Concept of Management

By: Priyanka Singh

 Management Definitions

• According to F.W. Taylor, ―Management is an art of knowing what to do,

when to do and see that it is done in the best and cheapest way‖

• According to Harold Koontz, ―Management is an art of getting things

done through and with the people in formally organized groups. It is an
art of creating an environment in which people can perform and
individuals and can co-operate towards attainment of group goals‖

• Management as a process ―consisting of planning, organizing, actuating

and controlling, performed to determine and accomplish the objective by
the use of people and resources.‖George R. Terry

Management is the process of achieving goals and objectives effectively

and efficiently through and with the people.
By: Priyanka Singh
 MANAGEMENT CONSOLIDATES AS

• Management is Goal-Oriented:
• Management integrates Human, Physical and
Financial Resources:
• Management is Continuous Process
• Management an intangible dynamic discipline
that ensure group efforts for global substance
• It is diverting individual goal to organizational
goal
• It is getting this done through people

By: Priyanka Singh

 Nature and Feature of Management

• Management is Goal-Oriented:

• Management integrates Human, Physical and Financial Resources:

• Management is Continuous Process

• Management an intangible dynamic discipline that ensure group efforts

for global substance

• It is diverting individual goal to organizational goal

• It is getting this done through people

By: Priyanka Singh

 IMPORTANCE OF MANAGEMENT

• Achievement of organizational Goals

• Optimum Utilization of Resources
• Reduces Costs by social and economic development
• Balance between multiple goals
• Develop the analytical & conceptual ability of Managers
• Foundation to organization
• Environmental Analysis
• Faces competition
• Social Upliftment : Essentials for Prosperity of Society
By: Priyanka Singh
Management Aspects
Role of manager:
1) Inter Personal Role 2) Informational Role
3)Decision Role

1) Distinct Field of Study 2) Taught as academic courses

People at all level come together for a common goal

All factors of production are considered for optimum utilization of

resources

Functions of management ; Planning , Organizing , Leading,

Controlling Coordinating etc
By: Priyanka Singh
Bases of Administration Management
differences
Nature It is thinking or determining function. It is doing or executive
function.
Types of work It relates with formulation of plans It is operative level.
and objectives.

Level of authority It is top level activity. It is operative level activity.

Decision making It considers public opinion, It considers decisions

government policies, social and influenced by values,
external factors for taking decisions. opinions and beliefs.

Status of performer It consists of investors. It consists of paid employees.

Use It is used in government sectors. It is used in private sectors.

Main functions Planning and organizing Directing and controlling

Ability Requires administrative quality Requires technical and

By: Priyanka Singh
professional ability
 MANGEMENT & ADMINISTRATION
MANAGEMENT ADMINISTRATION

British viewpoint American Viewpoint

Management Plans & Regulate the
operations of a business enterprise
It is top level function &
administration lower level
Prepare guideline & objective ,
Mission & Vision
It lays objective , plans & policies &
management implement these
policies
It is a top level supportive function
Implementation of Plan &
procedures of its conduction

Some School of thoughts consider them same as Administration in

Government Organization & management in Business Organization

By: Priyanka Singh

 Elements of definition
Process - represents ongoing functions or primary activities engaged in by
managers.

Efficiency - getting the most output from the least amount of inputs
• ―doing things right‖
• concerned with means
• Achieving the objectives in time

Effectiveness - completing activities so that organizational goals are attained

• ―doing the right things‖
• concerned with ends
• Achieving the objectives on time

By: Priyanka Singh

 The Evolution of Management
Thought-
Management practices from past to
present
The Evolution of Management Theories for
Organization

By: Priyanka Singh

SCHOOL OF THOUGHTS DATED CONTIBUTORS EMPHASIS

PRE SCIENTIFIC THEORIES

CLASSICAL THEORIES 1880 Adam Smith

 Adam Smith concept Taylor, Gantt Frank & Job Specialization
 Scientific Management Lilian Gilbirth Scientific work method

ADMINISTTRATIVE THORIES 1920 Max Weber Bureaucratic Policy

 Bureaucratic Management 1940 Henri Fayol Principles of Management
Administrative Management
NEO CLASSICAL/ BEHAVIOURAL
THEORIES
Human Relation 1924-56 Elton Mayo Hawthorne Studies
Behavioral Science 1943 Abraham Maslow Maslow's Need Hierarchy
QUANTITATIVE APPROACH Increasing Quality of
 Management Science 1940 Managerial decision Making
 Operation Management through the application of
 Management Information System
1950 mathematical and statistical
1970 methods.

