MANAGEMENT THEORY & PRACTICE - ASSIGNMENT NO.

01

Assignment No. 1

Course:

Management Theory & Practice

Level:

MBA Banking & Finance

Semester:

First

Student Name:

Syed Majid Zulfiqar

Cell:

0322-5481395

Roll No:

AH522736

Teacher Name:

Mr. Rana Mumtaz

Institute:

Prime College of Management and Informatics, Lahore (Approved Study Centre of Allama Iqbal Open University Islamabad)

Contents

Title

Page:

Page-01

Contents:

Page-02

Question 01:

Page-03

Question 02:

Page-09

Question 03:

Page-18

Question 04:

Page-23

Question 05:

Page-28

MANAGEMENT THEORY & PRACTICE - ASSIGNMENT NO. 01

Q. 1

Why is it important to examine management from different perspectives and what do you

achieve from this examination? Describe management in a new perspective (e.g. management means "being in changer").

Answer

01.

Importance of Examination of Management from different perspectives

First we need to have some knowledge about what is management for better result of examination of Management.

Management is the process of getting activities completed efficiently and effectively. To be effective is to achieve organizational goal. To be efficient is to achieve goals with minimum waste of resources, to make the best possible use of money, time materials, and people.

Different perspectives will give us a different 'lens' through which to examine management. A feminist lens will do one thing; a structural lens will do another, etc. More lenses, or perspective, will give a more complete picture.

Using a decision modeling approach, this research examined differences across levels of management in a large construction company concerning the criteria for a maintenance management control system. The six criteria were cost efficiency, productivity improvement, materials management, unification of work control, planning and scheduling, and information and retrieval. A decision-making exercise was constructed that asked the respondent to make recommendations concerning the approval or disapproval of 32 hypothetical maintenance management systems. Among the 60 managers who completed the exercise, there was evidence of significant differences across levels of management concerning the criteria for a maintenance management control system. Additionally, distortions were observed between what the managers said was important and what their decisions indicated. These data demonstrate that the decision modeling approach presented can be effectively used to examine the degree of consensus within an organization.

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MANAGEMENT THEORY & PRACTICE - ASSIGNMENT NO. 01

02.

Achievement from the examination of Management Examination is a way to measure the performance of performer in any field. The result of this

process always helps the organization progress improve. The staffing function of the management process. Or the policies and practices needed to carry out the "people" or management aspects of a management position, including recruiting, screening, training, rewarding, and appraising etc.

03.

Management in new perspective

Management in all business areas and organizational activities are the acts of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resource encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.

Because organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others

The term 'management' encompasses an array of different functions undertaken to accomplish a task successfully. In the simplest of terms, management is all about 'getting things done'. However, it is the way and the process of how one achieves ones target or goals and it is in this respect that management is considered an art and a science as well.

The term management may be recently defined, but it existed at a time when men started learning the art of organizing, strategizing (during wars) and/or simply planning. At the core of it, management was quintessentially considered as an art of 'managing men' and hence the term "managemen-T."

At the roots, management evolved when the definition of knowledge became practically skewed rather than being plain 'rational'. In some way, Rousseau (1972) pointed out "A real knowledge of things

MANAGEMENT THEORY & PRACTICE - ASSIGNMENT NO. 01

may be a good thing in itself, but the knowledge of men and their opinions is better, for in human society." And much later, management scholar, Peter Drucker (1993) defined management as "Supplying knowledge to find out how existing knowledge can best be applied to produce results is, in effect, what we mean by management. But knowledge is now also being applied systematically and purposefully to determine what new knowledge is needed, whether it is feasible, and what has to be done to make knowledge effective. It is being applied, in other words, to systematic innovation." (Drucker, 1993)

From the above two definitions, it is clear that management is a creative as well as a systematic flow of knowledge that can be applied to produce results by using human

as well as other resources in an effective way. Management has not been limited to.

