ANTONY SURESH

2314509181
Online MBA
1st semester
Managerial Economics
DMBA105_MBA 1
1. Explain the concept of Planning along with various types of Planning.

Planning is the primary function of management.It focuses on the future course of action.
Planing is a primary managerial activity that specifies the objectives to be achieved in
future and selects the alternative course of action to reach defined objectives.
Thus it involves;
1. Defining the organization’s goals
2. Establishing an overall strategy for achieving those goals.
3. Developing plans for organizational work activities.

CONCEPT OF PLANNING

Planning is the fundamental management of critical objectives, including the process,

execution, and outcome. It is an intellectual process of management that an organization
follows with various methodologies, blueprints, and discussions. It is necessary to get the
best possible result following the specific planning. Various objectives have a distinct
planning process according to the goal is achieved. According to planning, various
actions and encounters occur, which extracts the outcome at the end of the process.

Planning is the basic and primary function of management. It has to be pre-decided to

outline the activities in the future. Planning is forming plans to develop and execute the
activity to get the best possible outcome. The management concept of planning includes
formulating good policies, budget segregation, advertisement objectives, marketing
strategies, etc.

If we discuss the importance of planning, planning helps provide direction and reduce risk
and uncertainty, especially in the business field. It also reduces overlapping and wastage
of resources in a company, promotes new innovative ideas, facilitates decision-making,
and establishes a standard of control over the management.

Therefore, the planning focuses on achieving the goals and objectives; it is a continuous
process, future-oriented, and decision-making to provide a structure to the management.

TYPES OF PLANNING;
[a]STRATEGIC PLANNING
Strategic planning involves decisions about the organization's long term goals such as
survival, growth etc. It involves setting long term objectives (by top management) and
deciding about the judicious deployment of resources to achieve those objectives.
Strategic planning, thus, is longterm in nature. It tends to be a top management
responsibility. It requires looking outside the organization for threats and opportunities. It
also requires looking inside the organization for finding out weaknesses and strengths. It
affects many parts of the organization, as its decisions have enduring effects that are
difficult to reverse. It tries to equip the organization with capabilities needed to confront
future uncertainties, by taking a holistic view of the entire organization. Its focus is
clearly on the
‘jungle, not the trees’. The main objective is to position the firm in an advantageous
position in relation to the environment, keeping the firm’s own capabilities in mind.

Example: In business, it means how much money is going to be dedicated to a project,

and by when you expect the project complete. In personal life, suppose you plan a
wedding, it means deciding on the budget and the date.
[b]TACTICAL PLANNING
Tactical planning translates broad strategic goals and plans into specific goals and plans
that are relevant to a definite portion of the organization, such as a functional area like
marketing or human resources. Tactical plans focus on a major actions a unit must take to
fulfil a part of the strategic planning. They are often focused on 1-2 years in the future.
This is the implementation of the strategic plan stage combining your available resources,
look at obstacles, and review alternatives.

Example: In business, it means an analysis of resource combination, planning for

obstacles, and general timetable. In personal life, for the wedding, it means, finding the
place, developing a guest list, deciding on a menu and music.

[c]OPERATIONAL PLANNING

Operational planning identifies the specific procedures and processes required at lower
levels of the organization. Front line managers usually focus on routine tasks such as
production runs, delivery schedules, and human resource needs etc. They typically focus
on the short term, usually 12 months or less. These plans are the least complex of the
three and rarely have a direct effect or other plans outside of the department or unit for
which the plan was developed.

Example: In business, it means engaging the team, develop and answer the who, what,
when, where, how management questions. In personal life, for the wedding, it means,
choosing the band, finding the caterer, decide on flowers, etc.

To be fully effective, the organization's strategic, tactical and operational plans must be
aligned – that is, they must be consistent, mutually supportive and focused on meeting the
common purpose and direction.
2. Define Organizing while having light on the importance of the concept.

