GREETINGS!

NAME: SAGARIKA MATHUR (SHE/HER)

QUALIFICATIONS: POST GRADUATE (M.A CLINICAL
PSYCHOLOGY, DELHI UNIVERSITY, NORTH CAMPUS)
PREVIOUS WORK EXPERIENCE: CRISIS COUNSELOR, DELHI
COMISSION FOR WOMEN (MHL 181 PROGRAM)
PUBLICATIONS:
 Smoking Behaviour in Indian Females: The role of Self-Efficacy; Published in
the journal “The Learning Curve”, Volume VIII of the Department of
Psychology, Lady Shri Ram College for Women
 Reducing Stress Levels during COVID: A Laughter Yoga Intervention;
Published in the journal “The Learning Curve”, Volume X of the Department
of Psychology, Lady Shri Ram College for Women
 2

PLANNING
 MEANING OF PLANNING

All organizations whether it is Government,

private or business or small scale business
requires planning
Planning can be defined as “thinking in advance
what is to be done, how it should be done and
when it should be done”
In simpler terms planning is the bridge between
where we are today and where we wish to reach.
 Planning
4

 Deciding in advance :

 What to do
 How to do
 When to do
 Who is going to do it
 Bridges a gap between where we are today and where we want

to reach.
 Sets the goal of an organization.
 PLANNING
5

 It is the basic function of management. It deals with chalking out

a future course of action & deciding in advance the most

appropriate course of actions for achievement of pre-determined
goals.
 It is an exercise in problem solving & decision making. Planning

is determination of courses of action to achieve desired goals.

 FORMAL DEFINITIONS OF PLANNING
6

 Thus, planning is a systematic thinking about ways & means for

accomplishment of pre-determined goals. Planning is necessary
to ensure proper utilization of human & non-human resources.
 Planning is selecting information and making assumptions
regarding the future for formulating activities necessary to
achieve organizational objectives (Terry and Franklin)
 Planning involves selecting missions and objectives and the
actions to achieve them; it requires decision-making, that is
choosing from multiple alternatives in order to determine the
future course of action.
 PLANNING

• Planning is determining the objectives and formulating the

methods to achieve them. It is more simply said than done.
A job well planned is half done. During planning one needs
to ask oneself the following:
• What am I trying to accomplish i.e. what is my objective?
• What resources do I have and do I need to accomplish the
same?
• What are the methods and means to achieve the objectives?
• Is this the optimal path?
 FEATURES/CHARACTERISTICS OF PLANNING

A. CONTRIBUTES TO OBJECTIVES
 Planning focuses on achieving objectives
 Organizations are set up with a general purpose in view
 Specific goals are set out in the planning process along with
the activities to be undertaken in order to achieve those
goals
 Thus, planning is purposeful
 Planning has no meaning unless it contributes to the
achievement of predetermined organizational goals
 FEATURES/CHARACTERISTICS OF PLANNING

B. PLANNING IS A PRIMARY FUNCTION OF

MANAGEMENT
 Planning lays down the base for other functions of
 All other managerial functions are performed within the
framework of plans drawn
 Thus, planning precedes other functions
 This phenomenon is also labelled as the ‘primacy of
planning’
 The various functions of management are interrelated and
equally important
 However, planning provides the basis for all other functions
 FEATURES/CHARACTERISTICS OF PLANNING

C. PERVASIVE: THE NATURE OF PLANNING IS

PERVASIVE
 Planning is required at all levels of the management as well as in all
departments of the organization
 It is not an exclusive function of top management nor any particular
department
 However, the scope of planning differs at different levels and among different
departments
 For example, the top management takes up the planning function for the
organization as a whole
 Middle management does departmental planning
 At the lowest level, day-to-day operational planning is done by supervisors
 FEATURES/CHARACTERISTICS OF PLANNING