Managing human resource; management today has been segregated into various branches like financial management, strategic management, operations management, time management, crisis management, marketing management etc. Each of these is a separate branch that is being handled by managers who specialize in these fields.

Today the importance of management from an organization's point of view has increased multifold. It is only through effective management that companies are developing and executing their business's policies and strategies to maximize their profits and provide with the best of products and services.

Management today combines creative, business, organizational, analytical and other skills to produce effective goal-oriented results! Some of the key functions in management includes learning to delegate, planning and organizing, communicating clearly, controlling situations, motivating employees, adapting to change, constantly innovating and thinking of new ideas, building a good team and delivering results which are not just figure -bound but results that also focus on overall growth and development.

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MANAGEMENT THEORY & PRACTICE - ASSIGNMENT NO. 01

Management focuses on the entire organization from both a short and a long-term perspective. Management is the managerial process of forming a strategic vision, setting objectives, crafting a strategy and then implementing and executing the strategy.

Management goes beyond the organization's internal operations to include the industry and the general environment. The key emphasis is on issues related to environmental scanning and industry analysis, appraisal of current and future competitors, assessment of core competencies, strategic control and the effective allocation of organizational resources.

In general terms, there are two approaches to management: -The Industrial Organization Approach: This approach is based on economic theory which deals with issues like competitive rivalry, resource allocation, economies of scale. This approach to management assumes rationality, self interested behavior, profit maximization. - The Sociological Approach: This approach deals primarily with human interactions. It assumes rationality, satisfying behavior, profit sub-optimality. Management theories can also be divided into two sets. One is the set that concentrates mainly on efficiency and another is the set that concentrates mainly on effectiveness. Efficiency is about doing things the right way. It involves eliminating waste and optimizing processes. Effectiveness is about doing the right things. A good management style is a blend of both efficiency and effectiveness. There is no point in acting efficiently if what you are doing will not have the desired effect.

Management techniques can be viewed as either bottom-up, top-down, or collaborative processes.

In India, largely the top down approach is popular. In the top-down approach, the management makes the decisions, which the employees have no choice but to accept. On the other hand, in the bottomup approach, employees submit proposals to their managers who, in turn, funnel the best ideas further up the organization. However the bottom up approach is not a very popular approach in India.

MANAGEMENT THEORY & PRACTICE - ASSIGNMENT NO. 01

Q. 2 Describe the managerial skills you need to develop to be an effective manager, and suggest how you can achieve these skills.

Answer

MANAGERIAL SKILLS Each year, thousands of people make the switch from staff engineer or scientist to manager. And, although many of us look forward to the change, we find it frustrating once we get there. When we were engineers, we were rewarded for our technical skills and labors in direct proportion to what we accomplished. But now, as a manager, our success is measured not by our own output hut by the output and productivity of the people we supervise. And that sense of not being in direct control can be a frustrating feeling. Fortunately, working with others and getting them to give you their best can be just as rewarding as technical accomplishments . . . once you get the hang of it. Here are eight tips that will help you to manage and to guide your people more effectively. Managers need three basics set of skills: technical, interpersonal, and conceptual. a. Technical skills The skills that include knowledge of and proficiency in a certain specialized field Managers need to be technically competent. They need to know how to plan, organize lead and control. Line managers need this skills the most while top manager will need minimum of technical skills. b. Interpersonal Skills. Interpersonal skills include the ability to work well with other people both individually and in a group. Managers need good interpersonal skills, knowledge about human behavious and group processes, ability to understand the feeling, attitudes and motives of others, and ability to communicate, important at each level of managers. c. Conceptual Skills. Conceptual skills include the ability to think and to conceptualize about abstract and complex situations, to see the organization as a whole and to understand the relationships among the various subunits, and to visualize how the organization fits into its broader environment. Conceptual skills include analytical ability, logical thinking , concept formation, and inductive reasoning. Top managers/CEO need this type of skill the most

