Professional Documents
Culture Documents
"Successful Managers Deal With Foreseen Problems and Unsuccessful Managers Struggle With Unforeseen Problems" .Terry
"Successful Managers Deal With Foreseen Problems and Unsuccessful Managers Struggle With Unforeseen Problems" .Terry
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Principles of Management
Planning
Foundations of Planning
• Planning is one of the four functions of
management.
• Planning involves defining the organization’s
goals, establishing an overall strategy for
achieving these goals, and developing plans
for organizational work activities.
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Deciding in advance what to do, how to do it ,
when to do it and who has to do it.
A forecast for accomplishment.
Predetermined course of action.
To produce a scheme for future action and to
bring about specified results at a specified cost
in a specified period of time.
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Purposes of
Planning
Planning serves a number of
significant purposes.
1.Planning gives direction to managers and non-
managers of an organization.
2. Planning reduces uncertainty.
3. Planning minimizes waste and uncertainty.
4.Planning establishes goals or standards
used in controlling.
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Defined in to directions by management thinkers.
Based on futurity
As an intellectual function
Based on futurity:
“Planning is a trap laid down to capture the future” (Allen)
“Deciding in advance what is to be done in future” (Koontz)
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As an intelligence function:
“Planning is a thinking process, an organized
foresight, a vision based on fact and experience that
is required for intelligent action”( Alford & Beatty)
“Deciding in advance what to do, how to do it, when
to do it and who has to do it” ( Koontz & O’ Donnell)
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Planning Where we want
Where we are
to be
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Provides direction
Creates a unifying frame work
Leads to economical utilization of resources
Reduces the risks of uncertainty
Facilitates decision making
Encourages Innovation & Creativity
Improves morale
Facilitates control
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Characteristics of Planning
• Goal-oriented
• Looks ahead
• An intellectual process
• Involves choice & decision making
• Primary function of management
• Continuous Process
• Designed for efficiency
• Planning is pervasive
Advantages
• Facilitates management by objectives
• Minimizes uncertainties
• Provides competitive edge and improves effectiveness
• Encourages innovations / brain-storming
• Facilitates control and co-ordination
• Helps in achieving economies of scale / synergies
PLANNING
Controlling: No undesirable
Implementation comparing deviations
Planning of Plans plans with from plans
results
Undesirable
deviations
Corrective
action
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Long range Vs Short range
Strategic Vs Operational
Corporate Vs Functional
Proactive Vs Reactive
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Types of Plans
Plans can be described by their RANGE, TIME FRAME, SPECIFICITY, and FREQUENCY OF USE
Covers many years & Meaning Covers less than one year
affects many departments and is more specific &
of an organization detail
5 yrs or more Time Up to one year
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Strategic Plan Point of Operational Plan
distinction
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Corporate Plan:
A comprehensive plan that outlines the broad
objectives of a company as a whole and develops
plans to achieve those objectives
Holistic and Unified focus
Focus on organizational performance
Functional Plan:
Is unit planning and deals with different
departments in an isolated manner.
Focus on departmental performance
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Proactive Planning:
Managers challenge the future, anticipating
they arise
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Standing Plans Single Use plans
Developed for Developed to carry
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Purpose
or Mission
Objectives
Strategies
Procedures
Rules
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1. Socio-
economic
purpose Board of
directors
2. Mission
Choosing an Alternative
Setting objectives or Goals Selecting the course of action we will
Where we want to be and pursue
what we want to accomplish
and when
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Peter Drucker described M B O in 1954 in
his book, “The practice of management”
M B O aids in development of
personnel.
Time-consuming
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Decentralizatio
n
• Refers to the systematic effort to delegate to
the lowest levels all authority except that
which can only be exercised at central points.
• It proceeds at a different rate to different
levels and for different functions within the
same company.
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THANK YOU……
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