SCBT 33115 Business Management

Lecture 3:Planning and Organization

Prof.Dr.R.Xavier, Msc Agri MBA, PhD(Biotech)
Planning
What is planning???
 Elements Of Planning
Plan
A method for doing or making
something, consisting of at least
one goal and a predefined course
of action for achieving that goal.
Goal
A specific result to be
achieved; the end result
of a plan.
Objectives
Specific results toward which
effort is directed.
Principles of Goal-Setting
• Set SMART goals—make them specific,
measurable, attainable, relevant, and timely.
Choose areas (sales revenue, costs, and so forth)
that are relevant and complete.
• Assign specific goals.
• Assign measurable goals.
• Assign doable but challenging goals.
• Encourage participation.
• Use executive assignment action plans, or
management by objectives.
 Forecasts and Planning Premises
• Forecasting is used to predict future requirements and
opportunities
– Determines the premises on which planning is based
– Can be quantitative or qualitative

• Marketing research
• Competitive intelligence
– Helps build the picture of what others are doing to inform the
planning process
• Next step is the decision-making process
• Finally, begin to build plans (usually more than one to
realize objectives)
 How to Develop a Plan?
• Set an objective.
• Develop forecasts and planning premises.
• Determine your options.
• Evaluate alternatives.
• Choose your plan, and start to implement it.
 Types of planning
Strategic Planning:
It is the process of determining an
organization’s primary objectives and
adopting courses of action that will achieve
those objectives.

Tactical planning:
It is the process that guides the
implementation of activities specified in the
strategic plan.
 Why planning?????
• Establishes the objectives
• Set the standards to facilitate control
• Provide direction
• Minimize waste and redundancy
• Reduce the impact of change
• Establishes coordination
• Reduces Uncertainty
Levels of planning and its relevance
The Business Plan And Its Components

• Description of the business (including

ownership and products or services)
• Marketing plan
• Financial plan
• Management
and/or personnel plan.
 Organization
• What is organizing?
Arranging and sequencing the activities of an
organization in such a way that they systematically
contribute to the organization’s goals.
• What is organization chart?
A chart that shows the structure of the
organization including the hierarchy, title of each
individual’s position and, by means of connecting
lines, who is to report to whom and who has
authority for each area.
A model of organization chart
 Types of organizations
Types of Organizations
• Profit, non-profit and non-governmental
• Sole Trader/Proprietors
• Partnerships
• Companies/Corporations
Profit, non-profit and non-governmental

NGO Non-profit/Non
governmental organization:
Voluntary at local, national and
international level.
Task –oriented, people with
common interest.
Ex: Humanitarian function,
human rights, environment and
health
Profit organizations
 The Environment:
Mechanistic vs. Organic
• Mechanistic
• Centralized hierarchy of
authority
• Many rules and
procedures
• Specialized tasks
• Formalized
communication
• Few teams or tasks forces
• Narrow span of control,
taller structure
Organic
Decentralized hierarchy of
authority
Few rules and procedures
Shared tasks
Informal communication
Many teams and task forces
Wider span of control,
flatter structure
 Organizational Structure and Control
• Chain of command
– The management principle that no person should report to more
than one boss
• Span of control
– The number of subordinates a manager can direct efficiently and
effectively
• Authority
– The rights inherent in a managerial position to give orders and
expect them to be obeyed
• Responsibility
– An obligation to perform assigned activities
• Power
– An individual’s capacity to influence decisions
Chain of Command
 Tall And Flat Organizations, And The Span
Of Control
• Span of Control
– The number of subordinates reporting directly to a
supervisor.
• Wide spans: larger number of direct reports.
• Narrow spans: fewer number of direct reports.
• Tall vs. Flat Organizations
– Tall organizations: more management layers and
more hierarchical controls.
– Flat organizations: fewer management layer and
decision making closer to the customer.
 Types of Organizational Authority
• Line authority
– The position authority (given and defined by
the organization) that entitles a manager to
direct the work of operative employees
• Staff authority
– Positions that have some authority (e.g.,
organization policy enforcement) but that are
created to support, assist, and advise the
holders of line authority
 Delegation of authority
Principles of Delegation:

 Select the right person.

 Delegate the good and bad
 Take the time you need
 No overnight transfer
 Delegate in advance
 Delegate for specific results
 When and who else can be involved,
what help needed. Support and
coach
 Establish steps and check points
 Concepts of Delegation

