topic+3+ +management+functions+of+planning+and+organizing

7/31/2019 Topic+3+ +Management+Functions+of+Planning+and+Organizing

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PLANNING AND ORAGANISING


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Selecting missions and objectives as wellas the actions to them which requires

decision - making, that is, choosing acourse of action from among thealternatives.

PLANNING


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TYPES OF PLANS

The ends towards which activity is aimed.

The determination of the basic long-term objectives ofan enterprise and the adoption of the courses of actionand allocation of resources necessary to achievethese goals.

General statements or understandings thatguide or channel thinking in decision making

The basic purpose or function or tasks of an enterpriseor agency or any part of it.


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Plans that establish a required method of

handling future activities

Spell out specific required actions or non-action,allowing no discretion

A complex of goals, policies, procedures, rules, taskassignments, steps to be taken, resources to beemployed, and other elements necessary to carry outa given course of action

A statement of expected results expressed innumerical terms


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STEPS IN PLANNING


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An objective isverifiablewhen

at the end of the period one candetermine whether or not it has

been achieved.Clear and verifiable objectivesfacilitate measurement of the

surplus as well as the effectiveness


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Relationship of Objectives and the Organizational Hierarchy


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Different types ofObjectives

Quantitative objectives:-these are

objectives that can be measured.E.g.:-to achieve a return on investment of12 % at the end of the current fiscal year.

Qualitative objectives:-these areobjectives that are vague and cannot bemeasured.E.g.:-to make a reasonable profit.


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MANAGEMENT BY OBJECTIVES

(MBO)

A comprehensive managerial

system that integrates many key

managerial activities in asystematic manner and isconsciously directed toward the

effective and efficient achievement


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Benefits of management

by objectivesImprovement of managing through results-orientedplanningClarification of organizational roles and structures

as well as delegation of authority according to theresults expected of the people occupying the roles.

Encouragement of commitment to personal and

organizational goals

Development of effective controls that measuresresults and lead to corrective actions


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SYSTEM APPROACH TO MANAGEMENT BYOBJECTIVES


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Failures of management by

objectivesManagers fails to teach the philosophy of MBO tosubordinates

Failure to give guidelines to goal setters

Difficulty of setting goals by themselves

Not Emphasizing on short- term goals

Danger of inflexibility

Overuse of quantitative goals

Forgetting that managing involves more than goalsetting


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STRATEGIES,POLICIES,ANDPLANNING PREMISES


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STRATEGY

The determination of the mission or purpose andthe basic long-term objectives of anenterprise,followed by the adoption of courses ofaction and allocation of resources necessary to

achieve these aims.


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POLICIES General statements or understandings that guide

managers thinking in decision making.Theyensure that decisions fall within certainboundaries.


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THE STRATEGIC PLANNING

PROCESS Inputs to the organisation

Industry Analysis

Enterprise Profile

Orientation, Values, and Vision of Executives

Mission ,Major Objectives, and Strategic Intent

Present and Future External Enviornment Internal Enviornment

Development of Alternative Strategies

Evaluation and Choice of Strategies


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Consistency Testing and Contigency Planning Medium and Short Range Planning

,Implementation through Organising ,Staffing,Leading ,and Controlling


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Inputs to the organisation

It includes various organisational inputs ,includingthe goal inputs of the claimants.


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Industry Analysis

The focus should be on the kind of competitionwithin a industry , the possibility of new firmsentering the market , the availability of substituteproducts or services ,and the bargainingpositions of the suppliers as well as the buyers orcustomers.


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Enterprise Profile

It is the starting point for determining where the

company is and where it should go Top managers determine the enterprises missionand

clarify its geographic orientation ,such as whether itshould operate in selected regions ,throughout the

home country..


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Orientation , values and vision ofexecutives

Executives set the organisational climate, and they

determine the direction of the firm through theirvision that answers what do we want to become


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Mission ,major objectives , and

Strategic Intent

Missiona statement that answers the question what is our business ?

Major objectives end points toward which theactivities of the enterprise are directed.

Strategic Intentthe commitment to win in thecompetitive enviornment.


