PLANNING

• DEFINITION
• IMPORTANCE
• PROCESS.
DEFINITION
 IT IS THE DETERMINATION OF A COURSE OF ACTION TO ACHIEVE A DESIRED RESULT.
 IT IS THE PROJECTED COURSE OF ACTION.
 IT IS DECIDING IN ADVANCE, WHAT IS TO BE DONE, WHEN, WHERE, HOW AND BY WHOM IT IS TO BE DONE.
IMPORTANCE OF PLANNING:
1. GIVES SENSE OF DIRECTION TO GOALS.
2. BETTER CO-ORDINATION WITH CUSTOMERS – INTERNAL / EXTERNAL.
3. ECONOMY IN OPERATION.
4. BETTER CONTROL
5. COPES UP WITH CHANGE & UNCERTAINTIES.
6. HELPS IN EXECUTIVE DEVELOPMENT.
7. CREATIVITY.
8. MOTIVATION
9. COMPETITIVE STRENGTH.
PROCESS OF PLANNING

SET GOALS

ESTABLISHMENT
OF PLANNING
PREMISE

DETERMINATION
OF
ALTERNATIVES

SELECTION OF
FINAL COURSE

PREPARATION OF
DERIVATION
PLANS

SCHEDULING OF
OPERATION

SECURING
PARTICIPATION
OF EMPLOYEES

METHOD OF
IMPLEMENTATION

FOLLOW UP
DECISION MAKING:
• MEANING.
• DEFINITION
• DECISION MAKING PROCESS.
DECISION MAKING INVOLVES THE SELECTION OF A COURSE OF ACTION FROM AMONG TWO OR MORE POSSIBLE
ALTERNATIVES IN ORDER TO ARRIVE AT A SOLUTION FOR A GIVEN PROBLEM.

DECISION MAKING PROCESS

• RECOGNISE THE PROBLEM.
• ANALYSE THE PROBLEM.
• GENERATE THE ALTERNATIVES.
• EVALUATION OF ALTERANTIVES.
• SELECTION OF BEST ALTERNATIVE. ( RISK – ECONOMY – TIMING – LIMITATION OF RESOURCES )
• IMPLEMENTATION OF DECISION.
• VERIFY THE DECISION. ( OBSERVE – MODIFY – TRAIN – PERFECT IT. )

MANAGEMENT BY OBJECTIVES:
M.B.O. IS A PROCESS WHEREBY THE SUPERIOR & SUBORDINATE MANAGEMENT JOINTLY
A) IDENTIFY COMMON GOAL.
B) DEFINE INDIVIDUAL’S AREA OF RESPONSIBILITIES IN TERMS OF RESULTS EXPECTED.
C) USE THIS AS GUIDE FOR OPERATION OF UNIT.
D) ASSESS THE CONTRIBUTION BY MEMBERS.

STEPS IN M.B.O. PROGRAMME:

1. ESTABLISH GOALS
CLEAR
ACCURATE OF THE END RESULT.
CONSISTENT WITH THE POLICIES.
WITHIN REACH OF EMPLOYEES.
INTERESTING & MOTIVATING.
2. SET ACTION PLAN.
3. APPRAISING PERFORMANCE
SHORT TERM AND LONG TERM.
BENEFITS :
CLEARER GOALS / BETTER PLANNING / BETTER CONTROL / OBJECTIVE APPRAISAL / MOTIVATION / MORALE /
RESULT ORIENTED PHILOSOPHY.
LIMITATIONS :
PRESSURE ORIENTED / TIME CONSUMING / INCREASE PAPER WORK / GOAL SETTING PROBLEMS.
 MOTIVATION THEORIES
• DEFINITION.
• IMPORTANCE OF MOTIVATION
• MASLOW’S THEORY OF HUMAN MOTIVATION.
• HERZBERG’S THEORY OF MOTIVATION
• McGREGOR’S THEROY OF MOTIVATION.
• McCLELLAND ACHIVEMENT MOTIVATION THEORY.
• HERSEY-BLANCHARD’S SITUATIONAL LEADERSHIP THEORY.
MOTIVATION IS THE ACT OF STIMULATING ONESELF TO GET A DESIRED COURSE OF ACTION.
MOTIVATION IS CREATING WILLINGNESS TO EXPEND ENERGY TO ACHIEVE A GOAL.

