Planning and Decision Making

By Paribesh Sapkota

Meaning of Planning:

Planning is the process of setting objectives and determining the best way to achieve them. It involves foreseeing future conditions, defining goals, and developing strategies to accomplish these goals efficiently.

Levels of Planning

1. Strategic Planning:

Definition: Strategic planning is the long-term planning process that defines the overall direction and goals of an organization. It involves making decisions that shape the future of the organization by determining its vision, mission, and long-term objectives.

Key Characteristics:

  • Time Horizon: Typically spans 3-5 years or more.
  • Scope: Broad and covers the entire organization.
  • Focus: Long-term objectives, competitive positioning, and overall growth.
  • Participants: Involves top management, including CEOs, presidents, and senior executives.
  • Examples:
    • Market Expansion: Entering new geographic markets or segments.
    • Product Diversification: Adding new products or services to the existing portfolio.
    • Strategic Alliances: Forming partnerships or joint ventures with other companies.
    • Corporate Restructuring: Reorganizing business units or merging with/acquiring other companies.

Process:

  • Vision and Mission: Defining what the organization aims to achieve and its core purpose.
  • Environmental Scanning: Analyzing internal strengths and weaknesses and external opportunities and threats (SWOT analysis).
  • Setting Objectives: Establishing long-term goals that align with the vision and mission.
  • Strategy Formulation: Developing strategic initiatives and action plans to achieve objectives.
  • Implementation: Allocating resources and executing strategies.
  • Evaluation and Control: Monitoring progress and making necessary adjustments.

2. Tactical Planning:

Definition: Tactical planning is the mid-term planning process that translates strategic plans into specific, actionable steps. It focuses on how the organization will achieve its strategic goals through detailed, operational activities.

Key Characteristics:

  • Time Horizon: Typically spans 1-3 years.
  • Scope: More specific and narrow compared to strategic planning; usually focused on departments or units within the organization.
  • Focus: Implementation of strategies through specific projects and initiatives.
  • Participants: Involves middle management, such as department heads and division managers.
  • Examples:
    • Budget Allocations: Determining the financial resources required for various departments.
    • Marketing Campaigns: Planning and executing promotional activities.
    • Sales Strategies: Developing plans to achieve sales targets.
    • Operational Improvements: Enhancing efficiency and productivity within specific departments.

Process:

  • Objective Setting: Aligning departmental objectives with strategic goals.
  • Resource Allocation: Distributing financial, human, and physical resources to achieve objectives.
  • Action Plans: Creating detailed plans for projects, including timelines and responsibilities.
  • Coordination: Ensuring that different departments work together effectively.
  • Monitoring and Adjustment: Tracking progress and making necessary changes to plans.

3. Operational Planning:

Definition: Operational planning is the short-term planning process that focuses on the day-to-day activities and tasks necessary to run the organization. It involves the detailed execution of specific tasks and processes to ensure smooth operations.

Key Characteristics:

  • Time Horizon: Typically spans up to 1 year.
  • Scope: Very specific, focused on individual tasks and processes.
  • Focus: Immediate, routine activities and short-term goals.
  • Participants: Involves lower management, such as supervisors and team leaders.
  • Examples:
    • Production Schedules: Planning daily or weekly manufacturing outputs.
    • Employee Work Shifts: Scheduling work hours for employees.
    • Inventory Management: Managing stock levels to meet production and sales needs.
    • Customer Service Processes: Ensuring effective handling of customer inquiries and complaints.

Process:

  • Task Definition: Identifying specific tasks and activities required to achieve tactical objectives.
  • Resource Scheduling: Allocating resources, including personnel, equipment, and materials, to tasks.
  • Workflow Coordination: Organizing tasks to ensure smooth and efficient operations.
  • Performance Monitoring: Tracking task completion and performance metrics.
  • Immediate Adjustments: Making quick changes to address issues or improve efficiency.