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Present and future externalenviornment

It is assessed in terms of threats andoppourtunities

The evaluation focuses on the competitivesituation as well as on the economic ,social,political ,legal , demographic and geographicfactors.


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Internal Enviornment

The firms internal enviornment should be audited

evaluated with respect to its resources and itsweaknesses and strengths in research and

development ,production ,operation ,procurement,marketing ,products and services


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Consistency testing and

contingency

During all phases of the strategic planning process,consistency testing is essential.

Since the future cannot be predicted with a highdegree of certainity, contingecy plan need to be

prepared


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Medium and shortrange

planning,Implementation throughorganising ,staffing ,leading and

controlling

Implementation of the strategy reqiures organising,staffing is filling and keeping filled the positions inthe organisation structure and providing leadership

through motivation and effective communication


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TOWS Matrix by Weihrich

TOWS Matrix has been introduced for analysing

the competitive situation of the company oreven of a nation that leads to the development

of 4 distinct sets of strategic alternatives


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Four alternative strategies

The strategies are based on the analysi

of external and internal enviornment - threats and oppourtunities

-weaknesses and strengths


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Blue ocean strategy

The blue ocean strategy focuses on theuncontested market by offering a product or

service that is unique in a market space wherethere is no competitor , thus making competitionirrelevant.

Rather than competing in an existing demand

situation , the blue ocean strategy attempts tocreate and develop new demand for its products or

services.

Eg; Toyota , the maker of lexus ,created value for

the buyer.

B i P tf li M t i


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Business Portfolio Matrix

BOSTON

CONSULTING GROUP

The Boston Consulting Group developed thebusiness portfolio matrix.

It shows the linkages between the growth rate ofthe business and the relative competitive positionof the firm , identified by the market share.


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Major kinds of strategies and

policies

The major strategies and policies are in the areasof growth , finance , organisation , personnel ,

public relations , products or services , andmarketing.


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Porters generic strategies

Industry Analysis

Overall Cost Leadership Strategy

Differentiation Strategy

Focused Strategy


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Forecasting with the Delphi

Technique

Technique developed by Olaf Helmer and hiscolleagues at the RAND Corporation ,has a degreeof scientific responsibility and acceptance.


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THE NATURE OF ORGANISINGENTERPRENEURING AND

REENGINEERING


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FORMAL AND INFORMALORGANISATION

FORMAL ORGANISATIONIntentional structure of roles in formally organized

enterprise

It should be flexible

Opportunities for creative talents

INFORMAL ORGANISATION

A network of interpersonal relationship arisingwhen people associate with each other.

Easier to ask help from person who is of anotherdepartment who we know personally.


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NARROW AND WIDE SPAN

NARROW SPAN ORGANISATIONClose supervision

Close control

Fast communication b\w subordinates andsuperiors

WIDE SPAN ORGANISATION

Superiors are forced to delegate

Clear policies must be made

Subordinates must be carefully selected


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INTRAPRENEUR ANDENTREPRENEUR

INTRAPRENEURWho focuses on innovation and creativity and

achieves the objectives by operating withinthe organization.

ENTREPRENEUR

Who focuses on innovation and creativity andachieves the objectives by operating outside

the organization.


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REENGINEERING

The fundamental rethinking and radical

redesign of business processes to achievedramatic improvements in criticalcontemporary measures of performance suchas cost ,quality , service and speed.

(Hammer and Champy)

