PLANNING

DECISION MAKING

Concepts
What is decision making? Decision making is the act/process of choosing one alternative course of action from among a set of alternatives. Types of Decisions Programmed decision. Unprogrammed decision

Decision Making Process

Defining Problem

Develop Premises
Identify alternatives Solutions

Evaluate alternative
Choose the best alternative

Decision Making Continues

Factors for evaluating and choosing alternative solution

Feasibility. Quality. Acceptability. Costs. Reversibility. Ethics. Risks.

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Conditions of decision making State of Certainty. State of Uncertainty. State of Risk. When to take Decision Large involvement of fund. Inflexible course of action. Highly uncertain goals and premises. Great impact on people. Inputs are difficult to quantify.

Management by Objectives -Peter Drunker

What is an Objective? An objective is the ends toward which organizational and individual activities are committed and directed. Features of Objectives. Measurability. Time bound. Challenging. Attainable. Relevant. Specific. Multiplicity.

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Definition of MBO. MBO is a process through which specific goals are set collaboratively for the organization as a whole and every unit and individual within it and that goals are used as a basis for planning, managing organizational activities and assessing and rewarding contributions. Bartol and Martin.

MBO Continues
Start MBO Program Establish Organizational Goals and Plans. Collaborative goal setting and planning Communicating goals and Meeting Counseling Resourcing Plans to executing unites Periodical Review

Evaluation

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Elements of MBO Top level Commitment to the MBO. Participation. Top and individual levels goal setting. Autonomy of implementing units. Systems approach. Periodical performance review.