D. CONTINUOUS: PLANNING IS CONTINUOUS

 Plans are prepared for a specific period of time or are ‘time-
bound’, maybe for a month, a quarter or a year.
 At the end of that period there is a need to follow up on the
existing plan and deriving a new plan based on the new
requirements and future considerations
 Hence, planning becomes a continuous process
 Continuity of planning is related to what is referred to as
the ‘planning cycle’
 Planning cycle means that a plan is framed, implemented,
evaluated and followed by another plan and so on.
 FEATURES/CHARACTERISTICS OF PLANNING

E. FUTURISTIC: PLANNINS IS FUTURISTIC

 Planning essentially involves looking ahead and preparing for the
future
 The purpose of planning is to prepare for future events in a way that it
is advantageous and beneficial for the organization
 It therefore involves peeping into the future, analyzing it and predicting
it to some extent.
 Planning is therefore regarded as a forward looking function based on
forecasting.
 Through the process of forecasting, future events and conditions are
anticipated and future plans are drawn accordingly
 FEATURES/CHARACTERISTICS OF PLANNING

F. PLANNING INVOLVES DECESION MAKING

 Planning essentially involves choosing among various
alternatives and activities
 If there is only one possible goal, or one course of action,
there is no need for planning because there is no choice
 The need for planning arises only when multiple options
are available. In actual practice, planning presupposes the
existence of alternatives
 Planning thus, involves thorough examination and
evaluation of each of the alternatives availaible, and
choosing the most appropriate one.
 FEATURES/CHARACTERISTICS OF PLANNING

G. PLANNING IS AN INTELLECTUAL EXERCISE

 Planning requires application of the mind involving
foresight, intelligent imagination, and sound judgement.
 It is basically an intellectual activity or mental exercise of
thinking rather than doing, because planning determines
the action to be taken and should not be confused with the
action itself
 However, planning requires logical and systematic thinking
rather than guesswork or wishful thinking
 In other words, thinking for the process of planning must
be orderly and based on the analysis of facts and forecasts.
FEATURES/CHARACTERISTICS OF PLANNING
 IMPORTANCE/OBJECTIVES OF PLANNING

Planning is important because it enables the

organization to survive and grow in the dynamic
changing environment. It is important to plan because
of the following reasons:
 IMPORTANCE/OBJECTIVES OF PLANNING

A. ACHIEVEMENT OF ORGANIZATIONAL
OBJECTIVES
Planning helps the organization to achieve its
objectives. Planning provides the path for
achievement of organizational goals with minimum
waste of time, money and energy (efficiency). It
helps in bridging the gap where the organization is
and where it wants to reach in terms of objectives
and goals.
 IMPORTANCE/OBJECTIVES OF PLANNING

B. FULFILLMENT OF ORGANIZATIONAL
OBJECTIVES

Organizations have long-term and short-term

commitments toward the society, depending on
their nature. A defense organization for example, has
long-run commitments while a retailer is more
interested in short term goals or responsibilities.
These commitments or goals of the organization can
be fulfilled through planning.
 IMPORTANCE/OBJECTIVES OF PLANNING

C. IT PROVIDES STABILITY TO THE

ORGANIZATION
Organizations that plan their operations are more
stable than others. Through planning managers are
able to foresee certain risks and prepare the
organization to face them when they actually occur.
 IMPORTANCE/OBJECTIVES OF PLANNING

D. PLANNING SERVES THE UNIFYING FUNCTION

FOR ORGANIZATIONS

An organization is a structure of relationships where

each person’s role, authority and responsibilities are
clearly defined. Planning serves the function of
unifying and coordinating these functions performed
by different individuals, teams and departments.
Planning helps in unifying them and aligning them
with the larger organizational goals.
 IMPORTANCE/OBJECTIVES OF PLANNING

E. OPTIMUM UTILISATION OF HUMAN AND NON-

HUMAN RESOURCES

Organizations work with limited resources. Planning

helps in allocating these resources to accomplishing
different organizational objectives and functional
areas on a priority basis. This results in the optimum
utilization of resources and their effective conversion
into productive outputs.
 IMPORTANCE/OBJECTIVES OF PLANNING