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MANAGEMENT THEORY & PRACTICE - ASSIGNMENT NO. 01

The Human Touch The most valuable qualities you can develop within yourself are patience, kindness, and consideration for other people. Although machines and chemicals don't care whether you scream and curse at them, people do. Your subordinates are not just engineers, scientists, administrators, clerks, and programmers they're people, first and foremost. People with families and friends, likes and dislikes. People with feelings. Respect them as people and you'll get their respect and loyalty in return. But treat them coldly and impersonally and they will lose motivation to perform for you. Corny as it sounds, the Golden Rule "Do unto others as you would have others do unto you'' -is a sound, proven management principle. The next time you're about to discipline a worker or voice your displeasure, asked yourself, "Would I like to be spoken to the way I'm thinking of speaking to him or her?'' Give your people the same kindness and consideration that you would want to receive if you were in their place.

Don't Be Overly Critical As a manager, it's part of your job to keep your people on the right track. And that involves pointing out errors and telling them where they've gone wrong. But some managers are overly critical. They're not happy unless they are criticizing. They rarely accomplish much or take on anything new themselves, but they are only too happy to tell others where they went wrong, why they're doing it incorrectly, and why they could do the job better. Don't be this type of person. Chances are, you have more knowledge and experience in your field than a good many of the people you supervise. But that's why the company made you the boss! Your job is to guide and teach these people not to yell or nit-pick or show them how dumb they are compared to you. Mary Kay Ash, founder and director of Mary Kay Cosmetics, says that successful managers encourage their people instead of criticizing them. "Forget their mistakes," she advises, "and zero in on one small thing they do right. Praise them and they'll do more things right and discover talents and abilities they never realized they had."

Let Them Fail Of course, to follow through on Mary Kay's advice, you've got to let your people make some mistakes. Does this shock you? I'm not surprised. Most workers expect to be punished for every mistake. Most managers think it's a "black eye" on their record when an employee goofs. But successful managers know that the best way for their people to learn and grow is through experience and that means taking chances and making errors.

MANAGEMENT THEORY & PRACTICE - ASSIGNMENT NO. 01

Give your people the chance to try new skills or tasks without a supervisor looking over their shoulders but only on smaller, less crucial projects. That way, mistakes won't hurt the company and can quickly and easily be corrected. On major projects, where performance is critical, you'll want to give as much supervision as is needed to ensure successful completion of the task.

Be Available Have you ever been enthusiastic about a project, only to find yourself stuck, unable to continue, while you waited for someone higher up to check your work before giving the go ahead for the next phase? Few things dampen employee motivation more than management inattention. As a manager, you have a million things to worry about besides the report sitting in your mailbox, waiting for your approval. But to the person who wrote that report, each day's delay causes frustration, anger, worry, and insecurity. So, although you've got a lot to do, give your first attention to approving, reviewing, and okaying projects in progress. If employees stop by to ask a question or discuss a project, invite them to sit down for a few minutes. If you're pressed for time, set up an appointment for later that day, and keep it. This will let your people know you are genuinely interested in them. And that's something they'll really appreciate. Improve the Workplace People are most productive when they have the right tools and work in pleasant, comfortable surroundings. According to a study by the Buffalo Organization, a comfortable office environment creates an extra $1400 of productivity annually for professionals and managers. Having the right equipment is equally important. One of my clients recently hired a full-time technical writer at a salary of $23,000 but was reluctant to invest $2300 in a word processor for him to use. Be aware that you may not be the best judge of what your employees need to do their jobs effectively. Even if you've done the job yourself, someone else may work best with a different set of tools, or in a different setup because each person is different. If your people complain about work conditions, listen. These complaints are usually not made for self gain, but stem from each worker's desire to do the best job possible, And by providing the right equipment or work space, you can achieve enormous increases in output . . . open with a minimal investment.

