SENIOR HIGH SCHOOL

Organization
and
Management
Quarter 1 – Module 6
Planning Techniques and Tools
in
Business Decision-Making
Organization and Management – Grade 11
Alternative Delivery Mode
Quarter 1 – Module 6: Planning Techniques and Tools in
Business Decision-Making
Second Edition, 2021

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Published by the Department of Education – Division of Misamis Oriental.

Development Team of the Module

Writer: Michenie Mangmang-Canunayon

Subject Area Specialists:

Beverly Hazel T. Saligumba School Principal II

Language Specialists:Jeremy C. Subaldo

Illustrator:

Development Team:
Chairperson:Dr. Arturo B. Bayocot, CESO III
Regional Director

Co-Chairpersons: Dr. Victor G. De Gracia Jr. CESO V

Assistant Regional Director
Jonathan S. dela Peña, PhD, CESO V
Schools Division Superintendent
Nimfa R. Lago, PhD, CESO VI
Assistant Schools Division Superintendent
Mala Epra B. Magnaong, Chief ES, CLMD

Members:Maria Emerald A. Cabigas,PhD EPS-LRMS; Bienvenido U. Tagolimot, Jr., PhD, EPS-ADM; Erlinda G.

Printed in the Philippines by

Department of Education – Division of Misamis Oriental
Office Address: Del Pilar corner Velez Street, Brgy. 29, Cagayan de Oro City
9000 Telefax: (088) 881-3094 | Text: 0917-8992245 (Globe)
E-mail Address: misamis.oriental@deped.gov.ph

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 11
Organization
and
Management
Quarter 1 – Module 6
Planning Techniques and Tools
in
Business Decision-Making

ii
 TABLE OF CONTENTS

Page No.

OVERVIEW
What I Need To Know 1
Things to Remember To Get Through 1
Remember This 2

Lesson 1- Planning Techniques and Tools in Business Decision-making

What I Need To Know 3
What I Know 3
What’s In 4
What's New 5
What Is It 5
What's More 11
What I Have Learned 11
What I Can Do 12
Assessment 12
Additional Activities 13

References 14

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 WHAT I NEED TO KNOW

This learning module of Organization and Management for Senior High

School students is designed to equipped learners with essential knowledge on
planning techniques and tools that they can apply in making essential business
decisions.
In this module, the students are taught the necessary tools and techniques in
planning for them to arrive with sound decision-making.
After studying this module, you will be able to:
1. apply appropriate planning techniques and tools
2. formulate a decision from several alternatives

THINGS TO REMEMBER TO GET THROUGH

To learn and benefit from this module, follow the following steps:

1. Read the module title and the module introduction to get an idea of what the
module covers. Specifically, read all the sections of this module carefully. The
first section tells you what this module is all about while the second section
tells you of what you are expected to learn.

2. Never move on to the next page unless you have done what you are expected
to do in the previous page. Before you start each lesson, read first the
INSTRUCTIONS.

3. Work on the activities. Take note of the skills that each activity is helping you
to develop.

4. Take the Post-Test after you are done with all the lessons and activities in the
module.

5. Communicate with your teacher. Ask him/her about any difficulty or confusion
you have encountered in this module.

6. Finally, prepare and gather all your outputs and submit them to your teacher.

7. Please write all your answers of the tests, activities, exercises, and others on
your separate activity notebook.

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 REMEMBER THIS

In a fast-evolving world, changes will come handy. In managing a business

there is no perfect formula as to how to stay on course and be on top in your
industry. Businessmen and women need to make tough decisions to protect the
welfare of the company and its stakeholders.

Thus, we are looking forward that this module will equip you with knowledge
on the planning techniques and tools which will serve as your guiding point in
business decision making.

GOOD LUCK AS YOU BEGIN THIS MODULE!

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LESSON 1 PLANNING TECHNIQUES AND TOOLS
IN BUSINESS DECISION-MAKING

Competency: Apply appropriate planning techniques and tools in business decision-

making ABM_AOM11-Ie-g13-14

WHAT I NEED TO KNOW

At the end of this lesson, the learners are expected to:

1. Apply appropriate planning techniques and tools.
2. Formulate a decision from several alternatives.

WHAT I KNOW

Instructions: Let us check your prior knowledge about Planning Techniques and
Tools in Business Decision-making. Carefully read and answer the following
statements. Write the letter of your answer in a yellow paper.

