Organizational

Management
Quarter 1 – Module 7:
Apply appropriate planning techniques
and tools in business decision-making
Organizational Management – Grade 11
Alternative Delivery Mode
Quarter 1 – Module 7: Apply appropriate planning techniques and tools in business
decision-making

First Edition, 2020

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 Organization and
Management
Quarter 1 – Module 7:
Apply appropriate planning techniques
and tools in business decision-making
Introductory Message

For the facilitator:

Welcome to the Organizational Management – Grade 11 Alternative Delivery

Mode (ADM) Module on Apply appropriate planning techniques and tools in business

decision-making

This module was collaboratively designed, developed and reviewed by

educators both from public and private institutions to assist you, the teacher or

facilitator in helping the learners meet the standards set by the K to 12 Curriculum

while overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and

independent learning activities at their own pace and time. Furthermore, this also

aims to help learners acquire the needed 21st century skills while taking into

consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the

body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this

module. You also need to keep track of the learners' progress while allowing them to

manage their own learning. Furthermore, you are expected to encourage and assist

the learners as they do the tasks included in the module.

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For the learner:

Welcome to the Organizational Management – Grade 11 Alternative Delivery Mode

(ADM) Module on Apply appropriate planning techniques and tools in business
decision-making.

The hand is one of the most symbolized part of the human body. It is often
used to depict skill, action and purpose. Through our hands we may learn, create
and accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant competencies
and skills at your own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of the

lesson. This aims to help you discover and
understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

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 What I Can Do This section provides an activity which will
help you transfer your new knowledge or skill
into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in developing

this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

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 What I Need to Know

This module is designed and created to help you as an adolescent to be

prepared for adult life by means of knowing various developmental tasks according
to development stages. This module also helps you to realize how to face the
challenges during adolescence and help you to clarify and manage the demands of
teen years.

At the end of this module, you will be able to:

1. Apply appropriate planning techniques and tools
in business decision-making;

2. Formulate a decision from several alternatives; and

3. Discuss the planning techniques and tools in business decision-making.

What I Know

Read the statement below. Choose the words that you think has a connection
to the planning and write it on the box below. Underline the words that you think
has a connection to the Planning Techniques and Tools and their Applications.

Elena, being the manager of ZXY Corporation that manufacture clothes and
specialized in children’s wear. Elena always plan ahead., She always talk to her team
on what will be the possible solution when they can’t get the quota sales or the
needed to sales to gain income and remain on top of the business industry, but Elena
knows there are times that the competition are fierce and sometimes too much to
handle because of other external factors as well as internal factors, but with proper
planning, like specific or strategic planning she knows they can compete and gain
income. She adopts the technique like benchmarking, because benchmarking is
generally involving external comparisons of a company’s practices and technologies
with those of other companies. Its main purpose is to find out what other people and
organizations do well and then plan how to incorporate these practices into the
company’s operations. She also likes to use the participatory planning it includes the
people who will be affected by the plans and those who will be asked to implement
them in all planning steps.

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 She also thinks carefully while making a decision, she knows that the external
environment as well as internal environment can affect her decision and other
corporate heads. But she always takes risk in deciding, risk or uncertainty
conditions it is a more common condition deciding problems. In decision making she
always Identify the Problem and Identify the Decision Criteria. She carefully uses
different planning techniques to adjust in the growing environment of the industry.
She relies with her subordinates and other Corporate Heads, however her skills in
planning techniques makes her exceptional in her field.

Read carefully the statement and underline the correct words that best
describe the statement.

TRIGGER POINT FORECASTING

1. An attempt to predict what may happen in the future.

BENCHMARKING CONTINGENCY

2. Planning technique that involves comparison of company’s practices/ technologies

with those of other companies.

DECISION MAKING CERTAINTY CONDITIONS

3. Is a process which begins with problem identification and ends with the evaluation
of implemented solutions.

PARTICIPATORY PLANNING RISK

4. Is a planning process that includes the people who will be affected by the plans
and those who will be asked to implement them in all planning steps.

UNCERTAINTY CONDITIONS PROGRAMMED DECISION

5. Compel the decision maker to do estimates regarding the possible occurrence of

certain outcomes that may affect his or her chosen solution to a problem.