IMPORTANCE :
1. HIGH PERFORMANCE LEVEL.
2. LOWER WASTAGES & INDUSTRIAL ACCIDENTS.
3. LOW EMPLOYEE TURNOVER AND ABSENTISM.
4. ACCEPANCE OF ORGANISAITONAL CHANGES.
5. QUICK ACHIEVEMENT OF BUISNESS GOALS.
6. FAVOURABLE CORPORATE IMAGES.

MASLOW’S THEORY OF MOTIVATION.

PSYCHOLOGIST ABRAHAM H. MASLOW SUGGESTED THEORY IN 1943.
ASSUMPTIONS :
1. MAN IS A WANTING BEING.
2. A SATISFIED NEED IS NOT A MOTIVATOR.
3. MAN’S NEEDS HAVE A HIRERARCHY OF IMPORANCE.
4. AS ONE NEED IS SATISFIED, ANOTHER NEED REPLACES IT.
NEEDS :
1. PHYSIOLOGICAL.
2. SECURITY.
3. SOCIAL.
4. SELF ESTEEM.
5. SELF REALISATION.

LIMITATIONS TO MASLOW’S THEORY :

1. IT IS OVER SIMPLIFIED. IT LACKS OF DIRECT CAUSE & EFFECT RELATIONSHIP BETWEEN NEED & BEHAVIOUR.
2. IT DOES NOT REFER OTHER MOTIVATING FACTORS LIKE EXPECTATIONS, EXPERIENCE AND PERCEPTION.
3. NEEDS OF ALL HUMAN BEING NEED NOT BE SAME.
4. THE PATTERN MAY NOT BE APPLICABLE UNIFORMLY TO ALL CATEGORIES OF EMPLOYEES.
5. HIERARCHY DOES NOT HOLD GOOD IN THE PRESENT AGE.

FREDERICK HERZBERG’S THEORY OF MOTIVATION

WESTERN RESEARCH UNIVERSITY,OHIO IN 1959. ( PRESENTYL WITH UNIV. OF UTAH ) MAINTENANCE ( HYGIENE )
NEEDS :
1. COMPANY POLICY & ADMINISTRATION.
2. TECHNICAL SUPERVISION.
3. INTER PERSONAL RELATIONSHIP WITH SUPERVISORS.
4. INTER PERSONAL RELATIONSHIP WITH COLLEAGUES.
5. INTER PERSONAL RELATIONSHIP WITH SUBORDINATES.
6. SALARY.
 7. JOB SECURITY.
8. PERSOANL LIFE.
9. WORKING CONDITIONS.
10. STATUS.

HERZBERG’S THEORY OF MOTIVATION.

MOTIVATIONAL NEEDS:
1. ACHIEVEMENT.
2. RECOGNITION.
3. ADVANCEMENT.
4. WORK ITSELF.
5. POSSIBILITY OF GROWTH.
6. RESPONSIBILITY.

McGREGOR’S THEROY OF MOTIVATION

DOUGLAS McGregor GAVE THEORY ‘X’ AND THEORY ‘Y’.
Theory ‘X’:
1. PEOPLE INHERENTLY DISLIKE WORK.
2. THEY NEED TO BE PRESSURIZED, CONTROLLED AND DIRECTED TO WORK.
3. THEY WISH TO AVOID RESPONSIBILITIES AND ONLY LOOKS FOR SECURITY.
4. THEY PREFER TO BE DIRECTED THAN TO BEING LEFT ON THEIR OWN.
THEORY ‘Y’
1. WORK IS AS NATURAL AS REST OR PLAY FOR HUMAN BEING.
2. THEY CAN WORK BY SELF DRIVE AND NEED NOT BE FORCED OR PUNISHED.
3. THEY COMMITE THEMSELVES TO THOSE GOALS WHICH PROMISE THEM THE SATISFACTION THEY WANT.
4. MANAGEMENT CAN GET BETTER WORK BY APPEALING THROUGH THEIR EGO AND DEVELOPMENT NEEDS.
BEST WAY TO MOTIVATION IS SELF CONTROL AND SELF DIRECTION
DAVID McClelland ACHIEVEMENT MOTIVATION THEORY.
ALSO KNOWN AS MANIFEST NEED THEORY.
CLASSIFIED HUMAN NEEDS INTO 3 CATEGORIES:
1. NEED FOR POWER.
2. NEED FOR AFFILIATION.
3. NEED FOR ACHIEVEMENT.

