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Basic Elements of Planning and Decision Making

Basic Elements of Planning and Decision Making



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Published by tanvir09

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Published by: tanvir09 on Apr 15, 2009
Copyright:Attribution Non-commercial


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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
Organizational Goals
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 area
 By time frame:
Long term
Intermediate term
Short term – (action plan & reaction plan)May be explicit or open-ended1
Varies by levelResponsibilities for setting goals
balancing and reconciling possible conflicts among goals
Organizational Plans
Kinds of organizational plans
Strategic plan: A general plan outlining resource allocation, priorities, andaction steps to achieve strategic goals. The plans are set by and for topmanagement.
Tactical Plans: A plan aimed at achieving the tactical goals and isdeveloped to implement parts of a strategic plan.
Operational Plans: Plans that have a short-term focus. These plans are setby and for lower-level managers to carry out tactical plans
Responsibilities for Planning
Planning staff 
Planning task force
Board of directors
Executive committee
Line management
Contingency planning
Contingency is the determination of alternative courses of action to be taken if anintended plan is unexpectedly disrupted or rendered inappropriate. These planshelp managers to cope with uncertainty and change.
Ongoing planning
Action point Action point Action point Action point
Develop plan,consideringcontingency eventsImplement plan andformally identifycontingency eventsSpecify indicatorsfor the contingencyevents and developcontingency plans foreach possible eventSuccessfully completeplan or contingencyplanMonitor contingency event indicators andimplement contingency plan if necessary
Tactical planning
Developing and Executing Tactical Plans
Developing tactical plans
Recognize andoverarching strategicand tacticalSpecify relevant resourcetimeRecognize and identifyresource
Executing tactical plans
Evaluate each course ofin light of itsObtain andinformation andMonitor horizontal andcommunication andofMonitor ongoing activitiesgoal
Operational Planning
use lan
Develoed to carr out a course of action not likel tobe reeated in the futureProgram
Single-use plan for a large set of activitiesProect
Sinle-use lan of less scoe and comlexit than aroram
Standin lan
Developed for activities that recur regularly over aeriod of timePolic
Standin lan secifin the oraniz
tion’s eneralresonse to a desinated roblem or situation
Mc Donald
Standard oeratin roc
Standin lan outlinin stes to be followed inarticular circumstancesRules and reulations
Standin lans describin exactl how secificactivities are to be carried out
Barriers to Goal Setting & Planning
Inappropriate goals
Improper reward system
Dynamic and complex environment
Reluctance to set goals
Resistance to change

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