Planning and decision making are two main and fundamental processes of an organization. Planning is one of the main factors with the help of which an organization can determine where it wants to be in the future. It is planning with the help of which an organization can determine as to what can be done in order to accomplish the mission and aims that an organization has. One of the basics that are followed during planning includes achievement of the objectives that the organization has. In order to have better planning, there are four main facts that are needed to be kept in mind by the planners in the organizations. These include mission, values, resources, as well as the environment of the organization as these are the four main facts that help in having better planning within the organization.
Decision making is the second important foundation of success for an organization. Previously it was thought that planning was the only fundamental part involved in the success of an organization. In the case of decision making, it was thought that it was just related to the managerial functions being run in the organizations. However, these days, when the importance of decision making has been realized, it has been given the same importance as that of planning. Decision making is an important function and responsibility of being a manager within the organization. There are many decisions that are made by the managers on the daily basis. The decisions may be smaller and they may be bigger. The success of the organization in the end depends on the effectiveness with which the managers make the decisions. Decision making is a process itself. Thereby, it is important that the processes, problems and issues are identified and a decision is made based on these problems. There are two main components of the decision making process and these include a judgment. It is defined as a process that is used for evaluation of all alternatives. The second important component of decision making is known as a choice. In these cases, the choice has been defined as the process that helps in the selection of an alternative for implementation and decision making (Sinofsky, and Iansiti, 2009, p. 56).
There are a number of studies that have been conducted in order to study the importance of planning and decision making process. Planning is an important part of the organization. The importance of planning is more realized by the fact that planning is more effective in the case of risky situations. The effectiveness of planning in the case of automated sequential decision-making has been considered in this study. There are a number of areas in which the effectiveness of planning has been studied in relation to planning and these include operation research, decision analysis, and economics as well as control theory. There are a number of perspectives that have been taken into account in these studies and these assumptions and perspectives are different in each case. There are many planning-based processes that are modeled by the studies but one of the main modeling process include Markov Decision Process which is abbreviated as MDP. The study has carried out an overview of MDP related models that are used in the process of decision making in the organizations. There are a number of roles being played by these models in the provision of a unifying framework for modeling many different classes of planning processes within the organization. These are the plans that can be used while designing certain policies or plans within the organizations. Some of the main areas in the organizations in which planning is required in the organizations is in the value as well as the reward functions that are used for the evaluation of performance of the employees. Planning is also used in the organizations in order to describe the state transitions as well as observations that are used to describe states, actors, and observations. One of the main facts that need to be mentioned here is that the role of artificial intelligence has been highlighted in the process of decision-making. Plan quality and decision theory notions have played important roles in the field of decision-making. Decision theory planning is one of the main extensions of artificial intelligence planning. It is important because it helps in the calculation of risks and uncertainties. There are a number of factors that are unknown by the decision maker. Some of these factors include varying levels of resource consumption that can lead to great changes in the outcomes. Thereby in these cases, it can be seen that the decision theory planning helps in the development of a course of actions that are required to achieve certain aims. In this case, it can be added that when artificial intelligence is considered as an important part of decision making when it comes to solving sequential problems in relation to the decision making process, the relationship that exists between decision theory, planning, operation research, economics and decision analysis becomes more apparent (Boutilier, Dean, and Hanks, 1999, p. 45).
There is a great variety of research available on the topic of planning and decision making within the organizations. These days there is no doubt about the fact that after globalization, there is an increased amount of competition being faced by the organizations. In these cases, it is important that the organizational effectiveness is increased and the organizations can perform better and more effectively in this competitive environment. In order to make sure that an increased effectiveness is achieved by the organizations, innovation needs to be incorporated in the systems of the organizations. Team making has been seen as one of the most important processes in the organizations that can help in increasing the creativity within the organizations. In order to make sure that the teams and the systems in the organizations are more creative, better and newer ideas need to be generated by the teams. When it comes to an increase in the innovation in the organization, it has been seen that the group leaders play many more important roles. One of the main facts that need to be mentioned here is that there is a strong relationship between better team innovation and better decision making. It is important to mention here that conformity and alignment are two important factors that are required in making the team. When making the team is more successful, there are more chances that decision-making will be more effective. Thereby there are many factors on which effective decision making of the organization is most dependent and these factors include effectiveness in team making, team building, visions and missions managed by the team and most importantly, innovative decisions taken by the team leaders (Dreu, Carsten, and West, 2001, p. 1193).
One of the most important areas of decision making and planning within the organization has been the multicriteria decision making within the organizations. This study has mentioned that the process of decision making can be complex as well as intractable. This is because there are a number of tradeoffs involved between environmental, economic, socioeconomic and legal environment. Decision making has played important roles in the case of the safety of the environment. In these cases, there is a number of abatement as well as remedial strategies that are used for the decisions that are made for land planning, contaminated sites, as well as land-based regulatory processes. Multiple criteria in this case are used for the process of decision-making and the additional criteria in these cases include distribution of costs as well as benefits, and the environmental safety impacts for various populations. One of the main facts that need to be mentioned here is that most of these criteria are such that the monetary values of these cannot be calculated. Decision making in this case involves the roles played by ethical concerns and moral principles and these cannot be summoned into monetary values. Thereby, in most of the cases, it becomes important that the multiple criteria rankings are condensed into one single unit; it cannot be more possible as there are various concerns of the stakeholders that are not achieved in these cases (Kiker, Bridges, Varghese, Seager, and Linkovj, 2005, p. 98).
Another important aspect of decision making that has been covered in many studies include behavioral sciences. One of the most important facts that have been mentioned in the study is that perception and thinking are more dependent on the ability of a person to think and make decisions. The study has been conducted on decision making. An important area of decision making covered in this study is that there are various actions taken by the diction makers that have certain economic consequences. In these cases, there can be a variety of choices that may be available to the person and these may relate to the chances of winning. The person may be given a choice of winning U.S. $15,000 or winning nothing at all. When risks are faced…