Planning Horizons:

1. Short-term Plans:

  • Definition: Plans that cover a period of up to 1 year.
  • Focus: Immediate objectives, day-to-day operations, and short-term projects.
  • Examples: Monthly sales targets, quarterly production plans, annual budgets.

2. Medium-term Plans:

  • Definition: Plans that cover a period of 1 to 3 years.
  • Focus: Intermediate objectives that bridge the gap between short-term actions and long-term goals.
  • Examples: Launching a new product line within two years, expanding to new regions within three years.

3. Long-term Plans:

  • Definition: Plans that cover a period of 3 years and beyond.
  • Focus: Long-term vision, strategic objectives, and major organizational transformations.
  • Examples: Becoming a market leader in five years, achieving sustainability goals by 2030.

Planning Process

The planning process is a systematic approach that helps organizations define their goals and develop strategies to achieve them. It involves several critical steps that ensure the alignment of activities and resources with the organization’s objectives. Here is a detailed explanation of each step in the planning process:

1. Setting Objectives

Definition: Setting objectives involves defining what the organization wants to achieve. Objectives should be clear, specific, measurable, achievable, relevant, and time-bound (SMART).

Key Activities:

  • Identify Goals: Determine the desired outcomes and key performance indicators (KPIs) that will measure success.
  • Prioritize Objectives: Rank objectives based on their importance and alignment with the organization’s mission and vision.
  • Communicate Objectives: Ensure that all stakeholders understand and commit to the objectives.

Examples:

  • Increase market share by 10% within the next year.
  • Launch three new products by the end of the fiscal year.
  • Reduce operational costs by 15% over the next two years.

2. Analyzing the Environment

Definition: Analyzing the environment involves assessing internal and external conditions that can impact the organization’s ability to achieve its objectives. This includes both strengths and weaknesses within the organization, as well as opportunities and threats in the external environment (SWOT analysis).

Key Activities:

  • Internal Analysis: Evaluate resources, capabilities, and processes within the organization. Identify strengths and weaknesses.
  • External Analysis: Examine factors outside the organization that can influence performance. This includes market trends, economic conditions, competition, regulatory changes, and technological advancements.
  • SWOT Analysis: Combine internal and external analysis to identify strategic factors that will affect planning.

Examples:

  • Internal Analysis: Assess the efficiency of current production processes.
  • External Analysis: Study market trends and consumer behavior to identify potential opportunities and threats.
  • SWOT Analysis: Identify a strength such as a strong brand reputation, a weakness like outdated technology, an opportunity like a growing market segment, and a threat such as new regulatory requirements.

3. Developing Strategies

Definition: Developing strategies involves formulating plans and courses of action to achieve the set objectives. This includes creating both broad and specific strategies that align with the organization’s goals.

Key Activities:

  • Brainstorming: Generate a wide range of potential strategies and solutions.
  • Evaluation: Assess the feasibility, risks, and potential impact of each strategy.
  • Selection: Choose the most effective strategies that align with the objectives and available resources.
  • Detailing: Develop detailed action plans, including timelines, responsibilities, and required resources.

Examples:

  • Strategy: Expand into international markets to increase market share.
  • Action Plan: Identify target countries, conduct market research, establish partnerships, and set up local distribution channels.

4. Implementing Plans

Definition: Implementing plans involves allocating resources and executing the chosen strategies. This step turns plans into actions by ensuring that all necessary resources are in place and that team members understand their roles and responsibilities.

Key Activities:

  • Resource Allocation: Assign financial, human, and material resources to various tasks and projects.
  • Communication: Ensure that all team members and stakeholders are aware of the plans and their roles in implementation.
  • Execution: Carry out the action plans according to the defined timelines and procedures.
  • Coordination: Ensure that different departments and teams work together effectively to implement the strategies.

Examples:

  • Resource Allocation: Allocate budget for marketing campaigns and product development.
  • Communication: Hold meetings and provide detailed documentation to clarify roles and expectations.
  • Execution: Launch the marketing campaign and begin product development.

