A barebones intro to planning and decision making for BBA/MBA Ist Sem students...

2. This PPT gives an overview of planning and decision making. To maximise the benefit, please use this PPT along with a ny good text book on management and use the Net extensively

6. Need Assessment Establish Objectives Develop Premises Generate Alternatives Select Alternative Formulate Derivative Plans Implementation & Control

8. Now that we are clear of the “organizational need” in the form of an opportunity or a problem, What do we hope to achieve?

9. Planning premises are the assumptions about the Environment in which the plans will be made & implemented

10. There will exist multiple methods to achieving an objective…… Enlist all Possible Alternatives

20. Plans can be classified on the basis of their nature, intended use, time horizon, scope etc..

24. A vision statement is essentially an aspirational statement that describes an ideal image an organization would like be identified with in the future…. A value statement describes the principles, notions and beliefs that an organization holds supreme and are used to guide individual and collective decisions and actions

31. Decision is a choice from available alternatives It is a “Process”, not an event It is the core of planning (choosing from alternatives)

34. Non programmed Decisions Programmed Decisions Level in Organization Top Lower Well-Structured Ill-Structured Type of Problem

37. Rational Decision Making Problem is clear and unambiguous Single, well-defined goal is to be achieved All alternatives and consequences are known Preferences are clear Preferences are constant and stable No time or cost constraints exist Final choice will maximize payoff

42. Identify Problem Establish Decision Making Criteria Allocation of Weights to Criteria Generate Alternatives Evaluate Alternative Select Alternatives Implementation & Control

44. Candidate Criteria Rating X Weight = Score Rahul Motivation 8 x .30 = 2.40 Interpersonal 6 x .25 = 1.50 Sales Knowledge 7 x .25 = 1.75 Product Knowledge 6 x .20 = 1.20 Total Score = 6.85 Candidate Criteria Rating X Weight = Score Ashish Motivation 9 x .30 = 2.70 Interpersonal 8 x .25 = 2.00 Sales Knowledge 6 x .25 = 1.50 Product Knowledge 5 x .20 = 1.00 Total Score = 7.20

55. ? Decision Maker Characteristics Knowledge Ability Motivation Problem Characteristics Unfamiliarity Ambiguity Complexity Instability Decision Environment Characteristics Irreversibility Significance Accountability Time and monetary constraints

56. But in most business organizations, decisions are made by GROUPS, not individuals!

59. When groups are... • Highly cohesive • Insulated from outside input • Dominated by leader Leading to decisions characterized by... • Limited search for information • Limited analysis of alternatives • Rejection of expert opinions • Few, if any, contingency plans ...They often experience... • Illusion of invulnerability • Illusion of morality • Illusion of unanimity • Self-censorship • Peer pressure for conformity • Stereotyping of opponents • Rationalization That results in... • Decisions of poor quality • Poor group performance • Wasted resources • Lost opportunities