Decision Making and Planning Differentiated
“In reality, the decision is the point at which plans, policies and objectives are translated into concrete actions. Good decision-making is not possible without sound planning. ”
No business, no industry and no organization can excel without good management. For good management, decision-making is a must in every walk of life. Decision-making is as important as planning in the organization because in doing any thing manager has to choose from among a number of alternatives.Deciding or choosing is no doubt a form of planning but it is basically the decision-making process. In fact, deciding and planning are akin in many ways. Planning, as a whole with its components parts like objectives, principles and procedures, is the outcome of decision-making.
In reality, the decision is the point at which plans, policies and objectives are translated into concrete actions. Good decision-making is not possible without sound planning. The correct choice is to be selected from a large assortment of possible preferences. It is thus evident that decision-making is at the core of planning e.g. the function of choosing of objectives, policies, strategies and tactics need the entire process of decision-making.
As, planning is necessary for other managerial functions of organizing, directing and controlling; decision-making too has an all-encompassing influence on all managerial functions. That is why many observers regard decision-making as a part of the planning process.
Decision-making is necessary on various issues and problems even in each of the functional areas of business like production, marketing, finance, personnel administration, etc. If we consider management to be a universe, decision-making process can be called its central part.
Whenever a manager finds solution to a problem, he actually gets benefit in two different ways. For example, he serves the organization when he successfully overcomes the obstacles and he drives personal satisfaction and advancement, which is the best reward.
A business executive is by profession a decision maker and his survival can be said to be determined by his continuous choice making capacity.
Author - DeeKay
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