5. Monitoring and Evaluating

Definition: Monitoring and evaluating involve tracking progress, assessing performance, and making necessary adjustments to stay on course towards achieving the objectives.

Key Activities:

  • Performance Tracking: Use KPIs and other metrics to measure progress against the objectives.
  • Regular Reviews: Conduct periodic reviews to assess the effectiveness of the strategies and action plans.
  • Feedback Mechanisms: Gather feedback from stakeholders to identify areas for improvement.
  • Adjustments: Make necessary changes to strategies, plans, and resource allocation based on performance data and feedback.

Examples:

  • Performance Tracking: Monitor sales figures and market share growth regularly.
  • Regular Reviews: Hold quarterly meetings to review progress and address any issues.
  • Feedback Mechanisms: Collect customer feedback on new products to inform future development.
  • Adjustments: Modify marketing strategies based on market response and sales data.

Types of Plans

Organizations use different types of plans to achieve their objectives and manage various activities. These plans can be categorized based on their purpose, frequency of use, and the nature of the activities they address. Here’s a detailed explanation of each type of plan:

1. Single-Use Plans

Definition: Single-use plans are designed to address specific, one-time projects or events. These plans are created for unique situations that do not recur on a regular basis.

Key Characteristics:

  • Purpose: To manage specific events or projects.
  • Duration: Limited to the lifespan of the project or event.
  • Scope: Narrow, focused on particular activities.
  • Flexibility: Adaptable to the needs of the specific project or event.

2. Standing Plans

Definition: Standing plans are ongoing plans that provide guidance for activities performed repeatedly within an organization. These plans establish standard procedures and policies to ensure consistency and efficiency in recurring tasks.

Key Characteristics:

  • Purpose: To ensure consistency and efficiency in routine activities.
  • Duration: Long-term, used repeatedly over time.
  • Scope: Broad, applicable to various recurring activities.
  • Consistency: Provides a standard approach to common tasks.

3. Contingency Plans

Definition: Contingency plans are developed to address potential emergencies or unexpected situations. These plans outline actions to be taken when certain adverse events occur, ensuring the organization can respond effectively.

Key Characteristics:

  • Purpose: To prepare for and manage unexpected events.
  • Duration: Activated only when the specified situation arises.
  • Scope: Specific to particular risks or emergencies.
  • Flexibility: Designed to be quickly implemented and adaptable to the situation.

4. Derivative Plans

Definition: Derivative plans are secondary plans that support the implementation of primary plans. These plans provide additional detail and guidance to ensure that the broader objectives of the primary plans are achieved.

Key Characteristics:

  • Purpose: To support and enhance primary plans.
  • Duration: Aligned with the primary plans they support.
  • Scope: Detailed, focused on specific aspects of the primary plans.
  • Alignment: Consistent with and derived from primary plans.

Pitfalls in Planning and Their Improvement

Planning is crucial for organizational success, but it can encounter several pitfalls that undermine its effectiveness. Identifying these pitfalls and implementing improvements can enhance the planning process and ensure better outcomes. Here’s a detailed explanation:

1. Overemphasis on Planning

Pitfall: Spending excessive time on planning can lead to analysis paralysis, where the organization becomes so focused on planning that it delays or neglects execution. This can result in missed opportunities and a lack of tangible progress.

Improvement:

  • Balance Planning and Action: Establish clear timelines for both planning and execution phases. Ensure that the planning process is efficient and does not overextend into the time allocated for implementation.
  • Iterative Planning: Use an iterative approach where plans are developed, executed, reviewed, and refined in cycles. This allows for continuous improvement and timely action.
  • Set Milestones: Break down the planning process into manageable milestones with deadlines. This helps maintain momentum and ensures that planning translates into action.

