Planning and Decision Making Flashcards
Define planning
A management function that involves defining goals, establishing strategies to achieve those goals and coordinate activities
What is the difference between a goal and a plan?
A goal is a desired outcome, whereas a plan is a document on how goals are to be accomplished
What are the types of goals?
Stated vs real
What are the types of plans?
Breadth (strategic or operational), time frame (long or short term), specificity (directional or specific) and frequency of use (single use of standing)
What are the steps in goal setting?
1) review the organisations mission
2) evaluate the available resources
3) determine the goals individually or with input
4) write down the goals and communicate with those who need to know them
5) review results to determine if goals are being met
What is management by objectives (MBO)?
Setting mutually agreed upon goals and using them to evaluate employee performance
What are four elements to MBO programs?
Goal specificity, participative decision making, explicit time frame and performance feedback
What are some characteristics of well designed goals?
Written in terms of outcomes rather than actions, measurable and quantifiable, clear as to a time frame, challenging yet attainable, written done and communicated to necessary members.
What are the three contingency factors that affect planning?
Level in the organisation, degree of environmental uncertainty and length of future commitments
What are the steps in the decision-making process?
1) identification of the problem
2) identification of decision criteria
3) allocation of weights to criteria
4) develop alternatives
5) analysis of alternatives
6) selection of alternatives
7) implementation of alternatives
8) evaluate decision effectiveness
What is bounded rationality?
Decisions made within the parameters of a simplified model that captures the essential features of a problem
