PLANNING AND DECISION-MAKING

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PLANNING AND DECISION-MAKING

• Business Management 12
• Ms. Stewart

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The Planning Process

• First managerial function
• All plans are based on decisions
• All organizations plan but not in the same way

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The Planning Process

• Takes place within an environmental context
• Goals established usually by the various levels
  of directors and managers

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Purposes of Goals

• 1. To provide guidance and direction for those
• in the organization
• 2. Goal setting affects other aspects of
• planning.
• Example Reaching a goal requires making
• new plans to reach new goals

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Purposes of Goals

• 3. Provides a source of motivation and
  encourages people to work harder to attain goals

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Purposes of Goals

• 4. Goal setting is an effective mechanism for
  evaluation and control
• a) If a goal is reached assess how this
• was accomplished
• b) If a goal is not reached evaluate why
• not and how things could be changed

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KINDS OF GOALS

• There are four basic levels in an organization
• involved in goal setting
• 1. Mission
• - A statement of an organizations
• fundamental purpose
• - Unique to that particular organization

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• 2. Strategic Goals
• - a goal that is set by, and for, top
• management of the organization

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• 3. Tactical Goals
• - Set by, and for, middle managers
• - Aim is to meet upper managements
• strategic goals

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• 4. Operational Goals
• - Set by, and for, lower level managers
• - Also known as objectives

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AREAS

• Different organizations focus on any number of
  different areas
• Examples Quality/Productivity
• Operations/Marketing/Financ
  e
• Human Resources Goals to
• reduce absenteeism

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TIME FRAME

• Strategic long term-10 years or more
• Tactical intermediate five years
• Operational short term one year

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GOAL SETTING ACTIVITY

• Part One
• 1. Select three goals for one year, five years
  and
• ten or more (nine in total)
• 2. Make a detailed plan on how you intend to
  meet each of these goals.

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• Part Two
• Describe three goals that you have recently
  strived for. Evaluate, in detail, this
  achievement.
• (Were you successful or not? Why or why not?
  
• What needs to be changed and how do you plan
  to
• go about making this change? If you were
• successful, what do you plan to do with this
• achievement?)