Organizing is a management function that forms the step after planning. Managers
allocate resources, departmentalize work, demarcate authority, and distribute
responsibilities through the firm. It is a complicated process that requires the
simultaneous collaboration of various factors. Managers need to focus on the particular
skills and strengths of the workers while dividing work. Understanding the process of
specialization and how the division of labour leads to it is a major factor in increasing
labour efficiency. Henri Fayol explained this in the following terms:

“The specialization of the workforce according to the skills of a person, creating specific
personal and professional development within the labour force and therefore increasing
productivity, leads to specialization which increases the efficiency of labour. By
separating a small part of work, the workers’ speed and accuracy in its performance
increases. This principle is applicable to both technical as well as managerial work.”

CONCEPT OF ORGANIZING

The concept of organizing is an important part of business studies and forms a vital
component in the way a firm functions to achieve its goals. Organizing is a management
function that forms the step after planning. Managers allocate resources, departmentalize
work, demarcate authority, and distribute responsibilities through the firm. It is a
complicated process that requires the simultaneous collaboration of various factors.
Managers need to focus on the particular skills and strengths of the workers while
dividing work. Understanding the process of specialization and how the division of
labour leads to it is a major factor in increasing labour efficiency. Henri Fayol explained
this in the following terms:
“The specialization of the workforce according to the skills of a person, creating specific
personal and professional development within the labour force and therefore increasing
productivity, leads to specialization which increases the efficiency of labour. By
separating a small part of work, the workers’ speed and accuracy in its performance
increases. This principle is applicable to both technical as well as managerial work.”

IMPORTANCE OF ORGANIZING
Organizations are systems created to achieve common goals through people-to-people
and people-to-work relationships. They are essentially social entities that are goal-
directed, deliberately structured for coordinated activity systems, and is linked to the
external environment. Organizations are made up of people and their relationships with
one another. Managers deliberately structure and coordinate organizational resources to
achieve the organization’s purpose.

Each organization has its own external and internal environments that define the nature of
the relationships according to its specific needs. Organizing is the function that managers
undertake to design, structure, and arrange the components of an organization’s internal
environment to facilitate attainment of organizational goals. A comprehensive approach to
organizing helps the management in many ways. Organizing aligns the various resources
towards a common mission.

Efficient Administration

It brings together various departments by grouping similar and related jobs under a single
specialization. This establishes coordination between different departments, which leads
to unification of effort and harmony in work. It governs the working of the various
departments by defining activities and their authority relationships in the organizational
structure. It creates the mechanism for management to direct and control the various
activities in the enterprise.

Resource Optimization
Organizing ensures effective role-job-fit for every employee in the organization. It helps
in avoiding confusion and delays, as well as duplication of work and overlapping of
effort. Benefits Specialization It is the process of organizing groups and sub-divide the
various activities and jobs based on the concept of division of labor. This helps in the
completion of maximum work in minimum time ensuring the benefit of specialization.

Promotes Effective Communication

Organizing is an important means of creating coordination and communication among the
various departments of the organization. Different jobs and positions are interrelated by
structural relationship. It specifies the channel and mode of communication among
different members.

Creates Transparency

The jobs and activities performed by the employees are clearly defined on the written
document called job description which details out what exactly has to be done in every
job. Organizing fixes the authorityresponsibility among employees. This brings in clarity
and transparency in the organization.

Expansion and Growth

When resources are optimally utilized and there exists a proper division of work among
departments and employees, management can multiply its strength and undertake more
activities. Organizations can easily meet the challenges and can expand their activities in
a planned manner. The concept of organizing is a vital part of managerial studies. The
importance of organizing lies in the fact that it enables a firm to grow and keeps the
workflow efficient. Organizing is the most important part of a manager’s duties. It makes
the company work in coordination, and the individual workers are able to
performaccordance with their potential. The concept of organizing should be well-studied
and its implementation should be well-researched by anyone aspiring to be an effective
manager.
3. Define Controlling along with prerequisites of Effective Control.

Controlling is a management function that involves monitoring and evaluating the

performance of individuals, teams, and the organization as a whole to ensure that goals
are being achieved. It involves comparing actual performance with planned performance,
identifying deviations, and taking corrective actions when necessary.