 

2. Lack of Flexibility

Pitfall: Rigid plans can become obsolete when unexpected changes occur. An inability to adapt to new circumstances, such as market shifts or technological advancements, can render a plan ineffective.

Improvement:

  • Build Flexibility: Incorporate flexibility into plans by allowing for adjustments and updates as needed. Use scenario planning to prepare for various potential outcomes.
  • Contingency Options: Develop contingency plans to address possible disruptions or changes in the environment. This ensures that the organization can pivot quickly when needed.
  • Regular Reviews: Schedule regular review sessions to assess the relevance and effectiveness of plans. Update plans based on new information and changing circumstances.

 

3. Inadequate Analysis

Pitfall: Insufficient data collection and analysis can lead to flawed planning. Decisions based on incomplete or inaccurate information may result in ineffective strategies and unmet objectives.

Improvement:

  • Thorough Research: Conduct comprehensive research and gather accurate data from reliable sources. This includes market analysis, competitor analysis, and internal assessments.
  • Environmental Scanning: Continuously monitor external factors such as economic trends, regulatory changes, and technological developments. Use tools like SWOT analysis and PESTEL analysis to understand the broader environment.
  • Expert Input: Involve experts and stakeholders in the planning process to ensure a well-rounded analysis. Their insights can highlight potential blind spots and enhance the quality of the plan.

 

4. Unrealistic Goals

Pitfall: Setting objectives that are too ambitious or unattainable can demotivate employees and lead to frustration and failure. Unrealistic goals can also result in wasted resources and missed targets.

Improvement:

  • Set SMART Goals: Ensure that objectives are Specific, Measurable, Achievable, Relevant, and Time-bound. This makes goals clear, attainable, and trackable.
  • Assess Feasibility: Evaluate the resources, capabilities, and constraints of the organization before setting goals. Use data and past performance as benchmarks.
  • Involve Stakeholders: Engage team members and stakeholders in the goal-setting process. Their input can provide a realistic perspective and increase buy-in.

 

5. Resistance to Change

Pitfall: Employees may resist new plans and changes due to fear of the unknown, lack of understanding, or attachment to the status quo. This resistance can hinder the successful implementation of plans.

Improvement:

  • Involve Employees: Engage employees in the planning process from the beginning. Their involvement can reduce resistance and increase commitment to the plan.
  • Effective Communication: Clearly communicate the reasons for the change, the benefits it brings, and how it will be implemented. Transparency helps build trust and acceptance.
  • Training and Support: Provide training and resources to help employees adapt to new plans and changes. Offer support to address concerns and ease the transition.

Decision Making

Concept of Decision Making:

Decision making is the process of choosing among alternative courses of action to solve a problem or capitalize on an opportunity. It is a critical function in management that influences organizational performance.

Process of Rational Decision Making

Rational decision-making is a systematic process used to make logical, well-informed decisions. This process involves several key steps designed to ensure that decisions are made based on a thorough analysis of available information and potential outcomes. Here’s a detailed explanation of each step:

1. Identify the Problem

Definition: The first step in rational decision-making is to recognize and define the problem or opportunity that needs to be addressed. This involves understanding the nature of the issue and its impact on the organization.

Key Actions:

  • Problem Recognition: Identify symptoms of the problem through observations, reports, or feedback.
  • Problem Definition: Clearly define the problem by specifying what is not working as expected or what needs improvement.
  • Scope and Impact: Determine the scope of the problem (who and what is affected) and its potential impact on the organization.

 

2. Gather Information

Definition: Collect relevant data and information to understand the problem better and inform the decision-making process. This involves gathering quantitative and qualitative data from various sources.

Key Actions:

  • Data Collection: Use surveys, interviews, reports, and other tools to gather necessary data.
  • Data Analysis: Analyze the collected data to identify patterns, trends, and underlying causes of the problem.
  • Information Sources: Ensure the data comes from reliable and diverse sources to provide a comprehensive view.

