MODULE 1.

CONTENTS
Functions of Management Planning: Objectives, MBO Policies, Premises Merits & Demerits Organizing: Elements, Principles, Of Exception, Departmentation,

Delegation of Authority, Internal Organisation-Line & Staff

Decision Making : Meaning & steps Motivation: Meaning, Theory X & Y, Hierarchy of Needs Controlling: Meaning & Steps Leadership: Meaning & Types

PLANNING
Setting missions and objectives as well as the actions to achieve them which requires decision-making i.e., choosing a course of action from among alternatives Planning is a bridge between where we are and where we want to go

TYPES OF PLAN
Short Range & Long Range Plans Strategic & Operational Plans Policies & Procedures Plans Budgets Plans Projects Plans

SHORT-RANGE AND LONG-RANGE PLANS

Short-range Plans cover 1 year or less Intermediate-range Plans cover 1 to 2 years Long-range Plans look 3 or more years into the future Top management is most likely to be involved in setting long-range plans and directions for the organization as a whole, while lower management level focus more on short-run plans that help achieve longterm objectives.

STRATEGIC AND OPERATIONAL PLANS

Strategic Plans set broad, comprehensive, and longer-term directions.

Strategic planning involves:

Determining objectives for the

entire organization. Describing what and where it wants to be in the future.

 Operational Plans define what needs to be done in specific functions or work units to implement strategic plans.

Typical operational plans for a business firm include: PRODUCTION PLANS dealing with the methods and technology needed by people in their work FINANCIAL PLANS dealing with money required to support various operations FACILITIES PLANS dealing with facilities and work layouts MARKETING PLANS dealing with requirements of selling and distributing goods or services HUMAN PLANS dealing with the recruitment, selection, and placement of people into various jobs

POLICIES AND PROCEDURES

RULES or PROCEDURES describe exactly what actions are to be taken in specific situations. They are often found stated in employee handbooks or manuals as SOPs standard operating procedures.

POLICY communicates broad guidelines for making decision and taking action in specific circumstances.

BUDGETS AND PROJECTS

BUDGETS are single-use plans that commit resources to activities, projects, or programs. They are powerful tools that allocate scarce resources among multiple and often competing uses. FIXED BUDGET allocates a fixed amount of resources for a specific purpose. FLEXIBLE BUDGET allows the allocation of resources to vary in proportion with various levels of activity. ZERO-BASED BUDGET deals with this problem by approaching each new budget period as it if were brand new.

PROJECTS
PROJECTS one time activity that have clear beginning and end points. PROJECT MANAGEMENT involves making sure that activities required to complete a project are completed on time, within budget, and in ways that otherwise meet objectives.

STEPS IN PLANNING
Being aware of Opportunities Establishing Objectives Developing Premises Determining Alternative Courses Evaluating Alternative Courses

Quantifying Plans by Budgeting

Formulating Derivative Plans

Selecting a Course

MBO (MANAGEMENT BY OBJECTIVES)

A comprehensive managerial system that integrates many key managerial activities in a systematic manner is consciously directed toward the effective & efficient achievement of organizational and individual objectives

ADVANTAGES
Improvement of mgmt through result-oriented planning Clarification of organizational roles and structures as well as Delegation of authority Encouragement of commitment to personal & organizational goals Development of effective controls that measure results & lead to corrective actions

DISADVANTAGES
Failure to give guidelines to goal setters Failure to the philosophy of MBO Difficulty of verifiable goals with the right degree of flexibility

Organizing

WHAT IS AN ORGANISATION?
A group of people working towards a defined set of goals and objectives. Types: Functional Product Place/Territory/Geographic Line/Staff Matrix

FUNCTIONAL GROUPING
Chief Executive

Board of Directors

Production

Marketing

Accounts

Human Resources

IT

PRODUCT STRUCTURE
CEO Corporation

Corporate Managers

Washing Machine Division

Lighting Division

Television Division

GEOGRAPHIC STRUCTURE
CEO Corporation

Corporate Managers

Northern Region

Western Region

Southern Region

Eastern Region

PROCESS OF ORGANISING
Identification of Activities
Division of Work

Grouping of Activities

Departmentation

Assigning Activities

Hierarchy

Delegation of Authority

Decentralization

LEVELS OF MANAGEMENT
Chief Executive

Board of Directors

This is how we would normally see an organisation structure. This is an organisation chart of a business. There is another way we can view the same organisation.

