EKLAVYA ACADEMY

COMMERCE & MANAGEMENT

BUSINESS MANAGEMEN

By,
Mrs. Abhilasha.N
Mcom, MPhil, NET-JRF,SET, (Ph.D. in commerce),
Contact No: 9620925899
 MEANING OF PLANNING
Planning and plan, there is a little difference between them, planning is an activity or a
process while plan is a commitment to a particular course of action believed necessary to
achieve specific results. Plan are prepared through planning process.

Planning as a process involves the determination of future course of action, that is why
an action, what action, how to take action and when to take action. It is a futuristic.

Some of the important features are:

• Plans done by top management
• Deciding in advance about future
• It’s a continuous process
• Futuristic based

EKLAVYA- 9620925899
PLANNING PROCESS

➢ Establishing objectives

➢ Planning premises (Assumption)

➢ Identifying alternative course of actions
➢ Evaluating of alternatives
➢ Selecting the best possible alternatives
➢ Implementation of plan
➢ Follow of plan

EKLAVYA- 9620925899
SIX P’S OF PLANNING

➢ Purpose

➢ Plan
➢ Policies
➢ Promise
➢ Priorities
➢ Philosophy

EKLAVYA- 9620925899
 TYPES OF PLANNING
➢ ON THE BASIS OF COVERAGE OF ACTIVITIES –
1) Corporate Planning-planning at the top level also known as corporate level which cover
the entire organizational activities. Long term objectives it is also used as synonymous to
long term planning or strategic planning. It is integrative (holistic approach)
2) Functional planning- It is segmental and is undertaken for each major function of
organizations.

➢ ON THE BASIS OF DIRECTION OF ACTIONS –

1)Strategic Planning- It sets long term direction of organizations in which it wants to
proceed is external to the environment, time period 3-5 years and formulated at the top level
of management.
2)Operational planning- It is also known as Tactical Planning or Short Term Planning
usually covers 1 year. It basically includes day to day operations. It focus on the internal
organizations and formulated at middle and lower level of management.
EKLAVYA- 9620925899
➢ ON THE BASIS OF TIME PERIOD
1) Long Term Planning- It is of strategic nature and involves more than 1 year period extending
to 20 years, more common is 3-5 years. It is external to the environment also known as strategic
planning.
2) Short term planning- It is also known as operational or tactical planning usually covers 1 year.
➢ ON THE BASIS OF APPROACH ADOPTED –
1) Proactive Planning- In this, organizations do not wait for environment to change but take
actions in advance of environmental change.
2)Reactive planning – In this organizations responses come after the environmental changes have
taken place.
➢ ON THE BASIS OF DEGREE OF FORMALIZATIONS
1) Formal planning- It is the form of well structural process involving different steps. Large
organizations undertake planning in formal way. Monitor external environment on continuous
basis. The planning process that is adopted is rational, systematic, well documented & regular.
2) Informal planning- It is taken by smaller organizations based on memory, intuitions, gut
feelings. • Plan- It is a commitment of resources to a particular course of action believed
necessary to achieve specific results.
EKLAVYA- 9620925899
 TYPES OF PLAN
STANDING PLAN/LONG TERM/STRATEGIC SINGLE USE/SHORT TERM/OPERATIONAL
“It provide guidelines for further course of “This plan are relevant for a specified time and
action and are used over a longer period of after the lapse of that time these plansare
time” formulated again for the next period”
Mission/purpose Rules
Objectives Programmes
Strategies Projects
Policies Budgets
Procedures Quota
Target
Hierarchy of plans:
Mission --- objectives --- strategies --- policies – procedure and rules --- programme and
project ---- budget --- quota and target

Major plan – Projects and budget Minor plan -- quotes and target
EKLAVYA- 9620925899
• Policy – The term policy is derived from the Greek word Pliteia meaning citizen and
Latin word Politis meaning polished that is to say clear. A policy is the statement or
general understanding which provides guidance in decision making to members of an
organization in respect to any course of action
• Procedures- a procedures prescribes the chronological sequence in which an activity
should be performed to achieve the objective of the activity.
• Methods- it is defined as a prescribed manner for performing a given task with adequate
consideration to the objective, facilities available, and total expenditures of time, money
and effort.
• Rules- It is prescribed guide for conduct or action. Rules are plan as they are a course of
action which is chosen from among the alternatives. A rules provides definite action tobe
taken or not taken with respect to a situation.
• Project- It is a single use plan which can be thought of in terms of planned actions
integrated into a unity and designed to bring about a stated objectives. It is a scheme for
investing resources which can be analyzed and appraisal reasonably and independently.
EKLAVYA- 9620925899
• Philosophy – It consists of an integrated set of assumptions & beliefs about the way
things are, the purpose of the activities and the way these should be.
• Vision- It is the mental perception of the kind of environment a person desires to create
within a broad time horizon and the underlying conditions for the actualization of the
perception. It represents the imagination of future events and prepares the organization for
the same.
• Target: A target is the desired level of performance for a specific performance indicator.
Performance indicators and targets are mechanisms to operationalise objectives.
• Quota: A quota is the limited number or quantity of something which is officially allowed.
• Objectives- It is used to specify the end results which an organization wants to achieve.
Objectives are expressed in quantitative and absolute terms.
• Budget- A budget is a kind of single use plan of expected results expressed in numerical
terms. These results are expected to be achieved within specified time period which is
generally 1 year. The term budget has been derived from the French word bougette denoting
a leather pouch in which funds are appropriate for meeting anticipated expenses
EKLAVYA- 9620925899
 ORGANISING

Organizing involves analyzing of activities to be performed for achieving organizational

objectives, grouping these activities into various divisions, departments and sections so
that these can be assigned to various individuals & delegating them appropriate authority
so that they are able to carry on their work effectively.

