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Module 3_POM.pptx

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  1. 1. Module 3_POM Planning and Organizing
  2. 2. Concept of planning 2 Https://www.youtube.com/watch?v=yyQK-TM_upk
  3. 3. Concept of planning • Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it • Planning involves defining the organization’s goals • Establishing strategies for achieving those goals • Developing plans to integrate and coordinate work activities • It’s concerned with both ends • What? • and How? 4 https://www.shutterstock.com/image-vector/people-planning-concept-entrepreneurship-calendar-schedule-1523635688
  4. 4. Nature of planning • Its contribution to purpose and objectives • Its primacy among the manager’s tasks • Planning is forward looking • Its Pervasiveness • Planning is continuous • Planning involves decision making 5 http://next-push.blogspot.com/2013/07/feature-nature-characteristics-of.html
  5. 5. Why do managers plan? • Planning provides direction to managers and non- managers alike • Planning reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change, and develop appropriate responses • Planning minimizes waste and redundancy • Planning establishes the goals or standards used in controlling 6 https://www.shutterstock.com/image-photo/closeup-group-asian-caucasian-young-creative-1681066225
  6. 6. Planning and performance • Is planning worthwhile? • Numerous studies have looked at the relationship between planning and performance • Although most have shown generally positive relationships • Formal planning is associated with positive financial results • Higher profits, higher return on assets, and so forth • Second, it seems that doing a good job planning and implementing those plans play a bigger part in high performance 7 https://www.shutterstock.com/image-photo/closeup-group-asian-caucasian-young-creative-1681066225
  7. 7. Types of plan • Strategic plans apply to the entire organization and establish the organization’s overall goals • The U.S. National Aeronautical Space Administration’s long-term goal is to answer some basic questions. • What’s out there in space? • How do we get there? • What we will find? • Operational plans encompass a particular operational area of the organization • Long-term plans with a time frame beyond three years • Short-term plans cover one year or less. Any time period in between would be an intermediate plan • For instance, Dollar General stated a short-term plan to increase store sales and profitability in current financial year 8 Source: Robbins and Coulter, Management, 14th edition
  8. 8. Types of plan • Intuitively, it would seem that specific plans would be preferable to directional, or loosely guided, plans. • Directional plans are flexible and set out general guidelines • Specific plans are clearly defined and leave no room for interpretation. • A manager who seeks to increase his or her unit’s work output by 8 percent over a given 12-month period might establish specific procedures, budget allocations, and schedules of activities to reach that goal. • Reliance wants to become net zero carbon company by 2035 9 Source: Robbins and Coulter, Management, 14th edition
  9. 9. Types of plan • A single-use plan is a one-time plan specifically designed to meet the needs of a unique situation • For instance, when Walmart wanted to expand the number of its stores in China, top-level executives formulated a single-use plan as a guide. • Standing plans are ongoing plans that provide guidance for activities performed repeatedly. • Standing plans include policies, rules, and procedures, 10 Source: Robbins and Coulter, Management, 14th edition
  10. 10. Steps in planning 11 Source: The Essentials of Management, Koontz and Weihrich
  11. 11. Strategic planning • Strategic planning is the art of creating specific business strategies, implementing them, and evaluating the results of executing the plan, in regard to a company’s overall long-term goals or • It focuses on integrating various departments (such as accounting and finance, marketing, and human resources) within a company to accomplish its strategic goals. 12 https://corporatefinanceinstitute.com/resources/knowledge/strategy/strategic-planning/
  12. 12. Strategic planning process 13 Source: Essentials of management, Koontz and Weihrich, 9th addition
  13. 13. Objectives • Define Organizing • Describe the nature and purpose of organizing • Discuss the process of organizing • Discuss the importance of organizing 14
  14. 14. Definition • Organizing refers to the way in which the work of a group of people is arranged and distributed among group members. • The function of organizing includes the determination of the activities to be performed; creation of departments, sections and positions to perform those activities; and establishing relationships among the various parts of an organization. 15
  15. 15. Purpose of Organizing • The purpose is to create a framework for the performance of the activities of an organization in a systematic manner. • REMEMBER • Organizing is a function of management, while organization refers to a group of persons who have come together to achieves some common objectives. 16
  16. 16. Nature of Organizing • An organization connotes group of persons. • Communication is the nervous system of organization. • Organizing is a basic function of management. • Organizing is a continuous process. • Organizing is always related to objectives. • Organization connotes a structure of relationship. • Organization involves a network of authority and responsibility relationships. 17