 

3. Identify Alternatives

Definition: Generate a list of possible solutions or courses of action to address the identified problem. This step involves creative thinking and brainstorming to ensure a range of options are considered.

Key Actions:

  • Brainstorming: Encourage team members to come up with different ideas and solutions.
  • Benchmarking: Look at how similar problems have been addressed by other organizations or in different contexts.
  • Feasibility Assessment: Ensure that the alternatives are realistic and achievable given the organization’s resources and constraints.

 

4. Evaluate Alternatives

Definition: Assess the pros and cons of each alternative solution to determine their potential effectiveness. This involves considering the benefits, costs, risks, and feasibility of each option.

Key Actions:

  • Criteria Development: Establish criteria for evaluating the alternatives, such as cost, time, impact, and feasibility.
  • Risk Assessment: Identify potential risks associated with each alternative and their likelihood.
  • Comparative Analysis: Compare the alternatives against the criteria to identify the most promising options.

 

5. Choose the Best Alternative

Definition: Select the most feasible and effective option from the evaluated alternatives. This decision should align with the organization’s goals and resources.

Key Actions:

  • Decision-Making Tools: Use decision matrices, cost-benefit analysis, or other decision-making tools to facilitate the selection process.
  • Consensus Building: Engage stakeholders to build consensus and ensure support for the chosen alternative.
  • Final Selection: Choose the alternative that best meets the criteria and addresses the problem effectively.

 

6. Implement the Decision

Definition: Execute the chosen course of action by developing and following an implementation plan. This step involves allocating resources, assigning responsibilities, and ensuring that the decision is put into practice effectively.

Key Actions:

  • Action Plan: Develop a detailed plan outlining the steps required to implement the decision.
  • Resource Allocation: Allocate the necessary resources (financial, human, technological) to support implementation.
  • Communication: Communicate the decision and implementation plan to all relevant stakeholders.
  • Execution: Follow through with the implementation, monitoring progress and addressing any issues that arise.

 

7. Evaluate the Decision

Definition: Review the results of the implemented decision to determine its effectiveness. This step involves assessing whether the decision has resolved the problem and met the desired objectives, and making necessary adjustments if needed.

Key Actions:

  • Performance Metrics: Establish metrics to measure the success of the decision (e.g., reduction in wait times, customer satisfaction scores).
  • Feedback Collection: Gather feedback from stakeholders to understand the impact of the decision.
  • Review and Adjust: Analyze the results and make any necessary adjustments to improve outcomes.

 

Types of Problems and Decision Making

In the realm of decision-making, problems can be broadly categorized into structured and unstructured problems. Each type requires a different approach to decision-making due to the nature and complexity of the issues involved. Here’s a detailed explanation of these problem types and the corresponding decision-making approaches:

Structured Problems

Definition: Structured problems are well-defined issues that are straightforward and typically recurring. These problems often have clear solutions based on established procedures or algorithms. They are predictable and can be solved using routine and systematic approaches.

Characteristics:

  • Clarity: The problem is clearly defined and understood.
  • Predictability: Similar problems have been encountered before, and patterns or trends are recognizable.
  • Routine Solutions: Standard operating procedures or rules exist for solving the problem.
  • Low Complexity: The problem is relatively simple and does not require extensive analysis or creative thinking.

Decision-Making Approach:

  • Routine and Systematic: Use predefined methods, policies, and procedures.
  • Algorithmic Solutions: Apply mathematical models or algorithms to determine the best course of action.
  • Automation: Utilize automated systems or software to handle repetitive tasks.

Unstructured Problems

Definition: Unstructured problems are complex and ambiguous issues that do not have a clear, predefined solution. These problems are often unique, involve multiple variables, and require a high degree of creativity, judgment, and strategic thinking to resolve.

Characteristics:

  • Ambiguity: The problem is not clearly defined and may have multiple interpretations.
  • Novelty: The problem is unique, and similar issues may not have been encountered before.
  • High Complexity: The problem involves numerous interconnected factors and requires comprehensive analysis.
  • Open-Ended Solutions: There is no single right answer, and solutions may need to be developed from scratch.

