The document discusses concepts related to decision-making and planning in management. It covers topics like benefits and pitfalls of planning, steps to make an effective plan, setting goals, developing commitment to goals, developing action plans, tracking progress, maintaining flexibility in planning, and planning at different management levels from strategic to operational. It also discusses rational decision-making processes, limits to rationality, and techniques for group decision-making.

1. Unit 4: Decision-making and Planning

5. Planning Choosing a goal and developing a method of strategy to achieve that goal. Benefits of Planning Creation of Task Strategies Intensified Effort Direction Persistence Downside of Planning False Sense of Certainty Impedes Change and Adaptation Detachment of Planners

6. How to Make a Plan That Works Set Goals Develop Commitment Develop Effective Action Plans Track Progress Toward Goal Achievement Maintain Flexibility Revise existing plan or Begin new planning process

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

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

13. Planning from Top to Bottom Vision Top Managers Middle Managers First Level Managers Mission Tactical Plans Management by Objectives Operational Plans Standing Plans Single Use Plans

14. Starting at the Top Strategic Plans Clarify how the company will serve customers and position itself against competitors (can be 2-5 years) Vision An inspirational statement of an organisation’s purpose Mission Overall goal that unifies efforts toward its vision, stretches and challenges, and possesses a finish line and time frame. Flows from vision.

15. Planning Time Lines Years 0 1 2 3 4 5 6 Plans Strategic Tactical Operational 5 Years 2 years 30 days 6 months 6 months 2 Years

16. Merck Corporation’s Vision and Values Source: “The Merck Corporate Philosophy,” 17 February 2005. ©Merck & Co, Inc., All rights reserved.

18. 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 Single-Use Plans Plans that cover unique, one-time-only events Standing Plans Plans used repeatedly to handle frequently recurring events. Three kinds are: policies, procedures, and rules and regulations. Budgets Quantitative planning to decide how to allocate money to accomplish company goals

19. What Is Rational Decision Making? Decision Making The process of choosing a solution from available alternatives. Rational Decision Making A systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.

20. Steps to Rational Decision Making Define the problem Identify decision criteria Weight the criteria Generate alternative courses of action Evaluate each alternative Compute the optimal decision 1 2 3 4 5 6

25. PLUS - A Process for Ethical Decision Making

29. Using Groups to Improve Decision Making Delphi Technique Stepladder Technique Electronic Brainstorming Structured Conflict Nominal Group Technique

30. Structured Conflict C-Type Conflict Cognitive conflict. Disagreement that focuses on problem- and issue-related differences of opinion A-Type Conflict Affective conflict. Disagreement that focuses on individuals or personal issues

33. Stepladder Technique Member 1 Shares thoughts, ideas, recommendations Member 2 Shares thoughts, ideas, recommendations Discussion is Held and Tentative Group Decision is Made 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 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 1 Step 2 Step 3