Module 7: Planning Techniques and Tools in Business Decision-Making

Vocabulary flashcards covering key concepts from planning techniques and decision-making notes.

Participatory planning

A planning approach that includes the people affected by the plans and those who will implement them in all planning steps; positives include creativity, greater acceptance, better understanding, and commitment to the plans' success.

Trigger point

A change in an attribute, condition, factor, parameter, or value that crosses a threshold and initiates a mechanism or reaction that may lead to a radically different state of affairs.

Forecasting

An attempt to predict what may happen in the future.

Decision making

A process that begins with problem identification and ends with the evaluation of implemented solutions.

Structured or programmed decision

A decision that is repetitive and can be handled using a routine, established approach.

Unstructured or non-programmed decision

A decision for problems that are new or unusual and for which information is incomplete.

Certainty conditions

Ideal decision conditions where the results of all alternatives are known, allowing precise decisions.

Risk or uncertainty conditions

Common decision conditions where estimates about possible outcomes are needed to determine the best solution.

Identify the Problem

Step 1 in Robbins and Coulter’s decision-making process: define the problem as a puzzling situation or a discrepancy between the existing and desired condition.

Identify the Decision Criteria

Step 2: identify criteria that are important or relevant to resolving the identified problem.

Allocate Weights to the Criteria

Step 3: assign priorities to the criteria to give the decision maker the correct emphasis in the decision.

Develop Alternatives

Step 4: list possible alternatives that could help resolve the identified problem.

Analyze the Alternatives

Step 5: evaluate the alternatives carefully using the criteria identified in Step 2.

Select an Alternative

Step 6: choose the best alternative, typically the one with the highest total points from Step 5.

Implement the Chosen Alternative

Step 7: put the decision into action and monitor environmental changes, especially in long-term decisions, to see if the chosen alternative remains best.

Evaluate Decision Effectiveness

Step 8: assess the outcome to determine if the problem is resolved and, if not, reassess and potentially repeat steps.