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 Lesson Appropriate planning
1 techniques and tools in
business decision-making
For effective planning in today’s dynamic environments, different techniques
and tools mus tbe used, such as forecasting, contingency planning, scenario
planning, benchmarking and participatory planning.

According to Schermerhorn (2008), forecasting and particpatory planning

predict what may happen in the future. All planning types, without exception, make
use of forecasting. Business periodicals publish forecasrs such as employment and
unemployment rates, increase or decrease of interest rates, stock market data,
GNP/GDP data, and others. Forecasts use may either be quantitative or qualitative.
Opinions of prominent economists are used in qualitataive forecasts while
mathematical calculations and statistical analyses of surveyrs/researches are used
in quantitative forecasts. These, however, are just aids to planning and must be
treated with caution. As the name implies, forecasts are predictions and may be
inaccurate, at times, due to errors of human judgement.

Contingency factors may offer alternative courses of action when the unepecte
dhappens or when things for wrong. Contingency plans ust be prepated by managers,
ready for implementation when things do not turn out as they should be. Contingeny
factors called “trigger points” indicate when the prepared alternative plan should be
implemented.

Meanwhile, planning for future states affairs is a long-term version of

contingency planning and is also known as scenario planning. Several future states
of affairs must be identified and alternative plans must be prepared in order to meet
the changes or challenges on the future. This is a big help for organizations because
it allows them to plan ahead and make necessary adjustments in their strategies and
operations. Some example of changes or challenges that may ares in future scenarios
are environemntal pollution, human rights violatuo, cimate and weather
change,earthquake damages to communities and others.

Benchmarking is another planning technqiue that generally involves external

comparisons of a company’s practices and technologies with those of other
companies. Its main purpose is to find out what other people and organizations do
well and then plan how to incorporate these practices int the company’s oeprations.
A common benchmarking technique is to search for best practices used by toher
organizations that enable dthem to achieve superior performance. This is known as
external benchmarking. Internal benchamarking is also practiced by some
organizations when they encourage all their employees working in their different
work units to learn and improve by sharing one another’s best practices.

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 Participatory planning is a planning process that includes the people who will
be affected by the plans and those who will be asked to implement them in all
planning steps. Creativity, increased acceptance and understanding of plans, and
commitment to the success of plas are the positive results of this planning technique.

Trigger point – change in an attribute , condition, factor, parameter or value

that represents crossing a threshold and actuates or inititaes a mechanism or
reaction that may lead to a radically different state of affairs.

Forecasting – an attempt to predict what may happen in the future.

DECISION MAKING
All managers and workers/employees in organzitions make decisions or make
choices that affect their jobs and the organization they work for. This lessons’s focus
is on how they make decisions by going thorugh the eight steps of the decision-
making process suggested by Robbins and Coulter (2009).

Decision Making – Is a process which begins with problems identificationa and

ends with the evaluation of implemented solutions.

TYPES OF DECISIONS
A decision is a choice among possible alternative actions. Like planning,
decision-making is a challenge and requires careful consideration for both types of
decisions, namely:

Structured or programmed decision – A decision that is repititive and can

be handled using a routine approach

Such repititive decision applies to resolving structured problems which are

straightforward, famlliar and esasliy defined. For example, a restaurant customer
compalins about th edirty utensils the waiter has given him. This is not unusual
situation, and therefore standardized solutions to such a problem may be readily
available.

Unstructured or non programmed deicsions – applied to the resolutio f

porbems that are new or unusual and for which information is incomplete.

Such nonprogrammed deicisions are described to be unique, nonrecurring

and ned custom-made decisions. For example, a hotel manager is asked to make a
decision regarding the building of a new hotel branch in another city to meet the
demands of businessmen there. This is an unstructured problem and,therefore
needs unstructures or nonprogrammed decisions to resolve it.

TYPES OF DECISION MAKING CONDITIONS

Conditions, under which decisions are made, also vary. These are:

Certainty conditions – ideal conditions in deicidng problems; these are

situations in which a manager can make precise deicision because the results of all
alternatives are known.

