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• Module overview
• 1. Introduction to planning
  • 1.1 Types of plans
    • 1.1.1 Some definitions
    • 1.1.2 Domains of planning
    • 1.1.3 Users and levels of planning
  • 1.2 Completing a planning cycle
    • 1.2.1 A planning process
    • 1.2.2 Tactical and operational planning
    • 1.2.3 A participative planning process
    • 1.2.4 When to complete business planning
  • 1.3 Implementing an operational plan
    • 1.3.1 Define the plan's purpose
    • 1.3.2 Setting the planning period and scope
    • 1.3.3 Why plans fail - The strategic level
    • 1.3.4 Why plans fail - The operational or project level
  • 1.4 SMART goals
    • 1.4.1 S.M.A.R.T. Goal statements
  • 1.5 Contingency plans
    • 1.5.1 Why contingency plan?
    • 1.5.2 Contingency plans and risk
    • 1.5.3 Contingency planning actions

• 2. Plan and manage resources

  • 2.1 Plan and manage human resources
    • 2.1.1 Recruitment
    • 2.1.2 Selection
    • 2.1.3 Induction
  • 2.2 Enterprise Resource Planning (ERP)
  • 2.3 Purchasing resources
    • 2.3.1 Tangible and intangible assets
    • 2.3.2 Acquisition costs
    • 2.3.3 Depreciation costs
    • 2.3.4 Planning resource acquisition and utilisation
    • 2.3.5 Estimating resource needs
  • 2.4 Manage Capacity
    • 2.4.1. Planning capacity
    • 2.4.2. Measuring capacity
    • 2.4.3. Matching operations plans with capacity
    • 2.4.4. Capacity analysis and economies of scale
    • 2.4.5. Capacity and performance effectiveness
    • 2.4.6. Determinants of capacity
  • 2.5 Aggregate and Master Planning
    • 2.5.1 Master Schedule
    • 2.5.2 Operational control and resource planning
    • 2.5.3 Demand and scheduling control

• 3. Risk Management

  • 3.1 Risk Management
    • 3.1.1 Potential benefits from an effective risk management
    • 3.1.2 Classifying risk
    • 3.1.3 Risk and ANZS4360:2004
    • 3.1.4 Risk analysis
  • 3.2 Estimate the risk attached to a corrective action
    • 3.2.1 Risk analysis categories
    • 3.2.2 Prioritising risks

• 4. Planning projects

  • 4.1 Planning the project
    • 4.1.1 Setting the project plan
    • 4.1.2 Setting achievable outcomes
  • 4.2 Controlling Projects
    • 4.2.1 Personnel resources
    • 4.2.2 Managing project costs
    • 4.2.3 Value of managing project costs
    • 4.2.4 Estimates
    • 4.2.5 Cost Coding
    • 4.2.6 The time factor
  • 4.3 Scheduling project tasks and activities
    • 4.3.1 Project timelines and deliverables
    • 4.3.2 Critical Path Analysis (CPA)
    • 4.3.3 PERT
    • 4.3.4 Seven steps to project scheduling
    • 4.3.5 Completing project schedule activities

• 5. Problem solving and decision making

  • 5.1 Problem solving
    • 5.1.1 The problem solving process
    • 5.1.2 Solutions search
    • 5.1.3 Removing root causes
    • 5.1.4 Solutions implementation through inclusive communication processes
  • 5.2 Decision making
    • 5.2.1 Decision making model and leadership styles
  • 5.3 Decision making approaches
    • 5.3.1 The logical systems
    • 5.3.2 Contingency approach
    • 5.3.3 Quantitative - schematic and mathematical approaches
    • 5.3.4 Critical Path Analysis
    • 5.3.5 PERT
    • 5.3.6 Group quantitative approaches
    • 5.3.7 A qualitative approach
  • 5.4 Context and the influence on the decision processes
    • 5.4.1 Factors in decision making
    • 5.4.2 Rational decision making
    • 5.4.3 Creative decision making
  • 5.5 Scenarios for team decision making and problem solving
    • Problem scenario number 1 - Lost in the bush
    • Problem scenario number 2 - Toothpaste blues
    • Analysis of personal behaviour in groups

5.3.1 The logical systems

The logical systems approach derived from the rational approach and is a dominated and directed research in problem-solving until the 1960s and its influence remains to this day. A logical systems approach to problem solving is premised on a rational decision making model. Here a manager would undertake steps towards a solution that maximises goal attainment. A number of phases to decision making and problem solving can be advanced using the logical systems approach. Rasberry and Lemoine Effective Managerial Communication , identified the following very rational set of stages to a logical systems approach to decision making (1986:366-373).

