Planning and Decision Making Overview

Planning and Decision Making

• Planning is the process of setting objectives and determining actions to achieve them.
• It involves choosing a goal and developing a method or strategy to achieve it.

How to Make a Plan That Works

• Step 1: Set Goals - Establish clear objectives.
• Step 2: Develop Commitment - Ensure buy-in and motivation to achieve the goal.
• Step 3: Develop Effective Action Plans - Detail actions, including who, what, when, and how.
• Step 4: Track Progress - Monitor progress regularly toward the goal.
• Step 5: Maintain Flexibility - Adjust plans as needed.
• Revise the plan or start over if needed.

Setting Goals

• SMART Goals are effective: Specific, Measurable, Achievable, Realistic, and Timely.

Developing Commitment to Goals

• Goal commitment is the determination to achieve a goal.
• Techniques include setting goals collectively, making the goal public, and obtaining top management's support.

Develop Effective Action Plans

• An action plan lists specific steps (how), people (who), resources (what), and time periods (when) to accomplish a goal.

Tracking Progress

• Set proximal (short-term) and distal (long-term) goals.
• Provide regular and frequent performance feedback to make adjustments.

Maintaining Flexibility

• Options-based planning involves multiple strategies to pivot when needed due to changes in circumstances.
• Having a cushion of resources (extra time or money) is key for adapting to unexpected changes.

Planning from Top to Bottom

• Top Management develops long-term strategic plans (2-5 years).

  • This includes a purpose statement defining the company's mission.
  • Strategic objectives are specific, derived from the purpose statement.

• Middle Management creates tactical plans (6 months to 2 years) to achieve strategic objectives. This involves using resources.

  • Management by objectives is a 4-step process involving discussions of goals, selection of goals, development of tactical plans, and regular progress checks.

• First-Level Managers develop operational plans (30 days to 6 months) to guide daily operations.

  • Operational plans can be single-use (e.g., one-off projects) or standing (recurring events).
  • Single-use plans cover unique events, standing plans repeat for frequently recurring activities.
  • Examples include policies (what to do in certain situations), procedures (step-by-step guidelines) rules and regulations (very specific guidelines), and budgeting (allocating resources).

Steps to Rational Decision Making

• Step 1: Define the Problem — Identify the gap between the desired and current states.
  • Managers need to be aware of the problem, motivated to solve it, knowledgeable, and resourced.
• Step 2: Identify Decision Criteria — Establish guiding standards for judgments.
• Step 3: Weigh the Criteria — Make absolute or relative comparisons to rank criteria.
• Step 4: Generate Alternative Courses of Action — Propose various solutions.
• Step 5: Evaluate Each Alternative — Thoroughly analyze each option.
• Step 6: Compute the Optimal Decision — Assess and choose the best course of action using relevant weighting and scoring methods, based on evaluation of alternatives.

Avoiding Pitfalls Using Groups to Improve Decision Making

• Structured conflict (C-type): Constructive disagreements focused on issues, fostering better solutions.
• Unstructured conflict (A-type): Disagreements focused on individuals, leading to emotional reactions and negative outcomes.

Creating C-Type Conflict

• Dialectical Inquiry: Present a solution and then an opposing view.
• Nominal Group Technique: Group members write down ideas and then share them.
• Delphi Technique: Experts respond to questions anonymously until consensus is reached.
• Brainstorming/Electronic Brainstorming: Generating ideas anonymously, building on each other's ideas.

Summary

• Planning improves individual and organizational performance.
• Effective planning relies on goals at all levels of the organization aligning.
• Decision-making is the process of choosing an appropriate solution from available options.

This quiz covers the essentials of planning and decision making, including setting SMART goals and developing effective action plans. Learn the key steps in the planning process and how to ensure commitment to your objectives. Assess your understanding of how to track progress and adjust your plans as necessary.