OrgMan - Week 5 - Tools in Business Decision

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NAME:__________________________________________

GRADE/SECTION:______________________________
11/12

ORGANIZATION AND MANAGEMENT


Quarter III – Week 5
Appropriate Planning, Techniques
and Tools in Business Decision
Making

CONTEXTUALIZED LEARNING ACTIVITY SHEETS


SCHOOLS DIVISION OF PUERTO PRINCESA CITY
Organization and Management – Grade 11/12
Contextualized Learning Activity Sheets (CLAS)
Quarter III - Week 5: Appropriate Planning, Techniques and Tools in Business
Decision Making
First Edition, 2020

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Lesson 1
Appropriate Planning, Techniques
and Tools in Business Decision Making

MELC: Apply appropriate planning, techniques and tools in business decision making.
(ABM_AOM11-Ia-b-3 (Week- 5)
Objectives:
1. Identify what is appropriate planning.
2. Discuss planning techniques and tools in business decision making.
3. Apply appropriate planning, techniques, and tools in business decision making.

Let’s Try
Directions: Read each question carefully. Write the letter of the correct answer on the space
provided before each number.

_____1. Which of the following planning techniques that attempt to predict what may
happen in the future of business operation?
A. Controlling C. Organizing
B. Marketing D. Forecasting
_____2. What types of planning techniques that involve comparison of company’s
practices/technologies with those of other companies?
A. Goal - Setting C. Fast track plan
B. Benchmarking D. Simple plan
_____3. Which statements BEST describes about forecasting?
A. Sta Monica group of company is projecting its economic profit with 80%
higher compared from last 5 years ago actual operation performance.
B. Sta Monica group of company is looking backward and analyzing their
previous failure of operation.
C. Sta Monica group of company compares their operation with their nearest
competitors for reference in decision making.
D. Sta Monica group of company decides with any techniques they only rely
in their daily operation.
______4. Which of the following is NOT a forecasting types of planning techniques in
business plan?
A. Prognostication C. Estimating
B. Prediction D. Evaluation
______5. Which of the following statement is NOT CORRECT?
A. Benchmarking generally involves external comparisons of company’s
practices and technologies with those of other companies.
B. All types of planning must use a forecasting technique.
C. Many companies know how to plan but they couldn’t execute their plan
D. Contingency plan must be prepared by managers, ready for
implementation when things do not turn out as they should be.
____6. What type of plan must be prepared by managers, ready for implementation when
things do not turn out as they should be?
A. Operational Plan C. Benchmarking
B. Contingency Plan D. Forecasting

1
______7. What type of decision making that is repetitive and can be handled using a
routine approach?
A. Decision making
B. Contingency Plan
C. Structured or Programmed Decision
D. Forecasting
____8. Which of the following planning techniques that begin with problem identification
and ends with the evaluation of implemented solutions?
A. Decision-making C. Short-Term Plan
B. Specificity D. Pure Plan
______9. Which of the following statement is NOT CORRECT?
A. Identify the problem; The problem may be defined as a puzzling
circumstance or a discrepancy between an existing and a desired
condition.
B. Identify the Decision Criteria, these are important or relevant to resolving
the identified problems.
C. Every company has no identified problem to tackle about.
D. Allocate weights to the criteria; This is done to give the decision maker
the correct priority in making the decision.
______10. What type of decision-making condition, that ideal in deciding problems, a
situations in which a manager can make precise decision because the results of
all alternatives are known?
A. Identify the problem C. Identify the decision Criteria
B.Implement the Chosen D. Certainty Condition

Let’s Explore and Discover


Have you ever tried to make/prepare a simple business
Unlocking
plan? or any plan that might change your future or may
of Difficulties
affect your career as a student. Look at your surrounding
• Trigger Point- change and find out small and large business/organization and
in an attribute, think how and what appropriate planning techniques they
condition, factor, have to come up with accurate decision making.
parameter, or value
that represents Planning Techniques and Tools and their Application
crossing a threshold
and actuates or a. Forecasting - an attempt to predict what may happen
initiates a mechanism in the future all planning types without exception, make
or reaction that may use of forecasting. Business periodicals publish
lead to a radically forecasts such as employment and unemployment
different state of affair. rates, increase or decrease of interest rate.
b. Benchmarking - planning technique that involves comparison of company’s
practices/technologies with those of other companies. The main purpose is to find out
what other people and organizations do well and then plan how to incorporate these
practices into the company’s operations.
c. Contingency plans – must be prepared by managers, ready for implementation when
things do not turn as they should be. Contingency factors called “trigger points”
indicate when the prepared alternative plan should be implemented.

