THEFUNCTIONOFPLANNINGWHATISPLANNING?•Thedefinitionofplanninghastwoparts1.Selectingagoal2.DevelopingthestrategyandtacticstoachievethegoalADVANTAGESOFPLANNING•Goodplanningcanproduce1.Focusongoals2.Directionofeffort3.Intensifiedeffort4.Persistenceofeffort5.CreationofstrategiesandtacticsSOMEDISADVANTAGES•Somepossiblenegativesofplanningare1.Mayproduceafalsesenseofcertainty2.Mayinhibitchange&adaptiveness3.MaybetooabstractanddetachedfromdailyactivityMAKINGAPLANTHATWORKS•Thereareseveralmajorpartstoagoodplan1.GoalSetting2.Goalcommitment3.Actionplan--stepsandresources4.Trackingsystems5.Stayingflexible--noplanisinconcreteTOPTOBOTTOMPLANNING•1.TopmanagementdevelopsstrategicplansStartswithfirm’s•Vision•MissionTOPTOBOTTOMPLANNING,cont’d•2.MiddlemanagementTactical--usestechniquesandmethodthatdrivebehavior6monthsto2yearsTOPTOBOTTOMPLANNING,cont’d•3.LowerlevelmanagersdevelopoperationalplansGuidedailyactivitiesOfproductionandservice5STEPSTORATIONALDECISION-MAKING•1.Definingtheproblem•2.Establishandweightcriteria•3.Generatealternatives•4.Evaluatealternatives•5.DeterminethebestsolutionLIMITATIONSOFRATIONALDECISION-MAKING•1.Boundedrationality•2.MaximizingvsSatisficingTECHNIQUESOFGROUPDECISION-MAKING•1.Nominal•2.Delphi•3.Stepladder•4.Brainstorming