Organizing includes following elements departmentation, linking departments, defining

authority & responsibility, prescribing authority relationships.

Organization structure establishes relationship between people and work within which
managerial and operating tasks are performed to achieve organizational objectives.

EKLAVYA- 9620925899
 STEPS IN ORGANISING

➢ Identifying the activities

➢ Grouping the activities
➢ Assignment of activities
➢ Delegation of authority
➢ Establishment of relationship

EKLAVYA- 9620925899
 SPAN OF MANAGEMENT
It means number of subordinates which should be put under one superior or it refers to
the number of subordinates who can be managed effectively by a superior. It is also
known as Span Of Control And Span Of Supervision. Number of subordinates
reporting to a superior is fixed.
Factors affecting span of management
1) Capacity of superiors
2) Capacity of subordinates
3) Nature of work
4) Degree of decentralization
5) Degree of planning
6) Communication techniques
7) Use of staff assistance
8) Supervision from others
ABHI TUTORIAL - 9620925899
 STAFFING

“Process of hiring eligible candidates in the organization for specific positions”

Process of staffing:
1. Manpower planning
2. Recruitment
3. Selection
4. Placement
5. Training
6. Development
7. Promotion
8. Training
9. Appraisal
10. Determination of renumeration
EKLAVYA- 9620925899
Manpower Planning: Manpower planning is the quantitative and qualitative measurement of the manpower
that is required in an organisation. It involves evaluation and creation of the manpower inventory and also to
develop the necessary talents among the employees that are selected for obtaining promotion.

Recruitment: Recruitment is the process of finding the potential employees of an organisation and persuading
them to apply for the available positions in the organisation. If the recruitment process is followed scientifically,
then it will result in better wages, high morale and higher productivity among the employees.

Selection: Selection is the process of shortlisting of potential candidates and eliminating the candidates that are
not suitable for the positions available in the organisation. The purpose of selection is to hire the right candidate
for the right position, which will lead to efficient running of operations for the organisation.

Placement: Placement refers to the process of introducing an employee to the job for which he was hired in the
organisation. The employee will be provided with a basic orientation about the company and its work areas.

Training: Training is the process of providing the newly recruited employees an idea about the type of work that
they are going to do and how to do that. This falls under the training department. Training is an essential part of
hiring as it helps keep the employees updated on the way of work in an organisation. Also due to advances in
technology, newer technologies will evolve, that makes it necessary for employees to be updated with the latest
development.
Development: Development refers to the opportunity of growth of the employees in the organisation.
The organisation must provide ample opportunities for the development of the employees, without
which the employees may become frustrated.

Promotion: Promotion is referred to as the process of giving the employees a raise in salary,
designation or both. The raise in designation is associated with a raise in wages or bonus or incentives.
There can be some instances where the change in designation does not result in increase in pay.

Transfer: Transfer is the process of shifting of an employee from one position to another in the
organisation without any monetary benefit, or any increase in the responsibilities. This function needs
to be evaluated from time to time.

Appraisal: Appraisal is the process of checking the progress of the work done by the subordinates. It
also studies human behavior and also the attitude and aptitude of the employee towards performing
the job.

Determination of Remuneration : The remuneration of an employee is very important for

sustenance. It is regarded as one of the difficult functions to perform as there exists no tools which can
accurately determine wages.
 DIRECTING

“Process in which the managers instruct, guide and oversee the performance of the
workers to achieve pre-determined goals.
It covers
a)Leadership Leadership is the ability of an individual or a group of individuals to
influence and guide followers or other members of an organization.

Motivation is the word derived from the word 'motive' which means needs,
b) Motivation
desires, wants or drives within the individuals. It is the process of
stimulating people to actions to accomplish the goals.

c) Communication a process by which information is exchanged between individuals

through a common system of symbols, signs, or behavior

EKLAVYA- 9620925899
 CONTROLLING

“Ensuring that activities in an organizations are performed as per the plans”

PROCESS OF CONTROLLING:
• Establishing of standards
• Measurement of performance
• Comparing actual performance with standards
• Analyzing the cause for deviations
• Taking corrective actions

EKLAVYA- 9620925899
 REPORTING

“Providing information to various levels of management”

BUDGETING
“Management makes estimation of revenue and expenses for future
goals of business”

EKLAVYA- 9620925899
EKLAVYA- 9620925899