The Role of Manager in an Organization Planning and Decision Making Process (Steps In Decisions Making Process)

Introduction

Here we study the role of manager in an organization planning and decision making process (Steps In Decisions Making Process). Firstly, we start from planning. Planning involves defining the organization's goals, establishing an overall strategy for achieving those goals, and developing plans for organizational work activities. In any organization or company, planning is the first phase of management that has to be made by professional managers. This phase is very important to any company as well to managers because many different planning functions and each planning function create a standard for each of its employees to follow.

Why Managers Plan

Planning and Performance

Ø To plan because they must provide their business with specific regulations and schemes to succeed

Ø To insure success

Ø To know how to run the business in the most efficient and in the right    manner possible

Planning Features

Ø Planning provides directions

Ø Planning reduces the risks of uncertainty

Ø Planning reduces overlapping and wasteful activities

Ø Planning promotes innovative ideas

Ø Planning facilitates decision making

Ø Planning establishes standards  

Ø Planning focuses on achieving objectives

Ø Planning is a primary function of management

Ø Planning is pervasive

Ø Planning is continuous

Ø Planning is futuristic

Ø Planning involves decision making

Ø Planning is a mental exercise

Steps In Decision Making (Planning) Process

Here is the planning process which a manager must follow to achieve its targets and gain success in the organization.

  v  Setting objectives: 

Objectives may be set for the entire organization and each department or unit within the organization. Identify the problems and opportunities in order to solve or avail these at the end.

  v  Developing premises: 

Planning is concerned with the future which is uncertain and every planner is using conjuncture about what might happen in future. Gather information about the reasons of problems and their solutions. Collect the data about the new opportunities in order to explore them and how to select the right opportunity plan to implement which is the best optimum of all available opportunities.

  v  Identifying alternative courses of action: 

Once objectives are set, assumptions are made. Then the next step would be to act upon them by selecting different possible alternative solutions to the problems or different ways to explore a new opportunity.

  v  Evaluating alternative courses: 

The next step is to weigh the pros and cons of each alternative. See which solution selected is the best or which opportunity you choose lead to the desired end set in the whole planing process right from 1 to 3 steps.

  v  Selecting an alternative: 

This is the real point of decision making. The best plan has to be adopted and implemented. You can also choose 2 to 3 best solutions as an alternatives so that if one plan would fail then other solution is available to control the situation. Similarly, 2 to 3 opportunities must be selected to explore as an alternative to choose any one of these in case of failure.

  v  Implement the plan: This is concerned with putting the plan into action. Implement the selected solution to see it works. Utilize the opportunity to see the best outcome it can give you or not.

  v  Follow-up action: 

Monitoring the plans are equally important to ensure that objectives are achieved. Review you decisions plans periodically. Take necessary changes, if necessary, to get better results from the selected solutions to the problems or opportunity to lead to organization goals set in the step 1.

Planning involves 

Ø Goals

Ø Plans

Goals

                       

Ø Desired outcomes

Ø Desired Targets

Ø plans and commits

Goals help managers in making correct decisions and set criteria for judging the performance of works done. In fact goals are:

FOUNDATION OF PLANNING

Types of Goals

There are many goals for a manager but following are most important for a manager to plan successfully and achieve the targets.

Ø Achievement Goals

Ø Action Goals

Ø Limit Goals

Ø Rate Goals

Ø Incredible Goals

Ø Exclusion Goals

Ø Performance Goals

Ø Achievement Goals

 These describes the results which you achieve the goals.

Example

Retire with a million dollars at age 65.

Ø Action Goals

These goals mean that you have to take specific actions to achieve the targets.

                              Example: Attend a workshop to learn new job skills 

   

Ø Limit Goals

      These set boundaries, that is why these are limited in nature.

Example:  Spend less than Rs.5000 on new equipment; go to bed before 12 PM each night

Ø Rate Goals

     The goals that define the repeated actions done over a period of time.

Example: Read two books per month and exercise three times per week

Ø Incredible Goals

       These goals are highly optimistic and aggressive in nature.

Example: Become President of a major corporation and win a Nobel Prize

Ø Exclusion Goals

         These specify the tasks you need not to do.

                     Example: Do not use a cell phone during the meeting

Ø Performance Goals

      To get a particular target.

Example: To get scholarship in the university

Types of Plans

ü  Start-up Plan

     It defines steps for starting up the new task or business.

     It includes:

  Company

  Product

  Service

  Strategy

ü  Operational Plans

     The expected results expected from departments, work groups and individuals. These are those goals that managers use to accomplish their job responsibilities. These are:

v  Measurable

v Precise

 Example: Process 150 sales applications each week.

Types of Operational Plans

§ Single-use plans

§ Continuing or ongoing plans

Ø  Single-use Plans

v These plans are applied to activities that are repeated

Example:

Ø A budget is a single use plan because it predicts the sources and amount of money for a specific period of time

Ø Continuing or ongoing Plans

v  These plans are made once and retain their value over a period of time and require revisions and new updates.

Example:

Ø A policy which is made to provide the guidelines to managers for daily routine job relate responsibilities.

  ü  Strategic Plans

Ø  Plan that is designed to achieve the goals of the entire organization as a

whole

Ø   Ignore the goals of specific divisions or departments

Example:

Ø  Top management plan that becomes the overall plan for the entire organization

  ü  Contingency Plans

        

Ø  These Plans depend upon conditions so these can be change according to situation

Approaches to Setting Goals

There are three common approaches to setting goals that a manager can adopt in the organization

Ø Top-down approach

Ø Bottom-up approach

Ø Interactive approach

v Top-down approach

·   Begins at the top of the organization

·   Management by objectives (MBO) is a commonly-used top-down approach

·   Focuses on coordinating goal setting, incentives, and feedback

·   approximately 50 percent of large organizations currently use or have used MBO

v Bottom-up approach

   Begins at the lower levels of the organization

   Individual set goals directed from upper level

   flexible and reflect the current situation of the organization

Ø Interactive approach

ü It is a process by which employees at different levels of the organization participate in developing goals and objectives

ü begin by developing a mission statement

ü consensus of many different levels of management and frontline employees

ü involves discussion and cooperation among management and employees

ü Goals are more realistic and current 

So, the Role of Manager in an Organization Planning and Decision Making Process is very important for the success for the organization.