MP

• Goal


  Desired future circumstances or condition that the organisation attempts to realize
• Plan


  Blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions
• Planning


  Determining the organization's goals and defining the means for achieving them
• Levels of Planning


  • Strategic Planning
  • Tactical Planning
  • Operational Planning
• Strategic Planning


  • Broad statements describing where the organization wants to be in the future – tend to be long term
• Tactical Planning


  • By middle manager – results that major division/department within the organisation intend to achieve - tend to be short term
• Operational Planning


  • By first line manager - specific results expected from departments, work groups, and individual – tend to be daily, weekly operations
• SMART


  Characteristics of Goal
• Single-Use Plan


  Used once and not likely to repeated in the future (unique) like projects, budget
• Standing Plan


  Ongoing plans that provide guidance for tasks/situations that occur repeatedly like policies, rules
• Benefits of Planning


  • Reduce uncertainty and provide sense of direction
  • Guide resource allocation
  • Undertake other basic managerial activities
  • Anticipate problems and cope with changes
• Limitations of Planning


  • Create too much pressure
  • Create false sense of certainty
  • May cause rigidity
  • Gets in the way of intuition and creativity
• Decision


  A choice made from available alternatives
• Decision Making


  The process of identifying problems and opportunities and then resolving them
• Programmed decision


  Involve situations that have occurred often that enable decision rules to be developed and applied in the future
• Nonprogrammed decision


  Situations that are unique, and poorly defined that have important consequences for the organisation
• Certainty


  All information are fully available for decision maker
• Uncertainty


  Information is incomplete
• Risk


  Has clear goals and information are available but future outcomes will have chances of failure
• Decision Making Models


  • Classical Model
  • Administrative Model
  • Political Model
• Classical Model

  • Based on rational economic assumptions and manager beliefs about the ideal decision should be (normative)
  • Often unattainable – does not describe how manager actually make decisions
  • Helps decision maker to be more rational and not rely entirely on personal preferences
  • Assumption: Goals are knowns, strives for certainty, choose the alternative that max. economic return, decision maker are rational and uses logic
• Administrative Model

  • How manager actually make decisions (descriptive)
  • People have limits/boundaries on how rational they can be (bounded rationality)
  • Choose the first alternative that satisfies minimal decision criteria (good enough)
  • Intuition: quick decision based on experience without conscious thought
  • Quasirationality: combine intuitive and analytical thought
  • Assumption: Goals are vague, manager unaware of problems, alternative are limited, only choose a satisficing alternative
• Political Model

  • Nonprogrammed decisions when conditions are uncertain
  • Coalition: informal alliance that supports specific goals
  • Assumptions: conflicting goals, information is ambiguous, and limited times to solve problems
• Decision Making Process

  1. Recognition of Decision Requirements

  2. Diagnosis and Analysis of Causes

  3. Development of Alternatives

  4. Selection of Desired Alternatives

  5. Implementation of Chosen Alternatives

  6. Evaluation and Feedback
• Personal Decision Framework

  • Directive
  • Analytical
  • Conceptual
  • Behavioural
• Goal


  Desired future circumstances or condition that the organisation attempts to realize
• Levels of Planning


  • Strategic Planning
  • Tactical Planning
  • Operational Planning
• Tactical Planning


  • By middle manager – results that major division/department within the organisation intend to achieve - tend to be short term
• Operational Planning


  • By first line manager - specific results expected from departments, work groups, and individual – tend to be daily, weekly operations
• SMART


  Characteristics of Goal
• Standing Plan


  Ongoing plans that provide guidance for tasks/situations that occur repeatedly like policies, rules
• Benefits of Planning


  • Reduce uncertainty and provide sense of direction
  • Guide resource allocation
  • Undertake other basic managerial activities
  • Anticipate problems and cope with changes
• Limitations of Planning


  • Create too much pressure
  • Create false sense of certainty
  • May cause rigidity
  • Gets in the way of intuition and creativity
• Decision


  A choice made from available alternatives
• Decision Making


  The process of identifying problems and opportunities and then resolving them
• Nonprogrammed decision


  Situations that are unique, and poorly defined that have important consequences for the organisation
• Decision Making Models


  • Classical Model
  • Administrative Model
  • Political Model
• Classical Model


  • Based on rational economic assumptions and manager beliefs about the ideal decision should be (normative)
  • Often unattainable – does not describe how manager actually make decisions
  • Helps decision maker to be more rational and not rely entirely on personal preferences
  • Assumption: Goals are knowns, strives for certainty, choose the alternative that max. economic return, decision maker are rational and uses logic
• Administrative Model


  • How manager actually make decisions (descriptive)
  • People have limits/boundaries on how rational they can be (bounded rationality)
  • Choose the first alternative that satisfies minimal decision criteria (good enough)
  • Intuition: quick decision based on experience without conscious thought
  • Quasirationality: combine intuitive and analytical thought
  • Assumption: Goals are vague, manager unaware of problems, alternative are limited, only choose a satisficing alternative
• Political Model


  • Nonprogrammed decisions when conditions are uncertain
  • Coalition: informal alliance that supports specific goals
  • Assumptions: conflicting goals, information is ambiguous, and limited times to solve problems