Planning and Decision

Making

ORGMAN
ABM
Objectives
• Apply appropriate planning
techniques and tools ;
• Formulate a decision from several
alternatives ; and
• Enumerate some tips in time
management
Decision Making?

As student right now, have you

decide something?
Discussion

Planning Techniques and Tools

It pertains to the different methods for determining, analyzing
and predicting situations that will likely occur. This is done in
order to adequately prepare for these situations and to respond
to them in a timely and appropriate manner. Therefore as a
manager, you must be familiar with the different planning
techniques and tools that managers use to achieve target
objectives.

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 Forecasting-pertains to the use of scientific techniques to
predict the likelihood of certain events or factors to happen in
the future. Managers make use of findings from data analysts
who gather set of data and examine this acquired information
for patterns and trends.

 Quantitative  Qualitative
forecasting techniques forecasting
use statistical tools and techniques make use
analyses to predict the of opinions or
future. Hey are used perceptions from
when the information experts for prediction
about the variable you purposes.
are trying to forecast are
available and can be
quantified.

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Contingency Planning –is the
process of identifying alternative
courses of action in the event that
unforeseen or uncontrollable
events takes place. Managers in
relation to financial risks, market
risks, production risks, labor
risks, information and
communication risks and natural
disaster risks prepare business
contingency plans. Managers
sometimes refer to these
contingency plans as Plan A, Plan
B or even Plan C as alternative
courses of action.

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 Scenario Planning-involves predicting potential alternative events that might happen. It entails
preparing resources and actions to prevent or mitigate the “shocks’ from negative events. It is similar to
contingency planning but is more detailed and extensive in visualizing the ‘worst case “and the “best
case “are both described in detail. In picturing different scenarios, Managers may take any of the
following four approaches:

1. Inductive
2.Deductive 3.Incremental 4.Normative Approach
approach to
approach to scenario approach involves a involves developing
scenario planning
planning stars with a gradual development of possibilities emanating
starts with a
general and well- possibilities that usually from a major path and
potential
tested concept or starts with a general ultimately aimed toward
possibility based
principle, then fleshes approach, and then a grand vision or an
on a familiar
out this principle into leads to another ideal end goal.
context but not yet
several possible potential growth and so
a well-tested path
detailed applications forth. The scenarios
and then develops
or features. take many twists and
this route to grow
turns.
out into several
alternative pictures
of potential
possibilities.
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Scenario Planning-involves predicting potential alternative events that might happen. It entails
preparing resources and actions to prevent or mitigate the “shocks’ from negative events. It is similar to
contingency planning but is more detailed and extensive in visualizing the ‘worst case “and the “best
case “are both described in detail. In picturing different scenarios, Managers may take any of the
following four approaches:

External Internal
benchmarking – benchmarking-
comparison of methods learning from the best
and approaches used by practices of other units
high performing within their own
companies with those of organization.
one’s company.

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Decision Making

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 Decision- making Techniques

Planning involves decision making by choosing the best path to

tread on.
Sometimes the more intuitive managers decide using their ”gut
feel” or “hunches”
based on experience or big ideas they suddenly stumble upon.
The rational approach is often taken to solve a particular problem
in the workplace;
• Identify and define the problem
• Generate and evaluate alternative courses of action
• Choose the most appropriate action
• Implement the chosen course of action
• Evaluate the results.

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Time Management in Decision-making

A manager is often confronted with various commitments, meetings, and other

scheduled activities that take a toll of his or her time and energy. Time
management is a vital skill that a manager must learn along with decision-
making skills.

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Tips in Time Management

• Identify the “time wasters” and avoid them. Better still, get rid of them
• Follow priorities by working first, on what is most important and urgent.
• Do not get too preoccupied with details to the point that you miss the big
picture of things
• Avoid individuals who tend to monopolize your time unnecessarily.
• Be the master of your calendar by not letting others control your time.
• Break complex tasks into smaller chunks that can be done gradually.
• Stay calm even under pressure. A relaxed mind avoid mistakes.

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 Synthesis
Planning, as the first function in management, requires critical thinking and
diligence from a manager. As an aid in planning, a manager uses several
techniques and tools. These include forecasting, contingency planning,
scenario planning and benchmarking. All these techniques and tools will help
the manager in having an open and creative mind to explore opportunities in
the future. These can also guide the manager in anticipating the various risks
that may take place that will adversely affect the achievement of the
business goals.
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