Principles of Management: Planning and Decision Making

Study Notes

Introduction

Principles of management include various aspects that contribute to the overall efficiency of an organization. Among these key elements, planning and decision-making stand out as critical functions for effective management. These topics are intertwined and complementary, shaping the approach that managers adopt to tackle day-to-day tasks and longer-term strategies. Let's delve deeper into these aspects, examining their roles and significance in the realm of management.

Planning

Planning is the first step towards achieving any goal. It involves establishing objectives and determining a course of action to reach those objectives. As explained in, planning requires awareness of current environmental conditions and the ability to forecast future ones. This allows managers to make informed decisions and adjust strategies accordingly. The planning process consists of several steps:

Environmental Scanning: This initial phase requires managers to stay updated on competitive and market conditions, enabling them to anticipate potential opportunities or threats.
Forecasting Future Conditions: Based on the gathered information, managers strive to predict upcoming trends and circumstances that could impact their organization.
Establishing Objectives: Setting realistic and achievable goals is vital in guiding the organization towards growth and success.
Identifying Alternatives: Managers must explore multiple options for reaching their objectives, considering both short-term and long-term implications.
Evaluating Alternatives: After identifying possible courses of action, managers must objectively compare and contrast the pros and cons of each option.
Selecting the Best Option: Once the alternatives have been evaluated, managers select the most suitable approach based on factors such as feasibility, effectiveness, and resource availability.
Formulating Necessary Steps: After selecting the best option, managers must outline specific actions required to implement their chosen strategy.
Ensuring Effective Implementation: Finally, successful implementation of plans relies on proper execution and monitoring to ensure objectives are met.

Decision Making

Decision making plays a crucial role in both strategic planning and day-to-day operations. As explained in, it involves making choices among alternative courses of action, including inaction. There are several types of decisions that managers need to make:

Personal vs. Organizational Decisions

Personal decisions are made by individuals within an organization but do not directly affect the company's operations or future direction. These could include what to wear to work or where to have lunch. On the other hand, organizational decisions relate to the overall functioning of the business and involve items like setting production targets or choosing suppliers. These decisions often require more thought and consideration because they impact the entire organization.

Programmed vs. Non-Programmed Decisions

Programmed decisions are routine tasks that follow established procedures and typically do not require much deliberation. Examples include approving employee leave requests or ordering office supplies. Conversely, non-programmed decisions arise from complex issues with no clear solution and usually involve upper management. These decisions may have significant consequences for the organization and require careful analysis before being implemented.

In conclusion, principles of management encompass various aspects, each playing a vital role in ensuring an organization operates efficiently and effectively. Planning provides the framework for achieving goals through systematic decision-making processes, while decision making itself ensures that choices align with the organization's long-term vision and short-term realities.

Description

Explore the critical functions of planning and decision-making in effective management. Learn about the steps involved in the planning process, from environmental scanning to implementation, and understand the different types of decisions managers make within organizations. Delve into how these elements shape the approach managers take in tackling day-to-day tasks and long-term strategies.