PLANNING AND DECISION-MAKING
ARIZONA STATE UNIVERSITY
MGT 502 - ORGANIZATIONAL BEHAVIOR
WEEK 5
A. INTRODUCTION:
In daily human activities, it is inseparable from planning and decision making.
Consciously or unconsciously, directly or indirectly, humans often plan to achieve their
goals and make decisions at every step. Every organization is inseparable from planning
and decision making. An organization without planning is like a person who parachutes
without using a parachute. Or as an executive said that what is not planned today will not
be done tomorrow. Planning occurs in all types of activities. Differences in implementation
are the result of different types and levels of planning. Planning in organizations is
essential, because in reality planning plays a role more than other management functions.
The functions of organizing, directing, and supervising are really just implementing
planning decisions.
Therefore, to achieve success, they must make plans from global to detailed, so that it
is easy to visualize the achievement of future targets. Plan-making is complex because
work plans and interactions involving team members need to be organized in such a way
that they can support each other to achieve targets.
One important aspect of planning is decision making, the process of developing and
selecting a set of activities to solve a particular problem.
Planning is the most important part of organizational functions and decision-making is
not enough of a general description, as it concerns the future of the organization or interest
group. The following will explain in more detail about planning and decision-making.
B. PLANNING:
1. Definition of Planning
Planning is needed and occurs in various forms of organization, because this planning
is a basic management process in making decisions and actions. Planning is needed in
every type of activity, be it organizational activities, companies or activities in the
community, and planning is in every management function, because these functions can
only carry out decisions that have been determined in planning.
Before managers organize, direct or supervise, they must make plans that give the
organization purpose and direction. In planning, managers decide "what to do, when to do
it, how to do it, and who does it". Planning is the selection of a set of activities and the
subsequent decision of what to do, when, how, and by whom (Hani Handoko, 2011: 77-
78). Good planning can be achieved by considering the conditions in the future in which
planning and decided activities will be carried out, as well as the current period at the time
the plan is made.
Here are some definitions of planning according to experts in it:
a. George R. Terry (1975)
Planning is the selection and linking of facts, making and using assumptions relating to
the future by describing and formulating certain activities that are believed to be
necessary to achieve a certain result.
b. Robbins and Coulter (2002)
Planning is a process that involves defining the organization's goals, estabilishing an
overall strategy for achieving those goals, and develoving a comprehensive set of plans
to integrate and coordinate organizational work. That is, Planning is a process that
starts from setting organizational goals, determining strategies for achieving the
organization's overall goals, and formulating a comprehensive planning system to
integrate and coordinate all organizational work to achieve organizational goals.
c. Newman
Planning is deciding in advance what is to be done. That is, Planning is expediting
what is to be accomplished.
d. Allen
Planning is the determination of a course of action to achieve a desired result.
Basically what is meant by planning is to provide answers to questions, what (what),
who (who), when (where), where (when), why (why), and how (how). So planning is
the function of a manager who deals with the selection of a set of activities and the
determination of goals, policies and programs carried out.
e. Drs. Ulbert Silalahi, M.A
Planning is the activity of setting goals and formulating and organizing the utilization
of people, information, finance, methods and time to maximize the efficiency and
effectiveness of achieving goals.
f. Sondang P. Siagian (1994:108)
Planning can be defined as the whole process of thinking and determining carefully
than things that will be done in the future in order to achieve predetermined goals.
g. Drs. H. Malayu S. P. Hasibuan
Planning is a set of decisions about what is desired and contains guidelines for
implementation to achieve the desired goal. Thus, every plan contains "goals and
guidelines".
From all the above definitions, it can be concluded that an important aspect of planning
is the process of continuous activity, decision making, the process of developing and
selecting a set of activities to solve a particular problem effectively and efficiently.
Planning is broadly defined as a process of setting goals and objectives, determining
options for action to be taken and examining the best ways to achieve the goals that have
been previously set. In other words, planning is the process of defining organizational
goals, creating strategies to achieve those goals, and developing plans for organizational
work activities. Planning is the most important process of all management functions
because without planning the other functions of organizing, directing, and controlling
cannot work.
Planning is a process that does not end once the plan has been established; plans must
be implemented and at any time during the implementation and monitoring process, plans
may require modification to remain useful. Re-planning can sometimes be a key factor in
achieving ultimate success. Therefore, planning should consider the need for flexibility, in
order to be able to adjust to new situations and conditions as quickly as possible.
