Basic Elements of Planning and Decision Making
Planning and the planning process
setting an organization’s goals and deciding how best to achieve them.
It’s a generic activity
The Environmental Context
Purpose of Goals
Provide guidance and a unified direction for people in the organization.
Have a strong effect on the quality of planning.
Serve as a source of motivation for employees of the organization.
Provide an effective mechanism for evaluation and control of theorganization.
Kinds of Goals
Goals by level:
Mission: a statement of an organization’s fundamental purpose.
Strategic goal: goals set by and for top management of the organizationthat address broad, general issues.
Tactical goal: goals set by and for middle managers; their focus is on howto operationalize actions to strategic goals.
Operational goals: goals set by and for lower-level managers to addressissues associated with tactical goals.
By time frame:
Short term – (action plan & reaction plan)May be explicit or open-ended1