SYSTEM APPROACH 1950 Understanding the organization

CONTIGENCY APPROACH
as a system that transform
inputs into output while in
constant interaction with its‘
environment
1960 Applying management
principle and processes as
By: Priyanka Singh dictated by the unique
characteristics of each situation
 The Classical THEORY OF MANAGEMENT

CONTRIBUTOR PIONEERING
Robert Owen(1771-1858) He is called as the father of ‗Modern Personnel Management‘. He
advocated the necessity of concern for the welfare of workers.
•
Charles Babbage(1792-1871) As an inventor and a management scientist, he built the practical
mechanical calculator, which is considered to be the basis of the
modern computer.

Andrew Ure and Charles They emphasizes the necessity of management education, which
Duplin(1778-1857) further paved the way to professionalize management functions.

James Watt Jr. & Mathew Both of them were the sons of a distinguished inventor of steam
Boulton (1796-1848) engine. They were managing solo Engineering Foundary in Britain
& developed a no. of management techniques.

Henry Robinson Towne(1844- He emphasized the significance of skills in running a business.

1924)
By: Priyanka Singh
 Scientific Management Theory
 Frederick W. Taylor : Scientific Management: emphasized the scientific
study of work methods to improve the productivity of individual workers
( time & motion Study)
 Frank and Lillian Gilbreth : work Study
Principles to increase efficiency:
1. Science, not a thumb rule :Study the way the job is performed now &
determine new ways to do it.
• Gather detailed, time and motion information.
• Try different methods to see which is best.
2. Codify the new method into rules.
• Teach to all workers.
3. Select workers whose skills match the rules set in Step 2.
4. Co-operation , Not Individualism
5. Harmony , not Discord: Establish a fair level of performance and pay
for higher performance.
• Workers should benefit from higher output.

By: Priyanka Singh

 Principles of Scientific
Management
1. Science, Not thumb Rule ( Scientific Task setting)
2. Scientifically select, train, and develop each worker rather
3. Cooperation not individualism .
4. Equal Division of responsibility .
5. Mental Revolution :( All efforts to increase profit , Sprit of
mutual Trust , Scientific Task setting
6. Harmony , Not Discarded
7. Maximum Output :
Management- Max Output – Higher Profit
Worker - Max Output – Higher Wages

By: Priyanka Singh

 Techniques of Scientific Management

1. Scientific Task Setting: ( a fair day working)

2. Work Study;( Implies an organized , objective & systematic
assessment of work
( Method Study, Motion Study , Time Study . Fatigue Study )
3. Separation of planning and doing
4.Standadization for mass production
5. Selection and training ( Taylor advocated Scientific methods
for it)
6.Differential piece rate Plan ( higher wages to an higher
efficient worker )

By: Priyanka Singh

Administrative Management Theory

• Administrative Management
– The study of how to create
an organizational structure
that leads to high
efficiency and
effectiveness.

By: Priyanka Singh

Administrative Management Weber’s
Theory Principles of
Bureaucracy
Max Weber ( 1864-1920) German sociologist
He has given the bureaucratic model. He developed the principles of
bureaucracy as a formal system of organization and administration designed to
ensure efficiency and effectiveness. Impersonally managed organization work
better.

By: Priyanka Singh

 Principles of Bureaucracy
1. Proper Maintenance of records
2. Proper recruitment and Selection
3. Proper division of work and labours
4. Clearly define authority an responsibility
5. Impersonal attitude in organization
6. Clearly defined hierarch in organization
7. Merit based promotions
8. Clearly defined Norms and Standing operating
procedures.

By: Priyanka Singh

 Features of bureaucratic theory

1) Job specialization: - Jobs are divided into simple, routine and

fixed category based on competence and functional
specialization.

2) Authority hierarchy: - Officers are organized in a n hierarchy

in which higher officer controls lower position holders i.e.
superior controls subordinates and their performance of
subordinates and lower staff could be controlled.

3) Formal selection: - All organizational members are to be

selected on the basis of technical qualifications and
competence demonstrated by training, education or formal
examination. By: Priyanka Singh
4) Formal rules and regulations: - To ensure uniformity and to
regulate actions of employees, managers must depend heavily
upon formal organizational rules and regulations. Thus, rules
of law lead to impersonality in interpersonal relations.

5) Impersonality: - Rules and controls are applied uniformly,

avoiding involvement with personalities and preferences of
employees. Nepotism and favoritism are not preferred.