F. DEVELOPMENT OF MANAGERS
Planning involves imagination, thought and creativity by
managers. While planning, managers develop their
conceptual and analytical skills to coordinate organizational
activities in accordance with the external environment.
 IMPORTANCE/OBJECTIVES OF PLANNING

G. PROMOTES INNOCATION AND CREATIVITY

FOR THE ORGANIZATION
Planning involves forecasting, as managers attempt
to foresee and predict the future. They try to analyze
the strength of their competitors and think of new
and innovative ways of promoting their products,
new relationships and thus promotes innovation and
productivity for the organization.
 IMPORTANCE/OBJECTIVES OF PLANNING

H. PLANNING FORMS THE BASIS FOR CONTROL

Planning frames standards of performance that are ensured

through appropriate control mechanisms. Controlling
involves measurement of actual performance. Comparing it
with the standard performance, finding deviations and taking
steps to rectify or do away with the deviations in order to
make better and more effective plans for the future. Unless
there are plans, control is not possible and therefore effective
planning is the basis for control in organizations.
 IMPORTANCE/OBJECTIVES OF PLANNING

I. PLANNING BOOSTS EMPLOYEE MORALE

If organizational plans succeed and goals are achieved, both

managers and employees feel sense of moral satisfaction
which in turn has a positive impact on their motivation to
keep doing better.
 PLANNING PROCESS

 Process means carrying out an activity through a series of

events. Steps involved in the planning process are described
below:
1. NEED FOR PLANNING
2. IDENTIFICATION OF GOALS
3. ANALYSIS OF PRESENT SITUATION
4. IDENTIFYING BARRIERS TO PLANNING
5. DEVELOPMENT OF PLANNING PREMISES
6. DEVELOPMENT OF ALTERNATIVE COURSES OF
ACTION
7. SELECTION OF A COURSE OF ACTION
8. FEEDBACK/FOLLW UP
 PLANNING PROCESS STEP I

A. NEED FOR PLANNING

 Managers identify the need for planning as a first
step to planning. The need sets the climate for
planning. If sales are declining, the need for
planning arises in the sales department.
Organizational resources are identified,
demarcated and allocated to the specified area. A
structural arrangement for planning is made with a
well-designed communication system, decision
making criteria etc.
 PLANNING PROCESS STEP II

B. IDENTIFICATION OF GOALS
Once the need for planning is determined, managers try to
identify what they want to achieve through planning. For
example, if sales are declining because of poor promotion
policies of the company, the goal of planning will be
advertising and promotion management. Clear
identification of goals helps in optimum allocation of
resources and effective implementation of plans. Objectives
must be framed for the organization as a whole. The
objectives must be clearly communicated to all the
organizational members so that plans can be effectively
implemented
 PLANNING PROCESS STEP III

C. ANALYSIS OF THE PRESENT SITUATION

Being clear about what to achieve, the planners must
know how equipped they are to achieve their targets.
They analyse organizations’ present resources;
physical, financial, information, human etc. along with
its internal and external environment. The internal
environment represents strengths and weaknesses,
while the external environment represents
opportunities and threats. Planning is effective if
organization is well informed about its internal and
external environment.
 PLANNING PROCESS STEP IV

D. IDENTIFY BARRIERS TO PLANNING

Planning cannot be effective if members (those who
plan and those who implement), are unwilling to set
goals, lack planning skills and are unwilling to accept
change. Managers identify barriers to achievement of
goals. It helps in identifying areas in which existing
objectives can be continued, modified, and areas in
which new objectives can be framed.
 PLANNING PROCESS STEP V

E. DEVELOPMENT OF PLANNING PREMISES

Planning process is based upon estimates of future
as plans are made to achieve goals in the future. The
estimates about future markets, consumer
preferences, political and economic environments
are the planning premises on which business plans
are developed. The forecast or assumptions about
the future which provide the basis for planning in the
present time are known as planning premises.
 PLANNING PROCESS STEP VI

