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PLANNING
Carmen Lucía Vidal Mortera
Index:
1) INTRODUCTION

2) DESCRIPTION OF THE DECISSION

MAKING PROCESS.

3) THE MOST COMMON DECISION

MISTAKES THAT MANAGERS MAKE.

4) TYPES OF PROBLEMS AND 5) DECISION-MAKING CONDITIONS

DECISIONS. MANAGERS FACE.

6) GROUP DECISION MAKING

7) CONTEMPORARY ISSUES IN
MANAGERIAL DECISION MAKING

8) CASE STUDY
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 Action of analyzing a situation,
setting objectives and
determining strategies and plans

1) INTRODUCTION: to achieve them.

Identifies, describes and

analyses a business opportunity
DEFINITION OF PLANNING: or an ongoing business,
examining its technical,
economic and financial
feasibility.

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2) DESCRIPTION
OF THE DECISSION
MAKING PROCESS:

Identification Allocation Development Analysis of Selection Implementation

Identification of weigts to
of a decision of alternatives of an of the
of a problem criteria alternatives
criteria alternative alternative

Evaluation of
decision
effectiveness

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3) COMMON DECISION MISTAKES THAT MANAGERS MAKE:

OVERCONFIDENC ANCHORING CONFIRMATION

E BIAS EFFECT BIAS
1 3 5

2 4 6

INMEDIATE SELECTIVE FRAMING BIAS

GRATIFICATION PERCEPTION
BIAS

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3) COMMON DECISION MISTAKES THAT MANAGERS MAKE:

AVAILABILITY RANDOMNESS SELF-SERVING

BIAS BIAS BIAS
7 9 11

8 10 12

REPRESENTATION THE SUNK COST HINDSIGHT BIAS

BIAS ERROR

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4) TYPES OF
PROBLEMS -familiar problem
-clear goal of the decision
AND -defined and complete
information
DECISIONS: STRUCTURED
PROBLEMS
-les common

-most eficient way to handle

this problems is with
PROGRAMED DECISIONS

PROBLEMS

-much more complex to solve

-ambiguous and incomplete
information
UNSTRUCTURED
PROBLEMS
-most eficient way to handle
this problems is with
NONPROGRAMMED
RESPONSE

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5) DECISION-MAKING CONDITIONS MANAGERS FACE:

“ 1) CERTAINTY:

-Definition: a situation
in which a manager can
2) RISK:

-Condition in which
the decision maker is
3) UNCERTAINTY:

-The outcome is
make accurate decisions able to estimate the uncertain
because every probability of certain
alternative is known outcomes -It’s not possible to
make a reasonable
-the outcome of each -to tackle this estimate of the
alternative is already situation managers probability of certain
familiar have information of outcomes
past personal
-not very common experiences

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 6) GROUP DECISION MAKING:
ADVANTAGES: -provides a wide range of experiences, perspectives and alternatives to the decision
process
-more diverse source of information
-increased acceptance of the solution
-increased legitimacy

-require more time

-minority domination
-illusion of unanimity/groupthink
-ambiguous resposability

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7) CONTEMPORARY ISSUES IN MANAGERIAL DECISION MAKING:

NATIONAL CREATIVITY
CULTURE

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8) CASE STUDY:

1) IDENTIFICATION OF THE PROBLEM:

-companies net profit has been reduce by 20%
-machinery obsolete
-not positioned in the digital marketing
-final product becomes more expensive
-social security cost had increase
-competitors have competitive prices

2) IDENTIFICATION OF DECISION CRITERIA:

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8) CASE STUDY:

3) ASSIGNING WEIGHTS TO CRITERIA:

4) LIST OF ALTERNATIVES:
1.- Digitalize the company 2.- Purchase of machinery
3.- Purchase of manufactures products for sale 4.- Lay off part of the contracted personnel
5.- Manufacture with cheaper materials and look for new cheaper suppliers.
6.- Relocate the manufacturing company out of Spain.

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8) CASE STUDY:

5) CRITICLLY ANALIZE EACH ONE:

-1) Company digilitalization= apply for subsidies to digitalize the company
-2) Obsolete machinery= purchase machinery
-3) Sale of manufactured product for sale= cessation of the manufacture of own
products
-4) reduction of employes
-5) moving the manufacturing company out of Spain

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8) CASE STUDY:

6) DETERMINATE THE BEST OPTION:

-the option that has obtained the highest score is digitalize the company
7) IMPLEMENTATION OF THE DECISION
8) EVALUATE RESULTS:
-online sales had increased
-market has expanded to other countries
-the product is cheaper
-more competitive
-modernizing the company

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9) FINAL CONCLUSIONS:

-Planning and decision making are much more complex than they appear to be.

-When making decisions within a company it’s really important to follow the tips mentioned in
the previous slides.

-To guarantee a good progress of a company it’s necessary to have a well-trained manager.

-It is very important to follow the 8 steps of the decisions making process.

-All decisions play an important role but there are ones more relevant than others.

-The more relevant the decision, the higher the rank of the worker who will deal with it.

-There are tools provided by top managers to help less experienced decision makers.

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