Professional Documents
Culture Documents
Principles of
Management
Remaining of Chapter No 4
…?
1
Management Chapter 4 Remaining 3/15/2014
ENVIRONMENT
Transformation
input output
process
System Boundary
Technological
Economic
Political &
Social
Legal
Industry in Pakistan….. !
2
Management Chapter 4 Remaining 3/15/2014
Types of Plans
Types of Plans
1. Missions/ Purposes
2. Objectives/ Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
Types of Plans
1. Missions/ Purposes
2. Objectives/ Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
3
Management Chapter 4 Remaining 3/15/2014
Types of Plans
1. Missions/ Purposes
2. Objectives/ Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
Types of Plans
1. Missions/ Purposes
2. Objectives/ Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
Types of Plans
1. Missions/ Purposes
2. Objectives/ Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
4
Management Chapter 4 Remaining 3/15/2014
Types of Plans
1. Missions/ Purposes
2. Objectives/ Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
Mission
The basic purpose or function of an
enterprise or agency or any part of it.
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Management Chapter 4 Remaining 3/15/2014
Example of Mission
Mobilink's Vision:
"To be the leading telecommunication
services Provider in Pakistan by offering
innovative Communication solutions for
our Customers while exceeding
Shareholder value & employee
expectations".
http://www.mobilinkgsm.com/about/vision.php
Example of Mission
Telenor Vision:
“ Our vision is simple: We're here to help
We exist to help our customers get the full
benefit of communications services in their
daily lives.
The key to achieving this vision is a mindset
where every one of us works together: Making it
easy to buy and use our services. Delivering on
our promises. Being respectful of differences.
Inspiring people to find new ways.”
http://www.telenor.com.pk/about/vision.php
Example of Mission
Ufone Mission:
http://www.ufone.com/about_MissionStatement.aspx
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Management Chapter 4 Remaining 3/15/2014
Objective
Strategy
The determination of the basic long term objectives of
an enterprise and the adoption of course of action and
allocation of resources required to achieve these goals.
Policies
General statements
or understandings
that guide or
channelize thinking
in decision making.
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Management Chapter 4 Remaining 3/15/2014
Procedures
Plans that establish a required method
of handling activities.
Rules
Rules spell out specific required actions
or non-actions allowing no discretion.
Do’s Dont’s
Programs
A Complex of:
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Management Chapter 4 Remaining 3/15/2014
Budget
A statement of
expected results
expressed in
numerical terms.
Steps in Planning
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making Budgets
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Management Chapter 4 Remaining 3/15/2014
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative
Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making
Budgets
Awareness of Opportunities
SWOT Analysis
STRENGTHS
Activities an organization does well or resources it
control
WEAKNESSES
Activities an organization does not do well or
resources it needs but does not have
OPPORTUNITIES
Positive external environmental factors
THREATS
Negative external environmental Factors
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Management Chapter 4 Remaining 3/15/2014
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative
Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making
Budgets
11
Management Chapter 4 Remaining 3/15/2014
Establishing Objectives
• Selecting objectives for:
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative
Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making
Budgets
Planning Premises
Assumptions about the environment in
which plans are to be carried out.
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Management Chapter 4 Remaining 3/15/2014
Developing Premises
• All Managers MUST agree to these
assumptions
• Assumptions regarding:
– Forecasts
– Basic Policies
– Existing Plans
– Anticipated Environment
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative
Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making
Budgets
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Management Chapter 4 Remaining 3/15/2014
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative
Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making
Budgets
14
Management Chapter 4 Remaining 3/15/2014
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative
Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making
Budgets
…etc !
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative
Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making
Budgets
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Management Chapter 4 Remaining 3/15/2014
Plan
Steps in Planning
1. Awareness of Opportunities
2. Establishing Objectives
3. Developing Premises
4. Determining Alternative
Courses
5. Comparing alternatives
6. Selecting Best Course
7. Formulating Supportive Plans
8. Quantifying Plans by Making
Budgets
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Management Chapter 4 Remaining 3/15/2014
Objectives
Management by Objectives
• Peter Drucker
– A famous Management Consultant
– Author of 39 Books
– MBO Approach given in 1954
• Management by Objectives (MBO)
– A comprehensive management system based on
measurable participatively set objectives, that
leverages the motivational power of objectives
– World wide used by many organizations
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Management Chapter 4 Remaining 3/15/2014
Management by Objectives
Management by Objectives (MBO)
• A program that encompasses specific goals,
collectively set, for an explicit time period, with
feedback on goal progress.
Key Elements
1. Goal specificity
2. Participative decision making
3. An explicit time period
4. Performance feedback
Cascading of Objectives
Overall
organizational
objectives
Divisional
objectives
Departmental
objectives
Individual
objectives
Cascading of Objectives
7–54
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Management Chapter 4 Remaining 3/15/2014
HIERARCHY OF OBJECTIVES
HIERARCHY OF OBJECTIVES
• Vision/ Mission
Top Level
• Overall/ Specific/ Division
Managers Objectives
• Division level
Middle Level • Department/ Unit Level
Objectives
Bottom Up
Approach
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Management Chapter 4 Remaining 3/15/2014
Characteristics of Objectives
• To be verifiable:
– Quantitative
– Qualitative
• Simple & clearly understandable
• Written
• SMART
– S: Specific
– M: Measurable (Verifiable)
– A: Appropriate (Relevant)
– R: Realistic
– T: Time-bound
Examples : Objectives
• To make a reasonable profit
• To achieve RoI of 12% at the end of the current fiscal year
• To improve communication
• To issue a two page monthly newsletter beginning 1 July, 10
involving not more than 40 man-hours of preparation time.
• To improve productivity of the production department
• To increase production output by 5% by 31 Dec 10 without
additional costs while maintaining the existing quality
standards
• To develop better managers
• To design and conduct a 40-hour in-house Management
training program to be completed by 31 Oct, 10 with
induction of 20 managers, involving not more than 200
working hours.
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Management Chapter 4 Remaining 3/15/2014
Disadvantages
• The development of objectives can be time
consuming, leaving both managers and employees
less time in which to do their actual work.
• The elaborate written goals, careful communication of
goals, and detailed performance evaluation required in
an MBO program increase the volume of paperwork in
an organization.
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Management Chapter 4 Remaining 3/15/2014
(Peter Drucker)
Attendance
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