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A Personal Interest in People When is the last time you asked your secretary how her son was doing in Little League or how she enjoyed her vacation? Good salespeople know that relating to the customer on a person-to-person level is the fastest way to win friends and sales. Yet many technical managers remain aloof and avoid conversation that does not relate directly to business. Why? Perhaps it's because engineers are more comfortable with equations and inanimate objects than with people, and feel uncomfortable in social situations. But just as a salesperson wants to get to know his customer, you can benefit by showing a little personal interest in your people their problems, family life, health, and hobbies. This doesn't have to be insincere or overdone just the type of routine conversation that should naturally pass between people who work closely. If you've been ignoring your employees, get into the habit of taking a few minutes every week (or every day) to say "hello" and chat for a minute or two If an employee has a personal problem affecting his mood or performance, try to find out what it is and how you might help. Send a card or small gift on important occasions and holidays, such as a 10th anniversary with the firm or a birthday. Often, it is the little things we do for people (such as letting workers with long commutes leave early on a snowy day, or springing for dinner when overtime is required) that determine their loyally to you.

Be Open to Ideas You may think the sign of a good manager is to have a department where everybody is busy at work on their assigned tasks. But if your people are merely "doing their jobs," they're only working at about half their potential. A truly productive department is one in which every employee is actively thinking of better, more efficient methods of working ways in which to produce a higher quality product. In less time, at lower cost. To get this kind of innovation from your people, you have to be receptive to new ideas; what's more, you have to encourage your people to produce new ideas. Incentives are one way you can offer a cash bonus, time off, a gift. But a more potent form of motivation is simply the employee's knowing that management does listen and does put employee suggestions and ideas to work. Quality Circles, used by

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Westinghouse and other major firms, are one way of putting this into action... The old standby, the suggestion box. is another time tested method. And when you listen to new ideas, be open minded. Don't shoot down a suggestion before you've heard it in full. Many of us are too quick, too eager, to show off our own experience and knowledge and say that something won't work because "we've tried it before" or "we don't do it that way." Well, maybe you did try it before, but that doesn't mean it won't work now. And having done things a certain way in the past doesn't mean you've necessarily been doing them the best way. A good manager is open-minded and receptive to new ideas.

Give Your People a Place to Go If a worker doesn't have a place to go a position to aspire to, a promotion to work toward then his job is a dead end. And dead-end workers are usually bored, unhappy, and unproductive. Organize your department so that everyone has opportunity for advancement, so that there is a logical progression up the ladder in terms of title, responsibility, status, and pay. If this isn't possible because your department is too small, perhaps that progression must inevitably lead to jobs outside the department. If so, don't hold people back; instead, encourage them to aim for these goals so that they will put forth their best efforts during all the years they are with you.

A mark of a good leader is to be able to provide consistent motivation to his team encouraging them to attain excellence and quality in their performance. A good leader is always looking for ways to improve production and standards. Here are six management skills can develop as a leader in working to create a quality effective team. 1. Observation

This is an important aspect that often gets neglected due the demands on a leader's time and schedule. Observation and regular visits to the work environment are a priority and should be scheduled into the calendar. Observing employees at work, the procedures, interaction and work flow is foundational to implementing adjustments to improve results. To have credibility, a leader needs to be seen and be known to be up to date with what is happening in the work place.

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2. Monitor Employee Performance

Employee performance needs to be monitored in mutually accepted ways. Policies and procedures need to be clear. Conferencing should be on a regular basis and not just when there is a problem. Assessments and evaluations should not be merely all formality or viewed a necessary paperwork to be done and filed away. Individual and group conferencing should be undertaken not only to monitor performance, but with the expectation of on going professional development and support. There should be frequent encouragement and clear criteria for on going goals both for the group and individual.

3. Implementation of Professional Development Programs

A good leader evaluates weaknesses and provides training and development strategies to strengthen the weaker skills in the team.

4. Demonstrates Working Knowledge and Expertise

Good leadership comes from a place of strong knowledge and experience of the production and process leading to results. If a leader does not possess all the expertise and knowledge personally, then regular consultations with experts involved in the departments should be held. This is important in order to maintain an accurate and informed overall picture.