2. Planning Objectives:
Stephen Robbins and Mary Coulter suggest many planning objectives, as follows.
a. To provide briefings for both managers and non-managerial employees.
With a plan, employees know what they need to accomplish, who they need to work
with, and what they need to do to achieve the organization's goals. Without a plan,
departments and individuals may work haphazardly on their own, making the
organization less efficient.
b. To reduce uncertainty.
When a manager makes a plan, he or she is forced to look ahead, foresee changes,
estimate the effects of those changes, and devise a plan to deal with them.
c. To minimize waste.
With purposeful and planned work, employees can work more efficiently and reduce
waste. In addition, with a plan, a manager can also identify and eliminate things that
can cause inefficiencies in the company.
d. To set goals and standards used in the next function is the process of controlling and
evaluating. The evaluating process is the process of comparing plans with existing
reality. Without a plan, managers will not be able to assess company performance.
3. Elements of Planning:
In making good planning, it is necessary to pay attention to the elements that can be
used as considerations that are relevant to organizational goals. Good planning is planning
that can answer questions from the 5 W and 1H elements, namely:
a. What, about:
What is the goal, what actions must be taken, what commodities will be made, and
others? A manager in a company needs to know and understand what will be the
formulation of goals or goals that the company wants to achieve. Goals that formulated
will be the direction of the work done. A manager must know what resources are owned in
an effort to achieve goals. A manager must make the best use of the resources owned with
the principle of the smallest capital and the greatest profit.
b. Why, about:
Why should it be done, why is the commodity chosen to be made? A manager must
know why it is the target or goal of the company, a manager must have a strong reason for
the company regarding the goals that the company wants to achieve which is also useful
for mobilizing its resources. A manager must know why things happen and make the right
decisions.
c. Where, regarding:
Where the activity is carried out, which needs to be explained why the place was
chosen for the location of the company. The choice of company location is the
responsibility of a manager, so when choosing a location must consider a good analysis,
for example choosing a strategic location such as crowded, large roads, technical,
environmental impact assessment and other aspects related to the selection of company
locations. The location chosen must be able to support the activities and operations of the
company, have the necessary facilities.
d. When, regarding:
When do organizational activities start? Managers must have the ability to choose the
right time when work starts and when work ends. Maximize the use of time as best as
possible so that goals are achieved effectively and efficiently. Time must be used as
effectively as possible by setting targets for work time.
e. Who, about:
Who will do the work? Selection and determination of personnel, requirements and
number of personnel who will do the job. A manager must be able to place people in a job
appropriately and with the best possible competence. Who is chosen to do a job, must be
accompanied by reasons when choosing the person who will do the job by paying attention
to "the right man on the right place".
f. How, regarding:
What are the ways and methods to do it? It is necessary to give an explanation of the
techniques or methods of work. A manager must be able to determine how the direction of
a job will be carried out, a manager must know how a process runs in his company in order
to be able to do good controlling in order to achieve company goals. Managers can
delegate their duties to their staff so that managers do not have to do their own work,
managers must know how to make the best use of their resources. Managers must be able
to mobilize their workers to follow the plans that are prepared.
4. Planning Principles:
a. Continuity or ongoing
b. Futuristic or related to the future
c. Comprehensive or Comprehensive and concerning aspects of the company
d. Flexibility or easily accommodated to new conditions
e. Play a role in achieving goals
f. Professionalism or planning must have high expertise
g. Has a time limit or time limit
h. Gradual or in line with the managerial career ladder
5. Planning Requirements:
a. Factual or realistic.
This means that what is formulated by the company is in accordance with the facts and
is reasonable to achieve under the specific conditions faced by the company.
b. Logical and rational.
This means that what is formulated can be accepted by reason, and therefore the plan
can be carried out.
c. Flexible.
Planning is expected to be able to adapt to the company in the future, but that doesn't
mean we can change planning at will.
d. Commitment.
Commitment can be built if all members in the company think that the plan formulated
is in accordance with the goals that the organization wants to achieve.
e. Comprehensive.
This means that it is comprehensive and accommodates aspects that are directly or
indirectly related to the company. Planning is not only related to the part we run, but
also by considering coordination and integration with other parts of the company.
6. Planning Stages:
According to T. Hani Handoko (1999) planning activities basically go through four
stages as follows:
a. Set a goal or set of goals.
Planning begins with decisions about the wants or needs of the organization or work
group without a clear formulation of goals the organization will use its resources
ineffectively.
b. Formulate the situation.
