• Organisation: A social group of people that is

structured and managed to meet a need or to

pursue collective goal. In simple words,
different individuals come together, form a
group for a collective purpose or objective.
• Culture: Something made up of beliefs,
ideologies, principles and values of people
living in the society. It determines the
direction of the thinking and action of the
people.
Organisational Culture
• It determines through the organisation’s
rituals, beliefs, values, means, norms and
language.
• As a result culture of the organisation is
the sense of identity – who we are, what
we stand for and what we do.
• In short OC is the way in which things are
done in the organisation.
Organisational culture

• It is the personality of the organisation.

• It is comprised of assumptions, values,
norms and tangible signs of the
organisations.
• It is difficult to expressed but can be
sensed/ felt.
• Culture of a large corporate is different
from a college or a hospital
 Understanding the culture your organisation

• Who seems to be accepted? Who doesn’t? Why? Reasons.

• What kinds of behaviour gets rewarded? Getting along, getting the
things done.
• What does management pays most attention to? Problems,
successes, crises etc.
• How are decisions made? By one person, discussion or consensus.
 Influencing culture of your Organisation

• Emphasize what is important? Communicating goals, posting mission

statements, talking about accomplishments.
• Reward employees whose behaviour reflects what is important.
• Discourage employees from continuing unwanted behaviour by giving them
constructive feedback, verbal or written warnings etc.
• Model the behaviour you want to see in the workplace.
Clan Culture

• Culture type: Clan

• Orientation: Collaborative
• Leader type: Facilitator,
Mentor, Team builder
• Value drivers: Commitment,
Communication, Development
• Theory of effectiveness:
Human development and
participation produce
effectiveness
Adhocracy Culture

• Culture type: Adhocracy

• Orientation: Creative
• Leader type: Innovator,
Entrepreneur, Visionary
• Value drivers: Innovative
outputs, Transformation, Agility
• Theory of effectiveness:
Innovativeness, Vision, and new
resources produce effectiveness
Market Culture

• Culture type: Market

• Orientation: Competing
• Leader type: Hard driver,
Competitor, Producer
• Value drivers: Market share,
Goal achievement, Profitability
• Theory of effectiveness:
Aggressively competing and
customer focus produce
effectiveness
Hierarchy Culture

• Culture type: Hierarchy

• Orientation: Controlling
• Leader type: Coordinator,
Monitor, Organizer
• Value drivers: Efficiency,
Timeliness, Consistency and
Uniformity
• Theory of effectiveness: Control
and efficiency with capable
process produce effectiveness
Developing Organisational Culture

