1.
Module 3_POM
Planning and Organizing

2.
Concept of planning
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Https://www.youtube.com/watch?v=yyQK-TM_upk

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?
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https://www.shutterstock.com/image-vector/people-planning-concept-entrepreneurship-calendar-schedule-1523635688

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
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http://next-push.blogspot.com/2013/07/feature-nature-characteristics-of.html

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
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https://www.shutterstock.com/image-photo/closeup-group-asian-caucasian-young-creative-1681066225

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
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https://www.shutterstock.com/image-photo/closeup-group-asian-caucasian-young-creative-1681066225

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
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Source: Robbins and Coulter, Management, 14th edition

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
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Source: Robbins and Coulter, Management, 14th edition

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,
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Source: Robbins and Coulter, Management, 14th edition

10.
Steps in planning
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Source: The Essentials of Management, Koontz and Weihrich

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.
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https://corporatefinanceinstitute.com/resources/knowledge/strategy/strategic-planning/

12.
Strategic planning process
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Source: Essentials of management, Koontz and Weihrich, 9th addition

13.
Objectives
• Define Organizing
• Describe the nature and purpose of organizing
• Discuss the process of organizing
• Discuss the importance of organizing
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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.
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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.
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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.
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17.
Process of Organizing
• Identification and Division of Work
• Departmentalization
• Assigning Duties
• Establishing Reporting Relationships
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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.
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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.
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20.
Importance
• Benefits of specialization
• Clarity in working relationships
• Optimum utilization of resources
• Adaptation to change
• Effective Administration
• Development of Personnel
• Expansion and Growth
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21.
Organization structure
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https://www.youtube.com/watch?v=4rcI1u4cxGE

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.
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23.
Organization
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Source: Essentials of management, Koontz and Weihrich, 9th addition

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.
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25.
Formal Organization
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• 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.
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.
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27.
Informal Organization
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• 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.
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.
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29.
Span of control
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Source: Principles of management, Tripathi and Reddy, 5th addition

30.
Span of control - Narrow
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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.
Span of control - Broad
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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.
Authority and Responsibility
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• 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.
Difference
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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.
Delegation of Authority
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 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.
Steps
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• Assignment of Duties
• Granting of authority
• Creating Responsibility and Accountability

36.
Centralization
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 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.
Decentralization
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 Decentralization is the process of redistributing or
dispersing functions, powers, people or things away
from a central location or authority.

38.
Take away
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• What is organizing?
• Why organizing is important?
• How organizing takes place?
• Centralization and decentralization

39.
References
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• 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.
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Thank You