MANAGEMENT BY


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RGISING

MANAGEMENT BYPROCESS

REENERGISING THESYSTEM

TRANSFORMATIONPROCESS

BUSINESS PROCESSSYSTEM

HUMAN SYSTEM

TECHNOLOGYSYSTEM

MANAGEMENTSYSTEM

INFORMATION HANDLING SYSTEM

INPUTHUMANCAPITALTECHNOLOGY

OTHERS

OUTPUTPRODUCTSSERVICESPROFITSSATISFACTION

GOALINTEGRATION

STAKEHOLDERS OR CLAIMANTSEMPLOYEESCUSTOMERS

SUPPLIERSGOVERNMENTS

EXTERNAL VARIABLESOPPORTUNITIESCONSTRAINTS

OTHERS

THE ORGANIZING


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NTROLLING

FEASIBILITY STUDIES AND

FEEDBACKENTERPRISE

OBJECTIVES

SUPPORTING

POLICIES,OBJECTIVES ANDPLANS

IDENTIFICA-TION

ANDCLASSIFICA-TIONOFREQUIREDACTIVITIES

GROUPIN-G OF

ACTIVITIESACOORDI-NG TORESOURCE-S

DELEGATIO-N OF

AUTHORITY

HORIZON--TAL

ANDVERTICALCOORDIN-ATIONOFAUTHORITY

STAFFING

LEADING

CONTROLLING

THE ORGANIZINGPROCESS


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ORGANISATION STRUCTURE


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President

Assistant to

president Personal

Marketing

Market Research

Market planning

Advertising,promotion

Engineering

Engineering

administration

PreliminaryDesign

Electrical

engineeringMechanicalengineering

Hydraulicengineering

Packaging

Salesadministration

Sales

Production

Production

planning

Industrialengineering

Production

Engineering

Purchasing

Tooling

Generalproduction

Finance

Financial

planning

Budgets

General

accounting

Costaccounting

Statistics and

data processing


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President

Marketing Personal Purchasing Finance

Western

region

South west

region

Central region

South-east

region

Eastern

region

Personal

Engineering Production Accounting Sales


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PresidentPresidentPresident

Community citybanking

Corporatebanking

Institutional

banking

Real estate andmortgage loans

Agriculturalbanking


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Marketing

Instrument division

Engineering

Production

Personal

Indicator Lightsdivision

Accounting

Sales

PresidentPresident

purchasing

Industrial toolsdivision

Engineering

Production

Finance

Electronic meterdivision

Accounting Sales

sales


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EFFECTIVE ORGANISING ANDORGANIZATION CULTURE

ENSURING UNDERSTANDING OF


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ENSURING UNDERSTANDING OFORGANIZATION

Teaching the nature of organization.

Recognizing the importance of informal

organization.

Grapevine.

Benefit of informal organization.


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ORGANIZATIONAL CULTURE

The effectiveness of an organization is

influenced by the organization culture, which

affect the way the managerial functions of

planning, organizing, staffing, leading and

controlling are carried out.

O i ti l lt d t


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Organizational culture and managementpractice

PLANNING

Goals are set in autocraticmanner

Decision making is centralized.

ORGANIZING

Authority is centralizedefined

Narrow defined.

STAFFING Selected on the basis of

friendship

Training is narrowly definedspecialty

Goal - great deal of participation

Decentralized

Authority is decentralized

Broadly defined

Selection on the basis of

perfomence

Training is in many functional

area


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LEADING

Directive leadership

Communication flow top-down

CONTROLLING

Strict control

Focus on financial criteria

Participative leadership

Communication flow is top-

down, bottom-top,

horizontal and diagonal

Great deal of self control

Multiple criteria


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Define Organizational Culture Organization Culture , the general

pattern of behaviour , shared beliefs, andvalue that organization member have in

common.

INFLUENCE OF LEADER ON


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INFLUENCE OF LEADER ONORGANIZATIONAL GOAL

Value can be defined as fairlypermanent belief about what is appropriate andwhat is not that guides the actions and behaviorof employees in fulfilling the organizational aims.


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CONCLUSION


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Planning involves selecting the mission s andobjectives as well as the actions to achieve them.

Objectives are the end points towards whichactivities are aimed.

MBO is widely used for performance appriasaland employee motivation.

Statergy is the determination of the mission andits basic long term objectives and the adoption ofcourse of actions and allocation of resourcesnessacary to achieve these aims


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Formal organisation is the intentional structure ofroles and informal is a network of persoonal andsocial relations.

Departmentation can be applied where an

organisational expansion is needed. Organising involves developing an intentional

structure of roles for effectivew performance.

In short planning and organising are the first twostages in management and so if made a mistakeaffects the entire management.

topic+3+ +management+functions+of+planning+and+organizing

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