• Building strong corporate

identity.
• Development of important
values.
• Building healthy traditions.
• Developing consistent
management practices.
 6 Dimensions of Organisation Culture - Geert Hofstede - social
psychologist &foremost authority
• As you read through this list, you can probably pretty easily pick out which type of
culture you prefer and which is not a fit for you.
• Most of the time, our preferences and our company’s cultures are more moderate
and fit somewhere in the middle of the polar extremes described in this article.
• It is important to keep in mind that these dimensions of organizational culture are
neither good nor bad.
• However, either end of the spectrum on the extreme side can cause dysfunction; for
example, when an organization’s goals are inappropriate for the culture or when a
group of individuals do not integrate well with their environment.
1. Means- vs. goal-oriented:
A means-oriented culture places importance on how work gets done. The focus
is on the way people do work and an emphasis on avoiding risk.
On the opposite end of the spectrum, a goal-oriented culture identifies
with what work gets done. There is a strong focus on achieving an end result.
Of the six dimensions, this dimension correlates most strongly with
organizational effectiveness; organizations with goal-oriented cultures are
more effective than those with means-oriented cultures.
2. Internally vs. externally driven:
Employees within an internally-driven culture see themselves as experts; they feel
they know what is best for the client and customer and act accordingly.
As Steve Jobs put it, “A lot of times, people don’t know what they want until you
show it to them.”
On the other side, employees working in an externally-driven culture are very
customer-oriented and will do whatever the customer wants.
Their mantra might be, “the customer is always right” and their favourite
metric customer satisfaction.
3. Easygoing vs. strict work discipline:
Work discipline refers to the amount of structure and control.
In an easygoing culture, the approach to work is informal, loose,
unpredictable, and these characteristics facilitate a high level of innovation.
But you better like surprises and be willing to improvise and adapt! In
a strict culture, there is a fair amount of planning, which leads to efficiency
and productivity. People take punctuality seriously and delegate work with
detailed instructions.
4. Local vs. Professional:
In a local organizational culture, employees identify with their boss and their
teammates.
This type of environment risks having a low level of diversity, since there are
social pressures to act, look, and talk in a certain way.
However, these defined norms allow for a great amount of predictability.
In a company with a professional culture, employees identify with their
profession or the content of the work.
5. Open vs. closed system:
In an open system, newcomers are welcomed easily. People are inclusive and
take the approach that anyone will fit in well with the organization.
A closed system is more exclusive, where newcomers have to prove
themselves.
Open cultures have managers and leaders who are approachable, and thus
tend to see higher employee satisfaction.
6. Employee- vs. work-centred:
In a culture with an employee-centered management philosophy, leaders take
responsibility for the happiness, well-being, and satisfaction of their
employees.
This is true even if it is at the expense of productivity. In a work-
centred culture, a focus on high task performance can come at the expense of
employees.
In this environment, there is a low level of empathy for personal problems.
Cross Culture Management

• It involves managing work teams in

ways that considers the differences in
cultures, practices and preferences of
customers in the given business
context.
• Cross cultural issues are those which
may cause conflicts arising due to
misunderstanding due to cultural
differences.
Resolving conflicts arising due to cultural
differences
• Identify the similarity and differences
between the parties involved in
conflict.
• Acknowledge the differences and
attempt to balance the interests of
both the parties.
Ways to overcome Cultural barriers at work

• Learn few key phrases

• Clear communication is essential for
effective functioning
• Important to understand customer
needs
• Promote appreciation of cultural
differences
• Be open to trying new things
• Be accommodative
Successful cross culture communication

• Keep an open mind

• Have at least some knowledge of
people’s cultural background
• Practice active listening
• Watch your non verbal communication
• Maintain a personal touch
Handling multi cultural teams

• Respect for each other

• Inter personal relations
• Initiative and adaptability
• Understanding of unique cultural context
• Equal participation
• Ability of sensitive listening.
Building a strong organizational
culture
• A common behavioral style must be shared by
managers and employees.
• Have the same basic approaches to solving
problems, meeting goals, and dealing with
stakeholders.
• Have share common norms that guide rule
governing rewards and punishment.
• A strong organizational culture assists in the
creation of a stable organization, the
consequence of which lead to the achievement
of the company’s strategic goals.
Employees learning culture – Methods/ways

• Stories – Depicting the past events of the

organization. Some organizations actually
try to manage this element of culture
learning.
• Rituals – Repetitive sequential activities
reinforcing the values of the organization.
• Material symbols – Conveying social
equality, desired organizational behavior,
etc. by the top management.
• Language – Acceptance and preservation of
culture.
Relationship - Organizational culture and
performance

• Organizational culture has the potential to

enhance organizational performance,
individual satisfaction, the sense of
certainty about how problems are to be
handled.
• Culture serves as a control mechanism to
channel behavior towards desired
behaviors and to prevent undesired
behaviors.
Creating corporate culture

• The ultimate source of an organizations culture is

it’s founders.
• Culture creation occurs in three ways:
• Employees hire and keep employees with same
thinking.
• They indoctrinate and socialize the employees
with the organizations thinking.
• The founders behaviour acts as a role model for
the employees.
• With the organizational success, the founder’s
personality is embedded in the organizational
culture.
Planning • A plan is a forecast for accomplishment. It is a
predetermined course of action.
• It is today’s projection for tomorrow’s activity. In
other words, to plan is to produce a scheme for
future action, to bring about specified results at a
specified cost, in a specified period of time.

