1. Planning and Decision Making
Management as a planning and Decision Making
Dental Clinic and Hospital Management I
Faculty of Dental Medicine, Rangsit University
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2. Objective
Able to describe the deïŽnition and purpose of planing
Able to describe the relationship of planning and goal establishing
Understand the structure of decision-making
Understand the âProbability Theoryâ and âDecision Making Treeâ
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3. Objective
Able to describe the deïŽnition and purpose of planing
Able to describe the relationship of planning and goal establishing
Understand the structure of decision-making
Understand the âProbability Theoryâ and âDecision Making Treeâ
Contents
Planning
DeïŽnition and Purpose of Planning
Type of Plan
Establishing Goal
Step in Planning Process
Decision-Making
Rational and Intuition
Decision-Making Tools
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9. Planning
âIdentifying and selecting appropriate goals and courses of actionâ
Goal - Whatâs To Be Done
â
Action - How Itâs To Be Done
Purposes of Planning
âĒ Planning gives direction
âĒ Planning reduces uncertainly
âĒ Planning reduces overlapping and wasteful activities
âĒ Planning sets the standard used in controlling
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10. Planning
âIdentifying and selecting appropriate goals and courses of actionâ
Goal - Whatâs To Be Done
â
Action - How Itâs To Be Done
Purposes of Planning
âĒ Planning gives direction
âĒ Planning reduces uncertainly
Planning
âĒ Planning reduces overlapping and wasteful activities
âĒ Planning sets the standard used in controlling
5
11. Planning
âIdentifying and selecting appropriate goals and courses of actionâ
Goal - Whatâs To Be Done
Controlling
Purposes of Planning
Leading
Action - How Itâs To Be Done
Organizing
â
âĒ Planning gives direction
âĒ Planning reduces uncertainly
Planning
âĒ Planning reduces overlapping and wasteful activities
âĒ Planning sets the standard used in controlling
5
12. Planning
âIdentifying and selecting appropriate goals and courses of actionâ
Achieving
objectives
Goal - Whatâs To Be Done
Controlling
Purposes of Planning
Leading
Action - How Itâs To Be Done
Organizing
â
âĒ Planning gives direction
âĒ Planning reduces uncertainly
Planning
âĒ Planning reduces overlapping and wasteful activities
âĒ Planning sets the standard used in controlling
5
15. Type of Plans
Breadth
Time Frame
Functional
āđāļāļāļāļĨāļĒāļļāļāļāđ
Strategic
Long term
> 5 āļāļĩ
Master plan
Functional plan
āđāļāļāļĒāļļāļāļāļ§āļīāļāļĩ
Tactical
Intermediate term
1-5 āļāļĩ
Short term
āļ āļēāļĒāđāļ 1 āļāļĩ
Single use
Project plan
Comprehensive plan
āđāļāļāļāļāļīāļāļąāļāļīāļāļēāļĢ
Operational
Frequency of Use
Standing
Activity plan
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30. Establishing goal
Traditional Objective Setting
âI want to see a
signiïŽcant
improvement in
this divisionâs
proïŽt.â
Top
âWe need to improve the organizationâs
performance.â
Management
Division Management
Department Management
âIncrease proïŽts regardless of the
means.â
âDonât worry about quality; just work
fast.â
Individual
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31. Establishing goal
Traditional Objective Setting
Top
âWe need to improve the organizationâs
performance.â
Management
Division Management
Department Management
âIncrease proïŽts regardless of the
means.â
Top Down
âI want to see a
signiïŽcant
improvement in
this divisionâs
proïŽt.â
âDonât worry about quality; just work
fast.â
Individual
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50. Steps in the Planning Process
Stating organizational objective
Listing alternative ways of reaching objectives
Input
Process
Output
Developing premises upon which each
alternative is based
Choosing best alternative for reaching
objectives
Input
Process
Output
Developing plans to pursue chosen alternative
Putting plans into action
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52. The Management as a Decision Making
âThe process by which managers respond to opportunities and threats by analyzing options
and making determinations about speciïŽc organizational goals and courses of action.â
Programmed Decision Making
Nonprogrammed Decision Making
Routine, virtually automatic
decision making that follows
established rules or guideline
Nonroutine decision making that
occurs in response to unusual,
unpredictable opportunities and
threats.
Intuition
Reasoned
judgement
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54. Rationality VS Intuition
Make decision based
on past experience
Make decision based
on ethical values or
culture
Single, welldeïŽned goal is to
be achieved
All alternatives and
consequences are
known
Preferences are
constant and
stable
Experience-based
decisions
Problem is clear
and unambiguous
Values or ethic-based
decisions
Rational
Decision
Making
AïŽect-initiated
decisions
Intuition
Final choice will
maximize payoïŽ
Subconcious
mental processing
Preferences are
clear
Make decision based
on feeling and
emotions
Cognitive-based
Decisions
No time or cost
constraints exist
Use data from
subconcious mind to help
making decisions
Make decision based on skills,
knowledge, and training
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55. Element of Decision Situation
1
Decision Makers
Receptive
Exploitative
Hoarding
Marketing
4
2
Ordering of
Alternatives
3
Goals to be
Served
5
Relevant
Alternatives
Choice of
Alternatives
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64. Decision-Making Conditions
Decision-Making Style
Tolerance for Ambiguity
High
Certainly
Low
Rational
Condition
Risk
Analytic
Conceptual
Directive
Behavioral
Maximizing the
Maximum Possible Payoff
Way of thinking
Intuitive
Optimistic
Uncertainly
Pessimistic
Maximizing the Minimum
Possible Payoff
Minimizing the Maximum
Possible Payoff
Conservative
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65. The Decision-Making Process
âĒIdentifying Decision Criteria
âĒAllocation Weight to the Criteria
âĒDeveloping Alternative
âĒAnalyzing Alternative
Identify
existing
problem
List alternative
problem
solutions
Select most
beneïŽcial
alternative
Implement
chosen
alternative
Gather
problem-related
feedback
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66. Decision-Making Tools- Probability Theory
EV = I x P
EV = Expected value
I = Current income
P = Probability
Alternative
Potential income
Probability of income
Expected value of
alternative
A
1,000,000
0.1
100,000
B
250,000
0.4
100,000
C
650,000
0.2
130,000
D
500,000
0.3
150,000
P
EV
I
x
â
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77. Decision Making Tools-Group Decision Making
Brainstorming
Group members
state ideas
Group leader
records each
idea where
group can
read it
Idea evaluated
only after
all have been
recorded
No comments
on idea at
this stage
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78. Decision Making Tools-Group Decision Making
Brainstorming
Group members
state ideas
Group leader
records each
idea where
group can
read it
No comments
on idea at
this stage
Idea evaluated
only after
all have been
recorded
Nominal Group
Technique
Group members
state ideas
Group leader
records each
idea where
group can
read it
The
members
proceed to
rank the
solution
The lowest
total
ranking is
selected
37
79. Decision Making Tools-Group Decision Making
Brainstorming
Group members
state ideas
Group leader
records each
idea where
group can
read it
No comments
on idea at
this stage
Idea evaluated
only after
all have been
recorded
Nominal Group
Technique
Group members
state ideas
Group leader
records each
idea where
group can
read it
The
members
proceed to
rank the
solution
The lowest
total
ranking is
selected
Delphi Technique
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