F. DEVELOPMENT OF ALTERNATIVE COURSES OF

ACTION
Once managers are clear about the goals to be
attained, they think of ways to achieve them. They
should make alternative plans of action since there
can be no best way of doing things. Therefore it is
important to consider all possible alternatives to
achieve objectives should be considered by
managers.
 PLANNING PROCESS STEP VII

G. SELECTION OF A COURSE OF ACTION

When the best course of action is determined, it
should be finally selected by managers. Each plan
should be supported by and aligned with sub-plans.
For example, a production plan has sub-plans to
manage purchasing, production and control,
manufacturing etc. A personnel plan can have sub-
plans to look after appointment, training, placement,
and promotion of workers.
 PLANNING PROCESS STEP VIII

H. FEEDBACK/FOLLOW UP
Feedback means response. When plans are selected
and implemented managers, receive information
about the success or failure of plans of there are
deviations in actual performance, managers remove
these deviations to make fresh plans. Plans must be
continuously revised as the environment in which
they operate is a set of dynamic factors.
PLANNING PROCESS DIAGRAM
 PLANNING PREMISES

The process of planning is based upon estimates of

future. Though past guides the plans in present,
plans are made to achieve the goals in future.
Therefore, an accurate forecast of future events leads
to efficient planning.
The forecast or assumptions about the future which
provide a sound basis for planning in the present are
known as planning premises. They can also be
understood as the anticipated environmental factors
in which the plans are expected to operate.
 PROCESS OF PLANNING PREMISES

Since environmental factors affect business plans to a

large extent, premises must be developed rationally
and scientifically through the following process:
1. SELECTION OF THE PREMISES
2. DEVELOPMENT OF ALTERNATIVE PREMISES
3. VERIFICATION OF PREMISES
4. COMMUNICATION OF PREMISES
 SELECTION OF PREMISES

There are innumerable factors in the environment

that have the potential to affect the organization in
one way or the other. All of them however, do not
impact the business operations. Top managers
should select only those premises that are most likely
to have an impact on developing organizational
plans.
 DEVELOPMENT OF ALTERNATIVE PREMISES

Since factors affecting the organization plans cannot

be perfectly and absolutely predicted, managers
must develop alternative premises i.e. plans under a
different set of assumptions about the future
scenario. This helps in developing contingent plans.
 VERIFICATION OF PREMISES

Planning staff at different levels of different

organizational departments make plans according to
their judgment and expertise. These departmental
plans are then sent to top executives for their
approval. This verification process is important for
the smooth functioning of the organization.
 COMMUNICATION OF PREMISES

After premises are developed, they need to be

accurately and effectively communicated to people
involved in developing plans across different
departments, at different levels.
 POLICIES

MEANING
 Policy means a general guidelines that clarify the way a
company operates. It clarifies the intent of top managers that
should be followed by all it branches, in all the departments at
all levels.
 Policies are made to direct organizational activities towards its
goals, and is a wise attempt to co-ordinate organizational
philosophies with the need of its environment.
 They are made at all levels for all departments. Top managers
make policies to achieve the broad organizational goals and
departmental managers make policies to achieve
departmental goals.
 EXAMPLES

Types of workplace policies

Here are some examples of common workplace policies:
Code of conduct
Recruitment policy
Internet and email policy
Mobile phone policy
Non-smoking/Smoking policy
Drug and alcohol policy
Health and safety policy
Anti-discrimination and harassment policy
Grievance handling policy
Discipline and termination policy
Using social media.
 BENEFITS OF POLICIES

 They provide general guidelines of action within an organization.

Managers solve organizational problems according to predefined
policies.
 They help in fast decision-making. Problems can be solved immediately
without reporting them to top managers.
 They improve the effectiveness of the organization
 As they provide general guidelines for action, top managers can
delegate part of their workload to lower level managers, policies thus
facilitate delegation.
 Policies ensure unity of action within an organization, as all decisions
at all levels, across all departments are taken keeping in mind the policy
framework laid down by managers.
 PROCEDURES