6) Career orientation: - Career building opportunity is offered

highly. Life long employment and adequate protection of
individuals against arbitrary dismissal is guaranteed. Here
managers are professional officials rather than owners units
they manage. They work for a fixed salaries and pursue their
career within the organization.
By: Priyanka Singh
 Rules, SOPs and Norms
• Rules – formal written instructions that specify actions
to be taken under different circumstances to achieve
specific goals

• Standard Operating Procedures (SOPs) – specific

sets of written instructions about how to perform a
certain aspect of a task

• Norms – unwritten, informal codes of conduct that

prescribe how people should act in particular situations

By: Priyanka Singh

BUREAUCRATIC MANAGEMENT
ADVANTAGES DISADVANTAGES

No confliction among job duties Ignore human sentiments

Promotion is based on experience and hamper human creativity & innovation

merits

Employees are bound to follow rules written rule deny the space for open
communication.

management process becomes easy Organization was as a closed system no

interaction with environment

Division of labour helps workers in Ignore the role of informal organization.

becoming experts.

By: Priyanka Singh

 Henry Fayol and 14 Principle
of Management
1. Initiative ( I ) 8. Unity of command (U)
2. Division of work ( D)
9. Scalar chain (S)
3. Equity (E)
10. Subordination of
4. Centralization (C)
individual interest to the
5. Order ( O)
general interest (S)
6. Discipline (D)
11. Remuneration (R)
7. Esprit de corps (E) ( Unity
and team work) 12. Unity of direction (U )
13. Stability and tenure (S)
14. Authority ( A)
By: Priyanka Singh
1) Division of work: - This principle implies on dividing the total task into compact
jobs and thus allocating them to different individuals which promotes specialization
and efficiency in both technical and managerial level. It helps to acquire speed and
accuracy in performance.
2) Authority and responsibility: - Authority means to give order and power to exert
obedience whereas responsibility means obligations to perform work in the manner
directed and desired. Authority and responsibility are co existed and leads to
responsive behavior and efficiency.
3) Discipline :- Discipline implies obedience, respect and establishment and
regulations which are essential for smooth running of all organizations for good
supervision and built in system of reward an punishment
4) Unity of command: - Subordinates should receive orders from single superior at a
time and all subordinates should be accountable to that superior. More superior
leads to confusion, delay and so on.
5) Unity of direction: - One plan must be formulated for a group of activity and all
the related activities should be put under one group show that efforts of managers
of a single group can be directed towards achievement of common goal.
6) eSpirit de corps : - This term comprises of two principles namely union is strength
and team spirit is most essential. There should be cooperation and team work
among members of the organization. The managers should always make effort to
ensure harmony among the subordinates.
7) Equity: - Subordinates should be treated with justice, equity and kindness so that
there can not be nepotism and favoritism while selection of workers, treating the
workers which helps to promote friendly environment between superior between
superior and subordinates.
By: Priyanka Singh
8) Centralization: - It implies concentration of authority at the top level. No
hard fast rules can be laid down regarding the extension of authority to be
retained at the top level. Centralization and decentralization should be
proportionately decided.
9) Scalar chain: - It refers to chain of superior ranging from top to low ranks in a
management. It determines the clear line of authority from top to bottom
linking managers at all levels. All communication should flow the established
chain of command.
10) Order: - It refers to arrangement of resources in the organization. It implies
right place for everything. It stresses upon proper utilization of physical,
natural, capital and organizational resources.
11) Stability of tenure: - It takes time to learn and get a job therefore a
reasonable time should be provided to all employees for securing better
results and guarantee of service. Stability of employees promotes team work,
loyalty to the organization
12) Initiative: - It means eagerness to initiate action in work related matters
without being asked to do so .it is a powerful motivator of human behavior and
is a source of strength for the organization.
13) Remuneration of personnel:- The remuneration payable to employees
should be fair and reasonable .management must ensure a fair reward for the
work and decide the equitable method of calculating wages
14) Superiority of organizational interest: - Personal interest must be discarded
and general interest must be maintained. Organization is bigger than an
individual .therefore the interest By:
ofPriyanka
the Singh
organization must prevail upon the
interest of an individual.
 Human Relations Approach : The
Hawthorne Studies
• Human Relation Theory : focus on increasing organizational
productivity by increasing employee moral. Conducted by
Elton Mayo Hawthorne Works of the Western Electric Company from
1924-1932.
• Demonstrated the importance of understanding how the feelings,
thoughts, and behavior of work-group members and managers affect
performance