2
d. Decision-making- is a process which begins with problem identification and ends with
the evaluation of implemented solutions.
Types of Decision
Structured or Programmed Decision- a decision that is repetitive and can be handled
using a routine approach. Such repetitive decision applies to resolving structured problems
which are straightforward, familiar, and easily defined. For example, a restaurant customer
complains about the dirty utensils the waiter has given him. This is not an unusual
situation, and therefore, standardized solutions such a problem may be readily available.
Unstructured or non-programmed decisions- applied to the resolution of problems that
are new or unusual, and for which information is incomplete. Such nonprogrammed
decision are described to be unique, nonrecurring and need custom-made decision. For
example, a hotel manager is asked to decide regarding the building of a new hotel branch
in other another city to meet the demands of businessmen there, needs unrestructured or
nonprogrammed decision to resolve it.
Types of Decision-making Condition
a. Certainty condition- Ideal conditions in deciding problems; these are situations in
which a manager can make precise decision because the results of all alternatives
are known.
b. Risk or uncertainty conditions- a more common condition in deciding problems.
Risk or uncertainty conditions compel the decision maker to do estimates regarding
the possible occurrence of certain outcomes that may affect his or her chosen
solution to a problem.

Let us look at the steps on decision-making process according to Robbins and Coulter.

Step 1: Identify the Problem- The problem may be defined as a puzzling


circumstance or a discrepancy between an existing and desired condition.
Step 2: Identify the Decision criteria- These are important or relevant to resolving
the identified problem.
Step 3: Allocate Weights to the Criteria- This done to give the decision maker the
correct priority in making the decision.
Step 4: Develop Alternatives – This step requires the decision maker to list down
the possible alternatives that could help resolve the identified problem.
Step 5: Analyze the Alternatives – Alternatives must be carefully evaluated by the
decision maker using the criteria identified in Step 2
Step 6: Select Alternative – this is the process of choosing the best alternative or
the one which has the highest total points in Step 5.
Step 7: Implement the Chosen Alternative – this step puts the decision into action.
Changes in the environment must be observed and assessed, especially in cases of
long-term decisions, to see if the chosen alternative is still the best one.
Step 8: Evaluate Decision Effectiveness – This is the last step and involves the
evaluation of the outcome or result of the decision to see if the problem was
resolved. If the problem still exists, the manager has to assess what went wrong
and, if needed, repeat a step or the whole process.

(Source: Helena Ma. F. Cabrera, Antony DC. Altarejos, and Riaz Benjamin, Organization and
Management Textbook, Pasig City: Vibal Group Inc., 2016, 40-44.)

3
Let’s Practice

Directions: Read each question carefully. Write the letter of the correct answer inside
the circle provided before each number.

A. change in an attribute, condition, factor,


parameter, or value that represents crossing
1. Trigger Point
a threshold and actuates or initiates a
mechanism or reaction that may lead to a
radically different state of affair.
B. planning technique that involves
comparison of company’s
2. Risk or uncertainty practices/technologies with those of other
conditions companies. The main purpose is to find out
what other people and organizations do well
and then plan how to incorporate these
practices into the company’s operations.
C. is a process which begins with problem
identification and ends with the evaluation of
3. Contingency plans
implemented solutions.
D. must be prepared by managers, ready for
implementation when things do not turn as
4. Benchmarking
they should be. Contingency factors called
“trigger points” indicate when the prepared
alternative plan should be implemented.

E. ideal conditions in deciding problems;


these are situations in which a manager can
5. Decision-making
make precise decision because the results of
all alternatives are known.
F. a more common condition in deciding
problems. Risk or uncertainty conditions
6. Certainty condition compel the decision maker to do estimates
regarding the possible occurrence of certain
outcomes that may affect his or her chosen
solution to a problem.

