planning & decision making - Institute of Business Management

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SUBMITTED TO :Prof. S.K. SRIVASTAVA
SUBMITTED BY :-
“GILBRETH GROUP”
MBA(FT)1ST SEM
ANKITA KANOJIA
NISHTHA VISHNOI
RICHA SAXENA
RANANJAY SINGH
ROHIT TIWARI
Frank and Lillian Gilbreth’s
Contribution to Modern Management
 A mechanical engineer, Frank Gilbreth is considered by
many to be the Father of Management Engineering.
Born (1868-1924) Frank and wife Lillian Gilbreth (18781972). They married in 1904. In addition to raising 12
children and being the subject of the Hollywood movie,
Cheaper by the Dozen, they became one of the great
husband-wife teams of science and engineering.
 Frank and Lillian Gilbreth worked together to develop
motion study as an engineering and management technique.
PLANNING WE WILL DISCUSS ABOUT
 MEANING
 CHARACTERSTICS
 TYPES
 STEPS
 ADVANTAGES
AND DISADVANTAGES
MEANING OF PLANNING
What is Planning ?
“Planning is an activity. It can be considered as consisting to a process.
Planning involves course of action.” i.e.
 WHAT
 HOW
 WHEN
 WHY
According To Terry-
‘’Planning is the selection and relating of facts and
making using of assumption regarding the future in
the visualization and formalization of proposed
activity believed necessary to achieve desire results.”
“ Some other views on ‘PLANNING’…..”
CHARACTERISTICS OF PLANNING
 Planning is goal-oriented.
 Planning is looking ahead.
 Planning is an intellectual process.
 Planning involves choice & decision making.
 Planning is the primary function of management.
 Planning is a Continuous Process.
 Planning is designed for efficiency.
Planning is Flexible.
TYPES OF PLANS
CORPORATE
FUNCTIONAL
STRATEGIC
OPERATIONAL
LONG
TERM
SHORT
TERM
PROACTIVE FORMAL
REACTIVE
INFORMAL
 Corporate Planning
includes the setting of objectives,
organizing the work, people and systems to enable those
objectives to be attained through the planning process.
 Functional Planning
is undertaken for each major
function of the organization like production, marketing,
human resource etc to determine their respective
objectives.
 Strategic Planning
sets the long term direction of the
organization in which it wants to proceed in future is and guide
what an organization is, who it serves, what it does and why it
does it, with a focus on the future.
 Operational Planning should establish the activities, process of
deciding the effective use of resources. They link the strategic
plan with the activities the organization will deliver and the
resources required to deliver them.
SHORT TERM PLANNING & LONG
TERM PLANNING
 Short Term Planning
involves deciding what your goals
are for the short term (usually covers 1 year). These
short term goals may include restructuring, hiring or
short term profit targets, marketing and production.
 Long Term Planning
may involve an outlook for the
future (in the next 5 to 10 years). This may involve a
capital funding goal or company expansion goals.
PROACTIVE AND REACTIVE
PLANNING
 In Proactive Planning Organization do not
wait for environment to change but take actions
in advance of environment change.
 In Reactive Planning Organizations
responses come after the environment changes
have taken place. In such situations the
organization lose opportunities.
FORMAL AND INFORMAL
PLANNING
 Formal planning is in the form of well
structured process involving different steps .
Generally large organizations undertake
planning in the formal way.
 Informal planning is based on manager’s
memory of events, intuitions and gut-feelings
rather than based on systematic evaluation of
environmental Happenings.
Establish
ment of
objectives
Establishing
sequence
of activities
Formulation
of
supporting
plans
Steps of
Planning
Function
Establish
ment of
Planning
Premises
Identificat-ion of
alternatives
1.
2.
3.
4.
5.
Planning facilitates management by objectives.
Planning minimizes uncertainties.
Planning facilitates co-ordination.
Planning facilitates controlling.
Planning provides competitive edge and
encourages innovations.
Disadvantages of Planning
1.
2.
3.
4.
5.
Rigidity.
Misdirected Planning.
Time consuming.
Probability in planning.
False sense of security.
MEANING
CHARACTERSTICS
TYPES
STEPS
MODEL
ADVANTAGES
What is Decision Making ?
A decision is a choice made from available alternatives.
Decision making is the process by which individuals select a
course of action among several alternatives, to produce a
desired result.
 According to Trewatha & Newport, "Decision-making
involves the selection of a course of action from among
two or more possible alternatives in order to arrive at a
solution for a given problem".
1.Decision making implies choice: Decision making is choosing from
among two or more alternative courses of action. Thus, it is the process
of selection of one solution out of many available.
2.Continuous activity/process: Decision-making is a continuous and
dynamic process.
3. Mental/intellectual activity: Decision-making is a mental as well as
intellectual activity/process and requires knowledge, skills, experience and maturity
on the part of decision-maker. It is essentially a human activity.
4. Based on reliable information/feedback: Good decisions are always
based on reliable information.
5. Goal oriented process: Decision-making aims at providing a solution to a
given problem/ difficulty before a business solutions to problems faced by a
business unit.
PROGRAMMED
DECISIONS
Problems are routine
and repetitive
Highly certain
Made by lower level
people
NON PROGRAMMED
DECISIONS
Problems are unique and
novel
Highly uncertain
Top management
responsibility
STRATEGIC AND TACTICAL DECISION
STRATEGIC DECISION
TACTICAL DECISION
 Strategic decision is based on
 It relate to the day to day
Strategic which is a major
operations of the organization
action plan in an organization.
and has to be taken very
 Strategic decision is a major
choice of action concerning
allocation of resources.
frequently.
 Tactical decision is mostly
programmed one.
THE DECISION-MAKING PROCESS
INVOLVES THE FOLLOWING STEPS
MODEL OF DECISION MAKING
TWO BASIC MODEL OF DECISION
MAKING
 RATIONAL MODEL
 SIMON’S NORMATIVE MODEL
1.Decision making is the primary function of
management
2.Decision-making facilitates the entire management
process
3.Decision-making is a continuous managerial
function
4.Decision-making is essential to face new problems
and challenges
5.Decision-making is a delicate and responsible job
CHECK
Presented by:GILBERT’S GROUP
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