1. INTRODUCTION TO MANAGEMENT
Subarjo Joyosumarto SE, MA, Ph.D
23 Januari 2017
Meeting 4: Overview of Meeting 3
Chapter 8. Foundations of Planning

2. Overview of Meeting 3

3. DECISION-MAKING PROCESS1.
Identifying a Problem 8.
Evaluating Decision Effectiveness 2.
Identifying a Decision Criteria
THE DECISION MAKING PROCESS 7.
Implementing the Alternative 3.
Allocating weights to Criteria 6.
Selecting an Alternative 4.
Allocating weights to Criteria 5.
Analyzing Alternatives
DECISION : a choice among two or more alternatives

4. DECISION-MAKING PROCESS
Step 1: Identifying Problem
Problem :
Is a discrepancy between existing and desired condition
Becomes an obstacle that makes it difficult to achieve desired goals or purpose
Managers have to identify :
What's happening
Why it happens 4 1.
Identifying a Problem 2.
Identifying a Decision Criteria 3.
Allocating weights to Criteria 4. 5.
Analyzing Alternatives 6.
Selecting an Alternative 7.
Implementing the Alternative 8.
Evaluating Decision Effectiveness
THE DECISION MAKING PROCESS
DECISION : a choice among two or more alternatives
Eg. Amanda is a sales manager
Sales have declined, the laptops have been outdated and inadequate for doing their jobs
Her group need new laptops

5. DECISION-MAKING PROCESS
Step 2: Identifying Decision Criteria
Decision criteria is criteria that defines what’s important or relevant to resolving a problem
E.g. Amanda identifies that for the laptops:
storage capabilities,
display quality,
battery life,
warranty,
carrying weight
are relevant criteria in her decision 5 1.
Identifying a Problem 2.
Identifying a Decision Criteria 3.
Allocating weights to Criteria 4. 5.
Analyzing Alternatives 6.
Selecting an Alternative 7.
Implementing the Alternative 8.
Evaluating Decision Effectiveness
THE DECISION MAKING PROCESS
DECISION : a choice among two or more alternatives

6. DECISION-MAKING PROCESS6 1.
Identifying a Problem 2.
Identifying a Decision Criteria 3.
Allocating weights to Criteria 4. 5.
Analyzing Alternatives 6.
Selecting an Alternative 7.
Implementing the Alternative 8.
Evaluating Decision Effectiveness
THE DECISION MAKING PROCESS
DECISION : a choice among two or more alternatives
Step 3: Allocating Weights To The Criteria
The relevant criteria aren’t equally important, the decision maker must weigh the items in order to give them the correct priority in the decision
E.g. Amanda gives weight to the criteria as follows:
Memory and storage 10
Battery life 8
Carrying weight 6
Warranty 4
Display Quality 3

7. DECISION-MAKING PROCESS7 1.
Identifying a Problem 2.
Identifying a Decision Criteria 3.
Allocating weights to Criteria 4. 5.
Analyzing Alternatives 6.
Selecting an Alternative 7.
Implementing the Alternative 8.
Evaluating Decision Effectiveness
THE DECISION MAKING PROCESS
DECISION : a choice among two or more alternatives
Step 4: Developing Alternatives
Decision maker makes a list of viable alternatives that could resolve the problem.
The alternatives are only listed, not evaluated yet
E.g. Amanda makes a lists of alternatives:
Company
Memory and storage
Battery life
Carrying weight
Warranty
Display quality
HP ProBook 10 3 8 5
Dell Inspirion 7 6
Lenovo
Apple

8. DECISION-MAKING PROCESS8 1.
Identifying a Problem 2.
Identifying a Decision Criteria 3.
Allocating weights to Criteria 4. 5.
Analyzing Alternatives 6.
Selecting an Alternative 7.
Implementing the Alternative 8.
Evaluating Decision Effectiveness
THE DECISION MAKING PROCESS
DECISION : a choice among two or more alternatives
Step 5: analyzing Alternatives
Evaluate each one alternative, by using criteria established in step 3, multiply by weight on step 4
E.g. Amanda makes a lists:
Company
Memory and storage
Battery life
Carrying weight
Warranty
Display quality
Total
HP ProBook
100 24 60 32 15
231
Dell Inspirion 56 48 21
249
Lenovo 80 40 42 30
232
Apple

