a) Planning is one of the most important procedures in effective management of the organization. The field of management is based on the principles of effective planning, which outlines successful implementation of measures which are most likely to bring success. All over the world, managers try to work out effective plans, which will help the company achieve strategic goals with the help of thorough tactic planning. Planning is supposed to bring success when a manager considers not only his own perspective, but also the company’s mission, vision, and strategic goals (Makridakis, 1995). It is important to develop both tactic and strategic plans, which will most likely bring favorable outcomes due to consideration of all details. In general, it is possible to outline the main steps in planning, which help companies achieve goals and contribute to the long-term success.
The basic planning process consists of several steps. The first one involves setting objectives. Managers of departments should effectively select resources, which will help to create an appropriate plan of actions considering the availability of resources and tools. According to Plunkett, Allen, and Attner (2013),
The selection of objectives (and the courses of action to achieve them) is influenced in part by the organization's mission and values; the strategic plans and goals; the standing plans; the environmental conditions; the availability of resources; and the philosophies, ethics, accumulated experience, and expertise of its managers.
The second step, which is most likely to yield the desired results for the company, is to explore the environment of the business entity. It is essential to consider the current situation of the company’s development and its main targets, which will boost its performance. Analysis of the environment will only enhance the company’s awareness of the potential risks and threats caused by competitors, political and economic environment in general, and customer’s attitude.
The next step of the planning process is to create as many alternatives as possible. An effective plan should have enough methods to reach the set objectives. It means that it is possible to use various options in the process of plan’s implementation. Finally, managers will be able to choose from the diversity of alternatives. The fourth step in effective planning lies in the evaluation of the chosen alternatives. It is essential to define requirements of every alternative and its likelihood to bring the company to success. At the same time, it is an obligation of the manager to consider both negative and positive sides of every alternative. It helps to range alternatives according to their importance for the successful plan implementation. The next step consists in choosing a solution among alternatives found in the previous step. As soon as the manager decides which solution will bring benefits, it is time to come to the next point. This step involves plan implementation. If the manager finds some implementation of the selected solution problematic, it is important to turn back to the previous stages and choose another alternative. However, the stage of plan implementation implies selecting the required resources and responsible employees, who will help to reach the company’s targets. The final step of effective planning is to evaluate the results of plan’s implementation. This stage shows whether the selected targets have been achieved according to the company’s goals and aspirations.
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b) The decision-making process consists of seven basic steps, which help the manager to eliminate problems in an effective way. Any decision runs through a set of several steps, which help to find the best solution to the problem. The first step is problem statement, which means that it is essential to formulate the problem clearly; it will influence the next steps of the decision-making process. In order to understand the problem, it is important to see the symptoms which signal it. It will help to evaluate the causes of the problem and analyze its effects. This step means that incorrect problem statement will lead to the wrong decision. As a result, there will be no effect or the problem have a negative impact on the company’s performance. The second step is to outline the limiting factors of the problem. According to Plunkett, Allen, and Attner (2013), “Resources—personnel, money, facilities, and equipment, as well as time—are the most common limiting factors that narrow the range of possible alternatives.” The limiting factors lead to the next step, where the manager creates a list of alternatives, which are most likely to reduce the problem. According to the availability of resources and manager’s experience, it is possible to build a diversity of alternatives, which are most likely to bring the company to success. In general, it is necessary to consider two basic questions, which will help to evaluate the importance of the alternative. It is essential to consider whether the alternatives meet the limiting factors, and what the possible consequences of each alternative’s implementation are. After a thorough analysis of every option, it is possible to make a decision. The next step is to implement the decision with the help of available resources. The next step of the decision-making process is to establish an effective control system, which will regulate decision’s implementation at every stage. It will help to evaluate whether there is any need for choosing another alternative, or the chosen one fits the company’s needs. This is the final stage, which can help to evaluate the need for returning to the previous steps of the decision-making process.
Moreover, the decision-making process depends on the personal attributes of a manager who takes decisions (Dubois, 2014). It is a commonly known fact that one’s experience, thinking, and worldview have a direct impact on the way they analyze a business environment, choose potential alternatives and make final decisions. There are three approaches, which are most common among managers in regard to decision-making process. These approaches include rational thinking, intuitive decisions, and predisposed decisions. Creativity, time limits, worldview, business viewpoints, experience, and ability to set priorities also influence the decision-making process. It is undeniable that all these features contribute to the successful decision-making within the whole company.
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