ACCA MA Syllabus A. Management Information - Managerial processes - Notes 3 / 7
Managerial processes of planning, decision making and control
The main functions of management are
Planning
Decision-making
Control
The main functions of management are
Planning
Planning involves establishing objectives and selecting appropriate strategies to achieve these objectives.
An objective is the aim or goal of an organisation.
A strategy is a possible course of action that might enable an organisation to achieve its objectives.
Planning can be either short-term (tactical and operational planning) or long-term (strategic planning).Decision Making
Managers of all levels within an organisation make decisions.
Decision making always involves a choice between alternatives.
e.g. decide on the selling price to charge for a new product introduced on the market.
The first part of the decision-making process is planning.
The second part is control.
Control
Managers use the information relating to actual results to take control measures and to re-assess and amend their original budgets or plans.
Actual performance of the organisation is compared with detailed operational plans.
e.g. check whether the company is over or under spending on materials.
Any deviations from the plans are identified and corrective action is taken.