Download VTU (Visvesvaraya Technological University) MBA 1st Semester (First Semester) 17MBA11-Management and Organizational behaviour MOB Module 2 Important Lecture Notes (MBA Study Material Notes)
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
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MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
Line and Staff Organisation
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
Line and Staff Organisation Functional Organisation
? The organisation is divided into a number of
functional areas.
? Each function is managed by an expert in that
area.
? Every functional area serves all other areas in
the organisation.
? As the name implies, the whole task of
management and direction of subordinates
should be divided according to the type of work
involved.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
Line and Staff Organisation Functional Organisation
? The organisation is divided into a number of
functional areas.
? Each function is managed by an expert in that
area.
? Every functional area serves all other areas in
the organisation.
? As the name implies, the whole task of
management and direction of subordinates
should be divided according to the type of work
involved.
Divisional Organizational Structure
? These types of organizations divide the
functional areas of the organization to
divisions.
? Each division is equipped with its own
resources in order to function independently.
? Divisions can be defined based on the
geographical basis, products/services basis,
or any other measurement.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
Line and Staff Organisation Functional Organisation
? The organisation is divided into a number of
functional areas.
? Each function is managed by an expert in that
area.
? Every functional area serves all other areas in
the organisation.
? As the name implies, the whole task of
management and direction of subordinates
should be divided according to the type of work
involved.
Divisional Organizational Structure
? These types of organizations divide the
functional areas of the organization to
divisions.
? Each division is equipped with its own
resources in order to function independently.
? Divisions can be defined based on the
geographical basis, products/services basis,
or any other measurement.
Divisional Organizational Structure
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
Line and Staff Organisation Functional Organisation
? The organisation is divided into a number of
functional areas.
? Each function is managed by an expert in that
area.
? Every functional area serves all other areas in
the organisation.
? As the name implies, the whole task of
management and direction of subordinates
should be divided according to the type of work
involved.
Divisional Organizational Structure
? These types of organizations divide the
functional areas of the organization to
divisions.
? Each division is equipped with its own
resources in order to function independently.
? Divisions can be defined based on the
geographical basis, products/services basis,
or any other measurement.
Divisional Organizational Structure Geographical Organization Structure
? Geographic organizational structure allows for
each business unit or office to operate as its own
entity based on where it's located.
? This particular structure brings workers together
in geographical divisions.
? Each division operates as if it is a company in
itself, complete with the personnel to carry out
various business functions such as finance,
marketing and production.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
Line and Staff Organisation Functional Organisation
? The organisation is divided into a number of
functional areas.
? Each function is managed by an expert in that
area.
? Every functional area serves all other areas in
the organisation.
? As the name implies, the whole task of
management and direction of subordinates
should be divided according to the type of work
involved.
Divisional Organizational Structure
? These types of organizations divide the
functional areas of the organization to
divisions.
? Each division is equipped with its own
resources in order to function independently.
? Divisions can be defined based on the
geographical basis, products/services basis,
or any other measurement.
Divisional Organizational Structure Geographical Organization Structure
? Geographic organizational structure allows for
each business unit or office to operate as its own
entity based on where it's located.
? This particular structure brings workers together
in geographical divisions.
? Each division operates as if it is a company in
itself, complete with the personnel to carry out
various business functions such as finance,
marketing and production.
Customer based Organization
Structure
? Certain industries will organize by customer type.
? This is done in an effort to ensure specific
customer expectations?are met by a customized
service approach.
? In this case organization structure designed
based on type of Customers.
FirstRanker.com - FirstRanker's Choice
MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
Line and Staff Organisation Functional Organisation
? The organisation is divided into a number of
functional areas.
? Each function is managed by an expert in that
area.
? Every functional area serves all other areas in
the organisation.
? As the name implies, the whole task of
management and direction of subordinates
should be divided according to the type of work
involved.
Divisional Organizational Structure
? These types of organizations divide the
functional areas of the organization to
divisions.
? Each division is equipped with its own
resources in order to function independently.
? Divisions can be defined based on the
geographical basis, products/services basis,
or any other measurement.
