Planning and Decision Making: Meaning, Types, Steps and Techniques

⏱ 4 min read

Planning is the first function of management, and decision making runs through every function. Nayab Subba and Section Officer papers often ask for the steps of planning, the types of plans, Herbert Simon’s ideas and techniques such as brainstorming and SWOT. This note covers all of these with simple examples from government offices.

1. Meaning and features of planning

  • Koontz and O’Donnell: planning is deciding in advance what to do, how to do it, when to do it and who is to do it.
  • It bridges the gap between where we are and where we want to go.
  • Features: it is the primary function of management, goal-oriented, future-oriented, continuous, pervasive (needed at all levels) and an intellectual process.
  • In Nepal, national development plans are prepared by the National Planning Commission (NPC), chaired by the Prime Minister.

2. Types of plans

BasisTypes
LevelStrategic (top level, long-term), tactical (middle level), operational (lower level, day-to-day)
TimeLong-term (over 5 years), medium-term (1 to 5 years), short-term (up to 1 year)
UseStanding plans (used again and again) and single-use plans (used once)
Standing plansSingle-use plans
Policy: general guide for decisionsProgramme: set of activities for a goal
Procedure: steps in order for a taskBudget: plan in money terms
Rule: what must or must not be done, no flexibilityProject: one-time task with set time and cost

3. Steps of planning

  • 1. Being aware of opportunities and problems
  • 2. Setting objectives
  • 3. Developing planning premises (assumptions about the future)
  • 4. Identifying alternative courses of action
  • 5. Evaluating alternatives
  • 6. Selecting the best alternative
  • 7. Making supporting (derivative) plans
  • 8. Preparing budgets and implementing, with follow-up

4. Decision making

  • Decision making is choosing the best option from available alternatives.
  • Herbert A. Simon said “decision making is the heart of administration”. His book Administrative Behavior appeared in 1947; he won the Nobel Prize in Economics in 1978.
  • Simon gave the ideas of bounded rationality (people cannot know everything) and satisficing (choosing a good-enough option).
  • Steps: identify the problem → collect information → develop alternatives → evaluate → choose → implement → follow up.
Programmed decisionsNon-programmed decisions
Routine and repetitiveNew, unusual and complex
Made by following rules and proceduresNeed judgement and creativity
Usually by lower-level staffUsually by top-level managers
Example: granting casual leaveExample: responding to a flood disaster

5. Techniques of decision making

TechniqueUse
BrainstormingGroup produces many ideas freely without criticism; developed by Alex Osborn
Delphi techniqueExperts give opinions anonymously in rounds until they agree; developed at RAND Corporation
Cost-benefit analysisCompares the costs and benefits of each option
SWOT analysisStudies Strengths, Weaknesses, Opportunities and Threats
Decision treeDiagram of choices and their possible results
Nominal group techniqueMembers write ideas alone, share them, then vote

6. Example: planning in a government office

A health office wants to raise child vaccination to 95%. It studies the current rate (situation analysis), sets the target (objective), considers options such as mobile clinics or school camps (alternatives), chooses mobile clinics (decision), prepares a budget and schedule (programme) and reviews monthly coverage (follow-up).

Decision typeExample
Programmed (routine)Approving casual leave under the rules
Non-programmedResponding to a sudden flood
IndividualOfficer decides on a routine letter
GroupCommittee selects a contractor

7. How this topic is asked in the exam

Objective items ask the steps of planning, types of plans and decision-making techniques such as brainstorming and Delphi. Subjective questions ask about the link between planning and decision making. Use an office example to show each step.

📌 Key points to remember

  • Planning: deciding in advance what, how, when and who (Koontz and O’Donnell).
  • Planning is primary, future-oriented, continuous and pervasive.
  • Strategic plans at top, tactical at middle, operational at lower level.
  • Standing plans: policy, procedure, rule; single-use: programme, budget, project.
  • Herbert Simon: “decision making is the heart of administration”; Administrative Behavior (1947); Nobel 1978.
  • Bounded rationality and satisficing are Simon’s ideas.
  • Programmed decisions are routine; non-programmed are new and complex.
  • Techniques: brainstorming (Osborn), Delphi (RAND), cost-benefit, SWOT, decision tree.
  • NPC, chaired by the Prime Minister, prepares Nepal’s national plans.
📝 Quiz

Test yourself: Planning and Decision Making

Practise Meaning and features of planning, Steps of planning and Techniques of decision making with 50 questions. Each attempt picks 25 at random.

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