An understanding of the company's current side of the objectives to be achieved or the
resources available for the achievement of the objectives is very important, because the
objectives and plan concerns the time to come. Only after the current state of the
company has been analyzed can a plan be formulated to describe further planned
activities. This second stage requires information, especially financial and statistical
data obtained through communication within the organization.
c. Identify any conveniences and obstacles.
All strengths and weaknesses as well as conveniences and obstacles need to be
identified to measure the organization's ability to achieve goals. Therefore, it is
necessary to know the internal and external environmental factors that can help the
organization achieve its goals or that cause problems. Although it is difficult to do,
anticipating circumstances, problems and opportunities and threats that may occur in
the future is an essential part of the planning process.
d. Develop a plan or set of activities for goal achievement.
The final stage in the planning process involves developing alternatives for achieving
the objectives, assessing these alternatives and selecting the best alternative among
them.
7. Types of Planning:
In planning, there are 4 types based on the range, time frame, specifications, and
frequency of disturbances. Here is the explanation:
a. Reach
- Strategic planning
A strategic plan is a plan developed to achieve strategic objectives. To be precise, a
strategic plan is a general plan that underlies resource allocation decisions, priorities,
and action steps required to achieve strategic objectives.
- Tactical planning
Are plans aimed at achieving tactical objectives, developed to implement a specific part
of the strategic plan. Strategic plans generally involve upper and middle management
and, compared to strategic plans, have a shorter time horizon and a more specific and
tangible focus.
b. Time Frame
It is a type of planning that is based on the period of implementation of the plan that
has been formulated:
- Long-term plans are plans that have a period of more than 3 years.
- Short-term plans are plans that are less than 1 year in duration.
c. Specifications
The type that focuses on what the goal or goal is to be achieved, giving a definite task
or goal to the limits of each implementer.
- Specific plans are plans that are clearly defined and leave no room for interpretation.
- A flexible plan that defines general guidelines, provides focus but does not limit
managers to a specific goal or set of actions.
d. Frequency
A type of planning based on how big, how long a plan is used according to the
conditions.
- Disposable plan
Developed to carry out a set of actions that may not recur in the future. Single-use plan
for a large set of activities. Single-use plans are narrower in scope and less complex
than programs.
- Fixed plan
Developed for activities that recur regularly over a period of time. A fixed plan that
details the organization's general response to a particular problem or situation. A fixed
plan that outlines the steps to be followed in a given situation. A fixed plan that
describes exactly how a particular activity is to be carried out.
8. Obstacles and How to Overcome Them in Planning:
There are two types of barriers to the development of effective plans, which are as
follows.
a. planners' internal resistance to setting goals and making plans to achieve them. In other
words, this barrier stems from the unwillingness and inability of individual planners to
undertake planning activities.
b. Outside of planning (external), which is the general reluctance of organizational
members to accept plans and plans because of the changes they bring.
There are a number of reasons why many managers hesitate or fail to set goals and
make plans for their organization or group/work unit, namely:
a. Lack of knowledge about the organization
b. Lack of knowledge about the environment
c. Inability to forecast effectively
d. Difficulty planning non-recurring operations
e. Cost
f. Fear of failure
g. Lack of confidence
h. Unavailability
Various ways of overcoming the barriers experienced. Managers can overcome
planning barriers by creating organizational systems that facilitate goal setting and
planning, both by top managers and lower-level managers and non-managerial employees.
As for how to overcome them:
a. For internal barriers, by providing various forms of individualized assistance to
planners (managers), especially providing education and training.
b. Reducing rejection can be done in a number of ways:
- Involving employees in the planning process
- Develop effective planning and implementation patterns
- Provide more information about the plan and its consequences
- Putting the right people in the right positions
- Gain the trust of employees
- Manage the resources that are owned well in front
C. DECISION MAKING:
1. Definition of Decision Making
Managers' lives are filled with a series of decisions - decisions on investments, raising
selling prices, taking action against employees who are often late, choosing which new
building to build, and other issues large and small. Where the manager has to decide what
action to take, or at least assign someone else to decide.
Decision-making is a key part of the manager's activities, where this activity plays an
important role especially when the manager carries out the planning function. In the
planning process, the manager decides on the organizational goals to be achieved, the
resources to be allocated to the organization resources to be used, and who will carry out
each required task. So decision-making describes the process of going through a series of
activities to choose the solution to a particular problem. Decision making can be defined as
determining a series of activities to achieve a desired result. This decision-making is not
only carried out by top managers, but also middle and first-line managers. Every position
in an organization involves some degree of decision-making, even for routine work and in
any organization.