Divisional Organizational Structure Geographical Organization Structure
? Geographic organizational structure allows for
each business unit or office to operate as its own
entity based on where it's located.
? This particular structure brings workers together
in geographical divisions.
? Each division operates as if it is a company in
itself, complete with the personnel to carry out
various business functions such as finance,
marketing and production.
Customer based Organization
Structure
? Certain industries will organize by customer type.
? This is done in an effort to ensure specific
customer expectations?are met by a customized
service approach.
? In this case organization structure designed
based on type of Customers.
Matrix Organizational Structure
? A matrix structure provides for reporting
levels both horizontally as well as vertically.
Employees may be part of a functional group
but may serve on a team that supports new
product development.
? A matrix organizational structure is a company
structure in which the reporting relationships
are set up as a grid, or matrix, rather than in
the traditional hierarchy.
? In other words, employees have dual reporting
relationships - generally to both a functional
manager and a product manager.
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MANAGEMENT
& ORGANIZATIONAL
BEHAVIOUR
SEMESTER I
MADHUKAR SM
Part A - Principles of Management
Module 2: Planning and Organizing:
? Planning: Nature of Planning, Planning Process,
Objectives, MBO, Strategies, level of strategies, policies,
methods and programs, Planning Premises, Decision-
making, Process of decision-making, Types of decisions,
Techniques in decision-making.
? Organizing: Organization structure, Formal and informal
organizations, Principles of organizations-chain of
command, span of control, delegation, decentralization,
and empowerment. Functional, divisional, geographical,
customer based and matrix organizations, tram based
structures, virtual organizations, boundary less
organizations.
Planning
PLANNING IS CHOOSING OF A GOAL AND DEVELOPING A
METHOD OR STRATEGY TO ACHIEVE THAT GOAL.
According to KOONTZ, ?Planning is deciding in advance -
what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be?.
It deals with chalking out a future course of action &
deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals.
NATURE/FEATURES OF PLANNING
?Planning Focuses on Achieving Objectives
?Planning is Primary Function of Management
?Planning is Pervasive
?Planning is Continuous
?Planning is Futuristic
?Planning Involves Decision Making
?Planning is a Mental Exercise
PLANNING PROCESS TYPES OF PLANS
? MISSION - the basic purpose / function /tasks of an enterprise.
? OBJECTIVES/ GOALS - the end towards which the activity is
aimed at.
? STRATEGIES - determination of long term objectives and
adoption of courses of action to achieve them.
? POLICIES - General statements/ understandings that guide
thinking in decision making.
? PROCEDURES - Plans that establish a required method of
handling future activities
? RULES - specific required action/ nonaction allowing no
discretion.
? PROGRAMS - complex of goals, policies, procedures, rules
and other elements necessary to carry out an action.
? BUDGETS - Statement of expected results expressed in
numerical terms
OBJECTIVES
? Objectives are the important ends towards which
organizational and indivudual activities are
directed.
? An objective needs to be verifable.
? SMART
Specific
? What exactly are we going to do for whom?
? Describe an observable action or achievement
? Be precise!
? Link it to a rate, number or percentage.
Example
The phone will be answered quickly.
The phone will be answered in no more then 4
rings.
Measurable
? Is it quantifiable and can WE measure it?
? A system or authority has to exist which allows
for tracking and recording outcomes.
E.g. Grades, Benchmark testing, Surveys
? The system must be reliable and may be
already in place.
Achievable
?Can we get it done in the proposed time frame
with the resources and support we have
available?
? The objective must be feasible with the available
resources, appropriately limited in scope, and
within the program?s control and influence.
? Consult with partners or stakeholders about their
experiences.
Relevant
? Will this objective have an effect on the desired
goal or strategy?
? Does the objective fit in with the immediate and
long term plans?
? Is the objective consistent with the other
objectives?
Time Bound
? When will this objective be accomplished?
? A specified and reasonable time frame should be
incorporated into the objective statement.
? It could be indicated as ?By December 2010, the
program will? or ?Within 6 months of receiving the
grant,...?
Now you are ready to
write your own SMART
outcome objectives?
