Decision Making- is the act of choosing
alternatives from among set of alternatives.
Decision- is a choice among possible courses of
action.
Criteria of information- refer to the attributes or
qualities that information should possess to be
useful and effective in guiding decision-making
processes.
• Timely: refers to the information being
available when needed.
• High-Quality: High-quality information is
accurate, reliable, and free from errors or
bias.
• Complete: means that the information
provided covers all relevant aspects of
the decision-making process.
• Relevant: refers to the information's
significance and applicability to the
decision-making process.
• Understandable: means that the
information is presented in a clear,
concise, and easily comprehensible
manner.
Decision environment- refers to the context or
conditions under which decisions are made.
• Certain: In a certain environment,
outcomes of decisions are known with
absolute certainty.
• Risk: In a risk environment, outcomes of
decisions are probabilistic.
• Uncertain: In an uncertain environment,
outcomes of decisions are unknown and
unpredictable.
Problem Solving Styles: Intuitive Vs Systematic
Systematic problem solving involves a
structured and logical process to analyze
and address a problem or decision.
Ex. Using decision matrices or weighted
scoring models to evaluate different
options.
Intuitive problem solving involves relying
on instinct, gut feelings, and personal
judgment to make decisions.
Ex. Making snap judgments based on
past experiences or gut feelings.
Decision Making Process:
• Identify and define the problem
• Generate and evaluate the preferred
courses of action
• Decide on the preferred course of action
• Implement the decision
• Evaluate results
Ethics on Decision Making:
• Ang isang kumpanya na nahaharap sa
isang suliranin ng pag-cut sa gastos ay
nagpapasya na hindi magtanggal ng mga
empleyado upang itaguyod ang
kapakanan ng mga manggagawa, kahit na
ito ay maaaring makaapekto sa kita sa
maikling panahon.
Root Cause:
• For a particular problem root cause is the
factor that, when you fix it, the problem
goes away and doesn’t comeback.
Traditional Applications of Root Cause Analysis:
• Resolution of customer complaints and
returns.
Philosophy of Root Cause Analysis:
• "Golden nuggets" refer to key insights or
discoveries that are particularly valuable
in understanding the root causes of a
problem or issue. These golden nuggets
are essential pieces of information that
shed light on underlying factors
contributing to the problem or incident
being investigated.
Symptom Approach- we need to train and
motivate our workers to be more careful.
Root Cause- We need to find out why this is
happening, and implement mistake-proofs so it
won’t happen again.
THE PLANNING PROCESS
Why Plan?
• Focus & Flexibility: Planning clarifies
goals, minimizes distractions, and
enables adaptation to changing
circumstances.
• Action Orientation: It turns ideas into
actionable steps, fostering proactive
behavior and progress.
• Coordination: Facilitates teamwork by
defining roles, timelines, and
dependencies for efficient collaboration.
• Time Management: Helps allocate time
effectively, prioritize tasks, and optimize
productivity.
The planning process involves several key steps:
• Define Objectives: Clearly state specific,
measurable, achievable, relevant, and
time-bound goals.
• Assess Current Position: Evaluate your
current status in relation to the
objectives to understand strengths,
weaknesses, opportunities, and threats.
• Forecast Future Conditions: Anticipate
changes in market, technology,
regulations, etc., that may affect
objectives.
• Analyze and Decide: Evaluate options,
considering feasibility, risks, and benefits,
then choose the best course of action.
• Implement Plan: Put the chosen plan into
action by assigning tasks, setting
timelines, and allocating resources.
• Evaluate Results: Monitor progress,
identify deviations, and adjust the plan as
necessary to achieve objectives.
Types of plans: Short Range and long-term plans,
Strategic and operational plans, Budget.
short-range plans address immediate goals, while
long-term plans focus on future objectives.
Strategic plans provide a roadmap for achieving
long-term success, while operational plans detail
how to implement these strategies. Budgets help
manage financial resources to support both
strategic and operational goals.
Planning Tools and Techniques
• Forecasting
• Contingency Planning
• Scenario Planning
• Benchmarking
• Staff Planners
• Participatory Planning
• Management by Objectives (MBO)
• These planning tools and techniques
provide organizations with valuable
resources to anticipate, adapt to, and
capitalize on changes in their internal and
external environments, ultimately
enhancing their effectiveness and
success.
MBO Criteria
• Specific
• Time defined
• Challenging
• Measurable
• By adhering to these MBO criteria,
organizations can set meaningful
objectives that are aligned with their
strategic goals, promote employee
engagement and accountability, and
drive performance improvement.
Strategy and Strategic Management
Strategy: A comprehensive action plan that
identifies the long-term direction for an
organization and guides resource utilization to
achieve sustainable competitive advantage.
Porter’s Competitive Strategies
• Differentiation: Differentiation strategy
involves offering unique products or
services that are perceived as distinct
from those of competitors.
• Cost leadership: Cost leadership strategy
aims to become the lowest-cost producer
in the industry while maintaining
acceptable quality levels.
• Focused differentiation: Focused
differentiation strategy concentrates on
serving a specific market segment with
unique needs or preferences.
• Focused cost leadership: Focused cost
leadership strategy involves targeting a
narrow market segment and striving to
become the lowest-cost provider within
that segment.
Strategy Formulation:
• Vision- It describes the desired future
state or the ultimate purpose that the
organization strives to achieve, inspiring
and guiding its strategic direction.
• Mission- It outlines what the organization
does, who it serves, and how it adds
value to stakeholders.
• Core Values- represent the fundamental
beliefs, principles, and ethical standards
that guide the behavior and actions of
individuals within the organization.
• Objectives- are specific, measurable,
achievable, relevant, and time-bound
(SMART) goals that the organization aims
to accomplish to fulfill its mission and
vision.
Analysis of Organizational Capability
• SWOT
• Strengths
• Weaknesses
• Opportunities
• Threats
Organizing: Structure and Design
Organizing: The process of arranging people and
other resources to work together to accomplish a
goal.
LEADING: Power and Leadership
The Nature of Leadership: The process of
inspiring others to work hard to accomplish
important tasks.
Sources of Power: Power of the Position and
Power of the Person
Power of the Position:
• Derived from formal authority within the
organizational hierarchy.
• Grants the ability to make decisions,
allocate resources, and influence others.
• Tied to job title or role within the
organization's structure.
Reward Power:
o Involves the ability to provide
rewards for compliance or