HERSEY-BLANCHARD’S SITUATIONAL LEADERSHIP THEORY

FOUR KINDS OF SITUATION:
1. UNABLE / UNWILLING – TELLING.
2. UNABLE / WILLING – SELLING.
3. ABLE / UNWILLING – PARTICIPATING.
4. ABLE / WILLING – DELEGATING.
5. HIGH TASK /LOW RELATIONSHIP BEHAVIOUR .
6. HIGH TASK/HIGH RELATIONSHIP BEHAVIOUR.
7. LOW TASK / HIGH RELATIONSHIP BEHAVIOUR.
8. LOW TASK/LOW RELATIONSHIP BEHAVIOUR.
DRAWBACKS:
1. SUPERIOR SHOULD BE SMART ENOUGHTO ACCESS THE SUBORDINATES.
2. SUBORDINATES SHOULD AGREE TO ACCESSMENT.
3. FLEXIBLE ENOUGH TO CHANGE FROM TASK ORIENTED TO RELATIONSHIP ORIENTED.
4. NOT EASY TO ACCESS WHERE LABOUR TURNOVER IS HIGH.
 MANAGEMENT
• MEANING.
• FUNCTIONS.
• RESPONSIBILITIES.
• DEVELOPMENT.

MEANING
• MANAGER
• SERIES OF FUNCTIONS
• BODY OF KNOWLEDGE.
MANAGEMENT IS THE GOVERNING BODY WITH A SET OF PRINCIPLES AND RULES AIMED TOWARDS
ACHIEVING THE GOALS OF THE ORGANISATION WITH THE OPTIMAL USE OF THE AVAILABLE RESOURCES
THROUGH THE PROCESS OF PLANNING, ORGANISING, DIRECTING AND CONTROLLING.

RESPONSIBILITIES:
• OPTIMAL USE OF RESOURCES ( MAJOR M’S OF THE COMPANY )
• EFFECTIVE LEADERSHIP & MOTIVATION.
• ESTABLISHING SOUND INDUSTRIAL RELATIONS ( INHOUSE AND OUTSIDE ).
• ACHIEVING ORGANISATIONAL GOALS ( SHORT TERM AND LONG TERMS ).
• CHANGE & GROWTH ( OF THE COMPANY AND INDIVIDUAL ).
• IMPROVING STANDARD OF LIVING ( OF STAFF AND SOCIETY ).

FUNCTIONS
1. PLANNING.
2. ORGANISING.
3. STAFFING ( RECRUITMENT – SELECTION – TRAINING – COMPENSATION )
4. DIRECTING ( LEADERSHIP – MOTIVATION – COMMUNICATION – SUPERVISION ).
5. CONTROLLING ( SET – MEASURE – COMPARE – CORRECT – RESET ).

MAJOR CONTRIBUTORS
• F. W. TAYLOR – SCIENTIFIC MANAGEMENT.
• HENRI FAYOL – CLASSICAL MANAGEMENT SCHOOL.
• ELTON MAYO – HUMAN RESOURCE APPROACH.
• SYSTEM THEORY.
• CONTINGENCY APPROACH.

F.W.TAYLOR
• ADVOCATED SCIENTIFIC MANAGEMENT APPROACH.
• FIRST TO THINK FOR PLANNED WORK.
• DESIGNED MANAGERIAL THINKING INTO SET OF PRINCIPLES.
• BASED ON JOB ANALYSIS.