5. Good Decision Making

Good leadership is characterized by the ability to make good decisions. A leader considers all the different factors before making a decision. Clear firm decisions, combined with the willingness and flexibility to adapt and adjust decisions when necessary, create confidence in the leadership.

6. Ability to Conduct and Evaluate Research

On going review and research is vital in order to keep on the cutting edge in business. While managing the present to ensure on going excellence in product and

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performance, a good leader is also able to look towards the future. Conducting and evaluating research is an important way of planning and being prepared for the future.

Excellent leadership is always pro active rather than reactive. By developing these six managerial skills builds a solid foundation for success.

Q3:
and why? Answer

I would like study on my country Pakistan for business. Pakistan is a country which has four seasons and lot of natural resources (reserves). This country population is nearly 180 Million.

The population is a main factor for any business as well as resources, government, political and legal systems. Now I would like introduce resources of Pakistan.

Resources

Pakistan has more than 326 million barrels of oil and 29,790 billion cubic feet of gas reserves. Pakistan had 185,165 million tones of coal reserves, mainly in Sindh. The demand for oil is 19.2 million tones a year and that for gas 5.3 million cubic feet a day.

There were approximately 4,504 million tonnes of copper-gold resources in Reko Diq in Balochistan,

Converting Coal to Oil: and Pakistan has been evaluating those robust processes but for now the focus in on producing electricity. Many countries in the world have converted coal to oil/chemicalsGermany, South Africa and China.

The Coal reserves are estimated at the 4th largest in the world etc. Thar coal is already being used to generate electricity-however this is to be expanded exponentiallv for the ernwine needs Consumption has grown exponentially because of the huge number of cars on the roads. Pakistan is now one of the largest producers of cars and motor-bikes. Adam Car is the locally produced one.

Most Pakistani cars now run on CNG anyway which is much cheaper and local.

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There is also oil in the marshes East of Karachi which are being explored.

In Pakistan a crises of energy is on peak but there are many and more chance of resolve this problem in next few years.

One of the largest wind farms has already begun producing wind energy. It will take 5 years to expand. And there are some new dams already begun with Bhasha coming up first.

Pakistan is an agricultural country. There we can produce any type of crops. Some main crops are Sugarcane, Wheat, Cotton, Rice, fruits and vegetables also.

Government Government of Pakistan is a very supportive government for business. There are some problems about law and enforcement. The government doing hard work to resolve problems.

Political System Political system of Pakistan is strong but some weakness is also there. Any time the improvement required in every field/work.

Legal system Legal system is available in Pakistan for every field but there are problems in implementation. Legal system is very important for a country and their peoples especially for business mans.

Book Publishing The business of publishing of books is very successful in Pakistan. There are round about 180 million population needs the books for School, Technical, Poetry, Novels, Islamic and History. The book can be a best friend of any personality. The book publishing departments are working here in Pakistan successfully. There are availability of paper in Pakistan is not a big problem as compare to other raw materials. The book is an item that is we can sell every where in Pakistan like big cities as well as in small villages. The books are the assets for readers. They would like to keep the books with themselves as long as they can. The peoples love the books and almost they want to give the gift to each other. If any one can

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not publish directly the books for selling he can purchase easily from market and sell at the sale point. The books publishing and selling is a squire and profitable business. The storage of books is not very difficult. We can manage with small expenses. There are no big taxes on books publishing and selling in Pakistan as compare to other products.

If successful, a book written by an entrepreneur will not only add revenue, but also open up many new possibilities for the business. A book enhances the professional reputation; it may lead to many other contacts and opportunities, for sales, for speaking engagements, for seminars or countless other kinds of business openings.

In addition a book will create the opportunity to create a website around the title and thus appeal to an audience that might not visit the company's own site. Likewise a linked electronic newsletter may draw in new enquiries. The book could provide material directly for articles to be placed in other online or paper publications. It would be the subject of press releases and reviews, adding to the authority of the business.