desired behavior.
o Rewards can be tangible or
intangible.
o Motivates individuals through
incentives and positive
reinforcement.
Coercive Power:
• Derives from the ability to
administer punishments or
negative consequences for non-
compliance.
• Relies on the threat of sanctions
to compel obedience.
• Influences behavior through fear
of reprisal or adverse outcomes.
Legitimate Power: emulate or associate with the
person.
• Arises from formal authority
within the organizational Leadership Traits:
hierarchy.
• Drive: Refers to an individual's
• Based on the perception that the
determination, ambition, and
individual has the right to
perseverance to achieve goals and
exercise influence.
overcome challenges. Leaders with drive
• Confers authority and legitimacy
are motivated, resilient, and committed
to those in designated leadership
to success.
positions.
• Self-confidence: Involves a strong belief
Power of the Person: in one's abilities, decisions, and
judgments. Self-confident leaders inspire
• Based on personal qualities, expertise, trust and credibility, take calculated risks,
and relationships. and demonstrate assertiveness in their
• Stemming from respect, trust, charisma, actions.
and expertise. • Creativity: Entails the ability to think
• Independent of formal authority, relies innovatively, generate new ideas, and
on individual characteristics and abilities. solve problems in unconventional ways.
Creative leaders encourage
Expert Power: experimentation, embrace change, and
o Stemming from an individual's foster a culture of innovation within their
knowledge, skills, or expertise in teams.
a particular area. • Cognitive Ability: Encompasses mental
o Based on the perception that the agility, critical thinking skills, and the
individual possesses valuable capacity to analyze complex information
information or insights. and make sound decisions. Leaders with
o Influences others through strong cognitive abilities can grasp the
credibility, competence, and the big picture, anticipate trends, and
ability to provide guidance or formulate effective strategies.
solutions.
• Business Knowledge: Involves
Referent Power:
understanding of industry trends, market
dynamics, and organizational operations.
• Arising from the personal Leaders with business knowledge
qualities, charisma, or likeability possess industry expertise, strategic
of an individual. insights, and a deep understanding of the
• Rooted in admiration, respect, or factors that drive organizational success.
identification with the • Motivation: Refers to the ability to inspire
individual's characteristics or and energize others towards common
qualities. goals. Motivated leaders lead by
• Influences others through example, set high standards, and create a
interpersonal relationships, compelling vision that engages and
persuasion, and the desire to mobilizes their teams.
 • Flexibility: Entails adaptability, openness
to change, and the ability to adjust plans
and strategies in response to evolving
circumstances. Flexible leaders are agile,
resilient, and able to navigate uncertainty
with ease.
• Honesty and Integrity: Represents ethical
behavior, transparency, and adherence to
moral principles. Leaders with honesty
and integrity build trust, foster a culture
of accountability, and uphold ethical
standards in all aspects of their
leadership.
Leadership Behaviors:
Autocratic:
• Centralized decision-making and strict
control by the leader.
• Little input from team members.
• Efficient for quick decisions but may stifle
creativity.
Human Relations:
• Emphasizes building positive
relationships and supportive work
environment.
• Prioritizes well-being and satisfaction of
team members.
• Enhances morale, motivation, and
teamwork.
Laissez-faire:
• Delegates decision-making and
responsibilities to subordinates.
• Provides autonomy and minimal
guidance.
• Promotes creativity and empowerment
but may lack direction.
Democratic:
• Collaboration and shared decision-
making among leader and team
members.
• Solicits input and facilitates consensus-
building.
• Fosters participation, engagement, and
innovation.
Issues in Leadership Development:
Charismatic Leaders:
• Leaders with compelling personalities
and visionary qualities.
• Challenges include overreliance on
individual leaders and ethical concerns.
Transformational Leaders:
• Inspire and motivate through shared
vision and empowerment.
• Requires emotional intelligence, effective
communication, and influence skills.
Emotional Intelligence:
• Ability to recognize, understand, and
manage emotions.
• Essential for navigating relationships and
resolving conflicts.
Ability to Manage Emotions in Social
Relationships:
• Requires composure, empathy, and
professionalism in interactions.
• Developed through self-awareness,
interpersonal skills, and communication
training.
CONTROLLING:
What is Controlling? - Ensuring that everything
occurs in conformities with the plans, instructions
issued and principles ensures effective and
efficient utilization of organizational resources
measures the deviation of actual performance
from the standard performance.
Features of Controlling Function:
End Function:
 • Occurs after planning, organizing, and
leading.
Compare Results Against Standards:
• Assesses performance against standards
and adjusts as needed. Compare actual performance data with
the established standards. Identify any deviations
Pervasive Function:
or variances between the two to assess whether
• Applies to all levels and departments in goals are being met.
the organization.
Communicate Results:
• Ensures alignment of activities with goals
and standards. Share the results of the performance
comparison with relevant stakeholders, including
Forward-Looking:
managers, employees, and other relevant parties.
• Focuses on future success by monitoring Effective communication ensures transparency
current activities. and accountability.
• Identifies issues early for proactive Take Corrective Action If Needed:
corrective action.
If deviations from standards are
Dynamic Process: identified, take timely corrective action to
• Ongoing and evolving process. address the issues and bring performance back in
• Requires continuous monitoring, line with expectations. This may involve revising
evaluation, and adjustment. plans, reallocating resources, providing additional
training, or making process improvements.
Related to Planning:
(Feedback):
• Integral to the planning process.
Collect feedback from the corrective
• Compares actual performance with
action taken to assess its effectiveness and adjust
planned objectives.
strategies as needed. This feedback loop ensures
• Feedback informs future planning for
continuous improvement and adaptation to
continuous improvement.
changing circumstances.
Process of Controlling:
Assess Realism of Standards:
Establish Clear Standards:
Reflect on whether the established
Set specific criteria, benchmarks, or standards are realistic and achievable. If
performance targets against which actual standards are consistently unattainable or
performance will be measured. These standards unrealistic, they may need to be adjusted or
should be clear, achievable, and aligned with revised to better reflect the organization's
organizational goals. capabilities and objectives.