4
Directions: Match column A to column B just draw a line that will connect the words
in appropriate statement

Column A Column B
The problem may be defined as a
Identify the Decision puzzling circumstance or a
Criteria discrepancy between an existing
and desired condition.

These are important or relevant


Develop Alternatives
to resolving the identified
problem.

This is a process which begins


Decision-making with problem identification and
ends with the evaluation of
implemented solutions.

This step requires the decision


Identify the Problem maker to list down the possible
alternatives that could help
resolve the identified problem.

Which of the four appropriate planning techniques is most effective in business


operation and why? (Explain Briefly)
____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

Why is it important to follow the step by step when you are making a decision?
(Explain Briefly)
____________________________________________________________________________________

____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________

5
Let’s Do More

Directions: Write T when the statement is True. F when the statement is False.
Write your answer on the space provided before each number.

______ 1. Decision-making is a process which begins with problem identification and


ends with the evaluation of implemented solutions.

_______ 2. Certainty condition ideal conditions in deciding problems; these are situations
in which a manager can make precise decision because the results all
alternatives are known.

_______ 3. Forecasting must be prepared by managers, ready for implementation when


things do not turn as they should be. Contingency factors called “trigger
points” indicate when the prepared alternative plan should be implemented.

_______ 4. Contingency-Plan an attempt to predict what may happen in the future


all planning types without exception, make use of forecasting. Business
periodicals publish forecasts such as employment and unemployment
rates, increase or decrease of interest rate.

_______ 5. Benchmarking planning technique that involves comparison of company’s


practices/technologies with those of other companies. The main purpose is
to find out what other people and organizations do well and then plan how to
incorporate these practices into the company’s operations.

_______ 6. Implement the Chosen Alternative this step puts the decision into action.
changes in the environment must be observed and ass3essed, especially in
cases of long-term decisions, to see if the chosen alternative is still the best
one.

_ _______ 7. Identify the Problem the problem may be defined as a puzzling circumstance
or a discrepancy between an existing and desired condition.

_______ 8. Analyze the Alternatives must be carefully evaluated by the decision maker
the criteria identified in Step 2.

_______ 9. Develop Alternatives this step requires the decision maker to list down the
possible alternatives that could help resolve the identified problem.

_______ 10. Allocate Weights to the criteria this is done to give the decision maker the
correct priority in making the decision.

6
Directions: Preparation of appropriate planning techniques, and tools in
business decision making, in 10-15 sentences, explain how these may affect
the operation of a certain business. Use separate sheet of paper for your answer.

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

ASSESSMENT RUBRIC FOR ESSAY


Criteria No Needs Adequate Quality Exemplary
Answer Improvement 3 pts 4 pts 5 pts
0 point 2 pts
Content Did not Answers are Answers are Answers are Answers are
(5pts) answer partial or not accurate and comprehensive
question. incomplete Key comprehensive complete. accurate and
points are not or completely Key points complete, key
clear. Question stated. Key are stated ideas are
not adequately points are and clearly stated
answered addressed, but supported explained, and
not well well supported
supported.
Organization Did not Organization Inadequate Organization Well organized,
(5pts) answer and structure organization is mostly coherently
(Answer are question. detract from development. clear and developed, and
clearly thought the answer Structure of the easy to easy to follow.
out and answer is not follow.
articulated.) easy to follow.
Writing Did not Displays over Displays three Displays one Displays no
Conversations answer five errors in to five errors in to three errors in
(5 pts) question spelling spelling, errors in spelling,
(Spelling, punctuation, punctuation, spelling, punctuation,
punctuation, grammar, and grammar, and punctuation, grammar, and
grammar, and sentence sentence grammar, sentence
complete structure. structure. and sentence structure.
sentence.) structure.
Total: 15 POINTS

In your own opinion, is it necessary to use an appropriate planning technique and tools in
decision making? Why or why not? (Explain Briefly)
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

7
Let’s Sum It Up

Directions: Complete the sentences by filling in the blanks with the correct answer.