Senior Managers

Managers

Junior Managers

Supervisors

Assistants

ORGANISATION PYRAMID
Chief Executive

Board of Directors
Senior Managers Managers

Junior Managers
Supervisors Assistants

SPAN OF CONTROL

Span of control The number of employees managed by each manager. Narrow spans of control have fewer employees reporting to each manager than do wide spans of control. Organizational height Tall organizations have many layers. Short (or flat) organizations have few layers.

Narrow Span of Control President

Vice President

Sales Manager

Salesperson

Wide Span of Control

President

Sales Person-1

Sales Person-

Sales Person-3

Sales Person-4

HIERARCHICAL STRUCTURES

Tall
Flat

TALL STRUCTURES

Many levels of management Managers will have narrow span of control Management posts usually specialised Clearly defined roles

FLAT STRUCTURES

Few levels of management Managers have wider spans of control Faster communications Quicker decisionmaking

OTHER ELEMENTS OF STRUCTURE

Centralization Most authority is held by high-level managers. Middle and supervisory managers are not allowed to make many decisions. Decentralization Authority is spread among several divisions or managers. Autonomous divisions can make their own decisions and act independently

CENTRALISATION

Control and decisionmaking lies with top management in Head Office or Head Quarters

HQ

CENTRALISATION

Advantages Decisions can be made for whole organisation Easier to promote corporate image

Disadvantages Slower decision-making Slower communication Less room for staff initiative

DECENTRALISATION

HQ

Control and decisionmaking is delegated to departments Relieves senior management from routine, day-to-day tasks

DECENTRALISATION
Advantages Disadvantages Motivates staff Decisions may differ from other branches Empowers staff Transfer of staff may Decision-making lead to confusion due to quicker different practices Decisions can match Less supervision local needs Reduces operating expenses by eliminating unnecessary positions

LINE ORGANISATION
Head Marketing

Sales Manager

Area Sales Manager1

Area Sales Manager2

Area Sales Manager3

Area Sales Manager4

salespeople

salespeople

salespeople

salespeople

Characteristics: All managers have line authority to direct and control subordinates. Used in small firms / departments Advantages: Simple organisation, clear authority, quick decisions, low cost Disadvantages: No support to line managers from subordinates who have specialised knowledge / skills. Less time for planning / analysis

LINE AND STAFF ORGANISATION

Head-Marketing

Marketing Research Manager

Sales Manager

Promotional Manager

Customer Service Manager

Area Sales Manager-1

Area Sales Manager-1

Area Sales Manager-1

Salespeople

Salespeople

Salespeople

Characteristics: Specialist staff managers are available for senior marketing / sales managers. Staff managers role is to assist / advise line managers. Used in medium and large size organisations Advantages: Better marketing decisions, superior sales performance Disadvantages: High cost and coordination, slower decision making, conflict may arise if staff managers role is not clear

Matrix Organisation
A

structure in which the tasks of the organization are grouped along two organizational dimensions simultaneously.

Such structures are used

to tackle complex problems

Decision Making- An essence to problem solving

DECISION MAKING AND ITS PROCESS

The process of responding to a problem by searching for and selecting a solution or course of action that will create value for organisational stakeholders. Selection of a course of action from amongst the alternatives. It is at the core of planning

Example-The Decision Making Process My sales Reps need new computers!

Identification of a problem Identification of Decision Criteria Allocation of weights to criteria

Memory and Storage, Display Quality, Better Life,Warranty, Carrying weight Memory and Storage-10, Display Quality,-8, Better Life-6,Warranty -7, Carrying weight-3 Toshiba, HP, Sony Vaio, Gateway, Apple iBook, Lenovo, Dell Toshiba, HP, Sony Vaio, Gateway, Apple iBook, Lenovo, Dell Toshiba, HP, Sony Vaio, Gateway, Apple iBook, Lenovo, Dell Toshiba!

Development of alternatives

Analyzing of alternatives

Selection of alternatives

Implementation of alternatives

Evaluation of decision alternatives

Contd next ppt with Motivation