Planning
• A process whereby managers select goals, choose
actions (strategies) to attain those goals, allocate
responsibility for implementing actions to specific
individuals or units, measure the success of actions
by comparing actual results against the goals, and
revise plans accordingly.
Main steps in planning

Identify Allocate Review Make

Choose goals
actions responsibility performance adjustments
 Characteristics of planning
1. Planning is goal-oriented: All plans arise from objectives. Objectives provide the basic
guidelines for planning activities. Planning has no meaning unless it contributes in some
positive manner to the achievement of predetermined goals.
2. Planning is a primary function: Planning is the foundation of management. It is a parent
exercise in management process. It is a preface to business activities.
3. Planning is all-pervasive: Planning is a function of all managers. It is needed and
practiced at all managerial levels. Planning is inherent in everything a manager does.
Managers have to plan before launching a new business.
4. Planning is a mental exercise: Planning is a mental process involving imagination,
foresight and sound judgment. Planning compels managers to abandon guesswork and
wishful thinking.
5. Planning is a continuous process: Planning is continuous. It is a never-ending activity.
Once plans for a specific period are prepared, they are translated into action.
6. Planning involves choice: Planning essentially involves choice among various
alternative courses of action.
7. Planning is forward looking: Planning means looking ahead and preparing for the
future. It means peeping into the future, analyzing it and preparing for it.
8. Planning is flexible: Planning is based on a forecast of future events. Since future is
uncertain, plans should be reasonably flexible.
9. Planning is an integrated process: Plans are structured in a logical way wherein
every lower-level plan serves as a means to accomplish higher level plans. They are
highly interdependent and mutually supportive.
10. Planning includes efficiency and effectiveness dimensions: Plans aim at deploying
resources economically and efficiently. They also try to accomplish what has been
actually targeted. The effectiveness of plans is usually dependent on how much it
can contribute to the predetermined objectives.
Types of plans

• Plans can be classified as (1)

missions or purposes, (2)
objectives or goals, (3) strategies,
(4) policies, (5) procedures, (6)
rules, (7) program
Missions or Purposes
The mission or purpose (the terms are often used interchangeably), identifies the basic purpose or
function or tasks of an enterprise or agency or any part of it. Every kind of organized operation has,
or at least should have if it is to be meaningful, a mission or purpose.

Objectives or goals, are the ends toward which activity is aimed.

Goal setting

Goal setting is a purposeful and explicit process that starts with

identifying a new objective, skill, or project you want to achieve. Then,
you make a plan for achieving it, and you work to complete it.

If goals are so important, why do we fail to achieve them? Because we

don’t plan the steps to get there.

A goal setting process forces you to think about the journey (in other
words, how you’re going to complete your tasks) instead of just the
end destination. Here are some suggestions to keep in mind:
Think about the results you want to see.

Before making a goal, take a closer look at what you’re trying to achieve and ask
yourself the following questions:

Is this goal something you truly want?

Does it align with your values or other goals?
Is it important enough to pour hours of time and effort into it?
If you’re not willing to put in the time, it may not be worth pursuing.
Create SMART goals
Once you’ve zeroed in on what you actually want, ensure your goal meets
the SMART criteria:
•Specific
•Measurable
•Attainable
•Realistic
•Time-bound
Strategy: The determination of the basic long term objectives
of an enterprise and the adoption of courses of action and allocation of
resources necessary to achieve these goals

Policies: General statements or understandings that guide or channel

thinking in decision making.

Procedures: Plans that establish a required method of handling future

activities.

Rules: spell out specific required actions or non actions, allowing

no discretion. Eg: No smoking in the premises.
Programs: are a complex of goals, policies, procedures, rules, task
assignments, steps to be taken, resources to be employed, and other
elements necessary to carry out a given course of action; they are
ordinarily supported by budgets.