Controlling helps managers to maintain standards, identify areas of improvement, and

ensure that resources are being used effectively and efficiently. It involves setting
performance standards, measuring actual performance, comparing the two, and taking
corrective actions to ensure that goals are met.

Prerequisites of Effective Control

To ensure effective control, certain prerequisites need to be in place. These include:

1.Establishing Standards: Clear and specific performance standards need to be

established to provide a basis for measuring and evaluating performance. These
standards should be realistic, achievable, and aligned with organizational goals.

2.Measuring Performance: Performance needs to be measured accurately and

objectively. This can be done through various methods such as observation, reports,
feedback, and performance indicators.

3.Comparing Performance: Actual performance needs to be compared with the

established standards to identify any deviations or variations. This helps in determining
whether performance is on track or needs improvement.

4.Identifying Deviations: Any deviations from the established standards need to be

identified and analyzed. This involves understanding the causes of deviations and their
impact on overall performance.

5.Taking Corrective Actions: Once deviations are identified, appropriate corrective

actions need to be taken to bring performance back on track. This may involve
providing additional resources, training, coaching, or making changes to processes or
procedures.

6.Feedback and Communication: Effective control requires regular feedback and

communication between managers and employees. This helps in clarifying expectations,
addressing concerns, and providing guidance and support. By ensuring these
prerequisites are met, managers can effectively control and monitor performance, make
informed decisions, and take timely actions to achieve organizational goals.
4. Discuss the concept of Motivation. Explain Maslow’s hierarchy of needs theory.

Motivation is a general inspiration process which gets the members of the team pull their
weight effectively to give their loyalty to the group to carry out properly the tasks they
have accepted and generally to play an effective part in the job that the group has
undertaken.

Motivation may be regarded as an integral part of the process of direction.In directing the
subordinates,the manager has to try to create in them the willingness to pursue the goals
of the organization, enthusiastically.In trying to do so, the manager may be said to
concern himself with motivation.

MASLOW’S HIERARCHY OF NEEDS THEORY.

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943.
This theory is a classical depiction of human motivation. This theory is based on the
assumption that there is a hierarchy of five needs within each individual. The urgency of
these needs varies. These five needs are as follows-

Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In
other words, physiological needs are the needs for basic amenities of life.

Safety needs- Safety needs include physical, environmental and emotional safety and
protection. For instance- Job security, financial security, protection from animals, family
security, health security, etc.

Social needs- Social needs include the need for love, affection, care, belongingness, and
friendship.

Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect,
confidence, competence, achievement and freedom) and external esteem needs
(recognition, power, status, attention and admiration).

Self-actualization need- This include the urge to become what you are capable of
becoming/what you have the potential to become. It includes the need for growth and self-
contentment. It also includes desire for gaining more knowledge, social- service, creativity
and being aesthetic. The self- actualization needs are never fully satiable. As an individual
grows psychologically, opportunities keep cropping up to continue growing. According to
Maslow, individuals are motivated by unsatisfied needs. As each of these needs is
significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the
five needs into two categories - Higher-order needs and Lower-order needs. The
physiological and the safety needs constituted the lower-order needs. These lower-order
needs are mainly satisfied externally. The social, esteem, and self-actualization needs
constituted the higher-order needs. These higher-order needs are generally satisfied
internally, i.e., within an individual. Thus, we can conclude that during boom period, the
employees lower-order needs are significantly met.

5. Discuss the concept of ‘Team’. Also discuss seventeen characteristics of an

Effective Team

1. Clear goals: An effective team has a clear understanding of its goals and objectives,
and all team members are committed to working towards those goals.

2. Strong leadership: An effective team has strong leadership that inspires and motivates
team members, fosters collaboration, and makes decisions that are in the best interests
of the team

.
3. Good communication: An effective team has good communication among team
members, with open and honest dialogue that allows for the free exchange of ideas
and the resolution of conflicts.