ACHIEVING GOALS THROUGH:

1. STANDARDISATION.
2. SCIENTIFIC SELECTION & TRAINING OF WORKERS ( RIGHT MEN FOR RIGHT JOB ).
3. MONETORY INCENTIVES.
4. FUNCTIONAL FOREMANSHIP ( PLAN & DIRECT ).
5. LABOUR MANAGEMENT CO-OPERATION.
SCIENTIFIC MANAGEMENT – LIMITATIONS
• EXPLOITATIVE DEVICE ( PRODUCTIVITY V/s STD. OF LIVING. )
• DEPERSONALISED WORK ( REPEATATION OF JOB ).
• UNPSYCHOLOGICAL ( IGNORANCE TO MASLOW’S THEORY )
• UNDEMOCRATIC (DISTINGUISHED WORK FOR STAFF & WORKERMEN)

HENRY FAYOL
• FRENCH MINING ENGINEER
• CLASSIFIED THE BUISNESS OPERATIONS INTO 6 GROUPS.
• PLANNING/ORGANINSING.COMMANDING,CO ORDINATING, COMMANING AS MAIN ELEMENTS OF
MANAGEMENT.
• GAVE 14 PRINCIPLES OF MANAGEMENT.
• ALSO KNOWN AS MANAGEMENT PROCESS SCHOOL / OPERATIONAL APPROACH / TRADITIONAL APPROACH /
THE UNIVERSALIST APPROACH OR THE CLASSIST APPROACH.
• CLASSIFICATION OF WORK :
1. TECHNICAL ( PRODUCTION )
2. COMMERCIAL ( PROCUREMENT )
3. FINANCIAL
4. SECURITY
5. ACCOUNTING
6. MANAGERIAL ( PLANNING - ORGANINSING – COMMANDING – CO-ORDINATING – CONTROLLING )

PRINCIPLES OF MANAGEMENT BY HENRY FAYOL

1. DIVISION OF WORK.
2. AUTHORITY & RESPONSIBILITY.
3. DISCIPLINE.
4. UNITY OF COMMAND
5. UNITY OF DIRECTION
6. SUBORDINATION OF INDIVIDUAL INTEREST TO COMMON GOAL.
7. RENUMERATION OF PERSONNEL.
8. ORDER (EVERYTHING IN PLACE/ PLACE FOR EVEYTHING)
9. CENTRALISATION
10. SCALAR CHAIN ( FLOW OF INFORMATION )
11. EQUITY.
12. STABILITY OF WORK.
13. INITIATIVE
14. ESPRIT DE CORPS – TEAM SPIRIT.

LIMITATIONS
1. NOT SUITABLE FOR MODERN ENVIRONMENT OF INSTABILITY.
2. FEW TERMS NOT CLEARLY DEFINED.
3. HUMAN ATTRIBUTES NOT COVERED.
4. ASSUMED THESE PRINCIPLES TRUE FOR ALL KINDS OF ORGANISATION.
5. NO GUIDELINES FOR THE CONDITIONS UNDER WHICH THESE PRINCIPLES ARE TO BE APPLIED.

ELTON MAYO
• HUMAN RESOURCE APPROACH / HUMAN RELATIONS OR THE HUMAN BEHAVIOUR SCHOOL.
• BASED ON MASLOW’S THEORY
• KEY IDEAS :
 1. REDESIGN JOB.
2. GREATER TRUST IN EMPLOYEES.
3. INTEGRATE INDIVIDUAL AND ORGANISAIONAL GOALS.
4. ALLOW SELF MONITORING OF WORK.
5. PRACTISE SELF DIRECTION, SELF CONTROL AND CREATIVITY.

LIMITATIONS TO ELTON MAYO’S THEORY

• EMPLOYEES GOALS MAY BE DIFFERENT FROM COMPANY’S GOALS.
• FEW EMPLOYEES MAY NOT ACHIEVE SELF ACTUALISATION LEVEL.
• THEORY DOES NOT TAKE INTO ACCOUNT / TECHNICAL ASPECT.
• EMPHASISED ONLY ON HUMANISING ORGANISATION.

