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:

High level of effort, high levels of ambition, energy and

initiative
an intense desire to lead others to reach shared
goals
trustworthy, reliable, and open
Belief in one’ s self, ideas, and ability
Capable of exercising good judgment, strong analytical
abilities, and conceptually skilled
Knowledge of industry and other technical matters
well adjusted, does not suffer from severe psychological
disorders.
 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