3. Management Process:
• Planning: It is the basic function of
management. It deals with chalking out a future
course of action & deciding in advance the most
appropriate course of actions for achievement of
pre-determined goals.
• Decision making is an integral part of Planning
• Principle of navigational change
• A plan must be flexible
4. • Organizing: It is the process of bringing
together physical, financial and human
resources and developing productive
relationship amongst them for achievement of
organizational goals.
• Staffing: It is the function of manning the
organization structure and keeping it manned.
5. Management Process:
• Directing: It is that part of managerial function
which actuates the organizational methods to
work efficiently for achievement of
organizational purposes.
• Controlling: It implies measurement of
accomplishment against the standards and
correction of deviation if any to ensure
achievement of organizational goals.
6. Planning
• Planning includes all the activities that lead to
the definition of objectives and to the
determination of appropriate courses of action
to achieve those objectives.
7. Planning helps us answer:
• What to do?
• Where to do it?
• How will we do it?
• Who will do the task?
• And….
• When will we do it?
8. The need for planning:
• Increasing Organizational complexity
• Leads to success
• Focus attention on organizational goals
• Facilitates control
9. Importance of Planning
• Planning Clarifies the objectives of the
organization.
• Planning economizes operations.
• Planning precedes control
• Planning provides for the future
• Planning increases the efficiency of all the
managerial functions.
11. VISION
• Top of this hierarchy is vision. This is the dream
than an entrepreneur creates about the direction
that his business should pursue in future.
• A vision should be brief focused, clear and
inspirational to the organization’s employees
12. MISSION
• Unique aim of an organization that sets it apart from
others of its type.
• It describes the scope of the business
• The Mission of ABB Ltd is
‘ to be a global leader.. Most competitive,
competent, technologically advanced, and quality
minded electrical engineering company’
Like vision, a firm’s mission also guides the development of
strategies. It establishes the context within which daily operating
decisions are made . And thus they are not revised every now &
then in response to every new turn in the economy.
13. Objectives
• Objectives are goals or aims that the
management wishes to achieve in the pursuit of
its mission
• These are the end points towards which all
activities like organizing, staffing, directing and
controlling are directed. Only after having these
end points can the manager determine the kind
of organization, the kind of personnel, their
qualification, the kind of motivation, the
supervision, he must employ to reach these
points
14. Contd..
• Objectives are different from purpose.
• Purpose is “ the primary role’ of any organization
• Objectives are specific targets to be reached by
an organization.
• Translation of organization’s mission into
concrete terms .
16. Requirements of sound objectives
• Objectives must be both clear and acceptable
• Objectives must support one another
• Objectives must be precise and measurable
• Objectives should always remain valid
17. Advantages of Objectives
• Provide basis for planning
• Act as motivators
• Eliminate haphazard action
• Facilitate coordinated behavior
• A basis for managerial control
• Lessen misunderstanding & conflict
• Facilitate better management
18. Strategies
• A term originated in military, which connotes a
response to a competitive environment
• SWOT analysis is necessary
• 2 important activities involved in strategy
formulation are environmental appraisal and
corporate appraisal
19. Environmental Appraisal
• Result in the identification of Threats &
Opportunities
• Some Environmental factors are:
▫ Political & Legal Factors
▫ Economic Policies
▫ Competitive Factors
▫ Social & Cultural Factors
20. Political & Legal factors
• Stability of the govt. & its political philosophy
• Taxation & industrial licensing laws
• Monetary & Fiscal Policies
ECONOMIC FACTORS
Level of Economic Development
Distribution of Personal Income
Trends in prices, exchange rates,
Supply of raw material , labour and capital
21. Competitive factors
• Identification of principal competitors
• Analysis of their performance & programmes
Social and cultural Factors
• Literacy level
• Religious and social characteristics
• Rate of urbanization
• Rate of social change
22. Corporate Appraisal
• This involves analysis of company’s strengths or
weaknesses.
• Strengths may lie in outstanding leadership,
excellent product design, low cost
manufacturing, efficient distribution , efficient
customer service,.
23. Operational Plans
• Standing Plans
▫ Are plans designed for situation that recur often
enough to justify a standardized approach. Eg.
Plan for processing a loan application
Single Use Plan:
Are developed to achieve specific end. When the pln
is achieved, plan is dissolved.
24. Standing Plans
• Objectives: They are goals established to guide
the efforts of the company and each of its
components.
• They are the end point of the management
programme.
• An objective indicates the end result the
management wishes to achieve in the long run.
25. Standing Plans
• Policy: A policy is a basic statement that guides
decision making. It tells us what we may or may
not do. It directs the way in which the activities
are to be achieved. It is concerned with ‘how’ of
administrative action.
• They allow a more refined and flexible approach
to recurring problems.
• They help in achieving co-ordination.
26. Standing Plans
• Procedures: They are well thought out courses of
action. It prescribes the specific way in which
piece of work is to be done.
• They are also called ‘action guidelines.’
• They are generally derived from policies.
• The emphasis is on chronological, step by step
sequence of required action.
27. Standing Plans
• Methods: they are sub units of procedures; they
show clearly show a step of the procedure should
be performed.
• They indicate the techniques to be employed to
make the procedure effective.
• The primary focus is on finding the best way on
doing a piece of work.
• Methods cover limited territory, normally one
department.
28. Standing Plans
• Rules: They are very specific and detailed guide
to action. It is established in a fairly narrow
manner. There is no scope for discretion or
judgment.
• Rules must be followed precisely and observed
strictly.
29. Single Use Plans
• Programme: it is a comprehensive plan that
include a complex set of goals, procedures, rules,
work assignment resource flow and generally
cover a large territory.
30. Single Use Plans
• Schedule: it is a kind of time table of work,
specifying the date when a task is to begin and
time needed to complete each task.
• They are often combined with programmes to
ensure a chronological sequence of activities.
31. Single Use Plans
• Projects: A small programme is known as
project.
• Budget: is a monetary plan designed primarily to
allocate the resources of an organization.
• It is a blue print of future course of action in
monetary terms.
32. Limitations of Planning
• Planning premises may be wrong
• Rapidity of change
• Time and cost constraints
• Planning may limit new ideas
• Capital investment constraint
• Lack of control over external factors
34. Establishing Objectives
• It is the first step.
• Identify the objectives that we want to achieve.
• They must be clear and concise, must indicate
what is to be achieved, where the action should
take place, who is to perform it, how it must be
undertaken and when it is to be accomplished.
35. Developing Premises
• Premises are assumptions about the
environment in which plans are made and
implemented.
• These assumptions are the likely impact of
important environmental factors.
36. Evaluating alternatives and
selection
• There can be multiple courses of action to one
plan.
• The pros and cons of each alternative needs to
considered.
• This needs to be done before a decision is made.
37. Formulating derivative plans
• The formulation of secondary plans to support
the primary plans.
• To ensure the success of primary plan, the
derivative plans must indicate the time schedule
and sequence of performing various tasks.
38. Securing Cooperation and
Participation
• The successful implementation of a plan
depends on a huge extent on the whole hearted
cooperation of the employees.
• Management also needs to be involved in this
process.
39. Providing for Follow-Up
• Plans need to reviewed continually to ensure
their relevance and effectiveness.
• In course of implementation facts may crop up
that were not taken care of before.
• This changes need to made while implementing
the plan.
