APR 2008

PARTC

QUESTION 1
Briefly discuss any three (3) benefits of planning in organization.

Benefits of planning:

1. For better coordination

• Planning provides a foundationfor the coordination of a broad range of organizational activities.

• A plan helps to define the responsibilities of individuals and work groups and helps coordinate their activities.

2. Focus on forward thinking

• The planning function forces managers to think ahead and consider resource needs and potential opportunities or threats that the organization may face in the future.

3. Participatory work environment

• Successful planning requires the participation of a wide range of organizational members.

• The organization benefits by having access to a broad base of experience and knowledge in the planning process.

• Organizational members are more likely to “buy in” to a plan that they have helped develop.

(6 marks)
PART D

QUESTION 1
Decision making is the process through which managers and leaders identify and resolve problems and capitalize on opportunities.

a) What are the conditions in decision making?

Conditions under Decision Making:

a) Certainty – situation in which a decision maker can make accurate decisions because the outcome of every alternative is known. b) Risk – condition in which a decision maker is able to estimate the likelihood of certain outcomes. c) Uncertainty – a situation in which a decision maker has neither certainty nor reasonable probability estimates available. (3 marks)
b) Describe the seven (7) steps in the decision-making process.
1. Identifying Opportunities and Problems: The decision maker begins by recognizing opportunities or problem that requires a