Human Relations Implications

– Hawthorne effect — workers’ attitudes toward their managers
affect the level of workers’ performance

By: Priyanka Singh

 HAWTHRONE EXPERIMENTS
• About Western Electric Company Engaged in manufacturing
equipment for the telephone industry. High standards, concern
for welfare of employees regarding wages and hours. No
worker strike in over 20 years. High employee morale. The
Essence of Human Relation are Organizational situation &
Social process.
• Finally the term was coined in 1955 by Elton Mayo,
Whitehead & Roethlisberger. Research began with a study
conducted by Hawthorne at Western Electric Company.
Conducted Research in Four Phases: - Illumination Experiments
- Relay Assembly Test Room Experiments - Mass Interviewing
Experiments - Bank Wiring Observation Room Experiments

By: Priyanka Singh

The Hawthorne Studies : Experiments
1. Illumination Studies ( 1924-1927) Measured Light Intensity
Vs worker Output
Purpose of this experiment was to asses the effect of illumination on employee
output. Two groups were selected and one group was placed with constant
light intensity and in one group light intensity was varied periodically
Result : productivity was increase in both group and varied light intensity has
very minor effect and social factor were high lighted.
2. Relay Assembly Test Room (1927-28)
The study was conducted with a group of 6 women ( 5 assembler, 1 layout
operator and 1 observer) and observer explained incremental changes &
recorded result on Manipulation of factors of production to measure effect on
output
Factors are :- 1) Pay & Incentives 2) Length of work day & work Week 3)
Use of rest period 4) Company Sponsored meal 5) management Visit
By: Priyanka Singh
Result : Productivity Increase, absenteeism decreased, employee moral increased
3. Mass Interviewing Experiment(1928-1930) :
20,000 interviews conducted during 1928-30. direct question were asked
about worker about their working conditions and situation of the worker
Result : It was observed that workers more focused about Status of worker
in company, work allocated to them , social rewards importance of social
behavior and group was highlighted.
4. Bank wiring observation room experiment (1931-32) :
In this 14 worker were put for close observation & pay of every member
was based on the group performance as a whole. Group was strictly
supervised.
Result :- it was found group has developed its own norms and purposely
under perform due to social pressure and informal relationship, personal
adjustment & supervision were highlighted.

By: Priyanka Singh

 5. Personal Counseling Programs (1956) :
• “study may be regarded as culmination of the researches efforts to bring the
idea of interpersonal relationship between the worker and the boss‖
• Objectives:
• 1. Non authoritative interview to know problems of worker and to know
their attitude towards their work and supervisor.
• 2. To improve the methods of communication in company to avoid conflict
between social organization and managerial organization.

Result :- It lead to improvement as:

• 1. Personal adjustment 2. Supervisor –employee relationship

3. Employee management relationship

By: Priyanka Singh

The Hawthorne Studies : Implications
FINDING/ IMPLICATION/ Hawthrone Effect CRITICISM

An organization is psycho –social system Productivity Ignored

Human factor is important in organizational system Missing Link Between

Humanization and Productivity
Behavior of employee is dominated by his informal Incomplete Package
groups
Workers are not merely rational economic being Lack of scientific validity
motivated by money but also social –psychological being
and respond to total work situation.
Importance of Role of Leadership / Supervision, Limited application
communication & group Dynamics

Social and psychological factor exercise greater influence

the physical conditions on employee behaviors
informal group have their own normsBy:and beliefs that
Priyanka Singh
drive employee attitudes and behavior.
 Behavioral Management /
Behavioral Management : It implies scientific vision to human
relation theory
– The study of how managers should personally behave to motivate
employees and encourage them to perform at high levels and be
committed to the achievement of organizational goals.

– Contributors:
– 1. Abraham Maslow‘s 1943 :
– 2. Douglas Mc Gregory : Theory of X & Y