Imagine a company selling villa holidays in a particular place. Chances are that the people running it are very knowledgeable about the destination. They write a guide to support the company's offer and help the clients enjoy their vacation. Make it a book and sell it separately to the villa booking. It gets a life of its own, but also offers business leads, confirms the business as an expert in the product they are offering.

We have seen the multinationals do it. For example the Shell Guides (e.g., 'The Shell Guide to the Gardens of England and Wales' published by Andre Deutsch). True, they are published by mainstream publishers, but they follow in the tradition of the Michelin Guides that were self-published from the early 20th century to establish the tire company's credentials. As an entrepreneur, we are not too likely to find a publisher to take our book, even if we subsidies the cost. However, via the self-publishing route, we can get one out ourself within weeks of completing the text.

What is Self-Publishing?

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In self-publishing, the author: is also the publisher; finances the publication, but may make a greater return if the title is popular (regular published authors get 10% royalties, self-publishers earn 3060% of cover price, or up to 100% with e-books); is seeking credibility and contacts for his business; wishes to get to the market with certainty and speed; probably assumes responsibility for marketing; retains legal rights to the work.

Self-publishers do not have to perform every task themselves. They do, however, have to see that every task gets done. What they can't do themselves, they have to simply outsourceall or part of the work. Self-publishing can be done in many different ways depending on the individual's abilities and time constraints.

Print (or publish) on demand (POD) is means that a copy is not created until after an order is received, or in some cases that short print runs are produced to satisfy immediate demand (low inventories, technical set-up less expensive and faster, no remainders). There are three main differences between POD and true self-publishing: (i) the ISBN is in the POD publisher's not the author's name, (ii) the company pays royalties instead of the author taking all the income, (iii) the POD publisher takes some of the risk. Q. 4 Explain in detail the different types of decisions managers take at different levels in an organization.

Answer. Decision

Making.

Decision making refers to the thought process that is involved while choosing the most logical choice from among the options available. Be it deciding upon whether to look for a new cave for the next winters or signing the contract with new business partners, intelligent decisions have been instrumental in the survival and prosperity of human beings. Making the right decision according to the complexity of the situation is what sets an average individual separate from the rest. Although, the ability of making the correct decision within a short span of time is a highly valued trait, one cannot follow a set pattern of deciding on a course of action at all points of time. Hence, there are different types of decision making that we all resort to depending upon the situation at hand.

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Different Types of Decisions who Manager takes at different levels

The following are the most common types of decision making styles that a manager in a business or even a common man might have to follow. Irreversible These decisions are permanent. Once taken, they can't be undone. The effects of these decisions can be felt for a long time to come. Such decisions are taken when there is no other option.

Reversible Reversible decisions are not final and binding. In fact, they can be changed entirely at any point of time. It allows one to acknowledge mistakes and fresh decisions can be taken depending upon the new circumstances.

Delayed Such decisions are put on hold until the decision maker thinks that the right time has come. The wait might make one miss the right opportunity that can cause some loss, specially in the case of businesses. However, such decisions give one enough time to collect all information required and to organize all the factors in the correct way.

Quick Decisions These decisions enable one to make maximum of the opportunity available at hand. However, only a good decision maker can take decisions that are instantaneous as well as correct. In order to be able to take the right decision within a short span of time, one should also take the long-term results into consideration.

Experimental

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One of the different types of decision making is the experimental type in which the final decision cannot be taken until the preliminary results appear and are positive. This approach is used when one is sure of the final destination but is not convinced of the course to be taken.

Trial and Error This approach involves trying out a certain course of action. If the result is positive it is followed further, if not, then a fresh course is adopted. Such a trail and error method is continued until the decision maker finally arrives at a course of action that convinces him of success. This allows a manager to change and adjust his plans until the final commitment is made.

Conditional Conditional decisions allow an individual to keep all his options open. He sticks to one decision so long as the circumstances remain the same. Once the competitor makes a new move, conditional decisions allow a person to take up a different course of action.