A procedure provides sequential order to a policy. It

describes the steps in which policy matters will be
dealt with. It is more specific than a policy. While
policy provides a general guideline for action,
procedure expresses the specific way or manner in
which certain organizational activities will be
accomplished.
A procedure is however, less flexible than a policy.
Managers can use some amount of discretion with
policy matters but not with procedures set in place to
carry out the policy guidelines.
 EXAMPLES

A company policy that states that all appointments shall be

made through a specific selection procedure will follow the
procedural steps in order –
1. JOB SPECIFICATION/DESCRIPTION
2. JOB APPLICATIONS
3. PRELIMINARY INTERVIEW
4. CONDUCTING TESTS/GDs
5. FORMAL INTERVIEW
6. MEDICATION EXAMINATION (IF REQUIRED)
7. EMPLOYMENT DECISION
8. PRESENTING THE JOB OFFER
 BENEFITS OF PROCEDURES

Procedures offer the following benefits to the

organization:
They make the work simpler
They increase organizational efficiency
They provide consistency and uniformity of actions
They lay out a definite sequence of activities to avoid
repetition
They facilitate quick decision making and control
They make work less cumbersome
 BUSINESS FORECASTING

All organizations operate in the external environment. Plans should forecast future events for
efficient working of the organization. Organizations should analyze the environment through
various techniques of forecasting, identify their strengths, weaknesses, opportunities and
threats. Forecasting is closely associated with planning premises. Premises means
formulating plans under a set of assumptions or forecast which may impact the plans.

BENEFITS OF BUSINESS FORECASTING

 FUTURE ORIENTED
 IMPROVES COORIDNATION
 EFFECTIVE MANAGEMENT
 IDENTIFICATION OF CRITICAL AREAS
 DEVELOPMENT OF EXECUTIVES/MANAGERS
 TECHNIQUES OF FORECASTING

A. QUANTITATIVE FORECASTING – It applies

mathematical models to past and present information to
predict future outcomes. These techniques are used by
managers to have access to quantifiable data. Some of the
quantitative techniques are time series analysis, regression
models, and econometric models.
B. QUALITATIVE FORECASTING: It is applicable when large
numerical data is not available. Managers use judgment,
intuition, knowledge and skill to make an effective forecast.
Some of the qualitative techniques are executive opinion
method, sales force composite method, and users’
expectations method.
 DECISION MAKING

Owing to this fact, P.P. Drucker in his book “Practice of Management,” observes “Whatever a
manager does, he does through making decision.”  

WHAT IS A DECISION?
 A decision is a conscious choice to behave or to think in a particular way in a
given set of circumstances. When a choice has been made, a decision has been
made.

DECISION MAKING: It is the selection of a course of action from among

alternatives, it is the core of planning.

DECISION MAKING: It is the process through which managers identify

organization problems and attempt to resolve them .
 DEFINITIONS OF DECISION MAKING

 Decision-making is the selection based on some criteria

from two or more possible alternatives. “-—George R.Terry

 A decision can be defined as a course of action consciously

chosen from available alternatives for the purpose of
desired result —J.L. Massie

 A decision is an act of choice, wherein an executive forms a

conclusion about what must be done in a given situation. A
decision represents a course of behaviour chosen from a
number of possible alternatives. -—D.E. Mc. Farland
 UNDERSTANDING THE DEFINITIONS
Following elements can be derived from the above mentioned
definitions:
Decision–making is a selection process and is concerned with
selecting the best type of alternative.
The decision taken is aimed at achieving the organizational
goals.
It is concerned with the detailed study of the available
alternatives for finding the best possible alternative.
Decision making is a mental process. It is the outline of
constant thoughtful consideration.
It leads to commitment. The commitment depends upon the
nature of the decision whether short term or long term.
 CHARACTERISTICS/ELEMENTS OF
DECISION MAKING

Rational Thinking
Process
Selective
Commitment
Evaluation
Continuous/Dynamic
Measurement of Performance
 PROCESS/STEPS IN DECISION MAKING