Decision-Making Approach:

  • Creativity and Judgment: Use innovative thinking and expert judgment to develop potential solutions.
  • Strategic Analysis: Conduct in-depth analysis using tools such as SWOT analysis, PESTEL analysis, and scenario planning.
  • Collaborative Decision-Making: Involve multiple stakeholders to gather diverse perspectives and insights.
  • Iterative Process: Continuously refine and adjust solutions based on feedback and changing circumstances.

Decision Making Conditions

Decision-making conditions refer to the level of information available and the degree of predictability of outcomes when making decisions. These conditions can be categorized into three main types: certainty, risk, and uncertainty. Each condition requires different approaches and considerations in the decision-making process. Here’s an in-depth explanation of each condition:

1. Certainty

Definition: Certainty exists when all necessary information is available, and the outcomes of decisions are known with absolute assurance. Under these conditions, decision-makers can accurately predict the results of their actions.

Characteristics:

  • Complete Information: All relevant data and information are available.
  • Predictable Outcomes: The outcomes of decisions are known and predictable.
  • Routine Decisions: Often involves routine and repetitive decisions with established procedures.

Decision-Making Approach:

  • Standard Procedures: Utilize established procedures and rules to make decisions.
  • Automation: Implement automated systems where decisions can be made without human intervention.

2. Risk

Definition: Risk occurs when decision-makers have some information about the potential outcomes and can assign probabilities to these outcomes. While the future is not completely certain, the risks associated with different decisions can be estimated and managed.

Characteristics:

  • Partial Information: Some information is known, but not all details are available.
  • Probabilistic Outcomes: Outcomes are uncertain but can be described using probabilities.
  • Risk Assessment: Decisions are made based on the evaluation of known risks.

Decision-Making Approach:

  • Risk Analysis: Use tools such as probability analysis, expected value calculation, and risk matrices.
  • Scenario Planning: Develop and analyze different scenarios based on varying levels of risk.

3. Uncertainty

Definition: Uncertainty exists when decision-makers have little to no information about the potential outcomes, and the future is highly unpredictable. Under these conditions, it is difficult to predict what will happen, and the probabilities of outcomes are unknown.

Characteristics:

  • Lack of Information: Critical information is missing or unavailable.
  • Unpredictable Outcomes: The outcomes are unknown and cannot be predicted accurately.
  • Complex Decisions: Often involves unique or unprecedented situations requiring innovative solutions.

Decision-Making Approach:

  • Exploratory Research: Conduct preliminary research to gather as much information as possible.
  • Flexibility and Adaptability: Develop flexible plans that can be adjusted as new information becomes available.
  • Intuition and Experience: Rely on managerial intuition and experience to navigate through uncertainty.
  • Scenario Analysis: Create multiple scenarios to explore possible outcomes and develop contingency plans.

  • Decision Making Styles

    Decision-making styles refer to the methods or approaches individuals use when making decisions. These styles are influenced by a person’s tolerance for ambiguity and their preferred way of thinking. The main decision-making styles are directive, analytical, conceptual, and behavioral. Each style has distinct characteristics and is suitable for different types of situations.

    1. Directive Decision Making

    Characteristics:

    • Low Tolerance for Ambiguity: Directive decision-makers prefer clear, concise information and dislike uncertainty.
    • Rational and Logical: They rely on logic, facts, and data to make decisions.
    • Quick Decision-Making: Focus on efficiency and making decisions swiftly.
    • Decisive: Often make decisions quickly and stick to them, favoring clear-cut solutions.
    • Control-Oriented: Prefer to maintain control and direct others, valuing order and structure.

    Strengths:

    • Efficient and fast in decision-making, which is useful in crisis situations or when quick action is needed.
    • Clear and straightforward communication of decisions and expectations.
    • Effective in routine, well-defined, and structured situations.

