1.7 ORGANIZATIONAL PLANNING
TOOLS
The following planning tools in a given situation (AO2, AO4):
The value to an organization of these planning tool (AO3):
All business, irrespective of their legal status or size, have to plan how they are to achieve
their organizational objectives.
Organizational planning tools, enables businesses to deal with their problems, issues or
concerns in a systematic way.
Fishbone diagram:
Definition = Is a graphical representation of the most likely causes and effects of an
important decision. As a qualitative organizational planning tool, the fishbone diagram is
used to identify the root causes of a problem or issue. The fishbone diagram shows the
problem or issue on the left hand side
The 4M’s (management, manpower, machines and materials) = is one method that can be
used to identify different categories of causes of a problem or issue, such as demotivated or
unproductive employees.
The following causes can be found from using the fishbone diagram (4M’s):
Management e.g. unsuitable management style
Manpower e.g. unskilled workers
Machinery e.g. technological failures
Materials e.g. poor quality materials
Note: there is flexibility in the use of nodes or bones as you can use it for the 4P’s
(Paraphernalia policies, procedures and people)
When the fishbone diagram is completed, discussion takes place to decide on the most likely
root causes of the problem,
Purpose of fishbone diagram = is to find the key sources of the problem so that they can be
targeted for improvement.
To successfully construct a fishbone diagram, the following steps must be observed:
, 1. The problem or issue must be clearly stated and agreed upon before further
discussions begin
2. Contributors must be concise and to the point
3. For each bone, brainstorm the possible causes and pace these onto the node.
4. Concede combining nodes that are rather empty or scrapping them altogether.
5. Consider separating overcrowded nodes
6. Consider which root causes warrant further investigation by circling these on the
diagram
7. Discuss how each circles item affects the problem or issue being investigated
8. Once the root causes have been established, the fishbone is complete and decision
makers move on to devising appropriate strategies to deal with the sources of the
problem.
Strength of fishbone diagram:
- it is easy to use and understand
- it allows decision makers to brainstorm ideas in a systematic and logical way
- it is a visual diagnosis of a problem or issue.
Limitations of fishbone diagram:
- rather simplistic for some real world problems.
- Is often used in conjunction with other decision making frameworks.
Decision tree (see textbook for example to better understand):
Definition = is a quantitative decision making tool. It is a diagrammatic representation of the
different options that are available to a business in the decision making process, showing
their probable outcomes. The tool allows managers to calculate the expected value of each
decision in order to plan the best option to follow.
TOOLS
The following planning tools in a given situation (AO2, AO4):
The value to an organization of these planning tool (AO3):
All business, irrespective of their legal status or size, have to plan how they are to achieve
their organizational objectives.
Organizational planning tools, enables businesses to deal with their problems, issues or
concerns in a systematic way.
Fishbone diagram:
Definition = Is a graphical representation of the most likely causes and effects of an
important decision. As a qualitative organizational planning tool, the fishbone diagram is
used to identify the root causes of a problem or issue. The fishbone diagram shows the
problem or issue on the left hand side
The 4M’s (management, manpower, machines and materials) = is one method that can be
used to identify different categories of causes of a problem or issue, such as demotivated or
unproductive employees.
The following causes can be found from using the fishbone diagram (4M’s):
Management e.g. unsuitable management style
Manpower e.g. unskilled workers
Machinery e.g. technological failures
Materials e.g. poor quality materials
Note: there is flexibility in the use of nodes or bones as you can use it for the 4P’s
(Paraphernalia policies, procedures and people)
When the fishbone diagram is completed, discussion takes place to decide on the most likely
root causes of the problem,
Purpose of fishbone diagram = is to find the key sources of the problem so that they can be
targeted for improvement.
To successfully construct a fishbone diagram, the following steps must be observed:
, 1. The problem or issue must be clearly stated and agreed upon before further
discussions begin
2. Contributors must be concise and to the point
3. For each bone, brainstorm the possible causes and pace these onto the node.
4. Concede combining nodes that are rather empty or scrapping them altogether.
5. Consider separating overcrowded nodes
6. Consider which root causes warrant further investigation by circling these on the
diagram
7. Discuss how each circles item affects the problem or issue being investigated
8. Once the root causes have been established, the fishbone is complete and decision
makers move on to devising appropriate strategies to deal with the sources of the
problem.
Strength of fishbone diagram:
- it is easy to use and understand
- it allows decision makers to brainstorm ideas in a systematic and logical way
- it is a visual diagnosis of a problem or issue.
Limitations of fishbone diagram:
- rather simplistic for some real world problems.
- Is often used in conjunction with other decision making frameworks.
Decision tree (see textbook for example to better understand):
Definition = is a quantitative decision making tool. It is a diagrammatic representation of the
different options that are available to a business in the decision making process, showing
their probable outcomes. The tool allows managers to calculate the expected value of each
decision in order to plan the best option to follow.
