Management Functions, Planning

8/12/2019 Management Functions, Planning

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What is Management?

The planning, organizing, leading, and

controlling of human and other resources toachieve organizational goals effectively and

efficiently


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Managers

Managers

The people responsible for supervising the use of

an organizations resources to meet its goals

Resourcesinclude people, skills, knowledge,

machinery,

computers and IT,

and financial capital


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Four Functions of Management


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Organizational Structure

A formal system of task and reporting

relationships that coordinates and motivates

organizational members


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Levels of Management


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Types of Managers

First line managers - Responsible for day-to-day operations. Supervise people performing

activities required to make the good or service

Middle managers - Supervise first-linemanagers. Are responsible to find the best way touse departmental resources to achieve goals


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Cont..

Top managers

Responsible for the performance of all

departments and have cross-departmental

responsibility. Establish organizational goals and

monitor middle managers


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Areas of Managers

Department

A group of people who work together and possess

similar skills

or use the sameknowledge, tools,

or techniques


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Managerial Roles and Skills

Managerial role - The set of specific tasks

that a person is expected to perform because

of the position he or she holds in the

organization

Mintzberg identified three categories of roles

Decisional, Informational, Interpersonal.


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Managerial Skills

Conceptual skills (Decision Making Skills)

The ability to analyze and diagnose a situation and

distinguish between cause and effect.

Human skills (Interpersonal & Informational Role)

The ability to understand, alter, lead, and control the

behavior of other individuals and groups.

Technical skillsThe specific knowledge and techniques required to

perform an organizational role.


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Challenges for Management in

a Global Environment

Rise of Global Organizations.

Building a Competitive Advantage

Maintaining Ethical and Socially Responsible

Standards

Managing a Diverse Workforce

Utilizing Information Technology and E-

commerce


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Building Blocks of Competitive Advantage

Figure 1.6


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Efficiency and Effectiveness

Efficiency refers to Doing Things Right

Effectiveness refers to Doing the Right

Thing

- Peter Drucker Efficiency is concerned with getting most

output out of scarce resources (Capital,

Human Resource, Raw Material etc.)

Effectiveness is achieved by setting right

organizational goals. No amount of

efficiency can make up for lack of

effectiveness.


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MANAGEMENT" Variously

Understood

Specif ic OrganOf an Organization that hasthe responsibility to deliver results

consistently

Processthat drives an Organizationtowards its Performance

Peoplewho have authority to Plan,

Organize, Lead and Control different

Organizational activities App l ied Disc ip l ine

Profess ion or a career


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Generic Functions of Management Managerial Jobs are characterized by

Variety, Fragmentation, Brevity and Oralcommunication with several people.

First written about by Henri Fayol and later

elaborated by Lyndall Urwick, ClassicalManagement functions are:-

PLANNING

ORGANIZING LEADING

CONTROLLING


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Steps Involved in Planning

Situational Analysis

Desired Goals, Objectives and Result from System

Goal and Plan Evaluation

Establish Goals and Plans

Chalk out Strategies to Reach Goals and

Implementation

Acknowledge Completion and Celebrate Success


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Management Functions

Harold Koontz defends Fayols

approach

As managerial work is largely cerebraland not directly observable.

Further it allows us to look at universal

aspects of management across different

contexts.

Managerial functions approach also

helps in classification of management

knowledge


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PLANNING

Setting Objectives

Formulating Strategies

Policies

Procedures Methods


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ORGANIZING

An Intentional Structure of Roles

Organizational Structure

Responsibility & Authority for achieving objectives

Departmentation Span of Control

Line & Staff Relationships


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LEADING

Leadership Skills

Motivation

Team Work

Communication

Negotiation

Conflict Resolution


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CONTROLLING

Anticipate, Monitor & Respond tochanging Environment.

