Principles

of
Management
Learning Session # 20
Dr. A. Rashid Kausar
 Re-cap
of
Session # 19
Planning and
Decision Aids

Management Science
Or
Operation Research
For ?
Planning and
Decision Aids
Increasing Decision
Effectiveness by using
Mathematical,
Statistical, &
Qualitative Models.
 Planning and
Decision Aids
1.For Assessing Environment:
1.1 Environmental Scanning
1.2 Forecasting
1.3 Benchmarking
 Planning and
Decision Aids
2.For Allocating Resources:
2.1 Budgeting
2.2 Scheduling
2.3 Break even Analysis
2.4 Linear Programming
 Planning and
Decision Aids
3. Contemporary Planning
Techniques:
3.1 Project Management
3.2 Scenarios Analysis
 Planning and
Decision Aids
1.For Assessing Environment:
1.1 Environmental Scanning;
The screening of large
amounts of information to
anticipate and interpret
changes in the environment.
 Planning and
Decision Aids
1.For Assessing Environment:
1.1.1 SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
 Planning and
Decision Aids
1.For Assessing Environment:
1.1.2 Competitive Intelligence; An
activity that seeks to identify who
are our competitors, what are
they doing, and how their actions
will affect our organization.
 Planning and
Decision Aids
1.For Assessing Environment:

1.2 Forecasting;
Planning and
Decision Aids
1.2 FORECASTING
Process of making
predictions about changing
conditions and future
events that may affect the
business of an organization.
 Planning and
Decision Aids
1.2 FORECASTING
Methods are of
3 Types !
Planning and
Decision Aids
1.2 FORECASTING
1.2.1 Quantitative
1.2.2 Qualitative or
Technological
1.2.3 Judgmental
 Planning and
Decision Aids
1.2 FORECASTING
1.2.1 Quantitative Forecast
relies on numerical data and
mathematical models to
predict future conditions.
Planning and
Decision Aids
1.2 FORECASTING
1.2.1 Quantitative
1.2.1.1 Time Series
Methods
1.2.1.2 Explanatory /
Causal Methods
 Planning and
Decision Aids
1.2 FORECASTING
1.2.1 Quantitative
1.2.1.1 Time Series
Methods
It uses historical data to
forecast the future.
 Planning and
Decision Aids
1.2 FORECASTING
1.2.1 Quantitative
1.2.1.2 Explanatory / Causal
Methods… focus on
major variables
Regression, Econometric and Leading Indicators
 Planning and
Decision Aids
1.2 FORECASTING
1.2.2 Qualitative or
Technological..
Aim to predict long term
technology trends by relying on
creativity, judgements and experts
knowledge.(Delphi Analysis)
Planning and
Decision Aids
1.2 FORECASTING
1.2.3 Judgmental
Relies on individual
judgments or committee
agreements about future
conditions
 Planning and
Decision Aids
1.For Assessing Environment:
1.3 Benchmarking; The search
for the best practices among
competitors or non-
competitors that lead to their
superior performance.
 Planning and
Decision Aids
2.For Allocating Resources:
2.1 Budgeting
2.2 Scheduling
2.3 Break even Analysis
2.4 Linear Programming
 Planning and
Decision Aids
2. For Allocating Resources:
2.1 Budgeting; The Budget is a
numerical plan for allocating
resources to specific
activities in a specific period.