-Act (OODA) Loop Model
(US Air Force Colonel John Boyd)

30. Whenever you see a successful business,
someone once made a courageous decision.
- Peter Drucker