Functions of Management

⦿ Planning( Environment Analysis , Decision-

making)
⦿ Organising(grouping of activities,assigining
duties ,delegating authority,etc.)
⦿ Staffing(recruitment,selection,development
etc.)
⦿ Directing(motivating,leading,communicatio
n etc.)
⦿ Controlling(setting standards,measuring
performance,correcting performance etc.)
PLANNING
 MEANING OF PLANNING

Planning is deciding in advance what to

do, how to do it, when to do it and who
will do it. It involves anticipating the
future and conciously
Choosing the future course of action.
“According to Haimann, Planning is the
function that determines in advance
what should be done.”
 Nature of Planning

⦿ Planning is goal-oriented
⦿ Planning is a primary function
⦿ Planning is pervasive function
⦿ Planning is a continuous process
⦿ Planning is forward-looking
⦿ Planning involves decision making
⦿ Planning is directed toward efficiency
 PROCESS OF PLANNING

The main step in planning proccess are as

follow:-
Step 1- DEFINE THE TASK-
Step 2- IDENTIFY RESOURCES-
step 3- CREATE THE PLANNING-
Step 4- CONSIDER ALTERNATIVE-
Step 5- WORK ON THE PLAN-
Step 6- EVALUATE-
 Need/Advantages/Importan
ce of planning
⦿ Focuses attention on objectives and
result
⦿ Reduces uncertainty and risk
⦿ Provides sense of direction
⦿ Encourages innovation and creativity
⦿ Helps in co-ordination
⦿ Guides decision-making
⦿ Provide efficiency in operation
 Limitation of planning

⦿ Lack of accurate information

⦿ Time and cost
⦿ Resistance to change
⦿ Lock of ability to plans
⦿ False sense of security
⦿ Environmental constraints
 Elements of planning
STANDING PLANS SINGLE USE PLANS
⦿ Objectives Programmes
⦿ Strategies Schedules
⦿ Policies Budgets
⦿ Procedures Projects
⦿ Methods Tactics
⦿ Rules
⦿ Standards
 Standing Plans
⦿ Objectives: Objectives are the desired
results that an organisation wants to
achieve within a specified time period.
⦿ Strategies: The long terms approach for
dealing with the organisation’s competitive
environment with a view to win over
competitors in business.
⦿ Policies:Policies are the guidelines set to
provide direction in decision making. These
set the boundries around which decisions
are made.
⦿ Procedures: A procedure is a
chronological sequence of steps or
actions to be taken to accomplish a
specific task or job.
⦿ Method: A method is a prescribed way
of completing a step in a procedure.
⦿ Rules: Rules are specific recorded
statements that direct what must or
must not be done in a given situation.
⦿ Standards: A standard is a measure
against which the level of performance
is measured or evaluated
 SINGLE USE PLANS
⦿ Programmes: A programme is a action plan
consisting sequence and timing of steps necessary
to achieve objectives.
⦿ Schedules: A schedule is a plan which indicates
the time of commencement of task, passing
through the different stages of processes, and
finalising the task.
⦿ Budgets: A budget is a statement of expected
results expressed in numerical terms.
⦿ Projects: A project is a smaller action plan and a
distinct part of a programme.
⦿ Tactics: It is a short-term action plan for
implementing strategies.
 TYPES OF PLANNING
⦿ Corporate planning: Corporate planning is the
overall long-term planning of the entire
organisation.
⦿ Strategic planning: It is overall organisational
planning that aim at establising long-rang plans for
dealing with the organisation’s competitive
environment.
⦿ Operational or Tactical planning: It formulates the
plans that specify how the overall objectives can
be achieved on time with available resources.
⦿ Functional planning : Functional planning relates to
various functional areas of business. These include
production, marketing,personnel,finance and so
on.
 Tools and Techniques of
planning
1. Forecasting
2. Budgeting
3. Break-even analysis
4. Marginal analysis
5. Linear programming
6. Queueing theory
7. PERT/CPM
8. Theory of probability
⦿ Forecasting: Forcasting is the process of predicting
future events that will effect the functioning of an
organisation. Types- a. Quantitative b. Qualitative
⦿ Budgeting: A budget is a numerical statement
showing the allotment of resources to specific
activities.
⦿ Break-even analysis:It is a technique of identifying
the number of units of a product that must be sold
in order to generate enough revenue to cover the
costs.
⦿ Marginal analysis: This technique helps managers
to plan the quantity of production to the extend. it
adds more to total revenue than to total cost.
⦿ Linear programming: Linear programming is a
technique for determing the optimim combination
of limited resources to obtain a desired goal.
⦿ Queueing theory: It is a mathematical technique
of planning and decision- making.
⦿ PERT/CPM: It is a network technique useful in
planning , decision-making and controlling. PERT
stands for “ Programme Evaluation and Review
Technique” and CPM stands for “ Critical Path
Method”
⦿ Theory of probability: In this technique , managers
use statistics to evaluate and reduce amount of risk
involved in a plan.