Planning and Decision Making_Topic3
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The document outlines the roles and processes of decision-making and planning within organizations, highlighting the importance of organizational goals as sources of guidance and motivation. It categorizes goals by level, area, and time frame, and discusses various organizational plans including strategic, tactical, and operational plans. Additionally, it addresses barriers to effective goal setting and planning, emphasizing the necessity of contingency planning and crisis management.
Planning and Decision Making_Topic3
- 1. PLANNING AND DECISION MAKINGPLANNING AND DECISION MAKING Topic ObjectivesTopic Objectives 1.1. Summarize the function of decision making and theSummarize the function of decision making and the planning process.planning process. 2.2. Discuss the purpose of organizational goals, identifyDiscuss the purpose of organizational goals, identify different kinds of goals, discuss who sets goals, anddifferent kinds of goals, discuss who sets goals, and describe how to manage multiple goals.describe how to manage multiple goals. 3.3. Identify different kinds of organizational plans, note theIdentify different kinds of organizational plans, note the time frames for planning, discuss who plans, andtime frames for planning, discuss who plans, and describe contingency planning.describe contingency planning. 4.4. Discuss how tactical plans are developed and executed.Discuss how tactical plans are developed and executed. 5.5. Describe the basic types of operational plans used byDescribe the basic types of operational plans used by organizations.organizations. 6.6. Identify the major barriers to goal setting and planning,Identify the major barriers to goal setting and planning, how organizations overcome those barriers, and how tohow organizations overcome those barriers, and how to use goals to implement plans.use goals to implement plans. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 2. Decision Making and theDecision Making and the Planning ProcessPlanning Process Decision makingDecision making – Is the cornerstone of planning.Is the cornerstone of planning. – Is the catalyst that drives the planningIs the catalyst that drives the planning process.process. – Underlies every aspect of setting goals andUnderlies every aspect of setting goals and formulating plans.formulating plans. PlanningPlanning – All organizations plan, but not in the sameAll organizations plan, but not in the same fashion.fashion. – All planning occurs within an environmentalAll planning occurs within an environmental context.context. – All goals require plans to guide in theirAll goals require plans to guide in their achievement.achievement. – All goals are tied higher goals and plansAll goals are tied higher goals and plans SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 3. Copyright © Houghton Mifflin Company. All rights reserved. 7–3 SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 4. Organizational GoalsOrganizational Goals Purposes of GoalsPurposes of Goals – Provide guidance and a unifiedProvide guidance and a unified direction for people in the organization.direction for people in the organization. – Strongly affect on the quality of otherStrongly affect on the quality of other aspects of planning.aspects of planning. – Serve as a source of motivation forServe as a source of motivation for employees.employees. – Provide a mechanism for evaluationProvide a mechanism for evaluation and control of the organization.and control of the organization. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 5. Kinds of GoalsKinds of Goals • By LevelBy Level – Mission statementMission statement – Strategic goalsStrategic goals – Tactical goalsTactical goals – Operational goalsOperational goals • By AreaBy Area – Different functional areas of the organization.Different functional areas of the organization. • By Time FrameBy Time Frame – Long-term, intermediate-term, or short-termLong-term, intermediate-term, or short-term time frames and explicit time frames or open-time frames and explicit time frames or open- ended.ended. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 6. Copyright © Houghton Mifflin Company. All rights reserved. 7–6
- 7. ResponsibilitiesResponsibilities of Setting Goalsof Setting Goals Who Sets Goals?Who Sets Goals? – All managers:All managers: mmanagerialanagerial responsibility for goal settingresponsibility for goal setting should correspond to theshould correspond to the manager’s level in themanager’s level in the organization.organization. Managing Multiple GoalsManaging Multiple Goals – Optimizing allows managers toOptimizing allows managers to balance and reconcile inconsistentbalance and reconcile inconsistent or conflicting goals.or conflicting goals. • Managers can choose to pursue oneManagers can choose to pursue one goal and exclude all others or to seek agoal and exclude all others or to seek a mid-range goal.mid-range goal. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 8. Kinds of Organizational PlansKinds of Organizational Plans • Strategic PlansStrategic Plans – A general plan set by and for top managementA general plan set by and for top management that outlines resource allocation, priorities,that outlines resource allocation, priorities, and action steps to achieve strategic goals.and action steps to achieve strategic goals. • Tactical PlansTactical Plans – A plan aimed at achieving the tactical goals setA plan aimed at achieving the tactical goals set by and for middle management.by and for middle management. • Operational PlansOperational Plans – Short-term focus plans that are set by and forShort-term focus plans that are set by and for lower-level managers.lower-level managers. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 9. Time Frames for PlanningTime Frames for Planning The Time Dimension of PlanningThe Time Dimension of Planning – Planning must provide sufficient time to fulfillPlanning must provide sufficient time to fulfill the managerial commitments involved.the managerial commitments involved. Long-range PlansLong-range Plans – Cover present and future strategic issuesCover present and future strategic issues extending beyond five years in the future.extending beyond five years in the future. Intermediate PlansIntermediate Plans – Cover from 1 to 5 years and parallel tacticalCover from 1 to 5 years and parallel tactical plans.plans. – Are the principal focus of organizationalAre the principal focus of organizational planning efforts.planning efforts. Short-range PlansShort-range Plans – Are action plans and reaction (contingency)Are action plans and reaction (contingency) plans that have a time frame of one year orplans that have a time frame of one year or less.less. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 10. Responsibilities for PlanningResponsibilities for Planning Planning StaffPlanning Staff – Gather information, coordinate planningGather information, coordinate planning activities, and take a broader view thanactivities, and take a broader view than individual managers.individual managers. Planning Task ForcePlanning Task Force – Created when the organization wants a specialCreated when the organization wants a special circumstance addressed.circumstance addressed. Board of DirectorsBoard of Directors – Establishes corporate mission and strategy.Establishes corporate mission and strategy. – May engage in strategic planning.May engage in strategic planning. Chief Executive OfficerChief Executive Officer – May serve as president or board chair; has aMay serve as president or board chair; has a major role in planning and implementing themajor role in planning and implementing the strategy.strategy. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 11. ResponsibilitiesResponsibilities for Planning (cont..)for Planning (cont..) Executive CommitteeExecutive Committee – Composed of top executives.Composed of top executives. – Meets regularly with the CEOMeets regularly with the CEO to review strategic plans.to review strategic plans. Line ManagementLine Management – Have formal authority andHave formal authority and responsibility for management ofresponsibility for management of the organization.the organization. – Help to formulate strategy byHelp to formulate strategy by providing information.providing information. – Responsible for executing the plansResponsible for executing the plans of top management.of top management. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 12. Contingency Planning andContingency Planning and Crisis ManagementCrisis Management Contingency PlanningContingency Planning – The determination of alternative courses ofThe determination of alternative courses of action to be taken if an intended plan isaction to be taken if an intended plan is unexpectedly disrupted or renderedunexpectedly disrupted or rendered inappropriate.inappropriate. – These plans help managers to cope withThese plans help managers to cope with uncertainty and change.uncertainty and change. Crisis ManagementCrisis Management – The set of procedures the organization uses inThe set of procedures the organization uses in the event of a disaster or other unexpectedthe event of a disaster or other unexpected calamity.calamity. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 13. Copyright © Houghton Mifflin Company. All rights reserved. 7–13
- 14. Copyright © Houghton Mifflin Company. All rights reserved. 7–14 SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 15. Copyright © Houghton Mifflin Company. All rights reserved. 7–15
- 16. Managing Goal-Setting andManaging Goal-Setting and Planning ProcessesPlanning Processes Barriers to Goal Setting and PlanningBarriers to Goal Setting and Planning – As part of managing the goal-settingAs part of managing the goal-setting and planning process, managers mustand planning process, managers must understand the barriers that can disruptunderstand the barriers that can disrupt them.them. – Managers must also know how toManagers must also know how to overcome them.overcome them. SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 17. Copyright © Houghton Mifflin Company. All rights reserved. 7–17
- 18. Copyright © Houghton Mifflin Company. All rights reserved. 7–18
- 19. Using Goals to Implement Plans:Using Goals to Implement Plans: The Effectiveness of Formal Goal SettingThe Effectiveness of Formal Goal Setting Strengths (Success)Strengths (Success) – Improved employeeImproved employee motivationmotivation – EnhancesEnhances communicationcommunication – Fosters more objectiveFosters more objective performance appraisalsperformance appraisals – Focuses attention onFocuses attention on appropriate goals andappropriate goals and plansplans – Helps identify managerialHelps identify managerial talenttalent – Provides a systematicProvides a systematic management philosophymanagement philosophy – Facilitates control of theFacilitates control of the organizationorganization Weaknesses (Failure)Weaknesses (Failure) – Poor implementation ofPoor implementation of the goal setting processthe goal setting process – Lack of top-Lack of top- management supportmanagement support for goal settingfor goal setting – Delegation of the goal-Delegation of the goal- setting process to lowersetting process to lower levelslevels – Overemphasis onOveremphasis on quantitative goalsquantitative goals – Too much paperworkToo much paperwork and record keepingand record keeping – Managerial resistanceManagerial resistance to goal settingto goal setting SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY
- 20. Thank YouThank You SMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITYSMS KABIR, DEPT. OF PSYCHOLOGY, JAGANNATH UNIVERSITY