Monitor and Record Performance:

Continuously track and collect data on

actual performance. This may involve observing
activities, collecting metrics, or using
performance indicators to measure progress.
Relationship between Planning and Controlling:

Feedback/Reinforcement Process:

Planning and controlling are

interconnected through a feedback loop.
Controlling provides feedback on the
effectiveness of the plans by comparing actual
performance with planned objectives. This
feedback informs future planning efforts,
allowing for adjustments and improvements to be
made based on the outcomes of controlling
activities.

Inseparable Functions of Management:

Planning and controlling are essential

and inseparable functions of management.
Planning sets the direction and goals for the
organization, while controlling ensures that
activities are aligned with these plans and goals.
Both functions are interdependent and work
together to achieve organizational objectives.

Activities are Railed by Planning and are Kept at

Right Place through Controlling:

Planning establishes the roadmap and

objectives for organizational activities, guiding
decision-making and resource allocation.
Controlling ensures that these activities remain
on track and are executed according to plan.
Together, planning and controlling ensure that
activities are directed towards achieving desired
outcomes efficiently and effectively.

Systems Approach:

Both planning and controlling are integral

components of the management system within
an organization. They operate within a broader
systems framework, where inputs (such as
resources and information) are transformed into
outputs (such as products or services) through a
series of planned activities. Planning defines the
system's goals and structure, while controlling
monitors and regulates the system to ensure it
operates optimally and achieves its objectives.