1. It is an attempt to predict what may happen in the future.

a. making b. benchmarking c. creating d. forecasting

2. Groups of planners commonly used this technique in selecting a common

solution for a problem.
a. benchmarking c. nominal group technique
b. brainstorming d. Delphi technique
3. Whenever you want to evaluate the alternatives in purchasing equipment,
furniture and fixture, which tool is most appropriate to be used?
a. payback method c. investment method
b. delivery method d. decision method
4. This decision model does not use objective methods in decision-making but
instead use their "gut feeling" and instincts.
a. rational b. intuitive c. predisposed d. cognitive

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 5. The following are example of cognitive biases, EXCEPT:
a. escalating commitment c. prior hypothesis bias
b. reasoning by analogy d. predisposed decision

6. A process that begins with identifying the problem and ends with evaluating
the implemented solutions.
a. decision-making c. benchmarking
b. strategic planning d. scenario planning
7. This analysis weighs the benefits against the costs to identify return of
investment.
a. SWOT Analysis b. Financial Analysis
b. Marginal Analysis d. Pros and Cons Analysis
8. To know the perspective of you customers, you will conduct a .
a. feasibility study c. decision matrix
b. participatory planning d. market research

9. Which of the following is a positive result if you apply participatory planning?

a. Increased acceptance and understanding of plan
b. Broad and vague results is expected
c. Creativity will be hampered
d. Lack of commitment for the plans

10. SWOT stands for

a. Strength, Weaknesses, Opportunities and Time
b. Strength, Weaknesses, Opposition and Time
c. Strength, Weaknesses, Opportunities and Threats
d. Strength, Weaknesses, Opposition and Threats

WHAT’S IN

Based on what you have learned in the previous module, describe the different
levels of planning in your own words.

Among these levels of planning, which do you think is the hardest to execute?
Explain your answer.

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 WHAT’S NEW

Activity 1. Draw your feelings…

In your yellow paper, draw the emoji that best describes your feeling if ever you will
encounter the following:

1. Thinking about whether to let your classmate copy your assignment.

2. Deciding what to wear in going to your crush’ birthday party.
3. Choosing between answering the module or playing online games.
4. Agreeing to your friends’ idea to absent from class.
5. Selecting your strand for Senior High School.

WHAT IS IT

If given a choice, would you rather take things into consideration or make
decisions right away? Would you rather refer to proven effective tools and
techniques in making decisions or follow the impulse of your heart? Why?

Definition of Terms
Trigger Point – change in an attribute, condition, factor parameter, or value that
represents crossing a threshold and actuates or initiates a mechanism or reaction
that may lead to radically different state of affairs.

Forecasting – an attempt to predict what may happen in the future.

Benchmarking – planning technique that involves comparison of company’s

practices/technologies with those of other companies.

Decision-making – is a process which begins with problem identification and ends

with the evaluation of implemented solutions.

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Tools and Techniques for Effective Planning
1. Forecasting
2. Contingency Planning
3. Scenario Planning
4. Benchmarking
5. Participatory Planning

Qualitative
Forecastin - subjective
-based on opinions and judgement

Quantitative
- mathematical calculations
- statistical analysis of surveys

Forecasting is trying to predict what may happen in the future. Without

exception, all planning types employ forecasting. Business publications are
publishing forecast such as employment and unemployment rate, interest rates rise
and fall, stock market data, GNP/GDP data and other relevant business data.

Qualitative Technique
1. Brainstorming
2. Nominal Group Technique -
3. Delphi Technique
- is a common technique used by groups of
planners in selecting a common solution for
a problem.
is a highly structured method that allows
members to give their own input based on an
agenda.
- is also a highly structured technique similar
to the nominal group technique.

Quantitative Tools
1. Decision tree - an excellent tool for weighing different
alternatives.
2. Payback method - used in evaluating alternatives in
purchasing equipment, furniture, and
fixtures.

Take note:
Forecasts are only predictions and can be inaccurate at times, for these are based on
human judgement and other related factors.

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 Contingency Plan are plans prepared by managers, ready for
implementation just in case things do not turn out as expected. Simply put, these are
Plan B, C, D and so on whenever the first plan is unsuitable for the current situation.

Contingency factors called “trigger points” indicate when the prepared

alternative plan should be implemented.

Scenario Planning is planning for future states of affairs. Several future

conditions must be identified, and alternative plans must be prepared to meet the
changes or challenges in the future.

This is where a company will assume case scenarios that might happen in the
future. Based on the scenario, they will come up with several options in addressing
the concern. This allows organization to plan ahead and make necessary
adjustments in their strategies and operations.

Examples of future changes or challenges can be environmental pollution,

human rights violations, climate and weather change, earthquake damages to
communities and others.

Benchmarking is a planning technique that generally involves external

comparisons of a company’s practices and technologies with those of other
companies. Its main purpose is to find out what other people and organizations do
well and then plan how to incorporate these practices into the company’s operations.