So in short, decision making can be defined as determining a series of activities to
achieve the desired results. Experts also expressed their opinions regarding decision
making, the following expert opinions:
a. R. Terry
Suggests that decision making is a selection based on certain criteria for two or more
possible alternatives.
b. Claude S. Goerge, Jr.
Saying that the decision-making process is carried out by most managers in the form of
a conscious, thinking activity that includes consideration, assessment and selection
among a number of alternatives.
c. Horold and Cyril ODonnell
They say that decision-making is the selection among alternatives regarding a way of
acting, which is the essence of planning, a plan cannot be said to exist if there is no
decision, a reliable source, instructions or reputation that has been made.
d. Prof. Dr. Prajudi Atmosudirjo, SH
A decision is an end to the process of thinking about a problem or issue to answer the
question of what to do to solve the problem by making a choice on an alternative.
Many managers have to make decisions using informal methods of decision-making.
Or managers may also make a decision based on the advice of an expert or a superior
manager. Or at least managers can use a priori thinking, i.e. they make the assumption that
the most logical and obvious problem solving is the most correct. However, no decision-
making approach can guarantee that managers will always make the right decision.
However, managers who use a rational, intellectual, and systematic approach will be more
successful than managers who use an informal approach.
In decision making, environmental factors also have an important influence in order to
decide or make decisions. The environment is one of the factors that influence a person or
an organization in making decisions. In general, information related to the environment can
be divided into 4 based on its state, namely:
a. Decision-making in times of uncertainty
Certainty is a situation in which a person or organization is faced with complete
information about an environmental situation it faces, so that estimates about the future
can be ascertained.
b. Decision-making in times of uncertainty
Uncertainty is a situation where a person or an organization is faced with incomplete
information or an organization does not have information about the problem at hand.
c. Decision-making in risky situations A risky situation is one in which a person or
organization is faced with information that it has, but is relatively incomplete when
compared to a certain situation. The situation is said to be risky if perfect information is
not available, but all events that will occur and their probabilities are known. To study
decisions in risky situations, an understanding of probability theory is essential.
d. Decision in a state of conflict
An atmosphere of conflict arises when the interests of two or more decision makers are
in contention. One decision-making party is not only concerned with its own actions,
but is also interested in the actions of competitors.
2. Decision Making Theory:
Decision making can be interpreted as choosing the best alternative from several
alternative choices available. There are several theories that are most often used in making
policies / decisions, namely:
a. Comprehensive Rational Theory:
Perhaps the most commonly used and widely accepted decision-making theory is the
comprehensive rational theory which has several elements:
- Decision-making is faced with a particular problem that can be distinguished from
other problems or at least assessed as problems that can be compared with each other
(can be ranked according to the priority of the problem).
- The goals, values or objectives that guide decision-makers are clear and can be
prioritized.
- The various alternatives to solving the problem were carefully scrutinized.
- The cost-benefit or cause-and-effect principle is used to determine priorities.
- Each alternative and its accompanying implications are used to compare with other
alternatives.
- The decision maker will choose the best alternative to achieve the set goals, values, and
objectives.
b. Incremental Theory:
This theory in making decisions by avoiding many problems that must be considered
and is a model that is often pursued by government officials in making decisions. This
theory has the following main ideas:
- The selection of goals or objectives and the analysis of empirical measures needed to
achieve them are interrelated.
- The decision maker is considered to consider only a few alternatives that are directly
related to the subject matter, and these alternatives are only seen as incrementally or
marginally different.
- Each alternative is only partially evaluated regarding its causes and effects.
- Problems faced by decision-makers are defined in an organized manner and provide the
possibility to consider and adjust goals and means so that the impact of the problem is
better mitigated.
- There is no right decision or solution for every problem. So a good decision lies in the
various analyses that underlie the agreement to make the decision.
- This incremental decision making is to improve or complement decisions that have
been made previously in order to get improvements.
c. Mixed Scaning Theory:
Some of these weaknesses are the basis for a new concept, as proposed by
organizational sociologist Aitai Etzioni, namely integrated observation (Mixid Scaning) as
an approach to making decisions that are both fundamental and incremental. Incremental
decisions provide basic direction and pave the way for fundamental decisions after they are
reached.