HIERARCHY OF OBJECTIVES
http://cdn.yourarticlelibr
ary.com/wp-
content/uploads/2015/0
5/clip_image00276.jpg
What is MBO?
? Management by objectives (MBO) is a
systematic and organized approach that allows
management to focus on achievable goals and to
attain the best possible results from available
resources.
? It aims to increase organizational performance
by aligning goals and subordinate objectives
throughout the organization.
? Ideally, employees get strong input to identify
their objectives, time lines for completion, etc.
? MBO includes ongoing tracking and feedback in
the process to reach objectives.
Managerial Focus
? MBO managers focus on the result, not
the activity. They delegate tasks by
"negotiating a contract of goals" with
their subordinates without dictating a
detailed roadmap for implementation.
? Management by Objectives (MBO) is
about setting objectives and then
breaking these down into more specific
goals or key results.
The Five-Step MBO Process
BENEFITS OF MBO
? Improvement of managing through
result oriented planning
? Classification of roles, delegation of
authority according to results expected.
? Encouragement of commitment to
personal and organizational goals.
? Development of effective controls that
lead to corrective actions.
DISADVANTAGES OF MBO
? Managers unilaterally set the goals and expect
the subordinates to accept them without
reservation.
? Adequate resources are not provided, lack of top
management commitment
? Feedback is not provided to the subordinates on
how well or poorly the individual is making
progress towards goals attainment
? When the goals are met, the subordinates are
not appropriately rewarded.
? Applicable only for competent work force.
Strategies
? The term 'Strategy' has been adapted from war.
? It is being increasingly used in business to
reflect broad overall objectives and policies of an
enterprise.
? A strategy is a special kind of plan formulated in
order to meet the challenge of the policies of
competitors.
? According Edmund P Learned strategy is "the
pattern of objectives, purposes or goals and
major policies and plans for achieving these goals,
stated in such a way as to define what business
the company is in or is to be and the kind of
company it is or is to be".
CHARACTERISTICS OF STRATEGY
? It is the right combination of different factors.
? It relates the business organisation to the
environment.
? It is an action to meet a particular challenge, to
solve particular problems or to attain desired
objectives.
? Strategy is a means to an end and not an end in
itself.
? It is formulated at the top management level.
? It involves assumption of certain calculated risks.
LEVELS OF STRATEGY LEVELS OF STRATEGY
? Corporate-level Strategy.
? Growth Strategy - Current Business and New Ventures
? Stability Strategy
? Renewal strategy - Retrenchment and Renewal .
? Business-level strategy
? Porters Generic Strategy:
? Cost leadership strategy
? Differentiation strategy
? Focus strategy
? Functional Level Strategy - Finance, HR, IT and
Marketing
SITUATIONAL ANALYSIS - TOWS MATRIX
BLUE OCEAN STRATEGY BCG MATRIX BCG - APPLE INC PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
Research and Development
Companies decide for cost of product and
problems of service. 80% of product costs are
determined at this stage. Products are designed,
made a prototype and tested for needs of various
users.
Introduction (Offer)
Large budgets must be separated for promotion
because it is the first time of product ? market
meeting. The new product does not produce profit
due to costs of supply and promotion.
PRODUCT LIFE CYCLE
Growth
Companies begin to obtain revenue. The price of
the product can be the same at the beginning or it
can be changed. The cost of marketing should be
stable and also you have to invest for improving
your product's features. Expansion of distribution
lines reach to the new customers.
Maturity
This level starts from the rate of decreasing sales
growth. Competition increases between sellers. The
rivals try to reduce prices while the cost of production
is falling.
PRODUCT LIFE CYCLE
Decline
The rate of sales reduces visibly. The reasons of
decline are technological developments, opponents
who gain experience and strong etc. At the end of
this stage the companies need to know the idea of
customers about product. A decision pertaining to
the future course of action needs to be taken here.
PLC STRATEGIES PLANNING PREMISES
? Constitute a framework within which
planning is done.
? Assumptions of what is likely to happen in
future.
? In other words, it is a prerequisite to
determine future settings such as
marketing, pricing, Government policy, tax
structure, business cycle, etc. before
giving the final shape to the overall
business plan.