  17. 17. Process of Organizing • Identification and Division of Work • Departmentalization • Assigning Duties • Establishing Reporting Relationships 18
  18. 18. Process of Organizing • Identification and Division of Work: The first step in the process of organizing involves identifying and dividing the work that has to be done in accordance with previously determined plans. • Departmentalization: Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together. 19
  19. 19. Process of Organizing • Assigning Duties: It is necessary to define the work of different job positions and accordingly allocate work to various employees. Once departments have been formed, each of them is placed under the charge of an individual. Jobs are then allocated to the members of each department in accordance to their skills and competencies. • Establishing Reporting Relationships: Each individual should also know who he has to take orders from and to whom he is accountable. This helps in setting hierarchy and coordination. 20
  20. 20. Importance • Benefits of specialization • Clarity in working relationships • Optimum utilization of resources • Adaptation to change • Effective Administration • Development of Personnel • Expansion and Growth 21
  21. 21. Organization structure 22 https://www.youtube.com/watch?v=4rcI1u4cxGE
  22. 22. Organization • The end-result of organizing is a framework of formal relationships among different departments and positions. • This framework of formal relationships is known as organization structure. 23
  23. 23. Organization 24 Source: Essentials of management, Koontz and Weihrich, 9th addition
  24. 24. Types • Formal Organization: Formal organization refers to the organization structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and there is a systematic coordination among the various activities to achieve organizational goals. 25
  25. 25. Formal Organization 26 • Advantages • Specialization • Executive Development • Reduction of Workload • Scope of Expansion • Better Control • Disadvantages • Violates Principle of Unity • Too complicated • Does not develop Generalists • Too Departmentalized • Lack of Coordination
  26. 26. Informal Organization • Informal organization is a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another. 27
  27. 27. Informal Organization 28 • Advantages • Prescribed lines of communication are not followed. • It helps to fulfill the social needs of the members and allows them to find like minded people. • It contributes towards fulfillment of organizational objectives by compensating for inadequacies in the formal organization • Disadvantages • Spreads Rumors • Hard to implement the informal organization. • It pressurizes members to conform to group expectations.
  28. 28. Span of control • A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager - the wider the span of control. Less means a narrower span of control. 29
  29. 29. Span of control 30 Source: Principles of management, Tripathi and Reddy, 5th addition
  30. 30. Span of control - Narrow 31 Advantages • More Control by Top Management • More Chances for Advancement • Greater Specialization • Closer Supervision Disadvantages • Less Empowerment • Higher Costs • Delayed Decision Making • Less Responsiveness to Customers
  31. 31. Span of control - Broad 32 Advantages • Reduced Costs • More Responsiveness to Customers • Faster Decision Making • More Empowerment Disadvantages • Fewer Chances for Advancement • Overworked Managers • Loss of Control • Less Management Expertise
  32. 32. Authority and Responsibility 33 • Authority is the right to order or command and is delegated from the superior to the subordinate to discharge his responsibilities. • The term responsibility means the work or duties assigned to a person by virtue of his position in the organization.
  33. 33. Difference 34 Authority Responsibility • Authority is the right of a manager to command his subordinates and use his organizational resources. • Authority can be delegated to subordinates • Authority flows from downward from a superior to his subordinate. • Denotes the duties or tasks assigned to a subordinate by his boss. • Responsibility i.e. obligation to account for results, can’t be delegated. • Accountability moves in an upward direction as the superior is responsible to his subordinate
  34. 34. Delegation of Authority 35  Delegation of Authority means division of authority and powers downwards to the subordinate.  Delegation is about entrusting someone else to do parts of your job.  Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.
  35. 35. Steps 36 • Assignment of Duties • Granting of authority • Creating Responsibility and Accountability
  36. 36. Centralization 37  Centralization of authority means concentration of decision making power at the top hierarchy of management.  Under centralization all important decisions are made by the top management.
  37. 37. Decentralization 38  Decentralization is the process of redistributing or dispersing functions, powers, people or things away from a central location or authority.
  38. 38. Take away 39 • What is organizing? • Why organizing is important? • How organizing takes place? • Centralization and decentralization
  39. 39. References 40 • Koontz Harold and Weihrich Heinz (2012). Essentials of Management: An International and Leadership Perspective, 9th edition, Tata McGraw Hill • Tripathi P C and Reddy P N (2012). Principles of Management, 5th edition, Tata McGraw Hill • https://www.youtube.com/watch?v=4rcI1u4cxGE
  40. 40. 41 Thank You