Organizational Planning and Decision Making

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Questions and Answers

What is the primary reason for directing more attention to developing alternatives in important decisions?

To ensure that all possible alternatives are considered

To reduce the complexity of the decision

To eliminate any bias in the decision-making process

To increase the chances of selecting the optimal alternative (correct)

What is the first question to ask when evaluating an alternative?

Is the alternative satisfactory?

Is the alternative feasible? (correct)

What are the resources required for the alternative?

What are the consequences of the alternative?

What is the purpose of a decision tree in evaluating alternatives?

To identify the most cost-effective alternative

To evaluate each alternative in terms of its feasibility, satisfactoriness, and consequences (correct)

To visualize the relationships between different alternatives

To compare the pros and cons of each alternative

What is the final step in the decision-making process?

Implementing the chosen alternative Signup and view all the answers

What is the primary goal when choosing the best alternative?

To choose the alternative with the optimal combination of feasibility, satisfactoriness, and affordable consequences Signup and view all the answers

Why may an alternative not be feasible?

Due to high financial requirements or all of the above Signup and view all the answers

What is a key consideration when implementing a chosen alternative?

Integrating the new alternative into the existing organizational framework Signup and view all the answers

Why may implementation of an alternative be difficult?

Due to the complexity of integrating the new alternative into the existing organizational framework Signup and view all the answers

What is the underlying aspect of setting goals and formulating plans in an organization?

Decision making Signup and view all the answers

What is the primary input for developing tactical goals in an organization?

Strategic goals Signup and view all the answers

What is the first step in the planning process?

Understanding the environmental context Signup and view all the answers

What is the outcome of the planning process in an organization?

Goals and plans at each level Signup and view all the answers

What is the role of the mission in the planning process?

It outlines the organization's purpose, premises, values, and directions Signup and view all the answers

What is the context in which all planning occurs?

Environmental context Signup and view all the answers

What is the relationship between strategic goals and plans in the planning process?

Strategic goals and plans are parallel streams Signup and view all the answers

What is the outcome of combining tactical plans and tactical goals?

Operational goals Signup and view all the answers

What was the primary goal of Nissan's plans to update manufacturing technology and shift production to foreign plants?

To improve profitability and productivity Signup and view all the answers

Which type of plan is designed to allow a company to react to an unforeseen circumstance?

Reaction plan Signup and view all the answers

Which of the following managers is most likely to develop plans for target markets and sales increases?

Marketing sales manager Signup and view all the answers

What is the primary benefit of having a professional planning staff in a large organization?

To reduce the workload of individual managers Signup and view all the answers

What is the primary characteristic of short-range plans?

They have a time frame of one year or less Signup and view all the answers

What is the main difference between an action plan and a reaction plan?

The purpose of the plan Signup and view all the answers

Which of the following organizations is likely to have a professional planning staff?

Large corporation Signup and view all the answers

What is the primary role of planning in an organization?

To turn the organization's goals into action Signup and view all the answers

Study Notes

Planning and Decision Making

The Planning ProcessDecision making is a crucial element in the planning process of an organization. It involves identifying objectives, establishing priorities, and allocating resources to achieve specific goals. Effective decision making is essential to ensure that strategies are aligned with the organization's overall mission and vision. The decision-making process should consider various factors, including internal and external environments, stakeholder expectations, and available resources. making is essential for setting goals and formulating plans in organizations.

The planning process occurs within an environmental context, and understanding this context is crucial for developing effective plans.
The planning process involves establishing the organization's mission, which outlines its purpose, premises, values, and directions.
The mission leads to strategic goals, which in turn lead to strategic plans.
Strategic goals and plans are primary inputs for developing tactical goals and plans.
Tactical plans combine with tactical goals to shape operational goals and plans.

Developing Alternatives

Developing both obvious and creative alternatives is useful in the decision-making process.
The more important the decision, the more attention is directed to developing alternatives.

Evaluating Alternatives

Evaluating alternatives involves assessing their feasibility, satisfactoriness, and consequences.
A decision tree can be used to judge different alternatives based on these criteria.

Selecting and Implementing an Alternative

Selecting the best alternative involves choosing the one with the optimal combination of feasibility, satisfactoriness, and affordable consequences.
Implementing the chosen alternative requires putting it into effect, which can be easy or difficult depending on the situation.

Types of Plans

Short-range plans have a time frame of one year or less and greatly affect a manager's day-to-day activities.
There are two basic kinds of short-range plans: action plans and reaction plans.

Responsibilities for Planning

All managers engage in planning to some degree, but larger organizations often have groups of managers responsible for planning activities.
A planning staff can be used to reduce the workload of individual managers, coordinate planning activities, and bring a broader view to planning.

Planning Staff

Large organizations like General Motors, Caterpillar, and Boeing have professional planning staffs.
A planning staff can be used to coordinate planning activities, bring multiple tools and techniques to a problem, and take a broader view than individual managers.

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Description

This quiz covers the role of decision making in achieving organizational goals and formulating plans. It explores the planning process and how it varies across different organizations.