Planning and managerial decision making
Each of these steps must be completed in a sequential order.
This managerial function is collaboration between planning and controlling. This feedback can be in the form of financial report or performance report. Non-financial budgets include man power budgets, performance budgets, materials budgets, sales budgets, direct-labour hours budgets, etc.
This is the function of planning. Channelising all decisions towards the achievement of predetermined goals.
Planning and decision making in business
By planning; manager finds these alternatives by testing and measuring their effectiveness. Do not overload your team and give sufficient time and structure for this process. As an example a factory manager can initiate a supplier evaluation program to identify and select suppliers who are willing and able to supply zero defect material. Budgets, methods and standards promote maximum utilisation of resources and minimise cost. After that, the managers must use their decision-making skills for selecting one path of action. For instance, one course may appear to be the most profitable but require a large cash while another may look less profitable but involve less risk. Providing criteria for evaluating decisions. The quality of decision can be improved if all alternatives information can be collected and presented to manager. At the lower levels of the organisation, the first line supervisors, section heads, etc. The purpose of policies is to guide decision making by marking off areas in which managers can use their discretion. Setting realistic objectives depends on this awareness of opportunities. It requires selecting enterprise objectives and departmental goals and determining ways of achieving them. Some examples of activities for which programmes are prepared for execution are plant expansion, promotion of a new product, opening of a new sales branch, etc. In this sense, plans provide a rational approach to preselected objectives.
As an example a factory manager can initiate a supplier evaluation program to identify and select suppliers who are willing and able to supply zero defect material. Definition of Planning Planning managerial functions where managers are required to establish goals and state the ways and means by which these goals are to be attained.
Policies aim at : 1.
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