1. IDENTIFY THE PROBLEM

2. DIAGNOSE THE PROBLEM
3. ESTABLISH OBJECTIVES
4. COLLECT RELEVANT INFORMATION
5. GENERATE ALTERNATIVES
6. IMPLEMENT THE ALTERNATIVE
7. MONITOR AND EVALUATE THE
IMPLEMENTATION
 EXAMPLES OF DECISION-MAKING IN MANAGEMENT

DECISION-MAKING IN HUMAN RESOURCES

Imagine you are the CEO of an e-commerce start-up. Your work is expanding
and you need to hire the right resources to help you realize the vision of
creating a leading online retail platform. You would need to hire people who
are experienced and adept in their fields such as software development,
marketing, operations, procurement, and logistics. Since the business is an
online start-up, you won’t need to hire employees who work on the premises
exclusively. You can also get talented location-independent workers capable of
delivering the required technical support and services online. By ensuring an
optimal mix of on-site and remote workers, you can easily carry out the
functions in a cost-effective way. Emails and chat communications as well as
video interactions can keep the team spirit going. This will also give you the
flexibility of hiring talent that might be scattered over different geographic
locations and can come together digitally to create path-breaking solutions.
 EXAMPLES OF DECISION-MAKING IN MANAGEMENT

DECISION-MAKING IN PRODUCTION

One of the most typical examples of decision-making in

management is to take a call on production facilities.
As your business expands and demand grows, you will be forced to
increase your production capacity. The next step would be to
decide how much capacity installation is required to meet demand
effectively. You will also need to identify the right equipment for
the purpose and the workforce to run the production processes.
Your decision has to be guided by the fact that the ultimate aim is
to increase production sustainably so that you have the flexibility
of scaling up or down without incurring a high cost.
 EXAMPLES OF DECISION-MAKING IN MANAGEMENT

DECISION-MAKING IN MARKETING  
At some point or the other in their journeys, most
companies undergo rebranding. Usually, businesses are
small initially, with only local or regional reach and
branding, but as they start expanding, the need for
rebranding surfaces. Quite often, logos, the company’s
official mascots, and even names are changed to assert a
new identity, capability, and vision. Rebranding activities
are strong decision-making skills examples that take into
account company values, products, target audiences,
cultural and social sensibilities, and business aspirations.
 TYPES OF DECISIONS

PROGRAMMED DECISIONS: Decisions that are related to

structured situations where the problem is more or less
routine and repetitive in nature are known as programmed
decisions.

NON-PROGRAMMED DECISIONS: These decisions are

taken in unstructured situations which reflect novel, ill-
defined, and complex problems. The problems are
exceptional in nature. Since they have not occurred before
they require extensive brainstorming. Managers use skills
and judgment to solve the problems through scientific
analysis and logical resourcing.
 RATIONAL DECISION MAKING

Rational decision making is a multi-step process,

from problem identification through solution, for
making logically sound decisions.
Rational decision making is a multi-step process for
making choices between alternatives. The process of
rational decision making favors logic, objectivity, and
analysis over subjectivity and insight. The word
“rational” in this context does not mean sane or
clear-headed as it does in the colloquial sense.
STEPS IN RATIONAL DECISION MAKING

The approach follows a sequential and formal path of

activities. This path includes:
Formulating a goal(s)
Identifying the criteria for making the decision
Identifying alternatives
Performing analysis
Making a final decision.
 Assumptions of the Rational Decision-Making Model

The rational model of decision making assumes that people

will make choices that maximize benefits and minimize any
costs. The idea of rational choice is easy to see in economic
theory. For example, most people want to get the most useful
products at the lowest price; because of this, they will judge
the benefits of a certain object (for example, how useful is it
or how attractive is it) compared to those of similar objects.
They will then compare prices (or costs). In general, people
will choose the object that provides the greatest reward at the
lowest cost.
 ASSUMPTIONS OF THE RATIONAL DECISION-MAKING
MODEL

The rational model also assumes:

