Planning

Planning
Choosing a goal and developing a method of strategy to achieve that goal.

Why Do Managers Plan?

• Provides direction
• Reduces uncertainty
• Minimizes waste and redundancy
• Sets the standards for controlling.

How to Make a Plan That Works

1. Set Goals
2. Develop Commitment
3. Develop Effective Action Plans
4. Track Progress Toward Goal Achievement
5. Maintain Flexibility.

Setting Goals

1. Specific
2. Measurable
3. Attainable
4. Realistic
5. Timely.

Developing Commitment to Goals
The determination to achieve a goal is increased by:

• Setting goals participatory
• Making goals reasonable
• Making goals public
• Obtaining top management support.

Limits to Rational Decision Making
Bounded Rationality
A decision-making process restricted in the real world by:

• limited resources
• incomplete and imperfect information
• managers’ limited decision-making capabilities

Group Decision Making
Advantages

1. View problems from multiple perspectives
2. Find and access more information
3. Generate more alternative solutions
4. More committed to making chosen solutions work.

Disadvantages

1. Susceptible to groupthink and to considering a
2. limited number of solutions
3. Takes considerable time
4. One or two people can dominate group discussion
5. Members don’t feel personally accountable
6. for decisions and actions.

Groupthink
Groupthink is likely to occur when…

• The group is insulated from others with different
• perspectives
• The group leader expresses a strong preference
• for a particular decision
• There is no established procedure for defining
• problems and exploring alternatives
• Group members have similar backgrounds.