 The manager can delegate authority but cannot

delegate responsibility.
 Clarify the assignment.
 Delegate, don’t abdicate.
 Know what to delegate.
 Specify the subordinate’s range of discretion.
 Authority should equal responsibility.
 Make the person accountable for results.
 Beware of backward delegation.
Organizational Behaviour (OB)
 What is OB?
• Definition: The study of human behavior,
attitudes, and performance in organizations.
• Value of OB: Helps people attain the
competencies needed to become effective
employees, team leaders/members, or managers
• Competency: It is an interrelated set of abilities,
behaviors, attitudes, and knowledge needed by
an individual to be effective in most professional
and managerial positions
OB core competencies
Seven Foundation
Competencies
Managing Self
Managing
Communication
Managing Diversity
Managing Ethics
Managing Across
Cultures
Managing Teams
Managing Change
 Managing self
• Understand the personality and attitudes of yourself
and others
• Perceive, appraise, and interpret accurately yourself,
others, and the immediate environment
• Understand and act on your own and others work-
related motivations and emotions
• Assess and establish developmental, personal/life-
related, and work-related goals
• Take responsibility for managing yourself and your
career
 Managing Communication
• Involves the ability to use all the modes of
transmitting, understanding, and receiving
ideas, thoughts, and feelings, (verbal,
listening, nonverbal, written, electronic, etc.)
for accurately transferring and exchanging
information and emotions
Components of managing communication

• Convey information, ideas, and emotions so they

are received as intended
• Provide constructive feedback
• Engage in active listening
• Use and interpret nonverbal communication
effectively
• Engage in effective verbal communication
• Engage in effective written communication
• Effectively use electronic communication resources
 Managing diversity
• Involves the ability to value unique individual
and group characteristics, embrace such
characteristics as potential sources of
organizational strength, and appreciate the
uniqueness of each individual
 Core Abilities of the
Managing Diversity Competency
• Foster an environment of inclusion for all
• Learn from others with different characteristics,
experiences, perspectives, and backgrounds
• Embrace and support diversity
• Work with others because of their talents and
contributions, rather than personal attributes
• Provide leadership in addressing diversity-based
conflicts
• Apply diversity laws, regulations, and organizational
policies related to your position
 Categories of Diversity
• Primary Categories: Genetic characteristics that affect a
persons self-image and socialization, appear to be unlearned and are
difficult to modify
– Age, race, ethnicity, gender, physical abilities and
qualities, and sexual and affectional orientation
• Secondary categories: Learned characteristics that a person
acquires and modifies throughout life
– Education, work experience, income, marital status,
religious beliefs, geographic location, parental status,
behavioral style
 Managing Ethics
• Involves the ability to incorporate values and
principles that distinguish right from wrong in
making decisions and choosing behaviors
Definition: Values and principles that distinguish right from
wrong. Ethics are often based upon laws, organizational policies,
social norms, family, religion, and/or personal needs, and may be
subject to differing interpretations with problems in proving
“truth”
Ethical Dilemma: A situation in which an individual or team
must make a decision that involves multiple values.
 Core Abilities of the
Managing Ethics Competency
• Identify and describe the principles of ethical
decision making and behaviour
• Assess the importance of ethical issues in actions
• Apply laws, regulations, and organizational rules
in making decisions and taking action
• Demonstrate dignity and respect for others
• Demonstrate honest and open communication
limited only by legal, privacy, and competitive
considerations
Managing Across Cultures Competency
• Involves the ability to recognize and embrace similarities
and differences among nations and cultures and then
approach key organizational and strategic issues with an
open and curious mind
• Culture = the dominant pattern of living, thinking, and
believing that is developed and transmitted by people,
consciously or unconsciously, to subsequent generations
• Cultural values = those consciously and subconsciously
deeply held beliefs that specify general preferences,
behaviors, and define what is right and wrong.
 Core Abilities of the
Managing Across Cultures Competency
• Understand, appreciate, and use cultural factors that can
affect behavior
• Appreciate the influence of work-related values on
decisions, preferences, and practices
• Understand and motivate employees with different values
and attitudes
• Communicate in the local language
• Deal effectively with extreme conditions in foreign countries
• Utilize a global mindset (use a worldwide perspective to
constantly assess threats or opportunities)
 Managing Teams Competency
Involves the ability to develop, support, facilitate, and lead
groups to achieve organizational goals
Core Abilities of the Managing Teams Competency
• Determine when and how to use teams
• Set clear performance goals directly or participatively
• Define responsibilities and tasks directly or participatively
• Show accountability for goal achievement
• Use appropriate decision-making methods
• Effectively manage conflicts
• Assess performance and take corrective action as needed
 Managing Change Competency
• Involves the ability to recognize and
implement needed adaptations or entirely
new transformations in the people, tasks,
strategies, structures, or technologies in a
person’s area of responsibility
 Core Abilities of the
Managing Change Competency
• Apply the other six competencies in pursuit of
needed changes
• Provide leadership in planned change
• Diagnose pressures for and resistance to change
• Use the systems model and relevant processes to
facilitate change
• Seek out, learn, share, and apply new knowledge
in the pursuit of constant improvement
 Challenges for Managers
• Globalizing the firm’s operations
• Leading a diverse workforce

Diversity - All forms of individual

differences, including culture,
gender, age, ability, personality,
religious affiliation, economic
class, social status, military
attachment, and sexual
orientation
 Diversity’s Benefits & Problems
Benefits Problems

• Attracts & retains the

best human talent
• Improves marketing
efforts
• Promotes creativity and
innovation
• Results in better
problem solving
• Enhances organizational
flexibility
• Encouraging positive ethics, character,
and personal integrity
• Advancing and implementing technological
innovation
• Our next discussion on Leading in
an organization. Come prepared.