Chapter 5 Planning and Decision Making MGMT 2008

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Chapter 5 Planning and Decision Making MGMT 2008 Chuck Williams Copyright © 2008 by

Chapter 5 Planning and Decision Making MGMT 2008 Chuck Williams Copyright © 2008 by Cengage Learning. All rights reserved Designed & Prepared by B-books, Ltd.

Benefits of Planning Persistence Intensified Effort 1. 1 Direction Creation of Task Strategies 2

Benefits of Planning Persistence Intensified Effort 1. 1 Direction Creation of Task Strategies 2 Copyright © 2008 by Cengage Learning. All rights reserved

Pitfalls of Planning False Sense of Certainty Impedes Change and Adaptation Detachment of Planners

Pitfalls of Planning False Sense of Certainty Impedes Change and Adaptation Detachment of Planners 1. 2 3 Copyright © 2008 by Cengage Learning. All rights reserved

S. M. A. R. T. Setting Goals Specific Measurable Attainable Realistic Timely 2. 1

S. M. A. R. T. Setting Goals Specific Measurable Attainable Realistic Timely 2. 1 4 Copyright © 2008 by Cengage Learning. All rights reserved

Developing Effective Action Plans An Action Plan Lists… Specific Steps People Resources Time Period

Developing Effective Action Plans An Action Plan Lists… Specific Steps People Resources Time Period 2. 3 5 Copyright © 2008 by Cengage Learning. All rights reserved

Tracking Progress Set… Gather and provide… Proximal Goals Performance Feedback Distal Goals 2. 4

Tracking Progress Set… Gather and provide… Proximal Goals Performance Feedback Distal Goals 2. 4 6 Copyright © 2008 by Cengage Learning. All rights reserved

Starting at the Top Strategic Plans Vision Mission 3. 1 Clarify how the company

Starting at the Top Strategic Plans Vision Mission 3. 1 Clarify how the company will serve customers and position itself against competitors (2 -5 years) An inspirational statement of an organization’s purpose (2 sentences) Overall goal that unifies efforts toward its vision, stretches and challenges, and possesses a finish line and time frame. Flows from vision. 7 Copyright © 2008 by Cengage Learning. All rights reserved

Bending in the Middle Tactical Plans Specify how a company will use resources, budgets,

Bending in the Middle Tactical Plans Specify how a company will use resources, budgets, and people to accomplish goals within its mission. (6 months to 2 years) Management by Objectives Develop and carry out tactical plans MBO is a four-step process 3. 2 8 Copyright © 2008 by Cengage Learning. All rights reserved

Finishing at the Bottom Operational Plans Day-to-day plans for producing or delivering products and

Finishing at the Bottom Operational Plans Day-to-day plans for producing or delivering products and services over a 30 -day to six-month period 3. 3 9 Copyright © 2008 by Cengage Learning. All rights reserved

Kinds of Operational Plans Single-Use Plans Standing Plans Budgets Plans that cover unique, one-time-only

Kinds of Operational Plans Single-Use Plans Standing Plans Budgets Plans that cover unique, one-time-only events Plans used repeatedly to handle frequently recurring events. Three kinds are: policies, procedures, and rules and regulations. Quantitative planning to decide how to allocate money to accomplish company goals 3. 3 10 Copyright © 2008 by Cengage Learning. All rights reserved

Steps to Rational Decision Making 1 Define the problem 2 Identify decision criteria 3

Steps to Rational Decision Making 1 Define the problem 2 Identify decision criteria 3 Weight the criteria 4 Generate alternative courses of action 5 Evaluate each alternative 6 Compute the optimal decision 4 11 Copyright © 2008 by Cengage Learning. All rights reserved

Using Groups to Improve Decision Making Structured Conflict Delphi Technique Nominal Group Technique Stepladder

Using Groups to Improve Decision Making Structured Conflict Delphi Technique Nominal Group Technique Stepladder Technique Electronic Brainstorming 5 12 Copyright © 2008 by Cengage Learning. All rights reserved