Principles of Management

L Nature and Purpose of Planning, Objectives e s s o n -

Lesson - 4

PLANNING
Resources Men & Women Material Machine Methods Money Market The Process of Management
Planning Leading

Achievements

Organising

Controlling

WASE 2004 2005

info@cdsindia.net

PLANNING
Example:
Purpose Objective Strategies Policies

Procedures
Rules
WASE 2004 2005 info@cdsindia.net

PLANNING
What is Planning? Selecting missions and objectives and the actions to achieve them. (Time) Planning and Control
Lack of Inf.. Planning Control Implement Result

Correction
WASE 2004 2005

Feedback
info@cdsindia.net

CONTROL

Planning

Strategy

Achievement

Feedback

Correction

WASE 2004 2005

info@cdsindia.net

PLANNING
Hierarchy of Plans: 1. Purpose 2. Objectives 3. Strategies 4. Policies 5. Procedures 6. Rules 7. Programs 8. Budgets

WASE 2004 2005

info@cdsindia.net

Organisation
Production
Marketing Finance

Organisation
System Personnel

Administration

WASE 2004 2005

info@cdsindia.net

PLANNING
Steps in Planning: Opportunity: Survey Objectives: Where you want to be Planning Premises: Assumptions ext. and int. Alternatives: For achievement Choosing Alternatives: Support Plans: Buying/hiring/training/doc. Budget: Capital/Revenue/sales/cash

WASE 2004 2005

info@cdsindia.net

PLANNING
Types of Plans Short-Range-Plans Long-Range-Plan Control:

Budget Pert/CPM etc. Inventory Control MIS

WASE 2004 2005

info@cdsindia.net

OBJECTIVES
Definition: Objectives are the important ends towards which organisational and individual activities are directed and are verifiable. Based on company objective every level in the hierarchy sets up its objective.

WASE 2004 2005

info@cdsindia.net

10

OBJECTIVES
Organisation Structure Board of Dir. Top-Level Manager Middle-level Manager Lower-level Managers
WASE 2004 2005

Purpose & Overall Objective + Specific overall objectives in Key-result-areas Key-result-areas objectives + Departmental objectives Departmental objective

info@cdsindia.net

11

OBJECTIVES
Managers generally handle multiple Objectives Normally a manager can handle 2 - 5 objectives larger number would delegating Delegating - supervising and controlling Objective vs. Activity

WASE 2004 2005

info@cdsindia.net

12

MANAGEMENT BY OBJECTIVE
Definition: Management by objective is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards effective and efficient achievement of organisational and individual objectives.

System - Direction - Goal Effective and Efficient.

WASE 2004 2005 info@cdsindia.net

13

MANAGEMENT BY OBJECTIVE
Control:
Clear Short-Term Measurable Achievable

MBO Mgr. + Self Feedback

Commitment Corporate Goal

Env. For Motivation Achievement

WASE 2004 2005

info@cdsindia.net

14

MANAGEMENT BY OBJECTIVE Strengths

Studies show improved motivation if goals are clear Personal commitment Forces managers to plan for results Resource Plan, Ensures objectives are realistic Clarifies organisational roles and structures makes decentralisation work empowerment Effective control Clear set of verifiable goals
WASE 2004 2005 info@cdsindia.net

15

MANAGEMENT BY OBJECTIVE
Weaknesses
Difficulty in setting goals Truly verifiable goals in all areas Good company image Unethical behavior Pressure to achieve Emphasis on short-term goals Reduce maintenance cost Tendency to neglect maintenance leading to major breakdown Inflexibility Changed Premises; modified policies
WASE 2004 2005 info@cdsindia.net

16

End of Lesson -4

WASE 2004 2005

info@cdsindia.net