4. Trust: An effective team has a high level of trust among team members, which allows
them to be vulnerable with one another and feel comfortable taking risks and trying
new things

5. Respect: An effective team has a culture of respect, where all team members are
treated with dignity and their contributions are valued.

6. Responsibility: An effective team takes responsibility for its actions and decisions, and
team members are held accountable for their contributions.

7. Conflict resolution: An effective team has the ability to resolve conflicts in a healthy
and productive way, and team members are able to give and receive feedback without
fear of retribution.

8. Collaboration: An effective team has a culture of collaboration, where team members

work together and support one another in order to achieve the team's goals.

9. Flexibility: An effective team is flexible and adaptable, and is able to change course as
needed in order to achieve its goals.

10. Diversity: An effective team values diversity and includes team members with a range
of backgrounds, skills, and perspectives.

11. Inclusion: An effective team fosters an inclusive environment where all team members
feel welcomed and valued.
12. Empowerment: An effective team empowers its members to take ownership of their
work and make decisions that contribute to the team's success.
13. Cohesiveness: An effective team is cohesive and has a strong sense of unity and
purpose.

14. Creativity: An effective team encourages creativity and encourages team members to
think outside the box and come up with new and innovative ideas.

15. Problem-solving: An effective team has strong problem-solving skills and is able to
identify and address challenges in a timely and effective manner.

16. Productivity: An effective team is productive and able to accomplish a lot in a short
amount of time.

17. Fun: An effective team is a fun and enjoyable place to work, and team members look
forward to coming to work
 6.Detail the concept of Leadership. Discuss Trait theory of Leadership in detail.

The trait model of leadership is based on the characteristics of many leaders - both
successful and unsuccessful - and is used to predict leadership effectiveness. The resulting
lists of traits are then compared to those of potential leaders to assess their likelihood of
success or failure.

Scholars taking the trait approach attempted to identify physiological (appearance, height,
and weight), demographic (age, education and socioeconomic background), personality,
self-confidence, and aggressiveness), intellectual (intelligence, decisiveness, judgment,
and knowledge), task-related (achievement drive, initiative, and persistence), and social
characteristics (sociability and cooperativeness) with leader emergence and leader
effectiveness.

Successful leaders definitely have interests, abilities, and personality traits that are
different from those of the less effective leaders. Through many researches conducted in
the last three decades of the 20th century, a set of core traits of successful leaders have
been identified. These traits are not responsible solely to identify whether a person will be
a successful leader or not, but they are essentially seen as preconditions that endow people
with leadership potential.

Among the core traits identified are:

▪ Achievement drive: High level of effort, high levels of ambition, energy and
initiative
▪ Leadership motivation: an intense desire to lead others to reach shared goals
▪ Honesty and integrity: trustworthy, reliable, and open
▪ Self-confidence: Belief in one’s self, ideas, and ability
▪ Cognitive ability: Capable of exercising good judgment, strong analytical
abilities, and conceptually skilled
▪ Knowledge of business: Knowledge of industry and other technical matters
▪ Emotional Maturity: well adjusted, does not suffer from severe psychological
disorders.
▪ Others: charisma, creativity and flexibility

Strengths/Advantages of Trait Theory ▪ It is

naturally pleasing theory.

▪ It is valid as lot of research has validated the foundation and basis of the theory.
▪ It serves as a yardstick against which the leadership traits of an individual can be
assessed.
▪ It gives a detailed knowledge and understanding of the leader element in the
leadership process.
Limitations of The Trait Theory

▪ There is bound to be some subjective judgment in determining who is regarded as

a ‘good’ or ‘successful’ leader
▪ The list of possible traits tends to be very long. More than 100 different traits of
successful leaders in various leadership positions have been identified. These
descriptions are simply generalities.
▪ There is also a disagreement over which traits are the most important for an
effective leader
▪ The model attempts to relate physical traits such as, height and weight, to
effective leadership. Most of these factors relate to situational factors. For
example, a minimum weight and height might be necessary to perform the tasks
efficiently in a military leadership position. In business organizations, these are
not the requirements to be an effective leader.
▪ The theory is very complex