Example: If you want to start an agricultural business, it would be good if you visit
a known and successful agricultural business where you can observe and apply
some of their practices where you think will be helpful in your business as well.

Participatory Planning is a planning process that includes the people who will
be affected by the plans and those who will be asked to implement them in all
planning steps.
Positive results if you apply participatory planning can
be: Creativity
Increased acceptance and understanding of
plan Commitment to the success of plans

Decision-making
Decision-making is a process which begins with problem identification and
ends with the evaluation of implemented solutions.
Business owners, executives and managers need to ensure the success of their
respective businesses which requires them to make varied decisions every day.
Can they simply decide on something directly/ Of course not! They need to make
effective, educated, efficient business choices which not all has this ability.

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Types of Decisions
1. Structured or programmed decision is a decision that is repetitive and can be
handled using a routine approach. h e
2. Unstructured or non-programmed decisions applied to the resolution of
problems that are new or unusual, and for which information is incomplete.

Types of Decision-Making Conditions

1. Certainty conditions are ideal conditions in deciding problems; these are

situations in which a manager can make precide decisions because the
results of all alternatives are known.
2. Risk or Uncertainty conditions is more common condition in deciding
problems. Compel the decision maker to do estimates regarding the possible
occurrence of certain outcomes that may affect his or her chosen solution to a
problem.

Three most common type of decision models

1. Rational or Logical Decision Model - this process involves a logical step-by-
step analysis of several possible contributing factors in making the decision.
2. Intuitive Decision Model-manager do not use objective methods in decision-
making but instead use their "gut feeling" and instincts.
3. Predisposed Decision Model - the manager, once he or she decides on a
solution, will no longer look for other alternative solutions.

Popular Tools and Strategies in Decision-making

1. Market Research: What Do Customers Think?
Market research is the process of gathering information about a specific market,
with regards to the preferences of targeted clients or customers, including the size
of the market, the state of the market and of course the competitors.
Market research is an essential strategic planning tool because insight into the
needs of customers can help managers create a mission, goals and strategies that
better fulfill those needs.

2. Marginal Analysis or the Cost-Benefit Analysis

Marginal analysis weighs the benefits of an input or activity against the costs.
This type of analysis helps business leaders determine whether and activity or input
is providing the maximum return-on-investment (ROI).
Marginal analysis is an effective tool for decision-making because it takes
preferences, resources, and informational constraints into account, so managers can
make more optimal decisions based on this information.

3. SWOT Analysis
SWOT Analysis can help you identify the forces that influence a strategy, action,
or initiative. This information can then be used to guide you in the right direction and
support your business decisions.
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 Strengths are factors which the company holds expertise in and contribute to
the continued success of the organization. These are the basis for
the continued success of the organization and will assist in gaining
the
organization’s mission.
Weaknesses Weaknesses are factors that prevent an organization from meeting
its mission and achieving full potential. These weaknesses hamper
the organizational success and growth.
Opportunities The environment within which our organization operates offers
opportunities. An organization can identify such opportunities and
enjoy benefit arising from them by planning and executing required
strategies.
Threats Threats are factors existing in the external environment that
jeopardize the profitability and reliability of the organization. Such
threats are uncontrollable and prove to be a risk to the stability and
survival of the organizations.

4. Decision Matrix
A decision matrix is similar to a pros/cons list, but it allows you to place a level of
importance on each factor. That way, you can more accurately weigh the different
options against each other.
Decision Matrix Example:

In this example, a company is trying to decide about which vendor they should
work with for an upcoming project. The factors they are using to evaluate each
option are capabilities, reputation, reliability, and price.
They care more about the capabilities and price than the reputation and
reliability of the vendor, so they weighted the importance of those factors
accordingly. Based on the results from their decision matrix, they should be able to
confidently decide on Vendor 2.
Capabilities Reputation Reliability Price Totals
Importance 2 1 1 2
Vendor 1 8 3 3 7 36
Vendor 2 9 7 7 3 38
Vendor 3 2 6 9 8 35

5. Feasibility Study: Can We Do This?

A feasibility study or feasibility analysis is a business-planning tool that involves
assessing whether a certain project or goal can be created or achieved and whether
the project can make a profit.
A feasibility analysis can help entrepreneurs in the beginning planning stages of
launching a company decide whether to pursue a certain opportunity or not

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Take note:
Decision-making Techniques used by managers to help them choose among
alternatives and come up with the most favorable decision.
In some instances, it may be a combination of a couple of different strategies
that help them achieve the best results. What works for some organizations may not
work for others, and what works for making one decision may not work for the next.

