Chapter 3

Business Organization & Management

Second Paper, Subject Code : 278

Preparing Plan
& Decision Making

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planning is a science and art of knowing what to do,
when to do and how to do in an effective and efficient
manner – F.W Taylor

Where

Why When

Who How

What

CONCEPTUAL MODEL REGARDING

PLAN 2
 Concept of
• PlanningPlanning
is the pre-fixed design

• This is the first and foremost function of the

management process. This is like the foundation
of other functions of management.

• Planning is the function of management that

involves setting objectives and determining a
course of action for achieving those objectives.

• Planning is an Intellectual Process

• Planning is a Primary Function of Management

• A Continuous Process

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 Features of
•
Planning
Primacy of Planning (Base of others, What, when,
how, by whom)

• Mental Thinking Process

• Assumptions Regarding Future Course of Action

• Goal – Orientation of Planning

• Dependency of Planning on Information

• Best Alternative

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Features of a Good
Plan
• Specific Objective: 1st –Specific Objective is
fixed. Then planning should be done to achieve that
objective.

• Reality Oriented: Considering feasibility. Has to

be implementable considering future situations.

• Acceptability: Accepting by those who will

implement the plan.

• Proper Guidance: Guidance in performing

future actions

• Coordination and Linkage: Among various

departments. Link master plan with dept.
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 Setting Goal

Relationship Preparing
Attaining Goal
between goal and proper plan for
attaining Goal

planning and other

management
functions Performing
Organizing
others
elements as
management
necessary for
functions for
attaining Goal
attaining Goal

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 By

Types of Goal in Pl
Nature

Objectives Mission
/ Vision (Plan Time Goal Budget Goal
(Long undertaken to (within how (When
term achieve the much time a desired
dream) vision) task is to be result is
completed) expressed
in terms of
number)

By Organizational Level

Strategic Operational
Departmental/Tactical Goal
Goal Goal
• Long term goals set at lower
• Long term goals set by • Long term goals set by Mid
level management at Sub
top level management. level management at Dept.
Dept. Level to implement
• To increase rate of profit Level to implement strategic
departmental goals.
by 20% within 2023 goals.
• To reduce rate of wastage by
• To increase rate of production
40 % to enhance productivity.
by 25% 7
 Vision
We see a world where everybody is an
athlete.

Mission
To bring inspiration and innovation to
every athlete in the world.

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 Various Steps of
Planning
1. Evaluating Future (Making advanced
assessment of future situations
considering SWOT)
2. Establishing Goal (Achievement
plans. SMART)
3. Determining the Alternatives (Setting
diff. alternative to achieve the goal)
4. Evaluation of Alternatives (Analyze S,
W of each and feasibility)
5. Selecting the best Alternatives
6. Preparing derivative Plan (When
associate plan is adopted to
implement original plan)
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 Classification of
Plan

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 Goal (objective/ mission/
The desired result of a plan is called the goal. For example, to increase production by 20% in
target)
the end of 2023. According to the goals, various sub goals are determined in different
departments at different levels.
Standing
Plan which once adopted in an institution is used again and again until a new plan is adopted or
Plan
a new situation is created is called standing plan. Standing plan is of four types.
Policy : Predetermined or common guideline for decision making in same case of problems.
It is general response to a designated situation. Example: seniority best promotion.
Based on

Process: Process is a mutually dependent group of actions for achieving the goal.
Specifies steps to be followed in a particular situation. In this case the actions are fixed one
Nature

after another there is mutual independence among the actions where one action is
influenced by another. For example, group of actions for selecting the right worker from
receiving application to giving final appointment later, maybe called a process.

Procedure: Activities adopted for performance of each of the fixed functions under the
process is called procedure. In the process of worker selection, taking written test is one of
the procedures.
Technique: Predetermined strategies for facing the plans adopted by the competitive
farm. The policy of directly supplying the produced goods to consumers is an example.

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 Single Use Plan
Single use plan the plan which is formulated for using only once to achieve one objective and
once it is accomplished, the plan is never repeated in future is known as single use plan. For
example, repairing a machine that is damaged. Such plan is of two major types.

Program: Single use plan for large set of activities. It is a large type of plan
adopted for achievement of some special goals is called program. Plan adopted to
Based on

set up new equipment may be called a plan.

Example: Plan to set up new equipment removing the old ones can be called a
Nature

program. / Plan to add a new product in product line.

Project: Every plan for performing special actions under a program are called
projects. Plans to remove the old equipment can be called a project.

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 Short term plan: Plan adopted for a period of one year or less is called short-term plan.
Based on Time

Plans undertaken at department and section level of an institution are short term plans.

Mid term plans: plans adopted for a period of more than one year and highest five years
is called midterm plan. Example: five years plan of government.

Long term plan: plan adapted for a period of over five years. Ex: Smart Bangladesh vision
2041.
Period

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 Strategic plan: plans which are formulated by the top level management of an organization
after long and careful thinking it’s called strategic plan. To implement such a plan it becomes
necessary to adapt various types of plans at lower level and mid level of the organization. For
example, plan to add 10 new products in the catalogue upcoming five years.
Based on Organizational

Tactical plan: To implement the strategic plan effectively mid-level managers adapt some
tactful and intelligent plans, which are called tactical plans. For example, planning to produce
five new items in coming two years in order to implement a strategic plan.

Functional plan : To implement the tactical plan, set by mid-level managers the plan that is
undertaken by lower level managers are called functional plans. There are various
departments in an organization like production sales, HR, etc they may have separate plans
for their individual department to achieve the tactical plans. These are called functional plans.
Structure

Regional plan: Plans which are formulated regionally for those institutions having their
activities spread over different regions. Independent plans for multinational companies for
their business established in various regions will be treated as regional plans.

Master plan: Plan formulated by integration of plans of all departments and regions of an
institution is called the overall or master plan. In case of formulation of budget, preparation of
master plan by integrating different divisional budget is an example of master plan.
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 Concept Decision-
•
Making
Decision making is the process of making choices
by identifying a decision, gathering information,
and assessing alternative resolutions.

• Decision making in management is the process of

making a choice between two or more options.
This involves evaluating the pros and cons of
various choices and choosing the best option to
achieve a desired outcome. In management,
decision making is about acting in a way that
meets organizational goals and objectives.

• Decision-making can be defined as the process of

selecting a right and effective course of action
from two or more alternatives for the purpose of
achieving a desired result. Decision-making is the
essence of management.
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Process of Decision
Making
1. Identifying and defining problems
2. Determination of priority
3. Collection of Data and Information
4. Generation of Alternatives
5. Evaluation of Alternatives
6. Choosing proper Alternative

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 Associate Elements
of Decision Making

1. Judgment, Power and Intuition

2. Systematic Thought
3. Experience and Skill
4. Information
5. Power and Authority
6. Capacity of Organization
7. Opportunity of Participation

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Factors to be considered
in Decision Making

1. Nature of Problem
2. Future Condition
3. Received Information
4. Decision Goal
5. Extent of Cooperation
6. Receivable Time

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 Problems of Taking
Decisions

1. Imperfect or incomplete information

2. Inaccurate identification of problem /
Alternative
3. Business
4. Timidity
5. Effect of Emotion
6. Inadequacy of Resources
7. Lack of Cooperation

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Ways of Solving Problems
In Taking Decision

1. Collecting Necessary Information

2. Selecting Proper Alternative
3. Taking Decision in time
4. Consulting with concerned persons if
necessary
5. Informing Decision in time
6. Providing Necessary Assistance
7. Effective Supervision and Control

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Thanks!