how to make right decision


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  1. Part Two Planning and Decision Making
  2. 98
  3. overlaps into the organizing function. Phase d can be regarded as organiz¬ing as well as part of planning.
  4. The type of planning you do depends to a large extent upon your type of management position. Top executives have responsibility for strategic planning, a form of planning that shapes the destiny of the firm. Strategic plans are usually long-range plans. If you are president of American Mo¬tors Corporation, you might be involved in strategic planning that con¬siders the future of the automobile industry.
  5. Managers below the top are involved with operational planning, a form of planning concerned with running the organization every day or in the short range. If you are the supervisor of the bumper assembly department at the Jeep Division of American Motors, your planning would probably take into account whether the s<W>pment of bumpers will arrive on time.
  6. Supervisors sometimes contend that textbook discussions of planning are irrelevant to them because planning is mostly the function of a special¬ist or a high-level manager. Bittel, a noted authority on supervisory man¬agement, counters with this argument: “Regardless of how much planning help a supervisor may get from his company's centralized scheduling de¬partment, the supervisor just won't be able to turn out the work without detailed planning on his own part.”8
  7. Phase I: Setting of goals and objectives. Here the supervisor partici¬pates in setting goals that contribute to higher-level goals. Judd, a hypo¬thetical supervisor of the bumper department at Jeep, might examine fore¬casts from the sales department and conclude that his department will have to install 900 bumpers next month. Production supervisors often es¬tablish such clear-cut goals.
  8. Phase II: Forecasting events and changes. Planning involves making predictions about events and changes that are likely to influence reaching objectives. Judd might contribute to planning here by making inputs such as these:
  9. I think we can anticipate a rise in absenteeism during the first three days of the deer hunting season.
  10. What would happen if we ran short on those heavy duty nuts and bolts we use to fasten on the bumpers? One year we had that problem.
  11. To assemble that many bumpers, all our equipment would have to be running perfectly. We could afford very little downtime on the ma¬chines.
  12. Changes can be particularly troublesome in the financial area. For ex¬ample, increase in the prices of raw materials can create havoc for plan-
  13. 8Lester R. Bittel, What Every Supervisor Should Know, 3rd ed. (New York: McGraw- Hill, 1974), p. 439.

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