This action might not be possible to undo. Are you sure you want to continue?
FUNCTIONS OF MANAGEMENT
Planning ± Nature and Purpose ± Objectives ± Strategies ± Policies and Planning Premises ± Decision Making ± Organizing ± Nature and Process ± Premises ± Departmentalization ± Line and staff ± Decentralization ± Organizational culture, Staffing - selection and training ± Placement ± Performance appraisal ± Career Strategy ± Organizational Development. Managing human factor ±Controlling Process of Controlling ± Controlling techniques, productivity and operations management ± Preventive control, Industrial Safety.
Functions of management
we are already aware that management consists of five important functions such as planning, organizing, staffing, leading(directing), controlling. Planning is one of the major functions of management. Among this planning and controlling are inter related and almost integrated. Planning is looking a head where as controlling is looking behind.
Contents Planning.Definition and Importance Features of a good plan Hierarchy of plans Steps in planning Advantages Limitations Types of plans .
.Planning Planning is crystallizing the objectives. schedules. It also involves establishing business policies. programs. develop alternative courses of action. systems. methods. feasibility and consequences. standards and budgets. procedures. compare alternatives in terms of business objectives. collecting and synthesizing business information.
2.Philip Kotler A goal without a plan is just a wish.Planning-the concept Plan is a commitment to a particular course of action necessary to achieve specific results Planning is determination of future course of action It occupies the first position in the management process Without a plan 1. what to do in the future. . No way to see the path of achieving objectives Planning is deciding in the present. There can be nothing to organise. It is a process by where companies accomadate their resources with their objectives and opportunities . Managers can¶t lead with confidence 3.
decision and action A good plan. . Is better than a perfect plan next week.decides future course of action Needs forecasting Involves selection of suitable course of action Undertaken at all levels of management.involves perception. communication.role increases at higher levels Flexible principle. analysis.Features of Planning Process rather than just a behaviour.since it is based on future. violently executed now. which is dynamic A continuous management function.
Features of a good plan Linked to long term objectives Provide clear and specific direction (for future course of action) Consistency.Alignment with the behaviour of external and internal factors Feasible. not set too low Simplicity. .to understand by all.Not too ambitious. encourages least communication between 2 groups of personnel Flexible Plans are only good intentions unless they immediately degenerate into hard work.
Hierarchy of plans .
procedures and rules. types of planning or to be precise the level of planning. objectives. It ends with decision-making. budgets. policies (major and minor policies). Hierarchy of plans involves planning areas. They are classified as purpose of mission. . Koontz-planning involves selecting missions and objectives and the actions to achieve them. programs. strategies.
Purpose of Mission: This is the basic function of an organization. Objectives: Objectives are little farther away goals and they are the ends towards which every activity is aimed. Objectives are of two types. Mission involves the overall big picture an organization can aim. a) verifiable objective and b) non verifiable objective. Strategies Organisation or SWOT analysis .
Procedures are plans that establish a required method of handling future activities. Rules spell out and insist specified action or non action allowing no discretion. Policies are plans in that they are general statements or understandings that guide or channel the thinking of managers in decision making. . They are the simplest types of planning. They are chronological sequences of required actions. They are guides to actions rather than to thinking. Eg: No Smoking Programs are a set of clear instructions in a logical sequence to perform a particular task.
Types of plans Short term plans Medium term plans Long term plans Formal and Informal plans Specific and Routine plans Strategic planning Functional plans Operational plans It is a bad plan that admits of no modification. .
they don't plan results. Happy people plan -actions.Purposes or missions Purpose of Mission: This is the basic function of an organization. Missions of companies: Mission involves the overall big picture an organization can aim. .
a) verifiable objective and b) non verifiable objective. Objectives: Objectives are little farther away goals and they are the ends towards which every activity is aimed.Objectives They are the ends towards which activity is aimed. Objectives are of two types. They not only represent the end point of planning. To be prepared is half the victory .
T-technical He who fails to plan.Strategies A strategy is a plan of action designed to achieve a particular goal. Strategies Organisation or SWOT and PEST analysis P-Political. But now managers should follow some strategy in this competitive world. E-Economical S-Social. plans to fail . Before some years military people alone use the word strategy.
A good plan today is better than a perfect plan tomorrow . All companies have certain policies which help to decide issues before becoming problem.Policies Policies are plans in that they are general statements or understandings that guide or channel the thinking of managers in decision making.
Explicit planning policy : TCS not recruiting part time/correspondence. Implied planning policy. Recruitment policy. Man power planning policy. Marketing policy. Financial policy. Production policy. Planning is Looking ahead whereas controlling is Looking Behind.Types of Business Policies are Short Term and long Term. . HR policy.
. there are only promises and hopes. They are guides to actions rather than to thinking. but no plans. Relationship between policy and procedure. They are chronological sequences of required actions. Unless commitment is made. In a manufacturing company there is a procedure to handle orders.Procedures Procedures are plans that establish a required method of handling future activities.
