Principles of Management - Useful for Anna University & Madras University Syllabus

1. R.Shyam Prasad

2.  Unit - II
 Planning : Nature - Importance - Forms -
Types - Steps
 in Planning - Objectives - Policies -
Procedures and Methods
 - Nature and Types of Policies - Decision-
making - Process
 of Decision-making - Types of Decision.

3.  According to Knootz “Planning is
deciding in advance what to do, how to
do, when to do, and who is to it”
 According to Haimann “Planning is
informed anticipation of future”

4.  Goal Oriented
 Primary Function
 All pervasive
 Mental Exercise
 Continuous Process
 Involves Choice
 Forward Looking
 Flexible

5.  Have clearly defined objectives
 Be Simple, easily understandable
 Be Flexible or adaptable to changing conditions
 Be balanced in all respects
 Provide standards for the evaluation of performance
and actions
 Be economical
 Be practicable
 Be Prepared with the consultation of concerned
persons
 Be clear, specific and logical
 Be capable of being controlled

6.  According to Koontz ”Planning premises are the
anticipated environment in which plans are
expected to operate. They include assumptions or
forecast of the future and known conditions that
will affect the operations of plans.”
 Planning Premises Classification
 External & Internal Premises
 Tangible & Intangible Premises
 Controllable & Incontrollable Premises

7.  Being aware of opportunities.
- SWOT analysis
 Establishing objectives.
 Developing premises
› Planning premises are forecasts, applicable basic policies, and existing company
plans.
› They are assumptions about the environment in which plan is to be carried out.
› Forecasting is important for premising.
› Premises should be make practical what volume of sales? What price?
 Determining alternative courses of action
 Evaluating alternative course of action
 Operation Research – Decision tree
 Selecting a course of action
 Decision making
 Formulating Derivative plans
 Supporting plans for basic plan
 Numerating plans by budgeting
 Follow up And Review

9.  Inaccuracy
 Time consuming
 Inflexibility
 Resistance to change
 False security
 Pressure Tactics
 External Constrains

10.  Top-Down approach
 Bottom-up approach

13. Types of Plan

16. Vision
 It is the desired future state of an organization in
terms of its fundamental objective and/or strategic
direction.
 A Vision statement defines the purpose or broader
goal for being in existence or in the business and
can remain the same for decades if crafted well,
hence it has a long-term view.
 For example, a charity working with the poor might
have a vision statement which reads "A World
without Poverty."

17. Vision
 Features of an effective vision statement include:
 Clarity and lack of ambiguity
 Vivid and clear picture
 Description of a bright future
 Memorable and engaging wording
 Realistic aspirations
 Alignment with organizational values and culture
 Google’s vision - “is to organize the world‘s information and
make it universally accessible and useful.”
 Pepsi’s vision - "To build India’s leading total beverage company,
delighting consumers by best meeting their everyday beverage
needs, and stakeholders, by delivering performance with
purpose, through our talented people."

18. Mission
 A Mission statement is more specific like
how to achieve its vision, the statement
also breaks down the vision statement
into specific points that needs to be
done to achieve the vision of the
company in the long term.
 Google’s philosophy & Mission
 Ten things we know to be true

19. Mission
 Focus on the user and all else will follow.
 It’s best to do one thing really, really well.
 Fast is better than slow.
 Democracy on the web works.
 You don’t need to be at your desk to need an answer.
 You can make money without doing evil.
 There’s always more information out there.
 The need for information crosses all borders.
 You can be serious without a suit.
 Great just isn’t good enough.
 Update
 We first wrote these “10 things” several years ago. From time to
time we revisit this list to see if it still holds true. We hope it does –
and you can hold us to that. (September 2009)

20. It is an End towards which all activities are directed
They are the most basic plan and all other plans are based
on the objectives
 An Objective should be SMART
 Specific – “I want a Job” – What Job?
 Measurable - “I want a Job with high salary” – How
high?
 Attainable – “I want to become a Lawyer” – Is it
possible?
 Relevant – “I want to become CEO now” - !!!!
 Time Bound - “I want a Job soon” – When?

21.  Strategy refers to the game plan made by a
company when either anticipating the
environmental changes or reacting to the
environmental changes after they have occurred.
Hence it is always externally oriented.
Features
 It gives the direction in which human & physical
resources will be deployed once a strategy is formed
 It is plan against Environmental changes such as
Competitors, Government rules, Technological, Etc
 It is future oriented and long term plan of a business
 It is done by TOP management

22.  Types of Strategies:
 Stability Strategy
 Turnaround Strategy
 Closure Strategy
 Growth Strategy
NEW PRODUCT
PRODUCT DEVELOPMENT
(PULSAR 220/SCOOTY STREAK)
DIVERSIFICATION
(EXPORT PULSAR 220/SCOOTY
STREAK)
EXISTING PRODUCT
MARKET PENETRATION
(PULSAR/SCOOTY)
MARKET DEVELOPMENT
(EXPORT)
EXISTING MARKET NEW MARKET

23.  SWOT analysis helps you
get a better understanding
of the strategic choices
that you face. (Remember
that "strategy" is the art of
determining how you'll
"win" in business and life.) It
helps you ask, and answer,
the following questions:
How do you:
 Make the most of your
strengths?
 Overcome your
weaknesses?
 Capitalize on your
opportunities?
 Manage your threats?

24.  A next step of analysis, usually associated with the
externally-focused TOWS Matrix, helps you think
about the options that you could pursue. To do this
you match external opportunities and threats with
your internal strengths and weaknesses, as
illustrated in the matrix below:
 SWOT/TOWS Strategic Alternatives Matrix

25.  This helps you identify strategic alternatives that
address the following additional questions:
 Strengths and Opportunities (SO) – How can
you use your strengths to take advantage of
the opportunities?
 Strengths and Threats (ST) – How can you take
advantage of your strengths to avoid real and
potential threats?
 Weaknesses and Opportunities (WO) – How
can you use your opportunities to overcome
the weaknesses you are experiencing?
 Weaknesses and Threats (WT) – How can you
minimize your weaknesses and avoid threats?

26.  SWOT Analysis helps to identify the
Strategy to be followed
 Eg: We shall see how to do a SWOT for
PEPSI
Strength
Brand Name
Secret Formulation & Taste
Large scale production
Weakness
Existing in drinks segment alone
Opportunities
More countries are getting richer
Variations that can be shown in
existing product
Threats
Health Awareness of People
Heavy Advertisement form Coke
Competition from other forms of
drink

27.  “Our goal is to nourish consumers with a range of
products that deliver great taste, convenience and
affordability from simple treats to healthy offerings.”
NEW PRODUCT PRODUCT DEVELOPMENT DIVERSIFICATION
EXISTING PRODUCT MARKET PENETRATION MARKET DEVELOPMENT
EXISTING MARKET NEW MARKET

28. Beverages Foods
Pepsi
7UP
Mirinda
Slice
Mountain Dew
Aquafina
Gatorade
Nimbooz
Tropicana
Tropicana Twister
Cheetos
Kurkure
Lay's
Lehar Namkeen
Quaker Oats
Uncle Chipps
Aliva

29.  Haynes & Massie “Decision making is a
process of selection from a set of
alternative courses of action which is
thought to fulfill the objective of the
decision – problem more satisfactorily
than others.”

30.  Organizational and Personal Decisions
 Routine and Strategic Decisions
 Programmed and Non programmed
Decision
 Individual and Group decision

31.  Defining the problem
 Analysing the problem
 Developing alternative solutions
 Evaluating the Alternatives
 Selecting the best alternatives
 Implementing the decision
 Feedback & Review