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 For example, bank interests are made known to clients so it is easier for
business managers to decide on the problem of where to deposit their company’s
funds. The banl which offer the highest interest rate, therefore, is the obvious choice
of the manager when asked to make a decision.

Risk or uncertainty conditions – a more common condition in deciding

problems.

Risk or uncertainty conditions compel the decision maker to do estimates

regarding the possible ocurence of certain outcomes that may affect his or her chosen
solution to a problem. Historical data from his or her own experiences and other
secondary information may be used as basis for decision to be made by the decision
maker under such risk conditions. For example, a manager is aksed to invest some
of their company funds in the money market offered by a financial institution. Risk
factors must be considered, because of the uncertainty conditions involved, before
making a decision – whether to invest or not in the said money market.

What’s In

Apply the correct letter to form the right words or words that fits its meaning.

1. C E R _ A I N _ Y _ O N D I T _ O _ - It is the ideal condition in

deciding problems; these are situations in which a manager can make precise
decisions because the results of all alternatives are known.

2. _ R I G _ E R P _ I N _ - Is a change in an attribute, condition,

factor, parameter or value that represents crossing a threshold and actuates or
initiates a mechanism or reaction that may lead to a radically different state of
affairs.

3. B E _ C _ M A R _ I _ G - Is another panning technique that

generally involves external comparisons of a company’s p practices and
technologies with those of other companies.

4. U _ C _ R T A I N _ T _ D _ C I S _ O _ - Compel the decision

maker to do estimates regarding the possible occurrence of certain outcomes that
may affect his or her chosen solution to a problem.

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5. F _ R E _ S T I _ G - Is an attempt to predict what may happen in the
future.

6. P R O _ R _ M _ E D D E _ C _ S I O _ - Is a decision that is
repetitive and can be handled using a routine approach.

7. N _ N P _ O G R _ A M M _ E _ _ E _ I _ I _ N - It is applied to
the resolution of problems that are new or unusual, and for which information is
incomplete.

8. D _ C I _ I _ N M _ K I _ G - Is a process which begins with

problem identification and ends with the evaluation of implemented solutions.

9. _ C E _ A _ I O _ L _ N _ I N _ - Is a planning for future states of

affairs is a long-term version of contingency planning.

10. C _ N T _ N G _ N _ Y _ L _ N - must be prepared by managers,

ready for implementation when things do not turn out as they should be.

Notes to the Teacher

Ang modyul na ito ay naghahanda sa mga mag-aaral upang
makalikha at mailarawan ang mga hugis ng katawan ayon sa kung
paano ito ginagawa o inilalahad sa isang larawan.

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 What’s New

FIND THE HIDDEN WORDS:

1. Certainty Conditions
2. Contingency Plans
3. Decision-making
4. Unstructured
5. Structured
6. Decision
7. Uncertainty Conditions
8. Benchmarking
9. Risk
10. Forecasting

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 What is It

THE DECISION MAKING PROCESS ACCORDING

TO ROBBINS AND COULTER

Step 1: Identify the Problem. The problem may be defined as a puzzling

circumstance or a discrepancy between an existing and a desired condition.

Step 2: Identify the Decision Criteria . These are important or relevant to resolving
the identified the problem.

Step 3: Allocate Weights to the Criteria. This is done in order to give the decision
maker the correct priority in making the decision.

Step 4: Develop Alternatives. This step requires the decision maker to list down
possible alternatives that could help resolve the identified problems.

Step 5: Analyze the Alternatives. Alternatives must be carefully evaluated by the

decision maker using the criteria identified in Step 2.

Step 6: Select an Alternative: This is the process of choosing the best alternative
or the one which has the highest total points in Step 5.

Step 7: Implement the Chosen Alternative. This step puts the decision into action.
Changes in the environment must be observed and assessed, especially in cases of
long-term, decision, to see if the chosen alternative is still the best one.

Step 8: Evaluate Decision Effectiveness. This is the last step and involves the
evaluation of the outcome or result of the decision to see if the problem was resolved.
If the problem still exists, the manager has to assess what went wrong and, if needed,
repeat a step or the whole process.

