BUSİNESS MANAGEMENT - Deneme Sınavı - 3

In intuitive decision making model, decisions are taken through five different aspects of intuition: experience-based decisions (managers use their past experiences), affect-initiated decisions (feelings and emotions), skills, cognitive-based decisions (knowledge, and training), values or ethics as guides and the subconscious mental processing. For this reason, the correct answer is B.

It should be Planning

Don't consider the utilization of after-planning and after-decision-making tools and techniques,is not one of them

It should be Intuition

Innovation-based decisions is not one of them

Employ heuristics to narrow the solution to a double promising alternative is not one of them

It should be Bounded rationality

It should be Rational decision-making model

Finishing decision is not one of them

It should be Incremental budgeting

It should be zero-base budgetting

From a vacation with friends to your own career, from starting a small new business to managing a large corporation, you can hardly succeed without planning. For instance, one can hardly find a successful start-up business story without a business plan or any planning whatsoever. Even for funding a business for expansion or a start-up through seeking new investors and creditors, a business plan is a must. The main reason for this is that without planning there is no way one can figure out where a business is going.

Thus, without planning, the remaining managerial functions of organizing, leading and controlling can hardly be done. Specifically, if we do not plan, then the other three functions will take more time and more mistakes will be generated along the way. For instance, the organizational goals set in planning, form the basis for standards against which managers can evaluate (control) the performance of the organization. This is why planning is often called the primary function of management.

Let’s assume that a firm plans to increase the sales of its product X to 1000 units in the upcoming year. If there is no seasonality in demand, this means it needs to sell 250 units per quarter. Later, by the end of the first quarter, if 400 units of product X are sold, then the firm needs to increase production. However, if only 175 units are sold, then new plans must be devised to increase sales. No matter what has been done to increase the sales, if the sales continue to be lower than planned by the end of second and third quarters, then managers of this firm would start to think about revising the product or developing a new product.

Therefore, with the help of this example, one can easily see how planning gives us a direction through setting of goals, helps us check and determine the level of goal achievement, and shows any need for modifying and changing the earlier plans or goals in order to become more effective.

Planning gives us a direction through setting of goals, helps us check and determine the level of goal achievement, and shows any need for modifying and changing the earlier plans or goals in order to become more effective.

Another important concept that planning serves is efficiency, being defined as how good the organization is in its use of resources. As we talk more and more about resource scarcity on our planet, planning gains importance so that businesses can become more sustainable through eco-efficiency (producing by wasting less resources). Simply, by planning, resources will be wasted less, because managers also plan for efficiency in their operations.

Another important concept that planning serves is efficiency, being defined as how good the organization is in its use of resources. As we talk more and more about resource scarcity on our planet, planning gains importance so that businesses can become more sustainable through eco-efficiency (producing by wasting less resources). Simply, by planning, resources will be wasted less, because managers also plan for efficiency in their operations.

By looking at the present through the collection of hourly, daily, monthly data, short-term planning shapes the near future of the organization.

In order to be more effective and efficient in their operations, managers need to make sure that day-to-day problems do not recur or are solved in a much better way. Therefore, in the medium term, more permanent solutions to short-term problems are sought out.

The planning that high-level managers do is also called strategic planning, because strategies are developed to guide the organization in reaching its vision. By setting the long-term plans and directions for the entire organization, high-level management sets the context for lower levels of management to work on useful short-term and medium-term plans. As we go down in the managerial hierarchy, planning gets to be divided into parts.

We should identify resources that are needed right after setting the goals and objectives.

Organizational goals should be

• guided by the mission and vision statements, and organizational strategy,

• written in measurable and quantifiable terms,

• stated in terms of anticipated outcomes rather than actions,

• clear as to a time frame, and

• challenging yet attainable(not too easy or trivial, nor too difficult).

The third step in the managerial planning process is determining the action plans. At this stage, concrete and detailed plans, specifically, statements of action steps (put in a chronological order) should be developed. In other words, tasks associated with the accomplishment of each goal should be identified.

For example, developing advanced sales techniques and then training the company’s salespeople on those techniques can be relevant tasks (two steps of action) for the goal of raising profits by 20 percent. During this stage, together with the timelines for completing the tasks, the units and individual employees to whom the tasks are to be assigned have to be decided. Similarly, for the goal of increasing sales by 20 percent, the sales manager may give the salespeople monthly sales quotas to stay on track.