Steps in Planning/Decision Making/Define problem/issue in management

We have just seen that decision making is the heart of planning. Without taking decision and committing planning to action, the plan is useless and is of no value. It soon collapses because there is nothing to pump blood in it.

These steps are also the steps in decision making and we are going to consider them, though
briefly, one after the other.

Define problem/issue

This is the first step in planning/decision making. The objective has been set, and there is an obstacle toward the realization of the objective.

As a result, before a problem does exist and becomes an issue there must be an objective which the problem is threatening. That problem must be identified and isolated. Care must be taken here so as not to confuse symptom of a problem to the problem at stake. For example, there can be smoke in the factory but what is causing the smoke is the fire. Attacking the smoke is a sheer waste of time because the fire will continue to produce fresh smoke. The only way to put an end to the smoke is to quench the fire by a relevant means or a combination of means. The same situation goes to management function of planning/decision. The exact problem has to be identified. The manager must therefore be diligent and painstaking.

 Collect relevant date

Planning and decision making cannot take place unless there is data. But the data should be meaningful to the problem already identified. This is where the information gathered in the management function of forecasting will be useful. The assumptions made will be further subjected to analysis so as to determine the relevance to the problem at stake. Company records are also part of the data which have to be processed. Outcome of researches can also be part of the data if such outcome is relevant to the issue.

Develop alternative solutions

The data having been assembled, the next stage is for management to work out possible solutions. The solution can never be one because if it is so then there can be no choice. The idea of choice suggests that at least there must be two solutions to the existing problem. Out of these solutions, there can be a choice.

Assess the consequences

But before there can be a choice, there should be consequences which must be carefully considered in the light of the problem threatening the objective. The manager should determine the required resources needed in selecting an option. He should find out if such resources do exist and if they can be put to alternative use that can bring better benefits. He must be sure too that the organization can handle the option that is eventually and the option is capable of tackling the problem effectively.

Select the Optimum Solution

The solutions having been worked out and ranked in order of preference, the next stage is to choose. And the choice should be the most feasible one after taking several factors into consideration vis-à-vis the objective and the problem at stake.

Implement Solution

Once the choice has been, management should go ahead to implement. While implementing, there should be built-in motivational system that will enable problem to be tackled satisfactorily. Job plan should be  developed spelling out the necessary activities to be done, who is to do them, how they are going to be done and at what time.

Measure result

While implementing, there must be control and feedback. To achieve this, there should be regular reports on performance. The reports should then be compared with the objective. If there is a deviation, this means that there is no effective solution yet to the problem. Such deviation should be quickly corrected.

SELF-ASSESSMENT EXERCISE 

Assuming you want to buy a car to ease your transportation problem of going to work and other places. Show how you will use the model in to take a decision and solve the problem. 

The above steps constitute the relevant steps in planning/decision making. They bridge the gap between where we are and where we want to go and making it possible for things to happen which other wise would not have occurred. Planning is a rational and intellectual process which precedes other management functions.