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New generation
University
Chapter 4: planning and
Decision
1
The concept of planning
 Planning is the formal process of making
decisions for the future of individuals & planning
dealing on aims , determining and allocating the
resources required and ensuring that plans are
communicated to all conserved
 Planning in is a process of establishing priorities for
future actions in an attempt to solve economic
problems, which stem from the existence of scarce
resources.
The planning function can be
characterized
1. Planning is the primary management
function
2. Planning is a continuous process
 planning deals with the future, and the
future by its nature is uncertain
3. Planning concerns all managers: planning
is the responsibility of all managers
 The amount of time and span of plan vary
by management level
3
The planning function can be
characterized
4. Orientation action : planning involves
taking of needs and necessary actions
5. Orientation to the future : to set of goals
and objectives in later life or later future
6. Orientation to achieve goals :
Planning is there for targeting in achieving
goals and objectives of institutions which are
long range or long terms
4
Types of planning
 Based on their scope or breath plans
can be classified into three categories
1. Strategies planning
2. Tactical planning, and
3. Operational planning
5
1. Strategic Planning is link between
the organization’s, Company and
Government objectives , recourses and
it environmental opportunities
6
Strategic planning
 Successful leaders look at the big picture or
strategic plan of the organization to determine
what types of projects/business will provide
the most value. Some may argue that
project/business managers should not be
involved in strategic planning
 Project/venture selection because top management
is usually responsible for these types of projects
(business) decisions.
 But successful organizations know that project
managers can provide valuable insight into the
project selection process
7
Strategic planning
 Strategic planning involves determining long-
term objectives by analyzing the Strengths and
Weaknesses of an organization, studying
Opportunities and Threats in the business.
 Environment, predicting future trends, and
projecting the need for new products and
services.
 Strategic planning provides important
information to help organizations identify and
then select potential projects. 8
SWOT ANALYSIS
 Process generates/create
information that is help full in
corresponding/ marching an
organization or Business /project
goals, program to the social
environment in which is operate/work
9
SWOT ANALYSIS
 Many people are familiar with SWOT analysis
analyzing Strengths, Weaknesses,
Opportunities, and Threats( SWOT is
abbreviation (Strengths, Weaknesses,
Opportunities, and Threats)
which is used to aid in strategic planning. For
example, a group of people who want to start a
new business in the industry could perform a
SWOT analysis to help identify potential projects.
They might determine the following based on a
SWOT analysis:
10
Strengths and weaknesses
Strengths: Positive tangible and non tangible
traits/characteristics internal of the organization
As experienced professionals, we have
numerous/several contacts in the film industry.
Two of us have strong sales and interpersonal
skills.
Two of us have strong technical skills and are
familiar with several film making software tools.
We all have impressive/interested samples of
completed projects
11
Weaknesses:
Weaknesses: what organization have missed, it is
internal organization
 None of us have accounting/financial experience.
 We have no clear marketing strategy for products
and services.
 We have little money to invest in new projects.
 We have no company Web site and limited use of
technology to run the business.
 Other examples UOH as a project hiring and poor
performance lecturer my be is strong weakness 12
Opportunities and Threats
Opportunities: external factors that represent
the reasons organization exist/develop
What opportunity exist in environment
For examples
If UOH as project getting international students
to come and study in our university my be an
opportunity
 A current client has mentioned a large project
he /she would like us to bid on.
 The film industry continues to grow.
 There are two major conferences this year
where we could promote/develop our company. 13
Threats
Threats: external factor beyond organization
 Other individuals or companies can provide
the services we can. Customers might prefer
working with more established
individuals/organizations.
 There is high risk in the film business.
