Unit 1 Basics of Management 1.

8 Planning process of accomplishing purposes Formal Top/Senior Management thr periodic meetings, preparation of docs, diagrams, strategy Informal Group of people Forecasting OR Specific Goals/Objectives Co-ordinate Efforts & Organize Reduces uncertainties What Should a plan be? A realistic view of the expectations Long Range, Immediate Range, Short Range To summarize; Purpose of a Plan: Helps management to clarify, focus, and research their businesses or projects development and prospects Provides a considered and logical framework and pursue business strategies Offers a benchmark against which actual performance can be measured and reviewed Choosing a destination Evaluating alternative routes and Deciding the specific course of your plan

1.9 Nature and Importance Helps to avoid mistakes or recognize hidden opportunities Helps in forecasting future Bridges b/n where we are and where we want to go Creates a system to continually gather information needed by management for decision making

Current Conditions Challenging Goals

Teamwork Reality Check Risk Management Features of Planning: 1. 2. 3. 4. 5. 6. 7. Planning is based on objectives Planning is the primary functions of management Planning is based on facts Planning is a function of every manager Planning is concerned with the future Planning also deals with the changes in conditions which may take place in future Planning usually involves most members of an organization

1.10 steps in planning Determination of objectives Collection and forecasting of Information Development of planning premises Discovering of planning premises Discovering alternative course of action Selection of best alternative Formulation of derivative plans Communicating the plan

Others steps in the process of planning; Analyzing env Establishing objectives or goals Seeking necessary Information o To make necessary modifications in objectives and goals o To take help them in premising assumptions o Establishing the planning premises o Identifying the alternative course of action o Evaluating the alternatives o Selecting the alternative or course of action

1.11 types of plans Architectural planning Business Plan Comprehensive Planning Economic Planning

Enterprise Architecture Planning Event Planning and Production Financial Planning Land Use Planning Marketing Planning Network resource Planning Strategic Planning Succession Planning Operational Planning Contingency Planning

1.12 Planning premises Steps in Planning Process: 1. 2. 3. 4. 5. Establishing objectives Making assumptions (establishing premises) about the external & internal conditions Development of alternative courses of action Evaluation of alternatives Selecting the appropriate course of action

The Objectives The Policies Planning Basics: Essentials of Planning Applications o In Organizations o In Public Policy

1.13 Objectives- Characteristics and Hierarchy of objectivesManagement by objectives (MBO)- popularized by Peter Drucker MBO process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in organization. Essence of MBO is participative goal setting, choosing course of actions and decision making.

An important part of MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities Unique Features & advantages of the MBO process: 1. 2. 3. 4. 5. Motivation Better communication and co-ordination Clarity of goals Commitment Objectives of individuals linked to the organizations objectives

Limitations of MBO: 1. Over-emphasizes the setting of goals over the working of a plan as a driver of outcomes 2. Under-emphasizes the importance of the environment or context in which goals are set
1. It presupposes fixing of individual goals and responsibilities. But all work in an organisation is a group effort where activities are so closely interrelated that no single individual can be blamed or rewarded, for any end result. 2. It is difficult to make comparative ratings of individuals because each individual's goals are different from those of others in terms of complexity, etc. 3. It is difficult to appraise and identify potential. MBO only deals with performance on the present job. 4. The method is extraordinarily time-consuming. 5. MBO presumes a certain level of trust throughout the hierarchy. But the organisational life teaches people to be cautious. This inhibits honest dialogue and appropriate goal setting. 6. MBO is less applicable to routine worker-level jobs, such as an assembly line. The technique is especially suitable for managerial, professional, and sales people and those who work independently.

Management by exception (MBE) It is a policy by which management devotes its time to investigating only those situations in which actual results differ significantly from planned results. Advantages: 1. Better use of the managers time

Be selective. Do not get overloaded with routine and unnecessary information. 2. Encourages workers to exercise judgement when doing their work Make big decision first.