People confuse rules with procedures and policies.Rules Rules spell out and insist specified action or non action allowing no discretion. ± No Smoking ± Don¶t use cell phone inside Plan always ahead . They are the simplest types of planning.
Programs Programs are a set of clear instructions in a logical sequence to perform a particular task. Programs are complex of goals policies and other elements require to carry out a given course of action. A primary program may call for many supporting programs. Let our advance worrying become advance thinking and planning .
Variable budget 2.Budgets Budget is a statement of expected results expressed in numerical terms.Program budget 3. Types of budgets 1. Zero based budget Planning is bringing the future into the present so that you can do something about it now .
Steps in planning Life is what happens to you while you're busy making other plans .
we must not only act.Advantages Quick achievement of objectives Unity in purpose and direction Optimum utilization of resources Increases efficiency of managers Assists in controlling organizational activities/functions Reduces chances of inconsistency Reduces wrong decision making To accomplish great things. but also dream. but also believe. . not only plan.
. capital External inflexibilities. but planning is indispensable.Political Climate. Policy.Limitations Time consuming and costly Change in situation makes planning ineffective Internal inflexibility-Psychological. Trade Unions. Technological changes In preparing for battle I have always found that plans are useless.
it is necessary that you understand and appreciate your past.etc. . procedure . Steps in planning Advantages and limitations In order to plan your future wisely. policy.Summary Planning involves selecting missions and objectives and actions to achieve them Types of plans such as purpose and mission.
Technical) It consists of PEST and SWOT analysis and mostly they are long term (more than 3 yrs). . Social.Business Strategies Business Strategies is defined as the determination of basic long term objections. Weakness. courses of a string of actions and allocation of resources to achieve business objectives by analysis of environments. Threats) PEST (Political. Analysis . both internal and external. Economic. Opportunities.SWOT (Strength.
Porter s Three Grand Strategies 1. 3. Cost on R&D. . Focused Strategy: It is a combination of overall cost in differentiation strategies. increasing profits and decreasing losses. Overall cost Leadership Strategy. It consists of catering to special group of customers. Cost on Ads. Differentiation Strategy. Focussed Strategy. Merges and Acquisition Differentiation St: Uniqueness in product and service. Sales & Service.It consists of cost cutting measures. cost on R&D. 2. special regions and special time. Overall cost Leadership .
Implementation of planned activity. evaluation & feedback . Setting objectives or goals. Choosing the right alternative.Assumptions Being aware of opportunities. Comparing alternatives in the light of goals sought.Premises . Considering planning premises (assumptions Eg: type of environment) Identifying alternatives. Formulating supporting of plans. Budgeting of plans to make it happen.
Verification of consistency of assumptions.A few assumptions made in planning (Planning Premises) Selection of premises that has a bearing on programs. Communication of the premises to every team member. of alternative premises for contingency . Development planning.
Identification of alternatives. Choosing an alternative. Evaluating alternatives. Premising (Making good assumptions). Steps in Decision Making.Decision Making: Decision Making is a selection of a course of action among alternatives and is seen as the core of planning. .
Techniques used for Decision Making Marginal analysis . Selecting and alternativeone is also and important factor. . profit and loss calculations.It is comparing alternatives and choosing the correct one. Cost Effective Analysis . Experience. Experimentation. break even analysis.It consists of making decisions based on the cost and benefits such as BC ratios. Research based analysis. Different approaches help in selecting an alternative.
: Some managers take business risk and some may not take it in similar conditions. A few of them are 1) Risk Analysis: Eg Mathematical calculation such as finding our failure rate. FMEA (failure mode event analysis) 2) Decision Trees and Operations Research Techniques based on economics. probability theory. . operation management. 3) Preference Theories : It takes into account the concept. Instead of experience & research. Statistical tools that always help avg-minded managers to make better decisions in their workplace.g. the manager s willingness to take risk for e. these tools will always supplement the planning for better decisions.Modern Approaches to Decision Making in organizations There are always mathematical.
Certainty and uncertainty of goals. Degree to which planning variables can be measured. group decision making. organizational culture.Factors that determine Decision Making Size of commitment by the organization. Budgeting . Impact on people (customers & employees) Personal values. Flexibility or non-flexibility of plans. creativity and innovation are other factors that influence decision making at organizations.
physical sales volumes or units of production) . etc.) Non-financial terms (budgets of direct labour hours. materials. expenditure budgets. As such budgets are statements of anticipated results either in financial terms (revenue.Concept of Budgeting: Budgeting is the formulation of plans for a given future period in numerical terms.
Space. material & product budgets (Non financial) Capital Expenditure Budget Cash Budget Management Information systems (MIS) Decision Support system (DSS) Data Process Info Process Knowledge .Types of Budgets Revenue and expense budget (financial) Time.
MIS can be handled even by non technical people and not necessarily by managers. DSS should be necessarily handled by managers themselves because they directly get their knowledge regarding business decisions. DSS is decision support system which helps managers and other decision makers to provide them with processed information in knowledge packets which helps them to make better decisions. However. .Management Information System MIS is a system which helps managers on decision makers to make better decisions.
Thank you .