THE DECISION-MAKING PROCESS

by Robbins and Coulter

• IDENTIFY THE PROBLEM. The problem may be defined as a

Step 1 puzzling circumstance or a discrepancy between an existing
and desired condition

• IDENTIFY THE DECISION CRITERIA. These are important or

Step relevant to resolving the identified problem.
2

• ALLOCATE WEIGHTS TO THE CRITERIA. This is done in

order to make the decision maker the correct priority in making
Step the decision.
3

• DEVELOP ALTERNATIVES.This step requires the decision-

maker to list down possible alternatives that could help resolve
Step 4 the identified problem.

• ANALYZE THE ALTERNATIVES. Alternatives must be carefully

evaluated by the decision maker using the criteria identified in
Step step 2.
5

• SELECT AN ALTERNATIVE. This is the process of choosing

the best alternative or the one which has the highest total
Step 6 points in Step 5.

• IMPLEMENT THE CHOSEN ALTERNATIVE. This step puts the

decision into action. Changes in the environment must be
Step observed and assessed, especially in cases of long-term
7 decisions, to see if the chosen alternative is still the best one.

Step
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•E e evaluation of the outcome or result of the decision to see if the
V problem was resolved. If the problem still exists, the manager
A has to assess what went wrong and ,if needed, repeat a step or
L the whole process.
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 WHAT’S MORE

Activity 2. Matching Game

Given the following situations, determine the appropriate planning techniques and
tools you should apply.

1. Being a proactive manager, your motto is to

always have Plan B, C and D just in case a. decision
matrix Plan A will fail.
2. You wanted to consider different factors in
choosing a distributor and rating them b.
benchmarking according to their level of importance is what
you believe suitable.
3. It is your dream to improve your milktea c. participatory
planning business just like how café in Cagayan de Oro
is doing.
4. Imagining unwanted challenges in the future
worries you a lot. So, you wanted to prepare d. contingency
plan for these possible future conditions and come-
up with several options.
5. Getting your colleagues involved in deciding e. scenario
planning what should be done, soliciting their brilliant
ideas and Commitment is what you really want.

WHAT I HAVE LEARNED

Following the decision-making process introduced by Robbins and Coulter,

give several alternatives, and formulate a decision on the situation given below.
Here’s the scenario:
Your friends came over to your house for a movie night. One of your friends
brought another friend so there are more people than you planned for. You want to
pass out the drinks, but you only have five cans of soda, and you need 6 for
everyone to have one. What could you do?

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 WHAT I CAN DO

Activity 3. Parents/Guardians Hotlines

Read and follow the instructions given below. Write your answers in a clean,
short bond paper.

Discuss with your parents/guardians what you have learned about our topic
for the day. Afterwards, ask them to share a real-life situation where their decision
making was tested.

Now, based on that situation shared by your parents/guardians, write down

suggestions and recommendations as to what techiques and tools should be applied
and explain why.

ASSESSMENT

Instructions: Read the statement given and provide the appropriate planning tools
and techniques necessary for a sound decision making. Write your answer in a
yellow paper.

1. Used this tool if you want to weigh different alternatives.

2. Allows members to give their own input based on an agenda.

3. An applicable technique in predicting what may happen in

the future.

4. You gather information and you always consider what

do customers think.

5. Conducting this, you need to consider both the internal

and external factors in doing business.

6. This is applicable if you want to weigh the benefits of an

input against the costs.

7. Considering different factors in choosing and rating

them according to their level of importance.

8. Having several alternatives in case the first of second option

will fail.

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9. Applied whenever there is a need to assess whether certain
project or goal can be created or achieved and can make
profit.

10. Engaging teammates to share creativity and ideas at the

same time gaining commitment to make things done.

ADDITIONAL ACTIVITIES

You are now done with the lesson for Module 6.

Congratulations and keep going!!!
It’s time to proceed to Module 7.

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REFERENCES:

Helena Ma. F. Cabrera, PhD, Anthony DC. Altarejos, PhD, and Riaz Benjamin, 2016,
Organization and Management, Textbook, Quezon City, Philippines:Vibal
Group, Inc.

Internet Sources:
SWOT
GregoryAnalysis
Hamel,| updated
Benefits,March
Limitation, Example
07, 2019, of SWOT Analysis
Decision-Making Tools & Techniques
(efinancemanagement.com)
for Strategic Planning How Are Projects Linked to Strategic Plans? (chron.com)
4 Tools & Techniques for Enhanced Decision-Making (idashboards.com)

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ANSWER KEY:

For inquiries or feedback, please write or call: Department of Education – Division of Misamis O
Office Address:Del Pilar corner Velez Street, Brgy. 29, Cagayan de
Oro City 9000
Telefax:(088) 881-3094 | Text: 0917-8992245 (Globe) E-mail Address:

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