By: Priyanka Singh

MASLOW’S HIERARCHY OF NEEDS

By: Priyanka Singh

 MASLOW’S HIERARCHY OF NEEDS

Self-
Achievement Actuali- Challenging job
zation
Needs

Status Esteem Needs Job title

Friendship Belongingness Needs Friends in Work

Group

Stability Security Needs Pension Plan

Sustenance Physiological Needs Base Salary

By: Priyanka Singh
• Physiological needs- These are the basic needs of an individual
which includes food, clothing, shelter, air, water, etc. These needs
relate to the survival and maintenance of human life.
• Safety needs- These needs are also important for human beings.
Everybody wants job security, protection against danger, safety of
property, etc.
• Social needs- These needs emerge from society. Man is a social
animal. These needs become important. For example- love,
affection, belongingness, friendship, conversation, etc.
• Esteem needs- These needs relate to desire for self-respect,
recognition and respect from others.
• Self-actualization needs- These are the needs of the highest order
and these needs are found in those person whose previous four
needs are satisfied. This will include need for social service, meditation.
By: Priyanka Singh
 Theory X and Theory Y
It is given by Douglas McGregor. He proposed the two different sets of
assumptions about workers.
In his book ― the Human side of enterprise‖states that people can be
managed in two ways
.
Theory X Theory Y
Employee is lazy Employee is not lazy
Managers must Must create work
closely supervise setting to build
initiative
Create strict rules
& defined rewards Provide authority to
By: Priyanka Singh
workers
Management Science
Theory
 Management Science Theory
• Contemporary approach to management that focuses on the use of
rigorous quantitative techniques to help managers make maximum use
of organizational resources to produce goods and services.
– Quantitative management — utilizes linear and nonlinear
programming, modeling, simulation, queuing theory and chaos
theory.
– Operations management —techniques used to analyze any aspect
of the organization‘s production system.
– Total Quality Management (TQM) —focuses on analyzing input,
conversion, and output activities to increase product quality.
– Management Information Systems (MIS) — provides information
vital for effective decision making.

By: Priyanka Singh

Organization Environment
Theory
 The Systems Theory
• Views the organization as a system of interrelated parts that
function in a holistic way to achieve a common purpose.
regards the organization as a system of interrelated parts
By adopting this perspective you can look at your
organization in two ways
1. A collection of subsystems—parts making up the whole
system
2. A part of the larger environment

By: Priyanka Singh

Feedback
By: Priyanka Singh
Systems Approaches/ Types View
– Open System : A system that interacts continuously with its
environment, & will be informed about changes with in its surrounding
and position relative to these change
– Closed System : an organization that interacts little with its external
environment & receives little feedback from environment
– Subsystem : any system that is a part of a large one unit ( strategic
business units)
– Entropy : is the tendency of system to detoriate or break down over
time
– Synergy : the performance gains that result from the combined actions
of individuals and departments

By: Priyanka Singh

 The Contingency Approach
– The Contingency View emphasizes that a manager’s approach should vary
according to—that is, be contingent on—the individual and the
environmental situation
– Also sometimes called the situational approach.
– There is no one universally applicable set of management principles (rules)
by which to manage organizations.
– Organizations are individually different, face different situations
(contingency variables), and require different ways of managing

By: Priyanka Singh

 The Contingency Approach

Systems Viewpoint Contingency

How the parts fits Viewpoint
together
•Individual Managers’ use
•Group of other view
Traditional points to solve
•Organization
viewpoint problems
•environment
What managers
do •External
Behavioral Viewpoint •Plan environment
How managers influence •Organize •Technology
others •Lead
•Interpersonal Roles • Control •Individuals
•Informational Roles
•Decisional Roles

By: Priyanka Singh

Levels of Management

By: Priyanka Singh

 Top level management
It includes board of directors, chief executive or general managers ,
senior strategist, decision making, directors . Corporate level goals,
missions and objectives are determined. The major functions of this
level are:-
A. To formulate and determine the objectives and define the goals
of the business
B. To establish policies and prepare plans to attain the goals
C. To set up an organizational structure to conduct the operations as
per the plans
D. To provide the overall direction in the organization
E. To assemble the resources necessary for the attainment of the
policy and execution of the plan.
F. To control effectively the business operations
G. To judge and evaluate the results

By: Priyanka Singh

 Middle level Management
It includes departmental managers, divisional heads and section
officers. It acts as a bridge between top level management and
lower level management. the major functions of this level are:-
A. To implement the task set up by top management
B. To implement the policies framed by the top management
C. To run the organizations effectively and efficiently
D. To cooperate for the smooth functioning of the organizations
E. To coordinate between different departments
F. To recruit , select and train the employees for the better
functioning of the departments
G. To issue the instructions to the lower level management
H. To motivate the workers and staffs for higher productivity and to
reward them.
I. To lead the departments and build up an organizational spirit
J. To report and make suitable recommendations to the top level
management for the betterBy:execution
Priyanka Singh
of the plans and policies
 Lower level Management
It includes supervisors, foremen and workers. it is also known as supervisory level of
management in which the supervisors or foreman like sales officers , account
officers etc take responsibilities of the implementation and control of the
operational plans developed by the middle level managers. The function of this
level are: -
A. To issue the orders and instruction to the workers to supervise and control the
performance
B. To plan the activities of the sections.
C. To direct and guide the workers about the work procedures
D. To provide job training to the workers
E. To arrange the necessary tools, equipment , materials fro the workers and look
after their proper maintenance
F. To solve the problem of workers
G. To develop sense of cooperation and high group spirit among the workers
H. To advise the middle level about the work environment
I. To inform the unsolved problemsBy:ofPriyanka
the Singh
workers to the middle level
management
By: Priyanka Singh
 Technical Skill Conceptual
Human Skill
Skill
• Proficiency • Interpersonal • Intelligence
• Expertise understanding • Decision
• Qualifications • Knowledge of Making Power
human • Strategic roles
Behavior • Analytical Skill