A budget is a statement of expected results expressed in numerical terms.

It may be called a “quantified” plan.
Techniques of Environmental Analysis

• SWOT Analysis
• Porter’s Five Force Analysis
• PESTEL Analysis
 SWOT stands for Strengths, Weaknesses,
SWOT •
Opportunities, and Threats, and so a SWOT analysis is a
technique for assessing these four aspects of your
business.

• SWOT Analysis is a tool that can help you to analyze

what your company does best now, and to devise a
successful strategy for the future. SWOT can also
uncover areas of the business that are holding you
back, or that your competitors could exploit if you
don't protect yourself.

• A SWOT analysis examines both internal and external

factors – that is, what's going on inside and outside
your organization. So some of these factors will be
within your control and some will not.
Why is SWOT analysis important?
• SWOT Analysis can help you to challenge risky assumptions and to uncover dangerous
blind spots about your organization's performance. If you use it carefully and
collaboratively, it can deliver new insights on where your business currently is, and help
you to develop exactly the right strategy for any situation.

• For example, you may be well aware of some of your organization's strengths, but until
you record them alongside weaknesses and threats you might not realize how unreliable
those strengths actually are.

• Equally, you likely have reasonable concerns about some of your business weaknesses but,
by going through the analysis systematically, you could find an opportunity, previously
overlooked, that could more than compensate.
How to write a SWOT?

• Draw up a SWOT Analysis matrix

• A SWOT matrix is a 2x2 grid, with one square for each of the four
aspects of SWOT. (Figure in the next slide shows what it should
look like.) Each section is headed by some questions to get your
thinking started.
Strengths Weaknesses
What do you do well? What could you improve?
What unique resources can you draw on? Where do you have fewer resources than
What do others see as your strengths? others?
What are others likely to see as
weaknesses?

Opportunities Threats
What opportunities are open to you? What threats could harm you?
What trends could you take advantage of? What is your competition doing?
How can you turn your strengths into What threats do your weaknesses expose
opportunities? to you?
Porters 5 forces model • The Porter's 5 Forces tool is a simple but powerful tool
for understanding where power lies in a business
situation.
• This is useful, because it helps you understand both the
strength of your current competitive position, and the
strength of a position you're looking to move into.
• With a clear understanding of where power lies, you can
take fair advantage of a situation of strength, improve a
situation of weakness, and avoid taking wrong steps.
• This makes it an important part of your planning toolkit.
• Conventionally, the tool is used to identify whether new
products, services or businesses have the potential to be
profitable.
• However it can be very illuminating when used to
understand the balance of power in other situations too.
PESTEL analysis
• A PESTEL analysis or PESTLE analysis (formerly known as PEST
analysis) is a framework or tool used to analyze and monitor
the macro-environmental factors that may have a profound
impact on an organization's performance.
• This tool is especially useful when starting a new business or
entering a foreign market.
• It is often used in collaboration with other analytical business
tools such as the SWOT analysis and Porter’s Five Forces to
give a clear understanding of a situation and related internal
and external factors.
• PESTEL is an acronym that stand for Political, Economic, Social,
Technological, Environmental and Legal factors.
 What is Resource Allocation?
• Resource allocation is the process of identifying all your available resources—whether it’s labor or
monetary—for a project and then strategically assigning them to tasks that enable them to do their
best work.

Your resources are all the company assets necessary to complete tasks or projects. These may include:
• Individual people
• Teams or departments
• Budget
• Time
• Hardware and software
• Real estate
• Processes
• Intellectual property
• Techniques and skill sets
Resource allocation techniques
• Critical Path Method: In project management, the longest chain of dependent
tasks is referred to as the critical path. By outlining a straightforward priority for
task completion before the project starts, the CPM helps use resources as
efficiently as possible. However, one criticism is that this method doesn’t allow
for multitasking.
•Resource Leveling: To implement resource leveling, start by looking at the
capacity of your team to determine how much work they can handle.
Compare this with demand. If resources aren’t aligned with demand,
reschedule tasks accordingly.