Etzioni's integrated observation model will allow decision-makers to use both
comprehensive rational theory and incremental theory in different situations.
The integrated observation model is essentially a compromise approach that combines
the utilization of the comprehensive rational model and the incremental model in the
decision-making process.
d. Conservative/Conventional Method:
According to Lend Plom you will be considered conservative if in making a decision,
you refer to the experience of others who have had the same problem. You want things to
be the way they are and avoid a lot of disagreement. You therefore follow the way of
others in this regard and do not give room for the growth of creativity in yourself. The
decisions you make may be quick to solve the problem and in some cases prove to be very
successful.
This method has several features called incrementalism, which is starting something
from what has been achieved or designed by others. However, if you use this theory then :
- You don't have high inventiveness
- You like to imitate others and follow old values
- Limited solutions and one-way policy strategies rely on the habits of the past, leaving
no room for creativity to give birth to new thinking.
- Reliance on the past ties up the space for creativity
- New developments in management science offer new methods of making effective
decisions.
e. Rational Method:
This scientific approach to decision-making does not simply accept a method because it
has been used in the past with good results, but rather carefully determines the problems at
hand, establishes a benchmark as a guide to work, gathers materials to reach a temporary
solution, and re-examines the solution. Thus, decision-making based on science is a
method of logical examination and analysis, which leads to an effective plan.
This method of problem solving is what Dr. Alawiat calls a good example. It is based
on the behavior of an economist who in detail collects data, diagnoses the problem,
assesses various possibilities, and then chooses the most logical alternative. The principle
of decision-making is to find the best and most ideal solution. You will thus become a
pragmatic and realistic person.
f. Linear Programming Method:
Consisting of two words, namely linear which means that the mathematical function
used in the model is a linear function, and the second is programming, this word has
nothing to do with computer programs. Thus, literally linear programming can be
interpreted as a planning technique for decision making using mathematical functions in
the form of linear models. Therefore, in its application, linear programming has activity
planning activities to achieve optimal results by considering alternatives. Thus, the
definition of linear programming is a mathematical capital or mathematical technique used
to find the best way to control limited resources in competing activities using linear
models.
The development of this science began during WWII, when the British and US armies
were faced with the complex problem of allocating limited resources of troops and
equipment to various war operations of extraordinary scale. The key to the success of both
forces was their success in the process of making the right decisions to send the number of
troops and their logistics to various places in need. The decision came from a team of
scientists conducting research.
g. Integrer Programming Method:
In everyday life, there are many decision makers who need optimal solutions in the
form of numbers. An airplane manufacturer might ask "How many airplanes should be
produced this year?", an entrepreneur might ask "How many employees should be hired
based on additional investment?", or a developer might ask, "How many buildings should
be constructed this year?". Is it possible that the manager asked would answer 2 and a half
or 6 and a half, of course not.
A case in point: an automotive company produces two types of cars, a truck and a bus.
The profit per unit of truck is Rp. 10 million, while the bus is 50 million. It costs Rp. 10
million to produce 1 unit of truck and Rp. 100 million for a bus. The available capital is
only Rp. 200 million. For marketing reasons, trucks cannot be sold more than 2 units per
month. What is the company's product strategy so that the profit it achieves is as large as
possible.
h. Forecasting Methods:
We often encounter or hear the word forecasting and its imitations, such as weather
forecasts, economic growth forecasts, political situation forecasts and even fortune telling.
All of the forecasting words mentioned above have in common in seeing or predicting an
event in the future, but the method is not necessarily the same. How to predict economic
growth is certainly different from how to predict the fate of astrologers and psychics.
In this discussion forecasting is defined as a tool or technique for predicting or
estimating a value in the future by taking into account relevant data or information, both
past and current data, of course, the forecasting studied here is not a forecast that uses
techniques used by psychics, but a forecast that uses a standardized quantitative framework
or technique and rules that can be explained mathematically and statistically. This
technique is very useful to see a picture of the future so that we can anticipate it. For
example, a company that makes computer printers can provide how much demand for laser
printers, for example, in the coming months the company can estimate well how much the
current production of these printers will be. As a result, the company can make the right
decision to produce the printer.
3. Decision Types:
The decisions made by each manager will vary, according to the different conditions
and situations faced. Decisions made are different according to the different conditions and
situations that occur:
a. Based on different situations
The decisions made can be divided into 2 types, namely:
- Programmed decisions, which are decisions made according to habits, rules and
procedures, where these decisions are routine, structured, and repetitive. For example:
decisions about payroll, decisions about the amount of inventory to maintain certain
products.
