Module IV
Module IV
Single-use plans : These plans are relevant for a specified time and after the lapse of that time, these plans are
formulated again for the next period. Example : Walmart want to expand the number of its stores in China, top-level
executives formulated a single-use plan as a guide.
Program: is a single use plan designed to carry out a specific project within an organization.
Budget: is a single use financial plan that covers a specified length of time.
2. Strategic and Operational Plans:
Strategic Plans are major plans which define the long-term course of action for an
organisation in the light of its environment.
eg. Determination of long-term organisational objectives, major policies and strategies.
Operational Plans are plans that encompass a particular operational area of the organization.
Focuses on day-to-day activities that are necessary to achieve the long-term goals of the
organization.
3. Long-term and Short Term Plans :
Long Term plans : Plans with a time frame beyond three years
Short Term Plans : Plans covering one year or less
4. Specific and Directional Plans
Specific Plans : Plans that are clearly defined and leave no rooms for interpretation.
Example : manager seeks to increase his unit’s output by 8% over 12 months.
Directional Plans: Plans that are flexible and set out general Guidelines
PROCESS OF PLANNING
Steps in Planning:
In light of:
• The market
• Competition
• What customers want
• Our strengths
• Our Weaknesses
2. Setting Objectives or Goals:
*Where we want to be
*What we want to accomplish
*and When
Which alternative will give us the best chance of meeting our goals at
the lowest cost and highest profit.
6. Choosing an Alternative:
Ques : what type of plans do the Larkins need to survive the off-
season?
DECISION
MAKING
Definitions of Decision Making
• Decision-making is the selection based on some criteria from two or more possible
alternatives. “—George R.Terry
• A decision is an act of choice, wherein an executive forms a conclusion about what must
be done in a given situation. A decision represents a course of behaviour chosen from a
number of possible alternatives. —D.E. Mc. Farland
It is the process of
1. Programmed Decisions:
Programmed decisions are routine and repetitive decisions.
These are made within the framework of well defined policies and rules of
organisation.
These decisions are comparatively easy to make as these relate to the
problems which are solved by considering internal organisational factors.
2. Non-programmed Decisions:
• For these decisions, situation is not well structured and outcomes of various
alternatives can not be arranged in advance.
• For taking these decisions, managers have to consider various factors, many of
which may be in the external and uncontrollable environment.
a) Action element: a course of action which specifies the work to be done to achieve the result.
d) Strategic decisions are to be taken in the context of environmental factors which are
dynamic and uncertain. Alternatives and outcomes for these decisions are unknown, so they
are normally non-programmed decisions.
2.Tactical Decision(programmed):
• These are programmed decisions as these are taken through the prescription of policies, rules,
procedures etc.
• The outcome of tactical decision as short-term and affects a small part of the organisation.
• So, the authority to take these decisions can be delegated to lower-level managers and higher
level managers get more time to devote on strategic decisions which are more important.
DECISION MAKING
PROCESS
DECISION MAKING PROCESS:
For frequently occurring, structured problems, it is not necessary to consider the entire
process because to solve these problems policies are already established.
• A problem can be solved in several ways. Therefore, a decision maker must try
to find out the various alternatives available to get the most satisfactory result
of a decision.
After developing a list of alternatives, the decision maker will evaluate that how each
alternative may contribute towards the achievement of objective of decision.