Professional Documents
Culture Documents
PLANNING AND
DECISION MAKING
MEANING OF PLANNING
Planning is deciding in advance what to do, how to
do it , when to do it and who is to do it.
It involves anticipating the future and consciously
choosing the future course of action.
Planning is the process and a plan is the outcome of
this process.
Hence, a plan is a blueprint for the future course of
action.
DEFINITIONS
According to Haimann, -
“ It is the function that determines in advance
what should be done. It consists of selecting
the enterprise objectives, policies,
programmes, procedures and other means of
achieving these objectives.”
DEFINITIONS
Corporate
Planning
Divisional/ Functional
Planning
Group / Sectional Planning
According to the time span
PLANNING
LRP MRP SRP
Establishing
Formulation of Choice of Evaluation of
sequence
supporting plans Alternative plans alternatives
of activities
MEANING OF DECISION-MAKING
Goal-oriented process.
Set of alternatives.
Dynamic process.
Related to the environment.
Freedom to the decision maker.
Continuous or ongoing process.
Intellectual or rational process.
TYPES OF DECISIONS
PROGRAMMED NON-PROGRAMMED
Deal with repetitive & routine Unique & novel problems.
problems.
Highly certain conditions. Highly uncertain conditions.
Solutions acc. to established Each situation is different &
procedures. needs a creative solution.
Require little judgment & Involve much thought &
deliberation. judgment.
Generally made at higher
Usually made by lower-level
levels.
executives.
DECISION-MAKING PROCESS
Discuss
Identify the Diagnose the Evaluate
alternative
problem problem course of action alternatives
CERTAINTY
UNCERTAINTY RISK
MODELS / THEORIES OF DM