DECISION MAKING
? The word decision has been derived from the Latin
word "decidere" which means "cutting off". Thus,
decision involves cutting off of alternatives
between those that are desirable and those that
are not desirable.
? According to Haynes and Massie, ?Decision-making
is a process of selection from a set of alternative
courses of action which is thought to fulfill the
objective of the decision-problem more
satisfactorily than others?.
DECISION MAKING CHARACTERISTICS
? It is a human process involving to a great extent
the application of intellectual abilities.
? It is always related to the environment.
? It involves a time dimension.
? It always has a purpose. Keeping this in view, there
may just be a decision not to decide.
? Decision making involves a certain commitment. A
decision results into the commitment of resources
and reputation of the organisation.
DECISION MAKING PROCESS
5 why?
TYPES OF DECISIONS
? Organisational and Personal Decisions.
? Routine and Strategic Decisions.
? Programmed and Non-programmed
decisions.
? Policy and Operating Decisions.
TOOLS /TECHNIQUES OF DECISION MAKING
(1) Qualitative Techniques
a) Brainstorming
b) Synectics
c) Nominal Grouping
(2) Quantitative Techniques:
a) Stochastic Methods
b) Payoff Table
c) Simulation Techniques
d) Breakeven Analysis
Qualitative Techniques
Brainstorming
This is carried out in a group where members
are presented with a problem and are asked to
develop as many as potential solutions as
possible. The member of the group may be
experts, may be from other organizations but
the members should be around six to eight. The
duration of the session may be around 30
minutes to 55 minutes. The premise of
brainstorming is that when people interact in a
free and exhibited atmosphere, they will
generate creative ideas.
Synectics
? This technique was developed by William J.J.
Gordon. It is recently formalized tool of
creative thinking. The word Synectics is a
Greek word, meaning the fitting together of
diverse elements. It is a problem-solving
technique which seeks to promote creative
thinking, typically among small groups of
people of diverse expertise.
Nominal Grouping
Stage-I : Around seven to ten participants with
different background and training are selected,
familiarized with a selected problem like what
alternatives are available for achieving a set of
objective.
Stage-2: Each member is asked to prepare a list of
ideas in response to the identified problem,
individually for achieving a set of objective.
Stage -3: After ten minutes, the member shares
ideas, one at a time, in a round-robin manner. The
group facilitator records the ideas on a blackboard
or flip chart for all to see.
Nominal Grouping
Stage-4: Each group member then openly
discusses and evaluates each recorded
ideas. At this point, it may be rewarded,
combined, added or deleted.
Stage-5: Each member votes ranking the
ideas privately.
Quantitative Techniques
Simulation Techniques
Often, when a management problem is too
complex to be answered by series of
mathematical equations, it is possible to
simulate the probable outcomes before taking
action. In this way, the manager may rapidly try
out on paper (or with a computer) the results of
proposed actions before the actions are taken.
By trying out several policies, it is possible to
determine which one has the best chance of
providing the optimum result.
Quantitative Techniques
Breakeven Analysis
The simplest approach for showing the relationship
of revenue to cost is the breakeven chart. Revenue
and cost can be studied by directing attention to :
(i) total revenue and total cost, (ii) average revenue
and average cost per unit of output, and (iii)
changes in revenue and cost. Breakeven analysis
implies that at some point in the operations total
revenue equals total cost-the breakeven point. This
analysis can be handled algebraically or graphically;
however, in all cases, the first step is to classify
costs into at least two types-fixed and variable.
Merits of Decision Making
? Decision making helps to adopt best course of
action.
? Optimum use of resources
? It helps to find a solution
? It helps to promote efficiency.
? It helps to resolve conflicts.
De-merits of Decision Making
? Decision maker is unaware of the alternatives
available.
? Indecisiveness.
? Quick decision.
? Resistance
ORGANISING
? According to Sheldon "Organization is the process of so
combining the work which individuals or groups have to
perform with facilities necessary for its execution, that
the duties so performed provide the best channels for
efficient, systematic, positive and coordinated application
of available effort."