9. DECISION-MAKING PROCESS9 1.
Identifying a Problem 2.
Identifying a Decision Criteria 3.
Allocating weights to Criteria 4. 5.
Analyzing Alternatives 6.
Selecting an Alternative 7.
Implementing the Alternative 8.
Evaluating Decision Effectiveness
THE DECISION MAKING PROCESS
DECISION : a choice among two or more alternatives
Step 6: Selecting an Alternative
Choose the best alternative or the one that generated the highest total in step 5
E.g. Amanda choose the Dell inspiron because it score highest among all other alternatives (249 total)

10. DECISION-MAKING PROCESS10 1.
Identifying a Problem 2.
Identifying a Decision Criteria 3.
Allocating weights to Criteria 4. 5.
Analyzing Alternatives 6.
Selecting an Alternative 7.
Implementing the Alternative 8.
Evaluating Decision Effectiveness
THE DECISION MAKING PROCESS
DECISION : a choice among two or more alternatives
Step 7: Implementing the Alternative
Make the decision in step 6 into action, by conveying it to those affected and getting their commitment to it.
Make sure that people participate in the process and support it.
Re-asses the environment for any changes, especially if it is a long-term decision

11. DECISION-MAKING PROCESS11 1.
Identifying a Problem 2.
Identifying a Decision Criteria 3.
Allocating weights to Criteria 4. 5.
Analyzing Alternatives 6.
Selecting an Alternative 7.
Implementing the Alternative 8.
Evaluating Decision Effectiveness
THE DECISION MAKING PROCESS
DECISION : a choice among two or more alternatives
Step 8: Evaluating Decision Effectiveness
Evaluate the outcome or results of the decision to see whether the problem was resolved
If the evaluation shows that the problems still exist, the manager needs to assess what went wrong
The answer might lead the manager to redo an earlier step (back to step one)

12. OVERVIEW OF DECISION MAKING

13. CHAPTER 8. FOUNDATIONS OF PLANNING

14. WHAT IS PLANNING
PLANNING Is defining organization’s goal, establishing strategies for achieving those goals, and Developing plans to integrate and coordinate work achievement

15. WHY DO MANAGERS PLAN? Four reasons:
Planning provide directions to manager and non manager:
What are they trying to accomplish,
What they must contribute to each goal
Coordinate activities
Cooperate with each others
Planning reduces uncertainty
Force managers to look ahead
Anticipate change
Consider the impact of change
Develop appropriate responses

16. WHY DO MANAGERS PLAN? Planning minimize waste and redundancy
Work activities are coordinated around plans
Inefficiencies because obvious, and can be corrected or eliminated
Planning establishes the goals or standards used in controlling
Managers can control and see whether the plans have been carried and to meet the goals

17. GOALS AND PLANS GOALS (OR OBJECTIVES) Are desired outcomes or targets,
Goals guide management decisions,
And forms the criteria against work result
PLANS
Are documents that outline how goals are going to met
Includes resource allocations, schedule, and other necessary actions to accomplish the goals

18. TYPE OF GOALS STATED GOAL REAL GOAL
Official statements of what an organization says and what it wants its various stake holders to believe, it goals are
REAL GOAL
Goals that an organization actually persues, as defined by the actions of its members

19. TYPE OF PLANS

20. TYPE OF PLANS STRATEGIC PLANS OPERATIONAL PLANS LONG-TERM PLANS
Plans that apply to the entire organization and establish the organization overall goals
OPERATIONAL PLANS
Plans that encompass a particular operational area of the organization
LONG-TERM PLANS
Time frame beyond 3 years
SHORT-TERM PLANS
Time frame one year or less

21. TYPE OF PLANS SPECIFIC PLANS DIRECTIONAL PLANS
Plans that are clearly defined and leave no room for interpretation
DIRECTIONAL PLANS
Plans that are flexible and set out general guidelines

22. GOAL SETTING

23. PLANNING AND ORGANIZATIONAL LEVEL

24. QUESTIONS FOR DISCUSSIONS
What is planning? What do managers plan?
Discuss the variety of types of plans.
What is goal setting?
Explain how several level of management make goal setting

25. Thank You