Forecasting
Benchmarking
Contingency Plan
Decision Making
Certainly Condition

_____________________________ an attempt to predict what may happen in the future all


planning types without exception, make use of forecasting. Business periodicals publish
forecasts such as employment and unemployment rates, increase or decrease of interest
rate and _____________________________ refers to planning technique that involves
comparison of company’s practices/technologies with those of other companies. The main
purpose is to find out what other people and organizations do well and then plan how to
incorporate these practices into the company’s operations. While a
______________________________ must be prepared by managers, ready for implementation
when things do not turn as they should be. Contingency factors called “trigger points”
indicate when the prepared alternative plan should be implemented. Another is
__________________________ the process which begins with problem identification and ends
with the evaluation of implemented solutions. Lastly ____________________________ where
the Ideal conditions in deciding problems; these are situations in which a manager can
make precise decision because the results of all alternatives are known.

Let’s Assess
Directions: Read each question carefully. Write the letter of the correct answer on the space
provided before each number.

____1. What type of decision-making condition, that is ideal in deciding problems, a


situation in which a manager can make precise decision because the results of
all alternatives are known?
A. Identify the problem C. Identify the decision Criteria
B. Implement the Chosen D. Certainty Condition
____2. Which of the following statement is NOT CORRECT?
A. Identify the problem; The problem may be defined as a puzzling
circumstance or a discrepancy between an existing and a desired
condition.
B. Identify the Decision Criteria, these are important or relevant to resolving
the identified problems.
C. Every company has no identified problem to tackle about.
D. Allocate weights to the criteria; This is done to give the decision maker
the correct priority in making the decision.

8
_____3. Which of the following planning techniques that begins with problem identification
and ends with the evaluation of implemented solutions?
A. Decision-making C. Short-Term Plan
B. Specificity D. Pure Plan

_____4. Which types of decision making that is repetitive and can be handled using a
routine approach?
A. Decision making
B. Contingency Plan
C. Structured or Programmed Decision
D. Forecasting Plan

_____5. What type of plan must be prepared by managers, ready for implementation when
things do not turn out as they should be?
A. Operational Plan C. Benchmarking
B. Contingency Plan D. Forecasting

_____6. Which of the following statement is NOT CORRECT?


A. Benchmarking generally involves external comparisons of company’s
practices and technologies with those of other companies.
B. All types of planning must use a forecasting technique
C. Many companies know how to plan but they couldn’t execute their plan
D. Contingency plan must be prepared by managers, ready for
implementation when things do not turn out as they should be.
_____7. Which of the following is NOT a forecasting types of planning techniques in
business plan?
A. Prognostication C. Estimating
B. Prediction D. Evaluation

_____8. Which statements BEST describes about forecasting?


A. Sta Monica group of company is projecting its economic profit with 80%
higher compared from last 5 years ago actual operation performance.
B. Sta Monica group of company is looking backward and analyzing their
previous failure of operation.
C. Sta Monica group of company compares the operation with the nearest
competitors for reference in decision making.
D. Sta Monica group of company decides with any techniques they only rely
in their daily operation.

_____9. What types of planning techniques that involves comparison of company’s


practices/technologies with those of other companies?
A. Goal - Setting C. Fast track plan
B. Benchmarking D. Simple plan
_____10. Which of the following planning techniques that attempts to predict what may
happen in the future of business operation?
A. Controlling C. Organizing
B. Marketing D. Forecasting

9
Answer Key
Let’s Practice
Column A Column B
The problem may be
A Identify the Decision defined as a puzzling
Criteria circumstance or a
discrepancy between
an existing and desired
F
condition.
These are important or
Develop Alternatives
relevant to resolving
D the identified problem.
This is a process which
Decision-making begins with problem
B identification and ends
with the evaluation of
implemented solutions.
C This step requires the
decision maker to list
down the possible
Identify the Problem.
E alternatives that could
help resolve the
identified problem.

Let’s Do More Let’s Sum It Up


Activity 1

1. T 6. T 1. Forecasting
2. T 7. T 2. Benchmarking
3. F 8. T 3. Contingency-Plan
4. F 9. T 4. Decision Making
5. T 10. T 5. Certainly Condition

Let’s Try Let’s Assess


1. D 3. A 5. C 7. C 9. C 1. D 3. A 5. B 7. D 9. B
2. B 4. D 6. B 8. A 10. D 2. C 4. C 6. C 8. A 10. D

References

Book
Cabrera, Helena Ma. F., Antony DC. Altarejos, and Riaz Benjamin, Organization and
Management Textbook, Pasig City: Vibal Group Inc., 2016

10
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