• Leadership
role
• Motivational
role

By: Priyanka Singh

 Role of a Manager-
Mintzberg's Managerial Roles

By: Priyanka Singh

 Qualities of Good Manager

• Vision & foresighted • Self confidence

• Educated • Personal Attributes

• Trained • Human Relation Attitude

• Leadership • Trustworthy

• Personality • Honesty

• Maturity • Ability to do & get wok done

By: Priyanka Singh

MANAGEMENT FUNCTION

By: Priyanka Singh

 MANAGEMENT FUNCTIONS OR THE
PROCESS OF MANAGEMENT

•Planning, Organizing, Leading & Controlling (Newman & Summer)

•Planning, Organizing, Commanding, Coordinating and Controlling (Henri

Fayol)

•‗POSDCORB‘: Planning, Organizing, Staffing, Directing, Coordinating,

Reporting & Budgeting (Luther Gulick)

•Decision Making, Organizing, Staffing, Planning, Controlling,

Communicating & Directing (Warren Haynes & Joseph Massie)

•Planning, Organizing, staffing, directing & Controlling (Koontz O‘Donnell)

By: Priyanka Singh
PLANNING ORGANIZING STAFFING DIRECTING CONTROLLING

1. Establishing 1. Determination of 1. Manpower planning 1. Supervisin 1. Determination of

objectives objectives and to determine the g the standard
identification of quality and quantity subordinate performance
2. Formulating activities of employees s 2. Measurement of
rules and necessary to required for the jobs 2. Communic actual
regulations achieve the to b done ating the performance
objectives 2. Recruitment for information 3. Compares the
3. Developing 2. Delegation of attracting qualified 3. Providing actual
programs authority and persons effective performance
relationship 3. Selection of best leadership with the standard
4. Scheduling among candidate 4. Motivating 4. Analyzes
5. Budgeting individuals. 4. Placement of the right employees deviation
3. Coordination of man for the right job 5. Take corrective
activities and 5. Training and actions if
assignment of development to necessary.
duties. increase new skills,
4. Division of knowledge and
activities into competency to do job
different units or 6. Motivation of
departments employees
7. Evaluation
performance of
employees
8. Employees welfare
By: Priyanka Singh
PLANNING

By: Priyanka Singh

PLANNING

By: Priyanka Singh

 MEANING OF PLANNING
Planning is deciding in advance what to do, how to do it,
when to do it and who to do it. It involves anticipating the
future and consciously , Choosing the future course of action.

“Planning is deciding the best alternative among others to

perform different managerial operations in order to achieve
the predetermine goals”- Fayol

Planning
Present Position By: Priyanka Singh
Future Position
 what

Who where

Planning is
considered

Why when

How
By: Priyanka Singh
 Objectives of Planning

• Provides directions
• Reduces the risks of uncertainty
• Reduces overlapping and wasteful activities
• Promotes innovative ideas:
• Facilities decision making
• Attainment of goal
• Focused efforts.
• Helps in controlling
By: Priyanka Singh
 Feature of Planning

• Planning is goal-oriented
• Planning is a primary function
• Planning is all-pervasive
• Planning is a continuous process
• Planning is forward-looking/ Futuristic function
• Planning involves choice
• Planning is directed toward efficiency
• Involves in decision Making

By: Priyanka Singh

 IMPORTANCE 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 & leads to economical operation
• Establish Standards of controlling
• Reduces overlapping & wasteful activities

By: Priyanka Singh

 LIMITATION OF PLANNING

• Lack of accurate information

• Time and cost
• Resistance to change
• Lack of ability to plans
• False sense of security
• Environmental constraints
• Curbs the initiatives of Manager
• Coordination with managerial function

