Transcript File

Planning and Decision
Making Process
(Text Book Chapters – 7 & 8)
Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
1
Planning: Nature, Process,
Objectives and Strategies
Benefits and Pitfalls of Planning
How to Make a Plan That Works?
Decision Making
Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
2
Choosing a
goal and
developing a
method of
strategy to
achieve that
goal
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Principles of Management / BSG – 201
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The organization’s
• Purpose
Issue # 1
• Mission
• Values
• Directions
Strategic goals
Strategic plans
Tactical goals
Tactical plans
Operational goals
Operational plans
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
4
► To provide direction
► To reduce uncertainty
► To Minimize waste
► To Set the standards
for controlling
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Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
5
Benefits
of Planning
Persistence
Direction
Creation
of Task
Strategies
Intensified
Effort
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Principles of Management / BSG – 201
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6
Pitfalls
of Planning
False Sense
of Certainty
Impedes Change
and Adaptation
Issue # 1
Detachment
of Planners
Principles of Management / BSG – 201
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7
Set
Goals
Develop
Commitment
Develop
Effective
Action
Plans
Track
Progress
Toward
Goal
Maintain
Flexibility
Achievement
Revise existing plan
or
Begin new planning process
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Principles of Management / BSG – 201
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8
S.M.A.R.T.
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Specific
Measurable
Attainable
Realistic
Timely
Principles of Management / BSG – 201
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Set…
Gather and provide…
Proximal Goals
Performance
Feedback
Distal Goals
Issue # 1
Principles of Management / BSG – 201
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10
Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
11
2 Years
Plans
Strategic
Tactical
5 Years
6 months
2 years
30 days
Operational
6 months
0
1
2
3
4
5
6
Years
Issue # 1
Principles of Management / BSG – 201
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12
 Total cost of a plan
 Projected levels of:
 Inventory
 Output
 Employment
 Subcontracting
 Backordering
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Principles of Management / BSG – 201
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
Proactive
 Alter demand to match capacity

Reactive
 Alter capacity to match demand

Mixed
 Some of each
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Principles of Management / BSG – 201
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14
Porter’s Five
Forces Model
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SWOT
Analysis
BCG
Matrix
Principles of Management / BSG – 201
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Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
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Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
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Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
18
Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
19
Decision Making
Means:
The process of choosing
a solution from
available alternatives.
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Principles of Management / BSG – 201
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Rational Decision
Making
A systematic process of
defining problems,
evaluating alternatives, and
choosing optimal solutions.
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Principles of Management / BSG – 201
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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
Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
22
Bounded Rationality
A decision-making process
restricted in the real world by:
 Limited resources
 Incomplete and imperfect
information
 Managers’ limited decisionmaking capabilities
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Principles of Management / BSG – 201
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23
Structured
Conflict
Delphi
Technique
Issue # 1
Nominal
Group
Technique
Stepladder
Technique
Brainstorming
Principles of Management / BSG – 201
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24
Cognitive conflict.
C-Type Conflict
Disagreement that focuses on
problem and issue-related
differences of opinion
Affective conflict.
A-Type Conflict
Issue # 1
Disagreement that focuses on
individuals or personal issues
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
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Steps to Establish Nominal Group Technique
1. During a “quiet time,” group members write down
as many problems and solutions as possible
2. Each member shares one idea at a time
3. Ideas are posted on flipcharts until all ideas are shared
4. Group discusses advantages/disadvantages
5. Ideas are ranked during a second “quiet time”
6. Members read rankings aloud, and the idea with the
highest average rank is selected
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Principles of Management / BSG – 201
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Steps to Establish Delphi Technique
1. Assemble a panel of experts.
2. Create a questionnaire of open-ended questions.
3. Summarize the responses and feed back to the panel
until the members reach agreement.
4. Create a brief report and send to the panel members for
agreement/disagreement.
5. Continue the feedback process until panel reaches
agreement.
Issue # 1
Principles of Management / BSG – 201
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Step 3
Member 4 Joins Group
Shares thoughts, ideas,
recommendations
Members 1, 2, & 3
Share previous
thoughts, ideas,
recommendations
Discussion is Held and
Tentative Group
Decision is Made
Step 2
Member 3 Joins Group
Shares thoughts, ideas,
recommendations
Members 1 & 2
Share previous
thoughts, ideas,
recommendations
Discussion is Held and
Tentative Group
Decision is Made
Step 1
Member 1
Shares thoughts, ideas,
recommendations
Member 2
Shares thoughts, ideas,
recommendations
Discussion is Held and
Tentative Group
Decision is Made
Adapted From Exhibit 5.13
Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
28
Four Rules of Brainstorming
1. The more ideas, the better.
2. All ideas are acceptable, no matter
how wild or crazy.
3. Other group members’ ideas should be used
to come up with even more ideas.
4. Criticism or evaluation of ideas is not allowed.
Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
29
Issue # 1
Principles of Management / BSG – 201
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved - Edited by Dr. Naseer Khan
30