for DR.SAMUELSON ONLY!!!!!
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6._power_points_week-3_chapter-4.pptx
Chapter 4
PLANNING AND DECISION MAKING
Objectives
Define the management functions of planning and decision making
Identify the characteristics of plans and specifically address those characteristics and features that make plans effective.
Identify participants and their responsibilities in the planning process.
Delineate the constraints placed upon planning and identify the boundaries to be observed in the planning process.
Objectives (cont’d)
Define and differentiate among the terms philosophy, goal, objective, functional objective, policy, procedure, method, and rule.
Determine how to evaluate a decision’s importance.
Describe some of the tools and techniques available to aid decision making.
Definition of Planning
Planning is the process of deciding in the present what to do to bring about an outcome in the future.
It is the process of tentatively deciding what to do because we have no assurance of exactly what the future will bring.
Characteristics of Planning
Most fundamental of management processes.
Involves present considerations of future actions.
“Future” may be years – or moments – away.
Based on the ideal state which is then refined and modified.
A cyclic process in which some or many goals are recycled.
Participants in Planning
Top managers: set the basic tone and give direction.
Department heads: carry out planning for their jurisdictions, taking into account the unique considerations.
Rank and file workers: offer feedback about procedural and methods improvements.
Clients and members: invited to offer feedback about proposed plans
Premises or Assumptions
Analysis of planning constraints and statements of anticipated environment within which the plans will unfold. Common premises:
Level of care
Specific setting (e.g. inpatient unit; outpatient clinics)
Specific number of beds per service
Anticipated number and kinds of specialty services or clinics
Premises or Assumptions (cont’d)
Morbidity and mortality data
Projected length of stay
Readmission rates
Interrelationship of the workflow
Planning Constraints or Boundaries
General Setting
Legal and Accrediting Agency Mandates
Characteristics of the Clients
Practitioners and Employees
Characteristics of Effective Plans
FLEXIBILITY
BALANCE BETWEEN IDEALISM AND REALISM
Types of Plans and Usual Sequence
Underlying Purpose/Overall Mission, etc.
Objectives
Functional Objectives
Policies
Procedures; methods; rules
Types of Plans and Usual Sequence (cont’d)
Work Standards
Performance Standards
Training Objectives
Management by Objectives
Operational Goals
Typical Philosophical Premises
The basic orientation of the sponsoring group (religious; fraternal; business)
external guidelines on patient rights, continuity of care, and similar issues
values of society in general (e.g. privacy, equal access)
contemporary trends (e.g. community-based outreach; independent practitioners)
Overall Goals
originate in the common vision and sense of mission
reflect the general purpose of the organization
provide basis for subsequent management action
never completely achieved but rather continue as statements of the ideal to be attained.
rarely change
Objectives
progressively more explicit
move from ideal, intangible to relatively tangible and concrete
usually stated in results to be achieved
include such dimensions as quality, time frame, accuracy, and priorities.
relatively unchanging
Functional Objectives Refined by:
specific service to be provided
type of output
quantity and/or specificity of output
frequency and/or specificity of output
accuracy
priority
Policies
guides to thought and action
spell out what is required, prohibited, or suggested as the course of action
pre-decide issues and limit actions so that actions are consistent
relatively permanent plans
Sources of Departmental Policy
policies promulgated by top management
implied policies which have become standardized and accepted
guidelines from accrediting and professional association agencies, e.g. Best Practices; Practice Briefs.
excerpts from laws and regulations applicable to the organization
Procedures
guides to action through series of related tasks
tasks laid out in chronological order
the most detailed of the plans
apply to repetitive work to foster uniformity of practice
facilitate job training
provide a basis for measuring productivity
The 500 Day Plan
Select goals that have potential for the most results
Gain momentum by demonstrating major achievements
500-day time frame with rolling 200-day periods
Fine tune the plan based on results of the previous 200-day period
Definition of Decision Making
the choice among alternatives to determine the course of action.
closely associated with planning: this is the commitment phase.
Evaluating the Importance of a Decision
Affects all of the organization vs. only one part
Irrevocable, creating a new situation
Allows for limited flexibility
Involves major expense
Made under conditions of risk
Approaches to Decision Making
Root and Branch (incremental) decisions
“Satisficing” and Maximizing
Paretian Optimality
Root Decisions
challenge the basic nature of the organization
far reaching in their effects
usually result in massive innovation
result in changes in space and resource allocation
Branch Decisions
are incremental, and limited
do not involve reevaluation of mission and goals
objectives and goals are recycled
underlying philosophy remains unchanged
limited innovation
Satisficing and Mazimizing
Satisficing involves minimal criteria.
This permits many possible alternatives.
A “good enough” solution is permitted.
Mazimizing involves stringent criteria.
Very few alternatives are possible.
The one best solution is sought.
Paretian Optimality
seeks to avoid diminishing or penalizing any one group or department.
seeks to meet the needs of all.
certain alternatives rejected because they decrease the benefit to one or several groups.
involves compromise and consensus.
The OODA Loop
Observe
Orient
Decide
Act
Intended as a tool to make rapid decisions in “real time.”
Decision Making Tools and Techniques
Considered Opinion and Devil’s Advocate
Factor Analysis Matrix
The Decision Tree
Considered Opinion
use experts who give professional opinions for and against frank discussion of pros and cons
strict, internal consideration before decision is made.
seek to ensure that all aspects are noted.
Factor Analysis Matrix
use to overcome personal preference
foster impartial decision making
set up categories of ESSENTIAL elements vs. DESIRED elements
assign relative weight, as in a point system
often used in connection with budget justification
The Decision Tree
used to depict possible directions that actions might take
forces the manager to ask: “what then…”
basic decision points are stated.
probable events are noted as branches
helps decision maker assess both positive and negative potential outcomes
helps decision maker overcome emotional barriers to objective choice.