14
2. Tactical Planning
 Tactical planning is the processes
through which managers design
coherent groups of activities to
accomplish a strategy
 It is a means of translating strategies
in to short-term tactics
 Facilitate objectives, because they are
prepared as a performance targets
Cont…
 Tend to be short-term, usually not
more than two years
 Prepared by middle level managers
who are responsible in directing
departments, divisions on order
similar sub-units of the organization
3. Operational Planning
 Operational planning is the process t
hrough which managers design specific
activities and steps to accomplish objectives
 It is made at the operational level and
concerned with the day-to-day, week-to-
week activities of the organization
 First-level-managers are responsible for
accomplishing (preparing) the operational
planning
 Operational planning is narrow in scope and
short lived, usually a few months
Components of good work
planning
• Identifying the specific activities se
• activities time line
• prioritize risks
• Prepare Communication plan
• Create Procurement planning
• Contract the supplies
• Asset registered : current and fixed Asset
• Basic controls over funded /held into the
bank
18
Decision-Making
Nature of decision making
 Decision making is the process of defining problems,
generating alternative solutions, choosing one
alternative, and implementing it
 It is a rational choice among alternatives
 It is enables administrators (managers) to solve social,
economic and political problem
 Decision making is universal: it is a part of all managers’
jobs
 All managers make decisions constantly while
performing the management functions
Decision making process
 Decision making process is a system of inputs,
processes and outputs
 Decision making involves several steps that
lead managers towards optimal solution
 Managers are required to solve organizational
problems
Decision making steps
1. Define the objective
 Well defined operational objectives would be
essential in detecting and identifying
problems to be solved by decision maker
2. Diagnose and define the problem
 Recording the kind and nature of the
problem that exists within an organization
is the most important and difficult in
decision-making process
 It is essential to examine problems
thoroughly, recognize symptoms and
identify causes
Cont.…
3. Identification of alternative course of
action
 Decision making situations are problem
situations that involve choice; at this point
managers need to look for, develop, and list
as many possible alternatives (choices)
which represent feasible courses of action
for dealing with the problem at head
4. Analyze the alternatives
 The purpose of this step is to decide on the
alternative merits of each of the alternatives
 The process involves screening alternatives,
examining the advantages of each course of
action, and analyzing each alternative
Cont.
5. Making choice (select the best
alternative or combination of best
alternative).
 After assessing decision maker must make a
decision that is optimal
 The optimal choice will be one that generates that
greatest the possible benefits with the fewest
negative consequences
Cont.…
6. Implement the solution
 The solution needs effective
implementation to yield the desired
results
A. Develop action plan
B. Consider the resource involved in
decision making
C. Assign specific responsibilities for
decision implementation
D. Anticipate problems that might occur
during decision implementation
Cont.…
7. Follow-up and evaluate the
decision
 Follow-up and evaluation (control) are
needed to guide actions toward desired
results
 The system should provide feedback on how
well the decision was implemented, what
the results are (positive or negative), and
what adjustments are necessary to get the
results that were wanted when the solution
was chosen
End
26

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Chapter 4, statigic planning and Decision making.ppt

  • 1. New generation University Chapter 4: planning and Decision 1
  • 2. The concept of planning  Planning is the formal process of making decisions for the future of individuals & planning dealing on aims , determining and allocating the resources required and ensuring that plans are communicated to all conserved  Planning in is a process of establishing priorities for future actions in an attempt to solve economic problems, which stem from the existence of scarce resources.
  • 3. The planning function can be characterized 1. Planning is the primary management function 2. Planning is a continuous process  planning deals with the future, and the future by its nature is uncertain 3. Planning concerns all managers: planning is the responsibility of all managers  The amount of time and span of plan vary by management level 3
  • 4. The planning function can be characterized 4. Orientation action : planning involves taking of needs and necessary actions 5. Orientation to the future : to set of goals and objectives in later life or later future 6. Orientation to achieve goals : Planning is there for targeting in achieving goals and objectives of institutions which are long range or long terms 4
  • 5. Types of planning  Based on their scope or breath plans can be classified into three categories 1. Strategies planning 2. Tactical planning, and 3. Operational planning 5
  • 6. 1. Strategic Planning is link between the organization’s, Company and Government objectives , recourses and it environmental opportunities 6
  • 7. Strategic planning  Successful leaders look at the big picture or strategic plan of the organization to determine what types of projects/business will provide the most value. Some may argue that project/business managers should not be involved in strategic planning  Project/venture selection because top management is usually responsible for these types of projects (business) decisions.  But successful organizations know that project managers can provide valuable insight into the project selection process 7
  • 8. Strategic planning  Strategic planning involves determining long- term objectives by analyzing the Strengths and Weaknesses of an organization, studying Opportunities and Threats in the business.  Environment, predicting future trends, and projecting the need for new products and services.  Strategic planning provides important information to help organizations identify and then select potential projects. 8
