Saturday, 14 March 2020

Planning and Decision-making


Planning and Decision-making

To make an organisations successful, planning is utmost important.
Objectives have to be set in key areas in every organisation, such as market standing,
innovation, productivity, resources, performance etc.
Notes MBO is one such technique, which has become very popular due to its focus on
participatively set, measurable goals in key areas affecting organisational performance.
The process of MBO involves three steps: (i) setting goals jointly, taking the commitment
and support from subordinates, (ii) developing a concrete action plan, and (iii) appraising
performance with a view to improve results constantly.
Decision-making can be regarded as an outcome of cognitive processes leading to the
selection of a course of action among several alternatives.
Making a decision implies that there are alternative choices to be considered and the best
alternative is to be chosen.
Most decisions are made by moving back and forth between the choice of criteria.
There is a five step decision-making process involved behind every decision.
There are many models available to help the managers take timely and effective decisions.

Intuition: It is the apparent ability to acquire knowledge without inference or the use of reason.
Management by Objectives: Systematic and organised approach that allows management to
focus on achievable goals and to attain the best possible results from available resources.
Optimizing: Making the best possible
Planning: An act of formulating a program for a definite course of action
Rationality: Having complete knowledge about all the details of a given situation.
Strategy: An elaborate and systematic plan of action.

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