Types of Decision Making for Leaders

A leader gives direction to people to follow. He is responsible for ensuring that his decision provides the right direction to the organization. Be it in a business or in other organizations, decision making is an important component of leadership skills. The different types of decision making that a leader typically encounters are:

Authoritative In authoritative type of decision making the leader is the sole decision maker which subordinates follow. The leader has all the information and expertise required to make a quick decision. It is important that the leader is a good decision maker as it is he who has to own up to the consequences of his decision. Though effective, in case the leader is an experienced individual, it can harm the organization if the leader insists on an authoritative type of decision making even when there is expertise available within the team.

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Facilitative In facilitative type of decision making, both the leader and his subordinates work together to arrive at a decision. The subordinates should have the expertise as well as access to the information required to make decisions. Such an approach could be useful when the risk of wrong decision is very low. It is also a great way of involving and encouraging subordinates in the working of the organization.

Consultative As the name suggests, consultative decisions are made in consultation with the subordinates. However, the fact remains that unlike in the facilitative decision making style, in consultative decision making it is the leader who holds the decision making power. A wise leader tends to consult his subordinates when he thinks that they have valuable expertise on the situation at hand.

Delegative As per the term, the leader passes on the responsibility of making decisions to one or more of his subordinates. This type of decision making is usually adopted by the leader when he is confident of the capabilities of his subordinates.

It would have been so good had there been a universal model for decision making. However, due to the dynamic nature of conditions, be it our workplace or our personal lives, we have to resort to different types of decision making.

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Q. 5

Planning and control at Apple computer,

1. 2. 3.

What is the relationship between planning and controlling? What other types of plan can be used for controlling the organization? "Planning is looking ahead and controlling is looking back". Comment.

Answer

1.

Relationship between Planning & Controlling

I would like to define Planning and Controlling first. Before I go to specify the relationship between the Planning and Controlling

Planning Planning is a basic managerial function. It involves deciding on a course of action in advance. Planning is deciding what is to be done, where and how the work is to be done and who will do the particular task. We can say plan is to produce schemes for future action, to bring about specified results and specified cost, in a specified period of time. It's a deliberate, extent, speed and effects of change.

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Controlling Controlling is a procedure for measuring performance against objects. Controlling consist in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established. Its object is to point out weaknesses and error in order to rectify them and prevent recurrence. In short controlling facilitates the compliment of the plans. Although planning must preside controlling, plans are not self achieve. Plans guides manager in the use of the resources to the accomplished goal. Them activities are cheek to determine where confirm to plans. Some meaning of controlling like budget for expanse, in checking the record of labor hours lost. Each measure and each had shown where plans are working out. If devotion perishes, correct is innervated but what are correct activities through person.

Relationship between planning and controlling

Planning and controlling are two separate functions of management, yet they are closely related. The scope of activities if both is overlapping to each other. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absence of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each other. Relationship between the two can be summarized in the following points:-

1. 2. 3. 4.

Planning proceeds controlling and controlling succeeds planning. Planning and controlling are inseparable functions of management. Activities are put on rails by planning and they are kept at right place through controlling. The process of planning and controlling works on Systems Approach which is as follows: Planning Results Corrective Action

5.

Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise.

6.

Planning and controlling reinforce each other. Each drives the other function of management.

Example:

