1. Planning
&
Decision making
In managerial process
by:
MAAZ
MBA (3rd
Semester: Fall-2010)
ID# 9702
Iqra University
Peshawar Campus
Subject : Principles Of Management

2. Topic of Presentation:
Planning
&
Decision making
In managerial process

3. Management:Management:
The attainment of organizational goals inThe attainment of organizational goals in
an effective and efficient manner throughan effective and efficient manner through
planning, organizing, leading, andplanning, organizing, leading, and
controlling organizational resourcescontrolling organizational resources
Organization:Organization:
A formally structured collection ofA formally structured collection of
individuals working toward commonindividuals working toward common
(shared) goals.(shared) goals.

4. Management SkillsManagement Skills
 Conceptual SkillsConceptual Skills : cognitive ability to see the: cognitive ability to see the
organization as a whole and the relationshiporganization as a whole and the relationship
among its partsamong its parts
 Human SkillsHuman Skills : ability to work with and through: ability to work with and through
other people and to work effectively as a groupother people and to work effectively as a group
membermember
 Technical SkillsTechnical Skills : understanding of and: understanding of and
proficiency in the performance of specific tasks.proficiency in the performance of specific tasks.

5. How Do You Learn to Manage?How Do You Learn to Manage?
50% from job experience50% from job experience
30% from other persons30% from other persons
20% from education & training20% from education & training

7. Managerial Function;PLANING
What is Planning?
 Planning involves in defining the
organization goal (what to be done)
and establishing strategies (how to be
done) to achieve sited goal.
 Some time it is also called primary
managerial function.

8. Why Planning Is Necessary ?
1 ) Provide Direction:
What the organization want to
accomplish and how to reach the
establish /sited goals.
By planning a clear direction comes
that to be follow, in order to reach
and achieve goal.

9. Contin..
2) Reduce Uncertainty:
 Planning reduce uncertainty by look
ahead to anticipate changes
 manager can estimate their consider
impact of changes and then they can
develop response to these changes.

10. Continu..
3) Minimizes waste and redundancy:
When work activities are coordinated
around established plans redundancy
can be minimized.
4) Provide ability in controlling:
Planning helps in controlling and
monitoring the work that either this
works is on its right path or not.

11. The Decision Making Process.
What is decision?
 Decision means “choosing among
alternative”
 “Choosing among alternatives “ is
done through a proper procedure
Which is called “decision making
process”.

12. Who make the decisions?
 Managers are responsible to makes
the decisions.
 They include all the three levels of
managers:
Top level managers
Middle level managers
lower level/1st
line Managers.

13. Contin…
 Top level manager:
Take decisions like product type,
manufacturing location etc
 Middle & lower level manager:
Decisions include quality problems
pay rising etc.

15. MANAGEMENT LEVELS AND TIME SPENTMANAGEMENT LEVELS AND TIME SPENT
ON FUNCTIONSON FUNCTIONS
Planning &Planning &
decision. Organ. Lead. Control.decision. Organ. Lead. Control.
Top 28% 36% 22% 14%Top 28% 36% 22% 14%
Middle 18% 33% 36% 13%Middle 18% 33% 36% 13%
Lower 15% 24% 51% 10%Lower 15% 24% 51% 10%

16. Decision Situations
 Programmed decision:
 A decision made in response to a
situation that is routine or recurring.
 Example: starting your automobile
 Nonprogrammed decision:
 A decision made in response to a
situation that is unique, unstructured, or
poorly defined.
 Example: deciding to get latest
machinery for organization

17. Steps for Decision making
process
Step1: Identifying and defining the
situation:
 Stimulus indicates that decision must
be made. stimulus may be positive or
negative
 Example: Plant manager see that
employee turnover is increasing by
5%

18. Contin..
2nd
step: Identifying alternatives:
 More important the situation more
alternatives should be generated.
 Example: Manager can increase
wages, increase benefits or change
hiring standards.

19. Contin..
3rd
step: Evaluating alternatives:
 Alternatives are evaluated to find out
feasibility, satisfaction and
affordability of alternative.
 Example: increasing benefits may not
be feasible. Increasing wages and
changing hiring standards may satisfy
the conditions.

20. Contin..
4th
step: Selecting best alternative:
 Considering all the situational factors
choose the best alternative that fits
the situation.
 Example: Increase in wages is the
best one because changing hiring
standard will take longer period to cut
turn over

21. Contin..
5th
step: Implementing the chosen
alternative:
 The chosen alternative is implemented
in organizational system.
 Implementation includes planning
organizing, leading& Controlling
 Example: Now the human resource
deport establishes a new wage
structure.

22. Contin..
6th
step: Evaluating the result:
 Evaluating the result makes Sure that
problem has been solved.
 Example: Plant manger notes that
after six months turnover drops to its
previous level.

23. References
“Management” by Griffin.
“Management” by Stepen P. Robbin.
www.wikipedia.org