Management Information Systems

By : Prof. Prakash M Soni Topic No.: 4 Controls and Planning Process Planning ???
Planning is a search problem that requires to find an efficient sequence of actions that transform a system from a given starting state to the goal state Planning is the starting point of the management process Predetermines what the business proposes to accomplish and how it intends realizing its goals. It accomplishes with: Managing Uncertainty Better Focus Improves Coordination Basis for Control Improves Effectiveness

Planning is Universal
Corporation Level Strategic Business Unit (SBU) Level Functional Or Department Level Team Or Work Group Level Individual Level

Organizational Mission & Control

Organizational Mission: The Mission states the organizations values, aspirations, and reason for existence The Mission Statement is the basis for all following goals and plans Without a clear mission, goals and plans may be developed haphazardly causing the organization to fail Organizational Control: Managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals

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Management Information Systems

By : Prof. Prakash M Soni Planning involves
An understanding of the business history An examination of the business environment An assessment of the business mission Goals A process for reaching those goals A process for gathering information A realization that planning is a continuing process that is constantly evolving

Goals & Plans Strategic Goals & Strategic Plans

Goals: Specify future ends. Desired future state Plans: Specify the means to future ends. The Blueprint for goal achievement, specifies the necessary resource allocations, schedules, tasks Strategic Goals: Pertain to the entire organization (Not Specific Divisions And Departments) Strategic Plans: Define the action steps the company will use to attain strategic goals

Relationship of Terms used in Planning

The Planning Process

Planning may be seen as the identification and formulation of the objectives of a business (Goal Setting) Determining Planning Premises Analyzing the data (Identifying Alternatives) Evaluation & Selection Implementation & Review

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Management Information Systems

By : Prof. Prakash M Soni The Planning Process

Strategy Planning Process

Successful & Effective Planning Process

Successful Planning Process: Everyone Participates Board And Staff Educated About Planning Board And Staff Explore New Ideas Board Takes Advantages Of Opportunities Necessary Resources Available Effective Planning Process: Linked to Long term objectives Consistency Everyone participates Feasible Flexible Simple Top Management Support

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Management Information Systems

By : Prof. Prakash M Soni Characteristics of Planning
Planning Planning process Planning Planning Planning comes before actual execution of any managerial function is done by considering the level of information and authorities involved in the is closely associated with objectives should also support proper selection of alternatives to achieve the goals also gives platform for forecasting of events

Types of Plans
Single Use Plans Standing Plans Long term Plans Short term Plans Formal Plans Informal Plans Proactive Plans Reactive Plans Strategic Plans Operational Plans

Planning Principles
Who is needed to accomplish this task? What needs to be done? When does it start and end? Where will it takes place? How will it happen? Why must we do it?

Control System
Control consists of procedures to determine deviations from pans and indicates corrective action. Every major organizational function has a set of controls associated with it. Control System are formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about whether the organizations strategy and structure are working efficiently and effectively. A good control system should be flexible so managers can respond as needed, provide accurate information about the organization & provide information in a timely manner. Types of Control Systems: Open Loop Control System: Control action is independent of the output. They are stable and accurate in nature. Closed Loop Control System: It is one in which control action is somehow dependent on the output.

Feedback Control

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Management Information Systems

By : Prof. Prakash M Soni
Feedback is the property of closed loop control system which permits the output to be compared with the input to the system so that the appropriate control action may be formed as some function of the output and input. In feedback control, the variable being controlled is measured and compared with a target value. This difference between the actual and desired value is called as Error. Feedback control, manipulates the input to minimize the value of Error. Feedback Controls used to provide information at the output stage about customers reactions to goods and services so that corrective action can be taken if necessary

Control Process

Management Control through Reporting

MCS attempts to influence or control behaviour to ensure that strategic policy is implemented and strategic objective is achieved MCS aims at monitoring results, review plans and target achievement strategies MCS also deals with the behavioral factor and quantitative performance levels MCS supports long term and short term plans and output of such plans

MCS follows
Identification of role of employees Identification of key actions Identification of role demands and KRAs Understanding likely results of role demands Choice of controls Use of mixed controls

Reporting states
A written structure form, helps in planning, decision making and controlling management activities It means in MCS, a mean furnishing of cost accounting information to management It serves feedback to the management The format is based on level of organization involved, extent of power delegate to subordinates, details of business enterprise system and also level and signification of information generated

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Management Information Systems

By : Prof. Prakash M Soni Requisites of Good Report
Title Period Units of Measurements in RM Date Name Standard Use of Diagrams Recommendations Promotions Accuracy Comparison Economy Simplicity Controllability

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