Planning & Decision MakingBusiness Management Unit 1

Planning

Looking ahead and chalking out future courses of action to be followed.

Planning Takes into consideration

Available and prospective human and physical resources of the organization

To get effective co-ordination, contribution & perfect adjustment

Planning Is a mental predisposition to do things in

orderly way To think before acting To act in the light of facts rather than

guesses Is deciding best alternatives among others To perform different managerial functions

in order to achieve predetermined goals.

Planning DefinedPlanning is deciding in advance what to do, how to do and who is to do it.Planning makes possible things to occur.

Steps in the Planning Process Establishment of objectives Establishment of planning premises Choice of Alternative course of action Formulation of derivative plans Securing co-operation Follow up/Appraisal of plans

Types of Plans Operational Plans Tactical plans Strategic plans Contingency plans

The decision making process

Steps in the Decision Making Process Define the problem Identify the limiting factors Develop potential alternatives Analyze the alternatives select the best

alternative Implement the decision Establish a control and evaluation

system