Summary Notes

Planning
Definition –
A. *Components of Planning Process
a. Mission
b. Goal
c. Plan
NB Difference between a plan & the planning process
B. *Benefits of Goal Setting
a. Increases
b. Clarifies
c. Facilitates
d. Increases
C. *For goals to be effective they need to be:
C
S
M
A
R
T
D. *Goals & Plans vary at different levels of management.
a. Top Level –
b. Middle Level –
c. 1st Level –
E. *Goals & Plans contain messages in relation to their legitimacy, motivation power, guide for
action, rationale for decisions and standards of performance required.
F. *Planning Types and Models
a. *Management by objectives – Key element is _____________. There are strengths and
weaknesses.
b. *Plans according to use –
c. *Plans according to time horizons
d. Quality planning
e. Contingency Plans
 f. Scenario Plans
G. *Approaches to Planning
a. Traditional approaches tend to have been ___________________
b. Modern approaches have tended toward more _________________
c. Planning for motivation and employee involvement
Decision Making

What is a decision?
How do managers make decisions?

A. *Types of Decisions vary at different levels of management

a. Programmed
b. Non Programmed
B. *Factors impacting business decisions
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
C. *Decision making models
a. Classical model – based on assumption of problem clarity, certainty, all known
alternatives and able to use a “perfectly rational approach”.
b. Administrative model – as the conditions in the classical model are seldom met in non
programmed decisions, this model describes approaches managers often use.
i. Satisficing Model
ii. Intuition
c. Political Model – decisions made through push & pull of bargaining & discussion among
coalition members.
D. *The decision making process.
a. Identify the problem
b. Generate alternatives
c. Evaluate and choose among alternative solutions
d. Implement & monitor the chosen solution
E. *Personal Decision Styles
a. Directive
b. Analytical
c. Conceptual
d. Behavioural
F. *Group/ Participative Decision making
a. Vroom-Jago Model p.279
b. Advantages & disadvantages of Group Decision making
 c. Improving decision making breadth & creativity
i. Brainstorming
G. Effective decision making in turbulent times
Sample Test/Exam Questions

Sample Mid Semester Test Question

1. Explain what is meant by each of the three major elements in the Planning Process namely
Mission, Goals and Plans. How can a manager make effective use of goals and plans to
improve organisational performance? (Include in your answer types of goals and plans,
obstacles/problems associated with goals and planning, benefits of having mission statement,
goals and plans, and how we can use goals to facilitate performance.)

Exam Questions

Short Answer Questions:

Planning and Goal Setting

 Identify and explain the major components in the overall planning process.

 Explain how goals and plans differ according to organisational level.

 List and explain the benefits and problems or strengths and weaknesses associated
with Management By Objectives.

Essay

The function of Planning lays the foundation for organisational success. Discuss showing
you are aware of the important elements of the planning process and why each element of
the process is important at all levels of management.

Short Answer Questions:

Managerial Decision Making

 Explain the advantages and disadvantages of group decision-making.

 Explain the difference between programmed and non-programmed decision

situations. Give an example of each type of decision.

 What is meant by satisficing and bounded rationality? Why don’t managers strive
to find the economically best solution for many organizational decisions?
Essay

“Effective Managerial decision making requires a knowledge of the decision making process
and the models managers use to make decisions.” Thoroughly discuss this statement.
Preparation for Week 6.

1 Download weeks 6 to 11 lecture notes from the portal. You will need these for this weeks
lecture.

1. Download weeks 6 – 11 of the student workbook. You will need this to prepare for the next
half of the semesters workbook exercises.

2. Revise all theory from Weeks 1 – 5 in preparation for the Mid Semester Test. Attempt all
past mid-semester test and past short answer and exam questions. Check out the sample mid
semester test on the portal.