Foundation of planning

Identifying Opportunities and Diagnosing Problems

Decision makers must know where action is required.

clear identification of opportunities or the diagnosis of problems that require a decision.

Set Objectives and Criteria

objectives will ultimately guide the decision maker in selecting the appropriate course of action.

results the organization wants to attain.

Objectives may be measured along a variety of dimensions.

profit or cost objectives

measured in monetary
units,

productivity objectives

units of
output per labor hour,

quality objectives

defects per million units produced.

Criteria

Must

Want

Generate Alternatives

involves the generation of alternatives, which are strategies that might be implemented in the decision-making situation.

Select the Most Feasible Alternative

assess the value or relative
advantages and disadvantages

Predetermined decision criteria, such as the quality desired,anticipated costs, benefits, uncertainties.

Implement the Decision

Success or failure

Putting the chosen alternative into action.

The keys to effective implementation are

sensitivity to those who will be affected by the decision

proper planning and consideration

Control the Results

Structured problems

Midle Level Management

Lower Level Manegement

Unstructured problems

Top Level Management