Defining the problem
Accurately defining the problem is essential. If you don't identify the real problem the solution is obviously going to be wrong and likely make the process of decision making a waste of time.

Analysing the problem
Analysing the problem necessitates an understanding of process. A process is essentially the sequence of steps to produce goods and services. If these are delineated prior to problem solving, analysis of the problem can be undertaking logically by examining the steps of the production process. Further, if the process is clearly documented, the cause of the problem is more likely to emerge.

Generating alternative solutions
It is important to generate as many solutions to the problem as possible within the parameters defined.

Choosing a solution or course of action
Once a solution is derived it should be evaluated against the established criteria, the same criteria applying to all possible solutions. The solution that most effectively meets the criteria should be selected.

Implementing the solution
There is often a disparity between the solution agreed to in a group and the solution implemented - much to the dismay of the group involved. This is because the group fails to determine a plan for implementing the decision. A plan usually comprises goals, time frames and persons responsible for each step. Another reason is because the group fails to assess obstacles to implementing the solution including which groups or agencies might be hostile to the solution. Such factors need to be accounted for and a strategy for solution implementation effected.

Evaluating the effectiveness of the solution
Evaluation of the solution occurs at two levels. First, did the implementation plan meet the goals and objectives? And second, did the solution via the plan eliminate the problem? Another factor for evaluation is to determine whether the solution and/or the plan resulted in any new problems, in which case the six step process begins again.

This systematic approach is premised on a rational decision making theory that solves problems in the best interests of the organisation. In reality, there are a number of factors that mitigate against this:

1. The problem is not always well defined, nor are the goals succinct or the range of options apparent. Therefore, the best path is not always apparent.
2. There are limits to a manager's information-processing capacity. This results in managers simplifying problems in order to understand them. The solution that results may thus be less than optimal.
3. Managers sometimes mix solutions with problems. This refers to management defining a problem in terms of known and acceptable solutions that can preclude alternative and perhaps better solutions.
4. Managers select solutions for accessibility rather than quality. Thus, a manager may ignore important factors or information because in is difficult to access.
5. Managers sometimes prematurely commit themselves to one solution
6. Managers do not always search for alternative solutions when the tried solution fails to work. Instead, managers often escalate their commitment to a wrong course of action.
7. Time and cost constraints reduce the availability of alternative options.

These factors led some theorists to propose a model of bounded rationality . In this model, a limited set of criteria for problem solving is identified including a limited range of alternatives so that a satisfactory (as opposed to optimal) solution is reached. The model also acknowledges that politics and power will influence the acceptance of, and commitment to, the solution.

This systematic approach is premised on a rational decision making theory that managers solve problems in the best interests of the organisation. In reality, there are a number of factors that mitigate against this:

• The problem is not always well defined, nor are the goals succinct or the range of options apparent. Therefore, the best path is not always apparent.
• There are limits to a manager's information-processing capacity (Simon 1979:363). This results in managers simplifying problems in order to understand them. The solution that results may thus be less than optimal.
• Managers sometimes mix solutions with problems (Anderson 1983:217). This refers to management defining a problem in terms of known and acceptable solutions that can preclude alternative and perhaps better solutions.
• Managers select solutions for accessibility rather than quality (O'Reilly 1982:756). Thus, a manager may ignore important factors or information because in is difficult to access.
• Managers sometimes prematurely commit themselves to one solution (Nutt 1984:414).
• Managers do not always search for alternative solutions when the tried solution fails to work. Instead, managers often escalate their commitment to a wrong course of action (White 1986:311).
• Managers often negotiate solutions with other managers who have divergent interests (Alison 1971:30). This is consistent with the use and abuse of power and political influence in organisations.
• Time and cost constraints reduce the availability of alternative options (Lindblom 1959:79).

These factors led some theorists to propose a model of bounded rationality . In this model, a limited set of criteria for problem solving is identified including a limited range of alternatives so that a satisfactory (as opposed to optimal) solution is reached. The model also acknowledges that politics and power will influence the acceptance of, and commitment to, the solution.

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