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 What’s More

Arrange in chronological pattern the steps in planning. Write 1 to determine which

steps comes first, 2 which comes second, 3 which comes third, 4 next to the third and 5 to the
last. Write your answer on the line before the number.

__________ Evaluate Decision Effectiveness. This is the last step and involves the
evaluation of the outcome or result of the decision to see if the problem was resolved.
If the problem still exists, the manager has to assess what went wrong and, if needed,
repeat a step or the whole process.

__________ Develop Alternatives. This step requires the decision maker to list down
possible alternatives that could help resolve the identified problems.

__________ Identify the Problem. The problem may be defined as a puzzling

circumstance or a discrepancy between an existing and a desired condition.

__________ Identify the Decision Criteria . These are important or relevant to resolving
the identified the problem.

__________ Allocate Weights to the Criteria. This is done in order to give the decision
maker the correct priority in making the decision.

__________ Analyze the Alternatives. Alternatives must be carefully evaluated by the

decision maker using the criteria identified in Step 2.

__________ Select an Alternative: This is the process of choosing the best alternative
or the one which has the highest total points in Step 5.

__________ Implement the Chosen Alternative. This step puts the decision into action.
Changes in the environment must be observed and assessed, especially in cases of
long-term, decision, to see if the chosen alternative is still the best one.

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 What I Have Learned

Identify the words that is missing in the following statement below.

A 1.__________ is a choice among possible alternative actions. Like planning

decision-making is a challenge and requires careful consideration for both types of
decision namely 2.____________________________ and 3.______________________.
For effective planning in today’s dynamic environments. Different techniques and
tools must be used, such as 4._________________, 5.______________________________,
6.______________________________, 7.________________________, 8.__________________.

All planning types, without exception, make use of forecasting. Business periodicals
publish forecasts such as employment and unemployment rates, increase or
decrease of interest rates, stock market data, GNP/GDP data and others. Forecasts
used may either be 9._________________, or 10.__________________.

Risk or 11._________________________ compel the decision maker to do estimates

regarding the possible occurrence of certain outcomes that may affect his or her
chosen solution to a problem.

All managers and workers/employees in organizations make decision or make

choices that affect their jobs and organization they work for, they make decision by
going through the 12.__________________________ of the decision-making process
suggested by Robbins and Coulter (2009).

13._________________ is a process which begins with problem identification and ends

with the evaluation of implemented solutions.

14.________________________ It is change in an attribute, condition, factor, parameter

or value that represents crossing a threshold and actuates or initiates a mechanism
or reaction that may lead to a radically different state of affairs.
15.________________________ Ideal conditions in deciding problems; these are
situations in which a manager can make precise decisions because the results of all
alternatives are known.

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 What I Can Do

Write TRUE if the statement is correct and FALSE if the statement is wrong.
Write your answer on the blank provided to each number.

____________1. A restaurant customer complains about the dirty utensils the waiter
has given him. This is not an unusual situation, and, therefore, standardized
solutions to such a problem may be readily available, this is a type of decision that
is structured or programmed data.

____________2. Bank interest are made known to clients so it is easier for business
managers to decide on the problem of where to deposit their company’s funds. The
bank which offers the highest interest rate, therefore, is the obvious choice of the
manager when asked to make a decision, this falls to certainty conditions.

____________3. A manager is asked to invest some of their company funds in the

money market offered by a financial institution. Risk factors may be considered,
because of the uncertainty conditions involved, before making a decision – whether
to invest or not in the said money market.

____________4. A hotel manager is asked to make a decision regarding the building

of a new hotel branch in another city to meet the demands of businessmen there.
This is an unstructured problem and, therefore needs unstructured or
nonprogrammed decision to resolve it.

____________5. A decision is a choice among possible alternative actions.

____________6. Benchmarking must be prepared by managers ready for

implementation when things do not turn out as they should be.

____________7. Contingency plans are another planning technique that generally

involves external comparisons of a company’s practices a technology with those of
other companies.

____________8. Forecasting change in attribute, condition, factor, parameter, or value

that represents crossing a threshold and actuates or initiates a mechanism or
reaction that may lead to radically different state of affairs.

____________9. Trigger point is an attempt to predict what may happen in the future.

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____________10. A process which begins with problem identification and ends with
the evaluation of implemented solution is called decision.