By: Priyanka Singh

 Barrier to Planning
INDIVIDUAL ORGANIZATIONAL

1. Unwilling to set goal • Environmental factor

2. Unwilling to give up alternative • Constrain on Resource

goals • Lack of Information

3. Fear of failure • Group Dynamics : Member may

4. Lack of Knowledge not accept higher risk project as

not good for them
5. Lack of Confidence
6. Unwilling to accept change

By: Priyanka Singh

 • Scientific Selection of goal through cost Benefit
analysis
Over Coming Barriers
• Applying mathematical models
• Well developed management information system
• Well constructed communication system and fore
HELP casting techniques
PLANNER
• Set rational & realistic goals

• Explain the reason for change,& related benefits

• Comparison of Existing to future benefits
HELP • Adopt Participative Style of Management for
MEMBER decision making
TO
ACCEPT
CHANGE By: Priyanka Singh
 PROCESS OF PLANNING
Step 1- Need for Planning
Step 2- Identification of goals
Step 3- Analysis of Present situation
step 4- Identify barriers to planning
Step 5- Development of planning premises
Step 6- Development of alternative course of action
Step 7- Evalution of different course of action
Step 8- Selection of course of action
Step 9- Feedback
By: Priyanka Singh
 Feature of Good Plan
Integration

Market Research

Economic & Financial Constrains

Coordination

Consistent

Flexible

Acceptable

participative
By: Priyanka Singh
Types of Planning

By: Priyanka Singh

 Types of Organizational plans
SINGLE USE PLAN STANDARD PLANS
1. Projects 1. Objectives/goals
2. Budgets 2. Strategies & tactics
3. Schedule 3. Rules & Methods
4. Standards 4. Procedures
5. Programmes 5. Policies

By: Priyanka Singh

 Corporate Planning
• Corporate planning is creating a strategy for meeting business
goals and improving your business. A corporate plan is a
roadmap that lays out your business’s plan of action.

Corporate Planning -Objectives

•Financial objectives
•Customer objectives
•Internal objectives
•Learning and growth objectives
By: Priyanka Singh
 Steps

1. A total system of planning (SWOT)

2. Determination of the objectives for the company as
– A whole & department

3. Formulation of strategies for the attainment

4. Conversion of strategies into tactical plans (or operational
plans
5. Implementation of tactical plans and a review of the
progress

By: Priyanka Singh

Elements tend to be in a corporate plan

• Vision statement:

• Mission statement:

• Resources and scope:

• Objectives:.( SMART Goals)- Specific, Measurerable,

Attainable , Realistic and time bound goals

• Strategies:

By: Priyanka Singh

Management by Objectives
MBO

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 Management by objectives (MBO)
• Management by objectives (MBO) is a strategic
management model that aims to improve the performance of an
organization by clearly defining objectives that are agreed to by
both management and employees.
• According to the theory, having a say in goal setting and action
plans encourages participation and commitment among
employees, as well as aligning objectives across the organization.

• Management by objectives (MBO), also known as management by

results (MBR), was first popularized by Peter Drucker in his 1954
book The Practice of Management.

By: Priyanka Singh

 Objective
• process of defining specific objectives within an organization
that management can convey to organisation members, then
deciding how to achieve each objective in sequence.

• This process allows managers to take work that needs to be done

one step at a time to allow for a calm, yet productive work
environment.

• This process also helps organization members to see their

accomplishments as they achieve each objective, which reinforces a
positive work environment and a sense of achievement.

• An important part of MBO is the measurement and comparison of

an employee's actual performance with the standards set.

By: Priyanka Singh

By: Priyanka Singh
Decision Making

By: Priyanka Singh

 Decision-Making

• Decision-making is regarded as the cognitive

process resulting in the selection of a belief or a
course of action among several alternative
possibilities. Every decision-making process
produces a final choice, which may or may not
prompt action.
• Further, decision making process can be regarded
as check and balance system that keeps the
organisation growing both in vertical and linear
directions.

By: Priyanka Singh

 Types of Decisions
.
• Programmed and non-programmed decisions
• Routine and strategic decisions
• Tactical (Policy) and operational decisions
• Organizational and personal decisions
• Individual and group decisions

By: Priyanka Singh

 Programmed and non-programmed
decisions:
• Programmed decisions are concerned with the problems of
repetitive nature or routine type matters. A standard
procedure is followed for tackling such problems. These
decisions are taken generally by lower level managers.
Decisions of this type may pertain to e.g. purchase of raw
material, granting leave to an employee and supply of goods
and implements to the employees, etc.

