![]() The direction and magnitude of non controllable variable should be anticipated to maximize their favorable effects and/or to minimize their unfavorable effects. Non controllable variables are not amenable to management control. Controllable variables include employees’ quality and quantity, sources of capital, production techniques, cost and pricing, sales, research and development etc. Controllable variables subject to the influence of management, and can be controlled and manipulated to the best advantage of the enterprise. The task of planning the firm’s activities involves the identification of relevant controllable and non-controllable variable. Planning is a feed forward process to reduce uncertainty about the future. Action is initiated to commit to the decision. After a proper analysis of collected data, a suitable alternative is selected. Once a decision need has been recognized, planning provides for a method of scanning decision alternatives within the framework of the firm’s objectives and other constraints. Its basic purpose is to provide guidelines for making decisions. It is the design of a desired future state of an entity and of the effective ways of bringing it about. Planning is a statement of what should be done, how it should be done and when it should be done. The decision-making process starts with planning. The process of decision-making involves two basic management functions of planning and control. It is said to be efficient when objectives are realized with the minimum use of resources. It would be effective when management’s objectives are achieved. The decision-making process should be both efficient and effective. It may be directed towards some specific objectives, or it may result as a reaction of environmental factors as they occur. Decision making is an unavoidable and continuous management activity. ![]() The essence of the management process is decision-making. ![]()
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