•Resource Smoothing: Resource smoothing aims to reduce demand while

executing the project within the ideal timeframe. During this method, the
project manager makes adjustments to resource scheduling and allocation.
For example, if you’re under a time crunch, you might bring on a more
seasoned person who can complete the work faster.
Portfolio matrices
• We introduce models by which managers can determine financial investment
and divestment within their portfolios of business.
• Each model gives more or less attention to at least one of three criteria:
● the balance of the portfolio (e.g. in relation to its markets and the needs of the
corporation);
● the attractiveness of the business units in terms of how strong they are
individually and how profitable their markets or industries are likely to be; and
● the ‘fit’ that the business units have with each other in terms of potential
synergies or the extent to which the corporate parent will be good at looking after
them.
The BCG (or growth/share) matrix
• One of the most common and longstanding ways of
conceiving of the balance of a portfolio of businesses is
the Boston Consulting Group (BCG) matrix.
• The BCG matrix uses market share and market growth
criteria for determining the attractiveness and balance
of a business portfolio. High market share and high
growth are, of course, attractive.
• However, the BCG matrix also warns that high growth
demands heavy investment, for instance to expand
capacity or develop brands.
• There needs to be a balance within the portfolio, so
that there are some low-growth businesses that are
making sufficient surplus to fund the investment needs
of higher-growth businesses.
Stars • High Growth, High Market Share

• Star units are leaders in the category. These

products have –

• A significant market share, hence they bring

the most cash to the business.
• A high growth potential that can be used to
increase further cash inflow.
• With time, when the market matures, these
stars become cash cows that hold huge
market shares in a low-growth market. Such
cows are milked to fund other innovative
products to develop new stars.
Cash Cows

• Low Growth, High Market Share

• Cash cows are products with significant ROI but

operating in a matured market which lacks
innovation and growth. These products generate
more cash than it consumes.

• Usually, these products finance other activities in

progress (including stars and question marks)
Dogs • Low Growth, Low Market Share

• Dogs hold a low market share and operate in a

market with a low growth rate. Neither do they
generate cash, nor do they require huge cash.
• Dogs are business units within a portfolio that
have low share in static or declining markets and
are thus the worst of all combinations.
• They may be a cash drain and use up a
disproportionate amount of managerial time and
company resources. The BCG usually
recommends divestment or closure.
 High Growth, Low Market Share
Question Marks •

• Question marks have high growth potential but a low

market share which makes their future potential to be
doubtful.
• A question mark (or problem child) is a business unit
within a portfolio that is in a growing market, but does
not yet have high market share.
• Developing question marks into stars, with high
market share, takes heavy investment.
• Many question marks fail to develop, so the BCG
advises corporate parents to nurture several at a time.
• It is important to make sure that some question marks
develop into stars, as existing stars eventually become
cash cows and cash cows may decline into dogs.
Advantages of BCG Matrix

It is simple and easy to understand.

It helps you to quickly and simply screen the opportunities open to you
and helps you think about how you can make the most of them.

It is used to identify how corporate cash resources can best be used to

maximize a company’s future growth and profitability.

The BCG Matrix produces a framework for allocating resources among

different products and makes it possible to compare the product portfolio
at a glance.
Businesses in the “question marks” quadrant, with a weak market share and
a high growth rate, usually require cash investment so that they can become
“stars,” the businesses in the high-growth, strongly competitive position.
These kinds of businesses have opportunities for growth and profit.

The “cash cows,” with a strong competitive position and a low growth rate,
are usually well established in the market and such enterprises are in a
position to make their products at low costs. Therefore, their products
provide the cash needed for their operation.

The “dogs” are businesses with a low growth rate and a weak market share.
These businesses are usually not profitable and generally should be
disposed off.
Limitations of BCG Matrix

BCG Matrix uses only two dimensions, relative market share and market growth
rate. These are not the only indicators of profitability, attractiveness or success.
It neglects the effects of synergy between brands.