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British Airways (BA) is one of the world's largest international airline operators. A BA flight takes off somewhere around the world, on average, every 90 seconds. The difficulties in planning a schedule which involves the world-wide resources of British Airways and ensuring that every flight leaves on time must be one of the most complex planning and control tasks in any operation. The BA headquarters at Heathrow Airport near London is its busiest hub. It is there that one will find a small, but vitally important department known as Operations Control, which handles the seven days prior to take-off for long-haul flights, and the three days prior to take-off for short-haul flights. Initial flight schedules are produced up to two years in advance, and the route schedules are negotiated at a six-monthly global conference. The planning and scheduling group at BA will then manage the production of a flight timetable, taking account of the longer term implications of allocating certain aircraft types to each route. Any new routes or timings agreed are passed to Operations Control for comment on the practicalities of what is being proposed. Operations Control inherits this final flight schedule, and can only make minor changes in order to cope with unexpected situations arising during the period prior to take-off. It is responsible for co-ordinating the three main resources required to provide the flight services, which are the schedule, the aircraft and the crew. They also are responsible for managing the knock-on effects of any delays, shortages or disruption to any of these inputs. The Operations Control team is in charge of every flight until it lands, when departments such as Engineering and Station Control can take over. This handover is illustrated in the figure. The performance of the Operations Control team is evaluated in

terms of the regularity and subsequent punctuality of their flights. Regularity is defined as the percentage of flights actually taking off compared with the number scheduled. Passengers need to have total confidence that their flight will actually operate, and current performance is almost 99 per cent (canceling a flight is the very last resort for Operations Control). Punctuality is the measure of the timing of the take-offs. BA sets an internal standard whereby a flight is considered late if it does not take off at the time defined in the schedule. Thus a flight can only be early, dead-on-time, or late. Other component parts of the Operations Control Centre are the Emergency Procedures Information Centre (EPIC) and the Operations Control Intelligence Centre (OCIC) back-up centers. These are unmanned areas, set up to deal with certain types of incident at the 'press of a button'. The strategy of having independent crisis centers means that the day-to-day business units do not have to cater for every eventuality. They continue to work in the knowledge that an emergency situation will not be their responsibility, and they can thus focus more efficiently on the core operation. Conclusion:

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In the present dynamic environment which affects the organization, the strong relationship between the two is very critical and important. In the present day environment, it is quite likely that planning fails due to some unforeseen events. There controlling comes to the rescue. Once controlling is done effectively, it give us stimulus to make better plans. Therefore, planning and controlling are inseparable functions of a business enterprise.

2.

Other types of plan can be used for controlling the organization

Plans commit individuals, departments, organizations, and the resources of each to specific actions for the future. Effectively designed organizational goals fit into a hierarchy so that the achievement of goals at low levels permits the attainment of high-level goals. This process is called a means-ends chain because low-level goals lead to accomplishment of high-level goals.

Operational plan An operational plan is one that a manager uses to accomplish his or her job responsibilities.

Tactical plan A tactical plan is concerned with what the lower level units within each division must do, how they must do it, and who is in charge at each level. Strategic plan A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization's mission. Contingency planning

Contingency planning involves identifying alternative courses of action that can be implemented if and when the original plan proves inadequate because of changing circumstances.

3.

Planning is looking ahead and controlling is looking back

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Planning is required at the very outset of management whereas control is required at the last stages. If planning is looking ahead, control is looking back." Control and planning are interrelated so closely that they cannot be separated from each other.

Without control all the planning is fruitless because control consists of the steps taken to ensure that the performance of the organization conforms to the plans.

In other words control is concerned with the actual performance in relation to the standards set in advance and the correction of deviations to ensure attainment of objectives.

Planning is required at the very outset of management whereas control is required at the last stages.

If planning is looking ahead, control is looking back. In fact, control is the process of checking to determine whether or not proper progress is being made toward ^ nhWtivpe snrl goals set by management while doing planning.

Effective control through efficient superiors can only be a guarantee for success. The control system must be appropriate to the needs and circumstances of the enterprise. Control is a fundamental management function that ensures work accomplishment according to plans. The purpose of control is to ensure that everything in an organization occurs in conformity with pre-determined plans. Control also ensures that there is no kind of indiscipline and incompetence in the organization and employees are not able to put undue pressure on the management.

Some people are not in favor of control because they feel that control is always used against the employees. They advocate automatic control rather than forced one. But a balanced viewpoint is that both the management and the employees should be put under some kind of control. Control should be engrained in the basic policies of any type of business organization.

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