Measurement of Actual Performance

Comparison against the Standard Managerial Action to correct Deviation

Traditional Financial Controls are basedon

LIQUIDITYACTIVITY PROFITABILITY LEVERAGE BALANCE SCORECARD


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Managerial Roles INTERPERSONAL

Figurehead Leader Liaison

INFORMATIONAL Monitor Disseminator Spokesperson

DECISION

Entrepreneur Disturbance Handler Resource Allocator Negotiator


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Management Skills

TECHNICAL SKILLS

CONCEPTUAL SKILLS

HUMAN SKILLS

Managers at Top Level need

Conceptual Skills the most and First-

Line Managers Technical Skills the most


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PLANNINGA TOOL FOREFFECTIVE MANAGEMENT


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Planning : Meaning

Planning refers to a systematic

approach towards making decisions

about goals and objectives and the

associated activities that need to be

carried out along with various

resource requirements


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Planning : Definition

Planning is the selection and

relating of facts and making and

using of assumptions regarding the

future in the visualization and

formalization of proposed activities

believed necessary to achieve


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What is Planning?

Planning

Systematic approach of making

decision about goals and objectives

and associated activities

A

C

T

I

V

I

T

I

E

S

Goals & Objectives

Plans

Policies

Procedures

Rules

StrategyTask

Resources

Program

Budget


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Importance of Planning

Primary Function of Management

Offset Uncertainty and Change

Focus attention on Objectives

Help in Coordination

Help in Control Increase Organisational

Effectiveness


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Hierarchy of Organizational

Plans

Mission or Purpose

Objectives

Strategies

Policies

Procedures and Rules

Programmes and Projects


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Mission

A mission statement is a statement of the

long-term purpose of the organisation. Itdescribes what the retailer wishes to

accomplish in the markets in which it

chooses to compete. A mission statementmay highlight the following:

a. The products and services that will be

offered

b. The customers who will be served

c. The geographic areas that the

organisation chooses to operate in

d. The manner in which the firm intends to


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Mission Statements: Examples

Wal-Mart: To give ordinary folk the chance tobuy the same thing as rich people

McDonalds: (QSCV) Quality, Service,Convenience, and Value

Pantaloon: To be a global retailer in India, and

to maintain the No. 1 position in the Indian

market in the department store category.


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Goals

Goals denote what an organisation hopes

to accomplish in a future period of time.

They represent a future state or an

outcome of the effort put in now. A broadcategory of financial and non-financial

issues are addressed by the goals that a

firm sets for itself.


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Objectives

Objectives are goals, aims, or purposethat organisations wish over varying

periods of time.

Dalton E. McFarland

A managerial objective is the intended

goal that prescribes definite scope andsuggests direction to the planning efforts

of a manager.


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Cont.

Objectives are clear and verifiable yardsticksagainst which performance can be measured.

The accomplishment of various functional and

departmental objectives lead to the

achievement of goals.

Objectives are the intended end results that

an organisation desires to achieve overvarying periods of time. Because of time

variation, objectives may be specified in

different ways in which long-term objectives

are supporting by short term objectives.


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Features of Objectives

1. Objectives should be Understandable

2. Concrete and Specific

3. Measurable and Controllable

4. Related to a time frame

5. Objectives should be challenging (Not too

high Not too Low)

6. Different objectives should correlate witheach other

7. Objectives should be set within the

constraints


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Plans and Policies

Plans are the actions or means that amanager proposes to use for achieving pre-determined goals. A plan indicates what themanagement wants to achieve. It specifies the

steps that are to be taken towards theachievement of goals.

Policies refer to a broad statement and/or a

set of guidelines that direct decision-making. Itis a plan of action adopted by an individual oran organization. They define the frameworkwithin which managers are expected to make

decisions leading to the achievement of


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Goals and Objectives Setting

at Canara Bank

Mission:

Our Mission is to be the most competitive and

progressive institution in our (i.e. banking)industry.

