Management Functions- Planning1

8/8/2019 Management Functions- Planning1

1/24

MANAGEMENT FUNCTIONSy Planning

y Organizing

y Leadingy Controlling


2/24

Meaning of Planningy Process of Making Plans

y Forms a Framework used to achieve organizational

goals.y Reflected by answers to the following:

y What to do?

y How to do it?

y When to do it?

y Who is to do it?


3/24

Rationale for Planningy Scarce Resources

y Uncertain Environment

y Fierce competition for resourcesy Reduction of risk of uncertainty

y Co-ordinated effort within the organisation


4/24

Characteristics of Planningy Anticipatory in nature

y Asystem of decisions

y Focused on desired future results


5/24

Benefits of planningy Essential because of complexity of modern business

y Puts focus on objectives

y Anticipates problems and uncertaintyy Facilitates Control

y Helps the process of decision making


6/24

Planning Processy Built on a framework of Vision, Mission, Objectives

and Plans

VISION

MISSION

OBJECTIVES

PLANS


7/24

Vision

y A Vision is a general directional and

motivational guidance for the entireorganisation.

y "Vision should describe a set of ideals andpriorities, that will help define organizational

success."yVision statement- Astatement of the kind of

organization that top management is trying to create


8/24

y VISION

A B

Cy AVision is like the a North Star. If somebody is at point C

and has to take a decion then he would follow the directionofB rather than A.

VISION


9/24

EXAMPLES OF VISIONy Steven Jobs vision for Apple Computer was "to

democratise a computer ".

y Microsoft has a vision of Acomputer in every homey ABodyShop with a vision of An ethically and

environmentally sound cosmetics empire

y BAwith a vision of being The worlds favourite

Airline


10/24

Missiony The very reason why the organization exists,

y Adds specificity to the Vision

y Mission-is a fundamental unique aim or purpose thatsets an organization apart from others of its kindCharacteristics of a missionShould bring out the major competitive scopes

(industry, market segment scope, geographical scope)

It should be motivating


11/24

Mission statementy Astatement that outlines the Mission of an

organisation.

yContents of a Mission statement:y Company product or Service

y Market

y Technology

y Company objectivesy Company philosophy

y Company Public image


12/24

Significance of a Missiony Helps organisation from pursuing conflicting

purposes

yActs as a general rationale for allocating resources

y Broad guideline for jobs that should exist in theorganisation

y Basis for development of organisations objectives


13/24

Goals and Objectivesy Goals are intentions behind decisions or actions state

of mind that drives individual or collectives of

individuals (Organisations).y An Objective is an operational goal by which

attainment can be measured.

y Example

y

Mission: Deliver a quality servicey Goal: Enhance manufacturing quality

y Objective: Over the next twelve months reduce thenumber of defects to 1 part per 100,000.


14/24

Characteristics of Objectivesy Should meet the SMART criteria.

y Specific

y Measurabley Attainable

y Result-oriented (Relevant)

y Time-bounded

y Non-operational goals are called Aims, eg To seek thetruth.


15/24

Importance of objectivesyGuide decision-making

yIncreasingorganisational efficiency

yPerformance appraisal


16/24

Hierarchy of objectivesySpecified at Four Levels

y

Corporate ObjectivesyBusiness Unit Objectives

yFunctional Objectives

yOperational Objectives


17/24

Types of Plansy Strategic plans

y Tactical Plans

y Operational Plans


18/24

Strategic Plansy Developed by Top Management

y Guide the general direction of the organisation

y They addressy Sources of Finance

y Allocation of Resources

y Structure of the Organisation

y Long Term 5 years and more


19/24

Tactical Plansy Developed by Middle-Level Managers

y Focus on specific resources and time limits

y Medium range 1- 5 years.


20/24

Operational Plansy Developed by first-level managers

y They are derivatives of tactical plans

y Short term up to one yeary Designed to guide day- to day activities

y Have two categories:

y Single use plans

y Standing plans


21/24

Single use plansy Programs

y Large set of Organisational Activities

y Projectsy Separate portions of a program

y Specific directives concerning assignments and time

y Budgets

y Formal quantitative statements of allocation ofresources

y For control of organisational activities


22/24

Standing Plansy Policy

y General guideline for decision making

ySet limits of acceptable behaviour

y Facilitates consistent thinking among organisationalmembers

y Procedures

y Detailed guidelines for handling organisationalactivities that occur regularly


23/24

Standing Plans (Contd)y Rules

y Statements of specific actions to be taken in a given

situation


24/24

Operational Plans SchematicOperational

Plans

StandingPlans

Single-UsePlans

Policies

Rules

Procedures

Programs

Projects Budgets

Management Functions- Planning1

Documents

Transcript of Management Functions- Planning1