• Non-programmed decisions relate to difficult situations for

which there is no easy solution.

By: Priyanka Singh

 Routine and Strategic decisions

• Routine decisions are related to the general functioning of the

organisation. They do not require much evaluation and
analysis and can be taken quickly. Ample powers are
delegated to lower ranks to take these decisions within the
broad policy structure of the organization.

• Strategic decisions are important which affect objectives,

organizational goals and other important policy matters.
These decisions usually involve huge investments or funds.
These are non-repetitive in nature and are taken after careful
analysis and evaluation of many alternatives. These decisions
are taken at the higher level of management.
By: Priyanka Singh
 Tactical (Policy) and operational
decisions
• Decisions pertaining to various policy matters of the
organisation are policy decisions. These are taken by the
top management and have long term impact on the
functioning of the concern. For example, decisions
regarding location of plant, volume of production and
channels of distribution (Tactical) policies, etc. are policy
decisions.

• Operating decisions relate to day-to-day functioning or

operations of business. Middle and lower level managers
take these decisions On the other hand if bonus is to be
given to the employees, calculation of bonus in respect of
each employee is an operating decision.

By: Priyanka Singh

Organisational and personal decisions

• When an individual takes decision as an executive in the

official capacity, it is known as organizational decision.

• If decision is taken by the executive in the personal capacity

(thereby affecting his personal life), it is known as personal
decision.

• Sometimes these decisions may affect functioning of the

organization also. For example, if an executive leaves the
organization, it may affect the organization. The authority
of taking organizational decisions may be delegated,
whereas personal decisions cannot be delegated.

By: Priyanka Singh

 Individual and Group decisions

• When the decision is taken by a single individual, it is known

as individual decision. Usually routine type decisions are taken
by individuals within the broad policy framework of the
organization.

• Group decisions are taken by group of individuals constituted

in the form of a standing committee. Generally very important
and pertinent matters for the organization are referred to this
committee.

By: Priyanka Singh

 Steps in Decision Making
Problem Identification Design Phase
- -
Problem Detection Formulation of Assumption
Problem Statement Formulation Search for Alternatives
Problem Classification and Data
Collection

Evaluation Phase
Implementation Phase
-
-
Selection of Alternatives against
Final Selection of Course of Action
Criteria and Contracts
and Implementation and Review
Selection of Best Alternative

By: Priyanka Singh

 Techniques for Effective Decision
Making

• Brainstorming: • Decision tree:

• Nominal group technique: • Cost-benefit analysis:

• Multi-voting: • SWOT Analysis:

• Delphi method: • Decision matrix:

• Pareto analysis:

By: Priyanka Singh

 Techniques for Effective Decision Making
1. Brainstorming: It is a combination of group problem-solving and discussions. It
works on the belief that the more the number of ideas, greater the possibility of
arriving at a solution to the problem that is acceptable to all.
2. Nominal group technique: In a nominal group technique, the team divides itself
into smaller groups and generates ideas.

3. Multi-voting: It starts with a round of voting where an individual casts his vote for
the shortlisted options. Each individual can cast one vote at a time. The options
with the maximum number of votes are carried to the next round. This process is
repeated until a clear winning option is obtained.

4. Delphi method: In this method of decision-making, the facilitator allows team

members to individually brainstorm and submit their ideas “anonymously”.
Other team members do not know the owner of the ideas. The facilitator then
collects all the inputs and circulates them among others for modifying or
improving them. This process continues until a final decision is made.

5. Pareto analysis: This is a technique used when a large number of decisions need
to be made. This helps in prioritizing which ones should be made first by
determining which decisions will have theSingh
By: Priyanka greatest overall impact.
6. Decision tree: This is a graph or model that involves contemplating each
option and the outcomes of each. Statistical analysis is also conducted with
this technique.

7. Cost-benefit analysis: This technique is used when weighing the financial

ramifications of each possible alternative as a way to come to a final decision
that makes the most sense from an economic perspective.

8. Conjoint analysis: This is a method used by business leaders to determine

consumer preferences when making decisions.

9. SWOT Analysis: SWOT stands for strengths, weaknesses, opportunities and

threats, which is exactly what this planning tool assesses.

10. Decision matrix: A decision matrix is used to evaluate all the options of a
decision. When using the matrix, create a table with all of the options in the
first column and all of the factors that affect the decision in the first row.
Users then score each option and weigh which factors are of more
importance. A final score is then tallied to reveal which option is the best.

By: Priyanka Singh

By: Priyanka Singh