Businesses with a low market share can be profitable too.

High market share does not always lead to high profits since a high cost goes
into getting a high market share.

At times, dogs may help the business or other products gain a competitive
advantage.

The model neglects small competitors that have fast-growing market shares.
Forecasting

• Definition: Forecasting is a systematic

and scientific estimation of
future demand for a product or a
service, under a set of uncontrollable
and competitive forces.
• Accurate demand forecasting is
essential for a firm to enable it to
produce the required quantities at
the right time and arrange well in
advance for various inputs
Benefits of forecasting

Demand forecasting enables an organization

to take various business decisions, such as:
• Planning the production process
• Purchasing raw materials
• Managing funds
• Deciding pricing of a product or service
Firm can make their own estimates or with
help of consultants or market research
agencies
Methods of demand forecasting
Part I. Opinion polling method

This is a qualitative technique

• In this method - opinion of the buyers, sales
force and experts could be gathered to
determine the emerging trend in the
market.
• Suited for short term demand forecasting

Are of three types:

1. Consumer survey method
2. Sales force opinion method
3. Delphi method
1. Consumer survey method
• Most common and direct method
• Consumers are directly approached to
disclose their future purchase plans
• Done by interviewing all consumers or a
selected group of consumers.

Survey methods include:

a) Complete enumeration survey
b) Sample survey and test marketing
c) End use
1a- Complete enumeration survey
• Records the data and aggregates of
consumers

• Door to door survey for the forecast

period

• Advantage of first hand, unbiased

information

• Disadvantage: Can be rendered useless if

data is wrongly recorded
1b- Sample survey and test marketing

• Only few customers selected

and their views collected

• Method is simple and cost

effective

• Main disadvantage: The sample

may not be a true
representation of the entire
population
1c- End use method

• Focusses on forecasting the

demand for intermediary goods
• Sales of a product are projected
through a survey of its end users

• Example: Milk is a commodity

which can be used as an
intermediary good for the
production of ice-cream, cheese
and other dairy products
2 - Sales force opinion method/Collective
opinion method
• Instead of consumers, the opinion of the
salesmen is sought

• It’s called as “grass roots approach” as it is a

bottom-up method that requires each sales
person in the company to make an individual
forecast for their particular sales territory.

• Advantage: Collecting data from own

employees is easier than from external parties

• Disadvantage: May give biased views as the

projected demand affects their future job
3 - Delphi technique or Expert opinion
method
• Requires a panel of experts, who are
interrogated through a sequence of
questionnaires
• Responses to one questionnaire are used to
produce the next questionnaire
• Identity of expert is kept secret
• Opinions are exchanged with various experts
and their reactions are sought and analysed
until all experts arrive at unanimity
• Reliable but it is subjective
Part II.- Statistical or Analytical method

• Make use of historical quantitative data

A statistical concept is applied to the
existing data in order to generate the
predicted demand in the forecast period.
Frequently used methods:
1. Trend projection method
2. Barometric method
3. Regression method
4. Econometric method
1 - Trend projection method

• An old firm can use its own past data

• These data are known as time series of sales
• Assumes that past trend will continue in the
future
• Past trend is extrapolated
The trend estimated by following methods
a) Graphical method
b) Least square method
c) Time series data
d) Moving average method
e) Exponential smoothing
1a -Graphical method

• A trend line can be fitted

through a series graphically.
• The direction of the curve
shows the trend
• Main drawback of this method
is that it may show the trend
but not measure it.

