The document discusses various aspects of planning and decision making, including defining planning as preparing for change through formulating future actions, describing different types of planning based on time frame, durability, and significance, and outlining the process of decision making and factors for evaluating alternatives. Management by objective is also defined as a process of setting collaborative goals throughout an organization to guide planning, management, and performance assessment.
The document discusses various aspects of planning and decision making, including defining planning as preparing for change through formulating future actions, describing different types of planning based on time frame, durability, and significance, and outlining the process of decision making and factors for evaluating alternatives. Management by objective is also defined as a process of setting collaborative goals throughout an organization to guide planning, management, and performance assessment.
The document discusses various aspects of planning and decision making, including defining planning as preparing for change through formulating future actions, describing different types of planning based on time frame, durability, and significance, and outlining the process of decision making and factors for evaluating alternatives. Management by objective is also defined as a process of setting collaborative goals throughout an organization to guide planning, management, and performance assessment.
The document discusses various aspects of planning and decision making, including defining planning as preparing for change through formulating future actions, describing different types of planning based on time frame, durability, and significance, and outlining the process of decision making and factors for evaluating alternatives. Management by objective is also defined as a process of setting collaborative goals throughout an organization to guide planning, management, and performance assessment.
A plan is a blueprint of future courses of actions. Planning is
a process of making a plan. “Planning is a process of preparing for change and coping with uncertainty by formulating future courses of action”. Robert Kritner Types of Planning 1. On the basis of time 2. On the basis of durability 3. On the basis of significance 1. On the basis of time o Long range planning: A plan which covers one year and above time in advance, we call it long range planning. o Short range planning: A plan that covers less than one year in advance, we call it short range planning. Long range plan is sometimes divided into intermediate and long term. Intermediate range is subject to change according to organization policy. 2. On the basis of durability o Single use plan & Standing plan o Single use plan: Single use plan is done for a particular purpose. Example: a plan to construct a building, a bridge, a road.
Single use plan can be divided into three categories
i. Budget: Budget is for single year. It is quantitative expression of plan. ii. Project: Project is a temporary endeavor. It has time bound to produce a single unit of product. Example: to build a building. iii. Program: Program is done for particular purpose. Example: family planning program. It has a large set of activities. It requires identifying principal steps, fixing responsibilities, and setting the timeframe for each step. o Standing plan: Standing plan is a kind of plan that can be used again and again. This type of plan does not lose its effectiveness because of its repetitive use. Example: procurement of raw materials, a plan to promote, demote, and transfer employees, a plan to admit students by the university in a particular program, salary of employee.
i. Policy: it is a general guideline for doing an action. Policy is a
boundary within which managers work. Example: selection policy. ii. Process/ Procedure: A procedure is a series of related steps expressed in chronological order to achieve an objective. Example: selection procedure of BCS. iii. Rule: rule is specific. Policy is general. An explicit statement that tells managers what they can or cannot do. iv. Method: It is the part of procedure. Specific way of doing thing is called method. v. Regulation: details description of taking an action. It exemplifies the rule. 3. On the basis of significance I. Corporate plan, II. Operating plan. I. Corporate plan: The plan which has got implication on overall organization. • Vision: It is the dream of the entrepreneurs that shows the fundamental aspiration and purpose of the organization. It is a desire and unspecific. • Mission: It is a statement for getting social legitimacy in favor of business. A mission is an organization’s purpose or reason for existence. It is given to the public not the employees so that society permits the organization to do business. • Goal: Destiny of an organization which is essentially a long term. A plan expressed in terms of result to be achieved is known as goal. • Strategy: Strategy is a comprehensive, integrated and united plan to achieve goals of an organization. The determination of the mission or purpose and basic long term objective of an enterprise, followed by the adoption of courses of action and allocation of resources necessary to achieve these aims. Operating plan: It is the tactical plan that is carried out to achieve operational goals. It is developed by middle and lower level managers. It has short time focus and relatively narrow in scope. Example: Marketing plan, production plan, Human resource Planning, Purchasing plan etc.
Decision Making: Decision making is a process of choosing
best alternative from among a set of alternatives. Decision may be of two types. One is called programmed or routine decision and another is called unprogrammed or unfamiliar decision. Decision making process Defining problem
Develop premises(situation/conditions)
Identify alternative solutions
Evaluate alternatives
Choose the best alternatives
Factors for evaluating and choosing alternative solutions • Feasibility • Quality • Acceptability • Cost • Reversibility • risk • ethics Definition of Management By Objective and its Process Management by objective(MBO) is a process through which specific goals are set collaboratively for the organization as a whole and every unit and individual within it and that goals are used as a basis for planning, managing organizational activities and assessing and rewarding contributions. Bartol and Martin That means converting overall organizational objectives into specific objectives for organizational units and individual members. Steps in MBO process : Start MBO process( Chief executive, Board of directors make decision) 1. Establishing organizational goals and plans 2. Collaborative goal setting and planning( for units, dept, individual) 3. Communicating goals and plans to execute( meeting, counseling, resourcing) 4. Periodical review 5. Evaluation & 6. Giving feedback to top authority Elements/characteristic of MBO o Top level commitment to MBO o Participation of all(divisional heads, and all units) o Top and individual level goal setting o Autonomy of implementing units( direction but no interference) o Systems approach(assuming that organization is a set of interdependent and interrelated subsystems functioning as a whole). o Periodical performance review.