  • 9. SWOT ANALYSIS  Process generates/create information that is help full in corresponding/ marching an organization or Business /project goals, program to the social environment in which is operate/work 9
  • 10. SWOT ANALYSIS  Many people are familiar with SWOT analysis analyzing Strengths, Weaknesses, Opportunities, and Threats( SWOT is abbreviation (Strengths, Weaknesses, Opportunities, and Threats) which is used to aid in strategic planning. For example, a group of people who want to start a new business in the industry could perform a SWOT analysis to help identify potential projects. They might determine the following based on a SWOT analysis: 10
  • 11. Strengths and weaknesses Strengths: Positive tangible and non tangible traits/characteristics internal of the organization As experienced professionals, we have numerous/several contacts in the film industry. Two of us have strong sales and interpersonal skills. Two of us have strong technical skills and are familiar with several film making software tools. We all have impressive/interested samples of completed projects 11
  • 12. Weaknesses: Weaknesses: what organization have missed, it is internal organization  None of us have accounting/financial experience.  We have no clear marketing strategy for products and services.  We have little money to invest in new projects.  We have no company Web site and limited use of technology to run the business.  Other examples UOH as a project hiring and poor performance lecturer my be is strong weakness 12
  • 13. Opportunities and Threats Opportunities: external factors that represent the reasons organization exist/develop What opportunity exist in environment For examples If UOH as project getting international students to come and study in our university my be an opportunity  A current client has mentioned a large project he /she would like us to bid on.  The film industry continues to grow.  There are two major conferences this year where we could promote/develop our company. 13
  • 14. Threats Threats: external factor beyond organization  Other individuals or companies can provide the services we can. Customers might prefer working with more established individuals/organizations.  There is high risk in the film business. 14
  • 15. 2. Tactical Planning  Tactical planning is the processes through which managers design coherent groups of activities to accomplish a strategy  It is a means of translating strategies in to short-term tactics  Facilitate objectives, because they are prepared as a performance targets
  • 16. Cont…  Tend to be short-term, usually not more than two years  Prepared by middle level managers who are responsible in directing departments, divisions on order similar sub-units of the organization
  • 17. 3. Operational Planning  Operational planning is the process t hrough which managers design specific activities and steps to accomplish objectives  It is made at the operational level and concerned with the day-to-day, week-to- week activities of the organization  First-level-managers are responsible for accomplishing (preparing) the operational planning  Operational planning is narrow in scope and short lived, usually a few months
  • 18. Components of good work planning • Identifying the specific activities se • activities time line • prioritize risks • Prepare Communication plan • Create Procurement planning • Contract the supplies • Asset registered : current and fixed Asset • Basic controls over funded /held into the bank 18
  • 19. Decision-Making Nature of decision making  Decision making is the process of defining problems, generating alternative solutions, choosing one alternative, and implementing it  It is a rational choice among alternatives  It is enables administrators (managers) to solve social, economic and political problem  Decision making is universal: it is a part of all managers’ jobs  All managers make decisions constantly while performing the management functions
  • 20. Decision making process  Decision making process is a system of inputs, processes and outputs  Decision making involves several steps that lead managers towards optimal solution  Managers are required to solve organizational problems
  • 21. Decision making steps 1. Define the objective  Well defined operational objectives would be essential in detecting and identifying problems to be solved by decision maker 2. Diagnose and define the problem  Recording the kind and nature of the problem that exists within an organization is the most important and difficult in decision-making process  It is essential to examine problems thoroughly, recognize symptoms and identify causes
  • 22. Cont.… 3. Identification of alternative course of action  Decision making situations are problem situations that involve choice; at this point managers need to look for, develop, and list as many possible alternatives (choices) which represent feasible courses of action for dealing with the problem at head 4. Analyze the alternatives  The purpose of this step is to decide on the alternative merits of each of the alternatives  The process involves screening alternatives, examining the advantages of each course of action, and analyzing each alternative
  • 23. Cont. 5. Making choice (select the best alternative or combination of best alternative).  After assessing decision maker must make a decision that is optimal  The optimal choice will be one that generates that greatest the possible benefits with the fewest negative consequences
  • 24. Cont.… 6. Implement the solution  The solution needs effective implementation to yield the desired results A. Develop action plan B. Consider the resource involved in decision making C. Assign specific responsibilities for decision implementation D. Anticipate problems that might occur during decision implementation
  • 25. Cont.… 7. Follow-up and evaluate the decision  Follow-up and evaluation (control) are needed to guide actions toward desired results  The system should provide feedback on how well the decision was implemented, what the results are (positive or negative), and what adjustments are necessary to get the results that were wanted when the solution was chosen