    Weaknesses:

    • May overlook potential alternatives and fail to consider broader perspectives.
    • Can be inflexible and resistant to new ideas.
    • May not foster team involvement or collaboration.

    Example in Detail:

    • Situation: A manufacturing plant faces a sudden drop in productivity.
    • Directive Approach: The plant manager quickly identifies the problem, such as a specific machine breakdown, and directs the maintenance team to fix it immediately. The manager also implements stricter oversight to ensure productivity is restored swiftly.

    2. Analytical Decision Making

    Characteristics:

    • High Tolerance for Ambiguity: Comfortable dealing with complex and uncertain situations.
    • Systematic and Thorough: Approach decision-making methodically, considering all relevant data and options.
    • Detail-Oriented: Focus on gathering comprehensive information and conducting detailed analysis.
    • Multiple Options: Evaluate a wide range of alternatives before making a decision.
    • Rational and Logical: Decisions are based on logical reasoning and extensive data analysis.

    Strengths:

    • Well-suited for complex problems requiring thorough analysis and evaluation.
    • Produces well-considered and informed decisions.
    • Can identify and mitigate potential risks due to detailed analysis.

    Weaknesses:

    • Decision-making process can be time-consuming, potentially delaying action.
    • May suffer from analysis paralysis, where overanalyzing prevents timely decision-making.
    • Can be perceived as overly cautious or indecisive.

    Example in Detail:

    • Situation: A company needs to choose a new software system.
    • Analytical Approach: The IT manager gathers detailed requirements from all departments, researches various software options, conducts a cost-benefit analysis, and tests several systems through pilot projects. The final decision is based on a comprehensive evaluation of performance, cost, and user feedback.

    3. Conceptual Decision Making

    Characteristics:

    • High Tolerance for Ambiguity: Comfortable with uncertainty and open to new ideas.
    • Intuitive and Creative: Use intuition and creativity to generate innovative solutions.
    • Long-Term Focus: Emphasize long-term outcomes and strategic thinking.
    • Broad Perspective: Consider a wide range of factors and the big picture.
    • Flexible and Open-Minded: Willing to explore unconventional approaches and adapt to new information.

    Strengths:

    • Effective in strategic planning and scenarios requiring innovation.
    • Can identify unique opportunities and long-term solutions.
    • Encourages visionary thinking and can inspire others with creative ideas.

    Weaknesses:

    • May overlook practical details and feasibility in favor of big-picture thinking.
    • Decisions can be perceived as risky or overly ambitious.
    • Implementation may be challenging without concrete plans and steps.

    Example in Detail:

    • Situation: A tech company seeks to expand its product line.
    • Conceptual Approach: The CEO envisions a new product that integrates emerging technologies. They brainstorm with the R&D team, explore futuristic trends, and consider the potential impact on the market. The decision is driven by a vision of where the industry is heading and the company’s role in it.

    4. Behavioral Decision Making

    Characteristics:

    • Low Tolerance for Ambiguity: Prefer clear and structured situations.
    • People-Oriented: Focus on the impact of decisions on people and relationships.
    • Collaborative: Emphasize teamwork, consensus-building, and involving others in the decision-making process.
    • Supportive and Empathetic: Value input from others and aim to create a supportive environment.
    • Conflict-Averse: Strive to avoid conflicts and ensure harmonious relationships.

    Strengths:

    • Effective in situations requiring team involvement and collaboration.
    • Builds strong relationships and fosters a positive organizational culture.
    • Decisions are often well-accepted due to the inclusive process.

    Weaknesses:

    • Can be time-consuming due to the emphasis on consensus and collaboration.
    • May avoid tough decisions or compromise too much to maintain harmony.
    • Can be perceived as indecisive if there is too much focus on getting everyone to agree.
Previous Chapter Next Chapter
Important Questions
Comments
Discussion
0 Comments
  Loading . . .