Planing and decision making in Managerial process


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Planing and decision making in Managerial process

  1. 1. Planning & Decision making In managerial process by: MAAZ MBA (3rd Semester: Fall-2010) ID# 9702 Iqra University Peshawar Campus Subject : Principles Of Management
  2. 2. Topic of Presentation: Planning & Decision making In managerial process
  3. 3. Management:Management: The attainment of organizational goals inThe attainment of organizational goals in an effective and efficient manner throughan effective and efficient manner through planning, organizing, leading, andplanning, organizing, leading, and controlling organizational resourcescontrolling organizational resources Organization:Organization: A formally structured collection ofA formally structured collection of individuals working toward commonindividuals working toward common (shared) goals.(shared) goals.
  4. 4. Management SkillsManagement Skills  Conceptual SkillsConceptual Skills : cognitive ability to see the: cognitive ability to see the organization as a whole and the relationshiporganization as a whole and the relationship among its partsamong its parts  Human SkillsHuman Skills : ability to work with and through: ability to work with and through other people and to work effectively as a groupother people and to work effectively as a group membermember  Technical SkillsTechnical Skills : understanding of and: understanding of and proficiency in the performance of specific tasks.proficiency in the performance of specific tasks.
  5. 5. How Do You Learn to Manage?How Do You Learn to Manage? 50% from job experience50% from job experience 30% from other persons30% from other persons 20% from education & training20% from education & training
  6. 6. Managerial Function;PLANING What is Planning?  Planning involves in defining the organization goal (what to be done) and establishing strategies (how to be done) to achieve sited goal.  Some time it is also called primary managerial function.
  7. 7. Why Planning Is Necessary ? 1 ) Provide Direction: What the organization want to accomplish and how to reach the establish /sited goals. By planning a clear direction comes that to be follow, in order to reach and achieve goal.
  8. 8. Contin.. 2) Reduce Uncertainty:  Planning reduce uncertainty by look ahead to anticipate changes  manager can estimate their consider impact of changes and then they can develop response to these changes.
  9. 9. Continu.. 3) Minimizes waste and redundancy: When work activities are coordinated around established plans redundancy can be minimized. 4) Provide ability in controlling: Planning helps in controlling and monitoring the work that either this works is on its right path or not.
  10. 10. The Decision Making Process. What is decision?  Decision means “choosing among alternative”  “Choosing among alternatives “ is done through a proper procedure Which is called “decision making process”.
  11. 11. Who make the decisions?  Managers are responsible to makes the decisions.  They include all the three levels of managers: Top level managers Middle level managers lower level/1st line Managers.
  12. 12. Contin…  Top level manager: Take decisions like product type, manufacturing location etc  Middle & lower level manager: Decisions include quality problems pay rising etc.
  13. 13. MANAGEMENT LEVELS AND TIME SPENTMANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONSON FUNCTIONS Planning &Planning & decision. Organ. Lead. Control.decision. Organ. Lead. Control. Top 28% 36% 22% 14%Top 28% 36% 22% 14% Middle 18% 33% 36% 13%Middle 18% 33% 36% 13% Lower 15% 24% 51% 10%Lower 15% 24% 51% 10%
  14. 14. Decision Situations  Programmed decision:  A decision made in response to a situation that is routine or recurring.  Example: starting your automobile  Nonprogrammed decision:  A decision made in response to a situation that is unique, unstructured, or poorly defined.  Example: deciding to get latest machinery for organization
  15. 15. Steps for Decision making process Step1: Identifying and defining the situation:  Stimulus indicates that decision must be made. stimulus may be positive or negative  Example: Plant manager see that employee turnover is increasing by 5%
  16. 16. Contin.. 2nd step: Identifying alternatives:  More important the situation more alternatives should be generated.  Example: Manager can increase wages, increase benefits or change hiring standards.
  17. 17. Contin.. 3rd step: Evaluating alternatives:  Alternatives are evaluated to find out feasibility, satisfaction and affordability of alternative.  Example: increasing benefits may not be feasible. Increasing wages and changing hiring standards may satisfy the conditions.
  18. 18. Contin.. 4th step: Selecting best alternative:  Considering all the situational factors choose the best alternative that fits the situation.  Example: Increase in wages is the best one because changing hiring standard will take longer period to cut turn over
  19. 19. Contin.. 5th step: Implementing the chosen alternative:  The chosen alternative is implemented in organizational system.  Implementation includes planning organizing, leading& Controlling  Example: Now the human resource deport establishes a new wage structure.
  20. 20. Contin.. 6th step: Evaluating the result:  Evaluating the result makes Sure that problem has been solved.  Example: Plant manger notes that after six months turnover drops to its previous level.
  21. 21. References “Management” by Griffin. “Management” by Stepen P. Robbin.