UNIT- II

•Introduction of functions of management

•Planning: nature, scope, objectives and significance of planning,
types of planning, process of planning, barriers to effective
planning, planning premises and forecasting, key to planning
•Decision making
•Organizing: concept, organization, theories, forms of
organizational structure, combining job: departmentation, span of
control, delegation of authority, authority and responsibility,
organizational design.
PLANNING
 “Planning is deciding
the best alternative
among others to
perform different
managerial operations
in order to achieve the
predetermined goal”
- Henry fayol
NATURE
 PLANNING IS AN INTELLECTUAL PROCESS
 PLANNING IS GOAL ORIENTED
 PLANNING IS THE PRIMARY FUNCTION OF
MANAGEMENT
 PLANNING PERVADES ALL MANAGERIAL
ACTIVITES
 PLANNING IS SELECTIVE IN NATURE
 PLANNING IS ALWAYS FORWARD LOOKING
 PLANNING DOES NOT ELIMINATE FUTURE
RISK,BUT ENABLES TO FACE IT
 PLANNING IS A CONTINUOUS PROCESS
IMPORTANCE
 PLANNING IS HELPFUL IN ACHIEVING
BUSINESS OBJECTIVE
 PLANNING REDUCES FUTURE UNCERTAINTIES
AND ENABLES US TO FACE IT
 PLANNING ENABLES THE BEST POSSIBLE USE
OF RESOURCES CREATIVITY
 EFFECTIVE COORDINATION
 PLANNING FACILITATES DECISION MAKING
AND PROMOTES CREATIVITY
 HELPFUL IN DEVELOPMENT AND EXPANSION
 EFFECTIVE ORGANIZATION AND CONTROL
QUALITES OF GOOD PLAN
 SIMPLICITY
 CLARITY
 ECONOMICAL
 INCREASE IN EFFICIENCY
 COMPREHENSIVENESS
 BALANCING AND ADJUSTMENTS
 REGULAR FEEDBACK
 DEFINING ORGANISATIONAL COLLECTION AND ANALYSIS
OBJECTIVE OF INFORMATION

EVALUATION AND FOLLOW UP SETTING THE OBJECTIVES

PROCESS OF PLANNING

BUDGETING DETERIMING PLANNING PREMISES

FORMULATING SECONDARY
EXAMINING AND CHOICE MAKING
OR DERIVATING PLANS
TYPES OF PLANNING
 FORMAL AND INFORMAL PLANNING
 PROACTIVE AND REACTIVE PLANNING
 LONG TERM AND SHORT TERM
PLANNING
 STRATEGIC AND OPERTAIONAL
PLANNING
 CORPORATE AND FUNCTIONAL
PLANNING
PLANNING PERMISES
 Planning premises are  Types
the anticipated  External and internal
environment in which  Tangible and
plans are expected to intangible
operate they include
assumptions or
 Controlled and
forecast of the future uncontrolled
and unknown condition
that will affect the
operation of planning
 DECISION MAKING
Decision making is the study of identifying and
choosing alternatives based on the values and
preferences of the decision maker. Making a
decision implies that there are alternative
choices to be considered, and in such a case we
meant not only to identify as many of these
alternatives as possible but choose the one that:
Has the highest probability of success or
effectiveness
Best fits with one goals, desires , lifestyle,
values and so on.
TYPES OF DECISION MAKING

 Programmed and non programmed

decisions.
 Strategic and tactical
PROCESS OF DECISION MAKING

Definition of problem
Follow up action

Collection of data
Framing a decision

Evaluation
Formulation of model
TECHNIQUES OF IMPROVING
GROUP DECISION

 Brain storming.
 Nominal group techniques.
 Delphi technique.
 Consensus mapping.
ORGANIZING

Organizing is the process of

identifying and grouping
various activities and
bringing together physical,
financial and human
recourses establishing
productive relation among
them for the achievement
of specific goal.
FEATURES OF ORGANIZING

 Simplicity
 Clear line of authority.
 Proper delegation of authority.
 Minimum possible management level.
 Unity of command and direction.
 Balances stress on staff.
 ROLE/FUNCTIONS OF
ORGANIZING

 It facilitate management function.

 Encouraging the efficiency.
 Proper communication.
 Stimulate creativity.
 Optimum utilization of resources.
ORGANIZATION THEORIES

Organization theories

Classical theory Neo classical theory Modern theory

 DIFFERNCE BETWEEN FORMAL AND
INFORMAL ORGANIZATION

Basis of Formal organization Informal organization

difference
purpose To achieve pre determined objective No predetermined objectives

structure official hierarchy of relations Based human emotions and

sentiments
formation Relation are well planned Unplanned
stability stable Unstable
focus job Role
authority Flow from top to bottom Bottom to top
communication Well defined Grapevine
Control system Promotion and demotions based on Group norms regulate
performance different behaviour
 TYPES OF ORGANIZATION
STRUTURE OR DESIGN

 Simple structure or design.

 Matrix structure or design.
 Virtual structure or design.
 Team structure or design.
 Boundary less structure or design.
 Beurocratic structure or design.