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Unit -2 PLANNING :

The Meaning. . . .
It

is beginning of PROCESS OF MANAGEMENT It is an intellectual process, that manager has to think before acting.

The Meaning. . . .
It is thinking in advance, what is to be done Depending on the goal to peruse, the plan has to be set or taken into consideration

Essential Features : 1.It is a Continuous Process Ex.- Manager constantly watching the progress of the plans, to constantly monitor conditions, for the cencessory actions required in the plan
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Essential Features :
2. It should be Flexible Ex.- Following the plans, the manager of the comapanytaking necessory actionmay have to suddenly divert the plans as required in business trends or fashions as time changes.
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Essential Features :
3. It is an all Pervasive Action or function Ex.- Even though all managers are involved for the realization of plan only, but duration for each manager varies depending on his level.Top Level concerned with long-term may be one financial year or so & FirstLevel concerned with short term may be day-to-day plan.
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Focuses

on Organization goals Minimizes risks and uncertainity Leads to Success Facility Control Trains Executives
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Forms of Planning :

Planning

Strategic

Tactical

Decision Making!!!
One of the important point of the modern

management. Here it is described how managers can go about reaching a good decision to achieve the main goals of an organization. The Manager has to decides What to, Where to, When to etc., about his plans come true. Decisions with favorable conditions will always give a good result.

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Why Decisions.
Few more context for the word DECISION are, 1) When manager decides based on some

deliberate logic 2) When there are alternatives for a plan 3) When there is peculiar purpose in mind to accomplish a plan

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The Decision varies in different ways,


Pragmatic & /Non-Pragmatic Programmed/Non-Programmed Individual/Group

Decisions
Simple/Complex
Major/Minor

Routine/Strategic

Temporary / Permanent

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Major and Minor Decision It is defined as,

When there is comparisons of the decisions to me made II. When there is a relative significance of any decision has to be made, III. There are four ways to categorize this decision based on the required context.
I.

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Major and Minor Decision

Degree of Futurity of Decision

Impact of decision of functional area

Quality Factor that affect

Recurrence of decision

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Routine & Strategic Decisions It is defined as, I. II. III. IV. V.

Decisions that are supportive of, rather than central to the companys operations They relate to the present Achieving high degree of efficiency as much as possible Routine decisions are taken by managers at lower level, which are of short term plans Strategic decisions are taken by managers at higher level, which are of long term plans

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Pragmatic It is defined as,

Decisions taken under the purview of procedures rules and policies II. They are repetitive in nature Examplea. Permission to attend office late by few hours b. Placing purchase order Non-Pragmatic These are strategic and taken at high level only.
I.

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Temporary It is defined as,

Decisions taken depending on the situation till the solution is found II. Duration not known Permanent since the situation is of continuous process and decisions needed are permanent
I.

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Individual & Group Dicisions The relevant

definitions are as follows, I. Decision taken independently by a manager, which are of Routine type called as Individual decisions II. Decisions made by the leading group members and of Strategic type involves high level of management called as group decisions III. There are some advantages and disadvantages of group decisions.

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Advantages of Group Decisions I. Increased acceptance II. Easier coordination III. Easier communication IV. More information Disadvantages of Group Decisions I. Take longer time II. These Can be indecisive III. Groups can compromise or Dominate IV. Groups are committed to particular solution

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Simple and Complex The relevant definitions

are as follows, I. The decision in which the problem is simple but out come has high degree of uncertainty II. The decision in which the problem is simple but out come has high degree of certainty III. The decision in which the problem is complex but out come has high degree of certainty IV. The decision in which the problem is complex but out come has high degree of uncertainty

Steps in decision making


1. Recognition of the problem 2. Deciding priorities among problems 3. Problem diagnostics 4. Development of the (alternative) solutions 5. Study and compare alternatives 6. Implement decision into action 7. Analyze the results

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