Module 3: Planning and Decision Making

The Importance of Planning00:00:00

Planning is established as the foundational management function. It provides direction, reduces uncertainty, sets performance standards, and improves organizational efficiency.

Levels of Planning00:02:22

Plans exist at three hierarchical levels: strategic (long-term/top management), tactical (departmental/middle management), and operational (day-to-day/first-line management).

SWOT Analysis and Goal Setting00:03:15

SWOT analysis is used to identify internal strengths/weaknesses and external opportunities/threats. Additionally, Management by Objectives (MBO) and SMART goals are introduced as tools for creating specific, measurable, and challenging performance objectives.

Decision-Making Models00:06:31

The lecture contrasts the rational model of decision-making with Herbert Simon's concept of bounded rationality, noting that managers often 'satisfice' due to cognitive limits and time constraints.

Mitigating Cognitive Bias00:07:48

To counter common biases like the halo effect, recency bias, and anchoring, managers should implement system-level process design, including rubrics and structured interview protocols.

Ethical Frameworks00:09:04

Decisions are evaluated using consequentialist, deontological, and virtue ethics. The 'newspaper test' is provided as a practical heuristic to assess the transparency, fairness, and dignity of management choices.