ORGANIZATION AND

MANAGEMENT
 PLANNING
- is the process of thinking about and organizing the activities
required to achieve a desired goal.

- is deciding in advance what is to be done. It involves the

selection of objectives, policies, procedures and programs
from alternatives.
 Nature or Features or Characteristics of Planning

1. Planning is a goal oriented

2. Planning is a primary function
3. Planning is a thinking process
4. Planning is flexible
5. Planning is all-pervasive
6. Planning is a continuous process
7. Planning involves choice
8. Planning is rational
9. Planning is an integrated process
10.Planning is futuristic
 Nature or Features or Characteristics of Planning

4. Planning is flexible
- planning should not be rigid

5. Planning is a primary function

- planning is an on-going activity at all levels of an organizational
hierarchy, right from the CEO to first line managers

6. Planning is a thinking process

- planning involves continuous assessment and reassessment of
the resources, directions, opportunities and problems of the
organization while converting them to achieve goals
 Nature or Features or Characteristics of Planning

7. Planning involves choice

- planning always involves choices among various alternatives

8. Planning is rational
- planners should be objective and unemotional in their approach
to planning

9. Planning is an integrated process

- plans are structured in a logical way such that every lower level
plan serves as a means to accomplish higher level plans
 Nature or Features or Characteristics of Planning

10. Planning is futuristic

- planning attempts to peep into the future, analyses it and
prepare for it
 Nature or Features or Characteristics of Planning

1. Planning is a goal oriented

- plans are made in order to seek certain predetermined goals.

1. Planning is a primary function

- planning provides the basic foundation from which all future
management functions arise

1. Planning is a thinking process

- involves imagination, foresight and sound judgement
 Importance and Purpose of Planning

1. Planning provides direction

2. Planning minimizes risk and uncertainty
3. Planning ensures co-ordination
4. Planning leads to economy
5. Planning facilitates decision-making
6. Planning reduces overlapping and wastage of efforts
7. Planning encourages innovation and creativity
8. Planning facilitates control
9. Planning improves morale
 Importance and Purpose of Planning

1. Planning provides direction

- planning provides clear sense of direction and purpose of
activities of an organization

1. Planning minimizes risk and uncertainty

- in fast changing organizations, planning based on hard facts and
data help managers to reduce risk and uncertainties

1. Planning ensures co-ordination

- planning helps to establish coordinated efforts from various
divisions, departments and people
 Importance and Purpose of Planning

4. Planning leads to economy

- planning helps accomplish an optimal utilization of physical and
human resources, leading towards cost reduction, higher
efficiency and productivity which lead to better economy

5. Planning facilitates decision-making

- planning helps in providing guidelines and thus facilitate
decision-making

6. Planning reduces overlapping and wastage of efforts

- planning avoids duplication of efforts, and overlapping of tasks
and responsibilities, reducing wastage
 Importance and Purpose of Planning

7. Planning encourages innovation and creativity

- planning helps to remain competitive
- innovation and creativity are like “trump cards” in competitive
world

8. Planning facilitates control

- control is key to success of any organization, and in order to
control there has to be a plan

9. Planning improves morale

- if employees participate in planning process it boosts their
morale and develops a broad mentality and thinking
 Steps in Planning

1. To establish objectives which are verifiable

2. To establish planning premises
3. To determine alternative course of action
4. To evaluate the alternatives and select the best
5. To formulate derivative plans
6. To secure cooperation and participation of all employees
7. To measure and control the progress through follu-up
 Steps in Planning

1. To establish objectives which are verifiable

- identify goals of the organization
- Internal (financial position of company, human resources
available, manufacturing facility, company image, etc.)
- External (Government rules and regulations, Socio-economic
condition of the society, competition level, suppliers reliability)
 Steps in Planning

2. To establish planning premises

- planning premises are assumptions of future market conditions
which become the basis for current planning process
- planning premises usually relate to cost and availability of raw
materials, labour, power, product demands, population trends,
technology growth, government policies, etc

3. To determine alternative course of action

- search and list all possible alternatives in order to be compared
and analytically evaluated
 Steps in Planning
4. To evaluate the alternatives and select the best
- select most suitable and best course of action
- alternatives have to be compared and evaluated with respect to
their expected contribution to organizational goals
- evaluation and selection is often done with the help of
quantitative techniques and operations research