- Non-programmed decisions, which are decisions that deal with special, unique and
unusual problems. For example: How to allocate the organization's resources, how to
handle a product line that has fallen in the market, and how to improve relations with
the community. In handling this type of decision, managers usually tend to use
judgment, intuition and creativity.
b. Based on conditions
The decisions made can be divided into 3 types, namely:
- Decisions in conditions of certainty, namely decisions made based on accurate and
reliable information.
- Decisions under conditions of risk (risk), decisions made based on various known
possible outcomes, because complete and accurate information is not available.
Decisions under conditions of uncertainty, which are decisions that are made that are
critical and interesting, because they do not know the information about the possibility
of the decision being made Results. So in these conditions, forecasting methods are
needed in decision making.
4. Decision Making Stages:
Stamatis (1996) suggests a decision-making model consisting of six stages, namely
a. identify and define the problem
b. develop problem-solving alternatives
c. evaluate problem-solving alternatives
d. making decisions
e. implementing the decision
f. follow up to evaluate the decision.
Decision making according to Simon, 1980 includes four interconnected and sequential
stages The four processes are:
a. Intelligence This stage is the process of exploring and detecting the scope of the
problem and the process of problem recognition. Input data is obtained, processed, and
tested in order to identify the problem.
b. Design This stage is the process of finding, developing, and analyzing alternative
courses of action. It includes the process of understanding the problem, deriving a
solution, and testing the feasibility of the solution.
c. Choice At this stage, the selection process is carried out among various alternative
actions that might be carried out. This stage includes searching, evaluating, and
recommending suitable solutions for the model that has been created. The solution of
the model is a specific value for the outcome variable of the selected alternative.
d. Implementation The implementation stage is the stage of implementing the decisions
that have been taken. At this stage it is necessary to draw up a series of planned actions,
so that the results of the decision can be monitored and adjusted if improvements are
needed.
5. Decision Steps
The steps in the decision-making process for managers are as follows.
a. Problem understanding and formulation
If managers want to improve the situation, they must first discover what the real
problem is, and determine which parts of the problem they have to solve and which
parts they have to solve.
b. Collection and analysis of relevant data
Once managers have defined and formulated the problem, they must start deciding on
the next steps. Determine what data is needed to make the right decision.
c. Development of alternatives
The tendency to accept the first flexible decision alternative often prevents managers
from achieving the best possible solution to their problems. Developing a number of
alternatives allows managers to resist the tendency to make decisions too quickly and
makes it more likely that effective decisions will be reached.
d. Evaluation of alternatives
Once managers have developed a set of alternatives, they must evaluate them to assess
the effectiveness of each alternative.
e. Selection of the best alternative
The chosen alternative will be based on the amount of information available to the
manager and the imperfection of the manager's policy. The choice of the best
alternative is also often a compromise between various factors that have been
considered.
f. Decision implementation
Managers should make plans to address the various requirements and problems that
may be encountered in implementing the decision.
g. Evaluation of decision outcomes
The implementation of decisions must be monitored continuously. Managers should
evaluate whether the implementation is going smoothly and the decision is delivering
the desired results. Creation Decision making is a continuous process for managers and
a challenge that they must face.
D. SUMMARY MATERIAL:
Planning and decision making are the most important processes because the functions
of organizing, directing and controlling cannot run properly if there is no planning and
decision making. Planning is the initial process of decision making, while decision making
is a key part of management activities, especially managers. This activity plays an
important role, especially when managers carry out the implementation function. Planning
involves very important and long-term decisions that managers can make. In the planning
process, managers decide on the organizational goals to be achieved, the resources to be
used, and who will carry out each required task. The whole planning process involves
managers in a series of decision-making situations. Briefly, decision-making can be
defined as determining a set of activities to achieve a desired result. The quality of the
manager's decisions will determine the effectiveness of the plan.
TASKS AND EVALUATION
1. Explain the meaning of the following terms:
a. Decision
b. Planning
c. Decision making
2. Why are planning and decision-making essential in the life of an organization?
Explain!
3. Name the elements of planning and explain!
4. Name and explain the decision-making theory?
5. Bring up one example decision making decision making using the decision-making
process!
6. Broadly speaking, the decision-making process consists of 3 stages. Name and explain
these decision-making stages!
