5.pdf - Basic Elements of Planning and Decision Making Decision Making and the Planning Process Decision making is the cornerstone of planning Basic

5.pdf - Basic Elements of Planning and Decision Making...

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Basic Elements of Planning and Decision Making Basic Elements of Planning and Decision Making Decision Making and the Planning Process Decision making is the cornerstone of planning Decision making is the catalyst that drives the planning process. Decision making underlies every aspect of setting goals and formulating plans. The planning process itself can best be thought of as a generic activity. All organizations engage in planning activities, but no two organizations plan in exactly the same fashion. Decision Making and the Planning Process The planning process takes place within an environmental context. Managers must develop a complete and thorough understanding of this context to determine the organization’s mission and to develop its strategic, tactical, and operational goals and plans. Understanding the environment is essentially the first step in planning. If managers do not understand the context, they will be unable to develop effective plans Basic Elements of Planning and Decision Making Decision Making and the Planning Process Basic Elements of Planning and Decision Making
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Decision Making and the Planning Process The mission outlines the organization’s purpose, premises, values, and directions. Flowing from the mission are parallel streams of goals and plans. Directly following the mission are strategic goals. These goals and the mission help determine strategic plans. Strategic goals and plans are primary inputs for developing tactical goals. Tactical goals and the original strategic plans help shape tactical plans. Basic Elements of Planning and Decision Making Decision Making and the Planning Process Tactical plans, in turn, combine with the tactical goals to shape operational goals. These goals and the appropriate tactical plans determine operational plans. Finally, goals and plans at each level can also be used as input for future activities at all levels. Basic Elements of Planning and Decision Making Organizational Goals Basic Elements of Planning and Decision Making Purposes of Goals Goals provide guidance and a unified direction for people in the organization. Goals can help everyone understand where the organization is going and why getting there is important. 1 Goals serve four important purposes. Organizational Goals Basic Elements of Planning and Decision Making Purposes of Goals Goal-setting practices strongly affect other aspects of planning. Effective goal setting promotes good planning, and good planning facilitates future goal setting. 2 Goals serve four important purposes.
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Organizational Goals Basic Elements of Planning and Decision Making Purposes of Goals Goals can serve as a source of motivation for employees of the organization. Goals that are specific and moderately difficult can motivate people to work harder, especially if attaining the goal is likely to result in rewards.
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  • Winter '16
  • Fred R. David
  • Management

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