____________11. A manager is asked to invest some of their company funds in the

money market offered by a financial institution. Risk factors must be considered,
because of the uncertainty conditions involved, before making a decision –whether
to invest or not n the said money market.

____________12. Planning for future states of affairs is a long-term version of

contingency planning and is also known as scenario planning.

____________13. Participatory planning is a planning process that includes the people

who will be affected by the plans and those who will be asked to implement them n
all planning steps.

____________14. These are important or relevant to resolving the identified problem,

this step is called Analyze the Alternatives.

____________15. The problem may be defined as a puzzling circumstance or a

discrepancy between an existing and a desired condition is called Allocate Weights
to the Criteria.

Assessment

IDENTIFICATION: Write the correct answer on the space provided before the number.

___________1. It is a planning technique and tools that attempts to predict what may happen
in the future.

___________2. It is a choice among possible alternative actions.

___________3. It is a process which begins with problem identification and ends with the
evaluation of implemented solutions.

___________4. It is a planning technique and tools that must be prepared by managers, ready
for implementation when things do not turn out as they should be.

___________5. It is a type of decisions that is repetitive and can be handled using a routine
approach.

___________6. It is a type of decisions that compel the decision maker to do estimates

regarding the possible occurrence of certain outcomes that may affect his or her chosen
solution to a problem.

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___________7. It is a type of decisions that are more common condition in deciding problems.

___________8. A decision-making process that is done in order to give the decision maker the
correct priority in making the decisions.

___________9. A decision–making process that is the last step and involves the evaluation of
the outcome r result of the decision to see if the problem was resolved.

___________10. It is a type of decision that is applied to the resolution of problems that are
new or unusual and for which information is incomplete.

___________11. A decision-making process that the problem may be defined as a puzzling

circumstance or a discrepancy between an existing and a desired condition.

___________12. Is another planning technique that generally involves external comparisons

of a company’s practices and technologies with those of other companies. Its main purpose is
to find out what other people and organizations do well and then plan how to incorporate
these practices into the company’s operations.

___________13. It is a change in an attribute, condition, factor, parameter or value that

represents crossing a threshold and actuates or initiates a mechanism or reaction that may
lead to a radically different state of affairs.

___________14. Is a planning process that includes the people who will be affected by the
plans and those who will be asked to implement them in all planning steps.

___________15. Planning for future states of affairs is a long-term version of contingency

planning.

___________16. Is a process which begins with problem identification and ends with the
evaluation of implemented solutions.
___________17. It is a decision-making process that involves the evaluation of the outcome
or result of the decision to see if the problem was resolved,
___________18. It is a decision-making process that puts the decision into action. Changes in
the environment must be observed and assessed, especially in cases of long-term decisions, to
see if the chosen alternative is still the best one.
___________19. It is a decision-making process that these are important or relevant to
resolving the identified problem.
___________20. It is a decision-making process that is the process of choosing the best
alternative or the one which has the highest total points.

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 Additional Activities

Complete the statements using the correct words given in the box. Write your answer on the
blank provided for every number.

_____________1. Is a process which begins with problem identification and ends with the
evaluation of implemented solutions.
_____________2. Is an attempt to predict what may happen in the future.
_____________3. Is another planning technique that generally involves external
comparisons of a company’s practices and technologies with those of other companies.
______________4. Change in an attribute, condition, factor, parameter or value that
represents crossing a threshold and actuates or initiates a mechanism or reaction that may
lead to a radically different state of affairs.
______________5. It is a type of decision making conditions that is ideal in conditions in
deciding problems; these are situations in which a manager can make precise decisions
because the results of all alternatives are known.
______________6. It is a type of decision that is repetitive and can be handles using a routine
approach.
______________7. It is a type of decision that is applied to the resolution of problems that
are new or unusual and for which information is incomplete.
______________8. It is planning for future states of affairs is a long-term version of
contingency planning.
______________9. It is a planning techniques and tools that offer alternative courses of
action when the unexpected happens or when things go wrong.
_____________10. Is a planning process that includes the people who will be affected by the
plans and those who will be asked to implement them in all planning steps.

17