• Another method is Least square

method
1b - Least square method
• Diagram shows ice cream sales
vs external atmospheric
temperature

• Imagine you have some

points, and want to have
a line that best fits them like
this as shown

• We can place the line "by eye":

try to have the line as close as
possible to all points, and a
similar number of points above
and below the line.
1d - Moving average method

• The moving average of sales of

the past years is computed
• The computed moving average
is taken as forecast for the next
year or period
• This is based on the assumption
that future sales are the
average of the past sales
2 - Barometric Method
• Demand is predicted on the basis of the past events or on
key variables in the present

• Helps in determining general trend of business activities

• Example: Government allots land to construct a

pharmaceutical or medical devices park. This indicates that
there would be high demand for cement, bricks and steel

• Advantage: Applicable even in the absence of past data

3 - Econometric method

• The econometric forecasting

model is a tool that reveals
relationships among economic
variables to forecast future
developments.

• It is assumed that demand is

determined by one or more
variables like income,
population, inflation, exchange
rates etc
 Importance of demand forecasting
• Production planning

• Sales forecasting

• Control of business

• Inventory control

• Economic planning and policy making

• Growth and long-term investment programs

Limitations of demand forecasting

• Changes in fashion

• Consumers psychology

• Lack of availability of experts

• Uneconomical

• Lack of past data

Categorization by time period

Short term
forecasting: Not
exceeding a year Long term forecasting: 5
years to 20 years
Benchmarking • Benchmarking is a concept that is now widely
accepted. It is an approach for setting goals and
productivity measures based on best industry
practices. Benchmarking developed out of the need to
have data against which performance can be
measured.
• What should the criteria be? If a company needs six
days to fill a customer’s order and the competitor in
the same industry needs only five days, five days does
not become the standard if a firm in an unrelated
industry can fill orders in four days.
• The four-day criterion becomes the benchmark even
when at first this seems to be an unachievable goal.
The process involved in filling the order is then
carefully analyzed, and creative ways are encouraged
to achieve the benchmark.
 Benchmarking

Benchmarking is a means of understanding how an organisation compares with

others – typically competitors.
Two approaches to benchmarking:
• Industry/sector benchmarking – comparing performance against other
organisations in the same industry/sector against a set of performance
indicators.
• Best-in-class benchmarking – comparing an organisation’s performance or
capabilities against ‘best-in-class’ performance – wherever that is found even in
a very different industry. (e.g. BA benchmarked its refuelling operations against
Formula 1).
Budgeting • Budgeting: A budget is a statement of
anticipated results during a designated time
period expressed in financial and non-
financial terms.
• Budgets cover a designated time period –
usually a year. At stated intervals during
that time period, actual performance is
compared directly with the budget targets
and deviations are quickly detected and
acted upon.
• E.g. of Budgets: Sales budget, production
budget, capital expenditure budget, cash
budget, master budget etc
Scheduling

• Scheduling is the act of determining who might

accomplish certain steps of a project's action
plan and when they might do so.
• They create a time-based sequence to
complete the project.
• During the scheduling phase, companies
examine their resources and determine which
ones are necessary to complete the project's
goal.
Project Management Techniques
• Project management involves decision making for
the planning, organizing, coordination,
monitoring and control of a number of
interrelated time bound activities.
• Project Manager therefore, often depends on
tools and techniques that are effective enough
not only for drawing up the best possible initial
plan but also capable of projecting
instantaneously the impact of deviations so as to
initiate necessary corrective measures.
• Project management techniques can be classified
under two broad categories i.e., Bar Charts and
Networks.
Bar charts/Gantt charts
• The “Bar Chart” was for the first time developed by
Henry Gantt around 1900 and is used to deal with
complex activities.
• The bar chart consists of two coordinates, the
horizontal represents the time elapsed and the vertical
represents the job or activities performed.
• The jobs or activities are shown in the form of bars
shown in Fig.
• The length of the bar shows the time the job or that
activity takes for completion.
• In every project, some jobs are taken up concurrently
and some are to be completed before others can begin.
• Hence in a bar chart, some of the bars run parallel or
overlap each other time-wise and some run serially
with one bar beginning after another bar ends.
Networks
A project schedule network diagram is an output type of the process ‘sequencing activities’
Networks
Project schedule network diagrams show the order in which activities should be
scheduled to address logical relationships between these activities.