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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

5.2.1 Decision making model and leadership styles

Decision making styles are heavily influenced by our personality and psychological profile. It is basically embedded into our DNA! While it can be modified it is still important to note that preferences or style of decision making are closely tied to the style of different leaders. Vroom and Yetton (1973) and later Vroom and Jago (1989) were identified as confirming the different methods of decision making (See the topic on Leadership Styles). We can use the same categories to examine how these methods also reflect a leader's preferential basis for making decisions. The following table examines the seven methods of decision making and identifies how leaders may either use these styles in given situations, or indeed, have a preference for a particular style. Their preference for a decision making style would then influence their style of leadership. The following table is based on the work of Vroom, Yetton and Jago to confirm how certain methods of decision making may be evidenced by leaders.

Table 1 - Leadership Styles and Methods of Group Decision Making

Vroom & Yetton Methods of Group Decision Making	Evidenced in Styles where the leader:
AI Autocratic or directive style of problem solving	Rationally defines the problem, completes the diagnostic process relating to the problem, generates solutions, evaluates solutions and choose best alternative solution (satisfises - best solution in their judgement)
AII Autocratic with group information input	Rationally defines the problem, completes the diagnostic process relating to the problem, and generates solutions. At this point or earlier they involve the group in evaluating the proposed solution and/ or evaluation of alternatives. The choice of solutions and data collection by the group to evaluate options is usually limited.
AIII Autocratic with group's review and feedback	Rationally defines the problem, completes the diagnostic process relating to the problem, generates solutions, evaluates solutions and choose best alternative solution. The solution is then presented to the group for review of issues relating to implementation and overall understanding and feedback.
CI Individual Consultative Style	Defines the problem and completes the diagnostic process relating to the problem. Investigation of problem causes and potential solutions is completed with input from select individuals. Feedback on solutions and evaluation of options usually involves expert group prior to choice of optimum solution. Choice of 'best' solution remains with the leader.
CII Group Consultative Style	Defines the problem and completes the diagnostic process relating to the problem. Investigation of problem causes and potential solutions is completed with input from the affected group. Feedback on solutions and evaluation of options usually involves experts identified by the group prior to choice of optimum solution. Choice of 'best' solution remains with the leader
GI Group Decision Style	Defines the problem and completes the diagnostic process relating to the problem. A group is then identified and involved in completing a proceeds to diagnose the causes of the problem. Following diagnosis, the group generates and evaluates solutions. Guided by the leader the group then chooses the solution.
GII Participative Style	The leader engages the group to complete the whole decision making process. The group defines the problem and performs all other functions as a group. The leader removes themselves from directing the process but remains to facilitate the process.
GIII Leaderless Team	The leader removes themselves from the decision making process completely. The group is constructed without a leader. If no substitute for task leadership , or process leadership is present, a process leader often emerges. This person may change from problem to problem. The group generates its own problem definition, performs its own diagnosis, generated alternatives, and chooses among alternatives

 

Activity 3

A Vroom-Yetton-Jago Decision Modelling exercise can be completed online at http://www.promanage-inc.com/decision.htm .

Reading 2

Michelson, B & Jacobs, TO (2002) ' Information Age and Strategic Decision Making', Chapter 3in Strategic Leadership and Decision Making , Department of Strategic Decision Making and Executive Information Systems, National Defence University : USA . Available at http://www.ndu.edu/inss/books/Books%20-%201999/Strategic%20Leadership%20and%20Decision-making%20-%20Feb%2099/pt1ch3.html .

Activity 4

Many dimensions that impinge upon decision making in the strategic context have been introduced by the reading from Michelson and Jacobs. Consider the following.

1. What are the differences between the cognitive and one affective domain of information transfer and decision making?
2. Why is it important for people to think rather than just rely on tools and techniques to solve problems? List at least five factors you believe are making decision making harder to complete systematically (i.e. Decisions are increasingly being made under great time pressures).
3. So is the Information Age responsible for elevating the importance of management decision making?

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