SYSTEMS APPROACH

• VIEW ORGANISATION AS AN ENTIRE ENTITIY COMPOSED OF SMALL INTERRELATED PARTS

• ALL PARTS SHALL BE COORDINATED INTERNALLY TO ACHIEVE THE GOALS.
• MANAGERS MAINTAIN GOOD BALANCE OF TECHNICAL / ADMINISTRATIVE AND HUMAN THINGS WHILE
TAKING DECISION.
• SYSTEM VOCABULARY :

SYSTEM – SET OF INTERRELATED PARTS.

SUB SYSTEM – GOAL / TECHNICAL / STRUCTURAL / MANAGERIAL / PSYCOLOGICAL
SYNERGY – WHOLE IS GREATER THAN THE SUM OF ITS PARTS.
OPEN AND CLOSED SYSTEM – INTERACTION WITH ENVIRONMENT.
FLOW – INFORMATION / MATERIAL / ENERGY
FEEDBACK – CENTRAL TO SYSTEM CONTROL

LIMITATIONS OF SYSTEM APPROACH

• OVER EMPHASIS ON ‘ONENESS’ COORDINATION AND HARMONY.
• DOES NOT CONSIDER THE CONFLICT INSIDE THE ORGANISATION.
• DOES NOT IDENTIFY SITUATIONAL DIFFERENCES AND FACTORS.

CONTINGENCY APPROACH
BASIC PRINCIPLE:
• DIFFERENT SITUATION / TASK OR PEOPLE REQUIRE DIFFERENT DECISIONS.
• BRINGS TOGETHER THE BEST OF ALL THEORIES.
• SEEKS TO IDENTIFY EXACT NATURE OF INTER RELATIONS AND INTERACTION.
• SPECIFICALLY IDENTIFIES INTERNAL AND EXTERNAL VARIABLES THAT TYPICALLY INFLUENCE MANAGERIAL
ACTIONS AND ORGANISATIONAL PERFORMANCE.
• SUGGESTS ORGANISATIONAL DESIGNS AND MANAGERIAL ACTIONS MORE SUITABLE FOR SPECIFIC PURPOSE.

COMMUNICATION

COMMUNICATION IS THE PROCESS OF PASSING IDEAS, INFORMATION AND UNDERSTANDING FROM ONE
PERSON TO ANOTHER.
IMPORTANCE OF COMMUNICATION:
1. FORMS THE BASIS OF ACTION.
2. FACILITATES PLANNING.
3. HELPS IN DECISION MAKING.
4. MEANS OF COORDINATION.
5. IMPROVES RELATIONSHIP.
6. IMPROVES MOTIVATION AND MORALE.

COMMUNICATION PROCESS
1. SENDER.
2. TRANSMISSION CHANNEL.
3. RECEIVER.
4. NOISE & FEEDBACK.
MEDIA CHANNELS:
1. TELECOMMUNICATION.
2. TELECONFERENCING.

TYPES OF COMMUNICATION
A. BASED ON RELATIONSHIP :
1. FORMAL
2. INFORMAL.
B. TYPE OF MEANS USED:
1. VERBAL / ORAL.
2. NON VERBAL.
3. WRITTEN.
C. BASED ON DIRECTION:
1. UPWARD.
2. DOWNWARD.
3. HORIZONTAL.
4. DIAGONAL.

BARRIERS TO EFFECTIVE COMMUNICATION

1. LACK OF PLANNING TO COMMUNICATE.
2. UNCLARIFIED ASSUMPTIONS.
3. SEMANTIC DISTORTION.
4. POORLY EXPRESSED MESSAGES.
5. LOSS OF TRANSMISSION.
6. POOR LISTENING AND PREMATURE EVALUATION.
7. DISTRUST, FEAR AND THREAT.
8. INSUFFICIENT PERIOD FOR ADJUSTMENTS TO CHANGE

STEPS FOR EFFECTIVE COMMUNICATION.

1. CLARITY.
2. PURPOSE.
3. PHYSICAL AND HUMAN SETTING.
4. PARTICIPATION.
5. WORD CHOICE AND BODY LANGUAGE.
6. EMPATHY.
7. ACTIONS.
8. USE OF FEEDBACK.
9. COMMUNICATE FOR TODAY AND TOMMORROW.
10. GOOD LISTENING.