Planning and Decision – Making

Plans give the organization, its objectives and set up the best procedure for reaching them.  Plans become the guides by which (1) the organisation obtains and commits the resources required to reach its objectives, (2) members of the organisation carry on activities consistent with the chosen objectives and procedures, and (3) progress toward the objectives is monitored and measured so that corrective action is taken if progress is unsatisfactory.  The first step in planning is the selection of goals for the organisation.  Objectives are established for the sub units of the organisation, its divisions, and departments and so on.  Once the objectives are determined, programmes are established for achieving them in a systematic manner.  In selecting objectives and developing programmes, the manager considers their feasibility and whether they will be acceptable to the organisation’s managers and employees.