Goals:

The banksstated goals were:

Growth, innovativeness, high profits as a

barometer of efieciency, highly involved

employees distinctively charged with pride


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Objectives of Canara Bank:

To achieve growth with large customer base

To provide new and innovative schemes like

mutual funds

To earn highest profit among all publicsector banks.

To involve employees through delegation of

authority and devolution of power to

grassroots levels through a change inadministrative structure.


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Resources Programmes and


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Resources, Programmes , and

Budget

Resources include the people, materials,machines, technologies, money, etc. requiredto implement the strategies or processes

A program is a combination of goals, policies,

procedures, rules, and set of activities to beundertaken, resources to be deployed andother interrelated actions required to beundertaken for accomplishment of a purpose.

Budget is a statement of expected provisionsor results expressed in numerical terms. It canbe for inputs as well as outputs


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STEPS IN PLANNING

Recognition of Opportunities Environmental Scanning

Establishing Objectives

Identification of Alternatives

Evaluation of Alternatives

Choice of Alternatives

Formulation of Supporting Plans

Establishing Sequence of Activities


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Types of Planning

Types of Planning

Short-term

Planning

Medium-term

Planning

Long-term

Planning


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Levels of Planning

Levels of Planning

Strategic Tactical Operational


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What is SWOT Analysis?

SWOT Analysis

External Internal

Opportunities Threats Strengths Weaknesses

Develop Business Strategies


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Developing Business Strategy

SWOT analysis helps in identification of possiblestrategies based on the following criteria:

Build and develop on strengths

Resolve and overcome weaknesses Exploit and avail opportunitiesAvoid or minimize the effect of threats

BCG (Boston Consulting Group) has developed atool that enables the mapping of all theorganizationsbusinesses based on the criteria ofmarket growth and relative competitive positionvis--vis competitors.


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BCG MatrixA Tool for Mapping

Businesses of Organization

STARS QUESTION

MARKS

CASH COWS DOGS

Starsare the businesses having high growth as well as a strong competitive position.

Dogs have low growth and weak-competitive position businesses.

Cash Cowbusinesses have low growth but are having strong competitive position .

Question Marksare the businesses that have high growth but weak competitive position

MarketG

rowth

Relative Competitive Position


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Benefits of MBO

Ensuring personal commitment toorganizational goals Provides goal and role clarity in the

organization and in turn helps in devisingorganizational structure conducive forimproving efficiency and effectiveness

Ensures result oriented planning Development of effective control mechanism

leading to timely corrective actions Less supervision of subordinates and

increased motivational level as a result ofeach employees clear definition ofresponsibilities

Employees accountability increases


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Disadvantages of MBO

Failure to teach the philosophy of MBO across theorganization

Lack of guidelines to goal setters

Difficulty in setting verifiable objectives

Over emphasis on short term achievements at the

cost of long term growth and development Lack of flexibility to attune changes with changing

environmental forces

Over emphasis on quantitative goals, even where itmay not be applicable

It turns out to be paper passing buck, especially inorganizations where in well set mechanism to monitorand evaluate the performance does get laid down

It is a time consuming process to imbibe thephilosophy of MBO in the organization


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Decision Making

A decision represents a judgments, a final

resolution of a conflict of needs, means or goals,

and a commitment to action made in face of

uncertainty, complexity, and even irrationality.

Decision making is a conscious human process

involving both individual and social phenomenon

based upon factual and value premises which

concludes with a choice of one behavioral activity

from among one or more alternatives with the

intention of moving towards some desires state of

affairs.


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Features of Decision Making

Decision making implies that there are variousalternatives.

Existence of alternatives suggests that the

decision maker has freedom to choose an

alternative.

Decision making may not be completely rational.

Decision making, like any other management

process, is goal directed.


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Decision Making Process

Specific objective Identification of Problems

Search for alternatives

Evaluation of alternatives

Choice of alternative

Action

Results

Feedback


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Thank You

Management Functions, Planning

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