? In the words of Chester I Bernard, "Organization is a
system of co-operative activities of two or more persons."
? MC Ferland has defined Organisation as, "an identifiable
group of people contributing their efforts towards the
attainment of goals".
? According to Louis A Allen, "Organisation is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing Relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.
Nature /Characteristics of organisation
? Common Purpose
? Division of Labour
? Chain of command
? People
? Communication
? Coordination
? Environment
? Rules and Regulations
Principles of Organization
? Division of work
? Attention to
objectives
? Span of
management
? Unity of command
? Flexibility
? Proper balance
? Management by
exception
? Decentralization
? Departmentalization
? Efficiency
? Scalar principle
? Continuity
? Coordination
? Authority and
responsibility
Steps / Process of Organizing Organisation Structure
? An organisation structure shows the authority
and responsibility relationships between the
various positions in the organisation by
showing who reports to whom.
? The structure of an organisation is generally
shown on an organisation chart.
? It shows the authority and responsibility
relationships between various positions in the
organization
Significance of Organisation
Structure
? Improve teamwork and productivity by
providing a framework within which the people
can work together most effectively.
? Determines the location of decision-making in
the organisation.
? Facilitates growth of enterprise by increasing
its capacity to handle increased level of
authority.
? Provides the pattern of communication and
coordination.
? Helps a member to know what his role is and
how it relates to other roles.
Formal and Informal Organization
? Formal Organisation - "a system of
consciously coordinated activities or forces of
two or more persons?.
? Structure of well-defined jobs, each bearing a
definite measure of authority, responsibility
and accountability.
? Bound by rules, regulations and procedures.
? A formal organisation is deliberately
impersonal.
Informal Organisation
? Informal organisation arises from the
personal and social relations of people.
? Informal organisation refers to the
relationship between people in the
organisation based on personal attitudes,
emotions, prejudices, likes, dislikes etc.
? The inter-relations amongst the people in an
informal organisation cannot be shown in an
organisation chart.
Forms of Organisation Structure
? LINE ORGANISATION
? Represents the structure in a direct
vertical relationship through which
authority flows.
? Line organisation is the oldest type of
organisation.
? It is also known as scalar or military
organisation.
? In this type of organisation, there is a
vertical line of authority running from the
top to bottom of organisation.
LINE ORGANISATION STRUCTURE
Line and Staff Organisation
? Line authority flows in a vertical line in the
same manner as in the line organisation.
? In addition, staff specialists are attached to
line positions to advise them on important
matters.
? These specialists do not have power of
command over subordinates in other
departments.
Line and Staff Organisation Functional Organisation
? The organisation is divided into a number of
functional areas.
? Each function is managed by an expert in that
area.
? Every functional area serves all other areas in
the organisation.
? As the name implies, the whole task of
management and direction of subordinates
should be divided according to the type of work
involved.
Divisional Organizational Structure
? These types of organizations divide the
functional areas of the organization to
divisions.
? Each division is equipped with its own
resources in order to function independently.
? Divisions can be defined based on the
geographical basis, products/services basis,
or any other measurement.
Divisional Organizational Structure Geographical Organization Structure
? Geographic organizational structure allows for
each business unit or office to operate as its own
entity based on where it's located.
? This particular structure brings workers together
in geographical divisions.
? Each division operates as if it is a company in
itself, complete with the personnel to carry out
various business functions such as finance,
marketing and production.
Customer based Organization
Structure
? Certain industries will organize by customer type.
? This is done in an effort to ensure specific
customer expectations?are met by a customized
service approach.
? In this case organization structure designed
based on type of Customers.
Matrix Organizational Structure
? A matrix structure provides for reporting
levels both horizontally as well as vertically.
Employees may be part of a functional group
but may serve on a team that supports new
product development.
? A matrix organizational structure is a company
structure in which the reporting relationships
are set up as a grid, or matrix, rather than in
the traditional hierarchy.
? In other words, employees have dual reporting
relationships - generally to both a functional
manager and a product manager.
Matrix Organizational Structure
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This post was last modified on 18 February 2020