An individual has full and perfect information on which to base a
choice.
Measurable criteria exist for which data can be collected and
analyzed.
An individual has the cognitive ability, time, and resources to
evaluate each alternative against the others.
The rational-decision-making model does not consider factors
that cannot be quantified, such as ethical concerns or the value of
altruism. It leaves out consideration of personal feelings, loyalties,
or sense of obligation. Its objectivity creates a bias toward the
preference for facts, data and analysis over intuition or desires.
 CRITIQUES OF RATIONAL DECISION MAKING

Critics of rational choice theory —or the rational model of decision-making—claim that this
model makes unrealistic and over-simplified assumptions. Their objections to the rational
model include:

People rarely have full (or perfect) information. For example, the information might not
be available, the person might not be able to access it, or it might take too much time or
too many resources to acquire. More complex models rely on probability in order to
describe outcomes rather than the assumption that a person will always know all
outcomes.

Individual rationality is limited by their ability to conduct analysis and think through
competing alternatives. The more complex a decision, the greater the limits are to making
completely rational choices.

Rather than always seeking to optimize benefits while minimizing costs, people are often
willing to choose an acceptable option rather than the optimal one. This is especially true
when it is difficult to precisely measure and assess factors among the selection criteria.
 MANAGEMENT BY OBJECTIVES (MBO)

Management by objectives (MBO) is a STRATEGIC

MANAGEMENT model that aims to improve the
performance of an organization by clearly defining
objectives that are agreed to by both management and
employees. According to the theory, having a say in
goal setting and action plans encourages participation
and commitment among employees, as well as aligning
objectives across the organization.
 Management by Objectives in Practice

Management by objectives outlines five steps that organizations should use to put the management
technique into practice:

The first step is to either determine or revise organizational objectives for the entire
company. This broad overview should be derived from the firm's mission and vision.

The second step is to translate the organizational objectives to employees. In 1981, George T.
Doran used the acronym SMART (specific, measurable, acceptable, realistic, time-bound) to
express the concept.

Step three is stimulating the participation of employees in setting individual objectives.

Step four involves monitoring the progress of employees. In step two, a key component of the
objectives was that they are measurable for employees and managers to determine how well
they are met.

The fifth step is to evaluate and reward employee progress. This step includes honest
feedback on what was achieved and not achieved for each employee.
MBO PROCESS: DIAGRAM
 Benefits of Management by Objectives

Management by objectives helps employees appreciate their on-the-job

roles and responsibilities.
The Key Result Areas (KRAs) planned are specific to each employee,
depending on their interest, educational qualification, and specialization.
The MBO approach usually results in better teamwork and
communication.
It provides the employees with a clear understanding of what is expected
of them. The supervisors set goals for every member of the team, and
every employee is provided with a list of unique tasks.
Every employee is assigned unique goals. Hence, each employee feels
indispensable to the organization and eventually develops a sense of
loyalty to the organization.
Managers help ensure that subordinates’ goals are related to the
objectives of the organization.
 Limitations of Management by Objectives

Management by objectives often ignores the organization’s existing ethos and

working conditions.
More emphasis is given on goals and targets. The managers put constant pressure
on the employees to accomplish their goals and forget about the use of MBO for
involvement, willingness to contribute, and growth of management.
The managers sometimes over-emphasize the target setting, as compared to
operational issues, as a generator of success.
The MBO approach does not emphasize the significance of the context wherein the
goals are set. The context encompasses everything from resource availability and
efficiency to relative buy-in from the leadership and stakeholders.
Finally, there is a tendency for many managers to see management by objectives as
a total system that can handle all management issues once installed. The
overdependence may impose problems on the MBO system that it is not prepared to
tackle, and that frustrates any potentially positive effects on the issues it is
supposed to deal with.
 
 MC KINSEY’S 7-S FRAMEWORK

Strategy: this is your organization's plan for building and

maintaining a competitive advantage over its competitors.
Structure: this is how your company is organized (how departments
and teams are structured, including who reports to whom).
Systems: the daily activities and procedures that staff use to get the
job done.
Shared Values: these are the core values of the organization and
reflect its general work ethic. They were called "superordinate goals"
when the model was first developed.
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the organization's
employees.
MC KINSEY’S 7-S FRAMEWORK
THANK YOU!

TBC