5. To formulate derivative plans

- management has to formulate derivative plans or secondary
plans to support the basic plan
- derivative plans are sub plans or departmental plans
 Steps in Planning

6. To secure cooperation and participation of all employees

- involving employees in planning process enhances their
cooperation and participation
- continuous suggestions, complaints and criticisms must be
solicited from the employees

7. To measure and control the progress through follow-up

- continuous evaluation of plans help in identifying recurring
mistakes and avoiding them in future
 Planning Premises

1. Planning premises are assumptions of future market conditions

which become the basis for current planning process

2. Planning premises have to be established even before planning

3. To establish planning premises means to forecast future business

conditions under which a plan has to operate

4. Planning premises provide bedrock upon which the plans are based
 Classification of Planning Premises

1. Internal and External premises

2. Tangible and Intangible premises

3. Controllable, Semi-controllable and Uncontrollables premises

 Classification of Planning Premises

1. Internal and External premises

- internal premises are those factors which exist within
organization and are generally under the control of management
- internal premises include - men, money, machinery, materials
and methods

1. Tangible and Intangible premises

- external premises are those factors which exist outside the
purview of the organization and are generally not under the
control of the management
- external premises include government policies, general
economy of country, technological trends, climatic conditions,
 Classification of Planning Premises

3. Controllable, Semi-controllable and Uncontrollable Premises

- Controllable premises are those factors which are said to be
completely under the control of the management
- Semi-controllable premises are those which management has
partial control
- Uncontrollable premises are those factors over which
management has absolutely no control
 Objectives

- are goals or end-points towards which all business activities are

directed
- are desirable and results planned by the management or
administration and expected to be achieved by the organization
- are the products of specific, concrete thinking, they commit
employees and organizaiton to verifiable accomplishments
 Policies

- are guidelines set up by the company for managerial decision

making
- a policy is a verbal, written or implied overall guide setting up
boundaries that supply the general limits and directions in which
managerial actions will take place
 Strategies

- specify the route taken to achieve company objectives and

policies
- strategy comprises of (1) a course of action (2) a commitment of
resources (3) a detailed blue print of all moves, initiatives,
responses with timing concern
- is a unified and critical plan of action to achieve a goal
- is a master plan for moving the organization towards its
objectives through the complex and volatile environment of
market forces
- involve innovation and creativity
 Procedures

- are action guidelines which specify how particular activity has to

take place
- provide chronological step-by-step sequence of required actions
in order to achieve a certain goal or policy
- lays down the manner and method by which work is to be
performed in a standard or uniform way
- ensures higher than average level of performance, which results
in work simplification and eliminates duplication of efforts
 Methods

- are basically sub-units of procedure

- break-up of each steps of a procedure into sub-steps
- indicate the simplified and standardized techniques to be
employed in carrying out a particular task in the best way
- are products of research, experimentation and analysis
 Rules

- are standard guidelines which specify what is good and what is

bad for an employee / organization
- are always established to direct or restrict action in order to
govern the behaviod of individuals
- rules if violated are viewed seriously and penalties are imposed
 Programmes

- is a precise plan which lays down the operations to be carried

out to accomplished a given work
- is aggregate of several related action plans that have been
designed to accomplish a mission within specified time
- is comprehensive plan that includes a complex set of goals,
procedures, methods, strategies etc
 Schedules

- are time tables which clearly specify when, what and where
each element of work is carried out
- aim of scheduling is to plan the sequences of work so that all
units of work can be systematically arranged towards their
completion by due date
 Projects

- is small program. Several projects may also make up a program

- are individual portions of a general program which clear-cut and
relatively distinct
 Budgets

- is a written plan of future activities of the company in monetary

terms
- budgets are managerial tools for planning, programming, and
controlling business activities
- budget defines the anticipated cost of attaining an objective
 Decision Making

- in an organization, decisions are routinely taken in operations,

marketing, maintenance, R & D, transportation, finance, human
resource, etc
- decision making is the cognitive process leading to the selection
of a course of action among alternatives
- every decision making process produces a final choice. It can
be an action or an opinion