1. Principles of Management
-MIM Batch 2
Azim Dhanani
Archana Nagrulkar
Shakti Singh
Abdul Mughni
Natasha Rupani

2. Presenters
• Azim Dhanani
• Archana Nagrulkar
• Shakti Singh
• Abdul Mughni
• Natasha Rupani

3. Content
• Nature & Purpose of Planning
• Decision Making
• Objectives And Strategies
• Planning Premises
• Global Planning
• Conclusion

4. Functions Of Management
Planning
Organizing
StaffingDirecting
Controlling

5. Planning Context to an Individual
Significance
• Motivation : Forces within a person that affects the directions,
intensity and persistence of voluntary behaviors.
• A personal plan provides a framework that will make
individuals identify the areas of their strengths and
weaknesses (it can provide you with a self-reflection) and
come up with a guide that will optimize and capitalize on their
existing skills and capabilities.

6. Planning context to an Organization
Prospects
• Planning is the blueprint for the business growth . It helps in
deciding objective both in terms of qualitative and
quantitative.
• Planning is the bridge between ‘WHERE WE ARE’ and ‘WHERE
WE WANT TO GO’.
• Planning can be summarized in 3 easy steps :
o Choosing a destination
o Evaluating the alternative routes
o Deciding special cause of your plan.

7. Planning context to an Organization
Prospects
It serves the 3 critical function:
1. Planning helps organization to clarify, focus and research
their business or project development and prospects.
2. Planning provide the logical framework within which
business develop and pursue business strategy over the next
3 to 5 Years.
3. Planning offers the benchmarks from which actual
performance can be measured and reviewed.

8. Why is it important to have a plan ?
• As our ancient says – ‘The Journey of the 1000 miles begin
with 1 step’ .
• “Create a definite plan for carrying out your desire
and begin at once, whether you ready or not,
to put this plan into action” – Napoleon Hill
• Encapsulating the above quotes, we can determine that how
planning is important as it is first and foremost function and
aspects for individual or organization in broad horizon

9. The Nature of the Planning
1. Planning is goal-oriented (it contributes to objectives).
2. Primacy of Planning (Primary Function of Management).
3. Pervasiveness of Planning (applies to all levels of planning).
4. Planning is an intellectual process rather than behavior
((i)What to do? (ii) How to do it? (iii) When to do it? (iv) Who
is to do it?)
5. Flexible and dynamic.

10. The Purpose of the Planning
1. Planning provides direction.
2. Planning reduces the risk of uncertainties.
3. Planning reduces overlapping and wasteful activities.
4. Planning promotes innovative ideas.
5. Planning facilitates Decision Making.
6. Planning establishes standard for controlling.

11. The Limitations of the Planning
1. Planning leads to rigidity
2. Planning may not work in dynamic environment.
3. It reduces creativity
4. It is a time consuming process.
5. Planning does not guarantee success

14. Types of Decisions
Programmed
Decision
Non-Programmed
Decision
Types Of Decision

15. Types of Decisions
• Programmed Decisions: Routine, almost automatic process.
– Managers have made decision many times before.
– There are rules or guidelines to follow.
– Example: McDonalds employees are trained to make Big
mac according to specific procedure.
• Non-programmed Decisions: Unusual situations that have not
been often addressed.
– No rules to follow since the decision is new.
– These decisions are made based on information, and a
manger’s intuition, and judgment.
– Example:Decisions about new facilities,new products,labor
contracts, and legal issues.

16. Decision Making Process
Identifying Alternatives
Recognizing and Defining the Decision Situation.
Evaluating Alternatives
Selecting an alternative
Implementing the chosen alternative
Following up and evaluating the results

17. Recognizing and Defining the Decision
Situation...
• Need to “Define” precisely what
the problem is.
• Manager must develop a complete
understanding of the problem.
• Manager must carefully analyse
and consider the situation.

18. Identifying Alternatives…
• Managers must realize that their
alternatives may be limited by legal,
moral and ethical norms ,Authority
constraints, available technology,
economic consideration and
unofficial social norms.

19. Evaluating Alternatives..
• Each alternative must pass successfully through three stages
before it may be worthy of consideration as a solution.
1) Feasibility: is it financially possible? Is it legally possible?, Are
there limited human material and/or information available.
2) Satisfactory: Does the alternative satisfy the condition of
decision situations.
3) Affordability: How will this alternative will affect the other
parts of the organization?

20. Selecting an alternative
• Choosing the best alternative is
the real test of decision making
• Optimization is the goal because
a decision is likely to affect
several individuals or
department
• Finding multiple acceptable
alternatives may be possible,
selecting one and rejecting the
others may not be necessary

21. Implementing the chosen alternative..
• Managers must consider people’s
resistance to change when
implementing decision.
• For some decisions,
implementation is easy, for others
very difficult or time consuming.
• Operational plans are very useful
in implementing alternative.
• Managers must also recognize
even if all of the alternatives and
their consequence's have been
evaluated as precisely as possible

22. Following up and evaluating the results
• Managers must evaluate the effectiveness of
their decisions-did the chosen alternative
serve its original purpose ?
• If the implemented alternative appears not to
be working, the managers has several choices
1. Another previously identified alternative
might be adopted or
2. Recognize that the situation is not correctly
defined and start the process all over again
or
3. Decide that the alternative has not been
given enough time to work or should be
implemented in a different way.

23. Objective, Strategy and Policies

24. Objective
Setting
Objective
First Step in Planning is

25. Objective continued…
Objective
Desired
outcomes or
Expectations
Achieve that is
end result of
activities
Desired future
position where
management would
like to reach

26. Earn a
20 % Profit
from
business
Increase Sale
by 10 %
Rate of
return on
investment
Objective continued…

27. If There is no planning objective

28. Example
Swedish telecom giant Ericsson is
planning to invest $15-20 million in
their new manufacturing plant in
Pune which will be operational by
May 2016.
WHY ?
The telecom equipment maker plans to make
India into an export hub for their products.
Hans Vestberg, Global CEO of Ericsson said,
“We are looking to improve the existing
telecom infrastructure in the country and
make India into an export hub for our
telecom products.”

29. Objectives and Organizational Hierarchy
Top level
Management
Middle Level
Management
Low Level
Management
 Overall objective of the Organization.
 Innovation
 Social responsibility
 Productivity
 Divisional objectives
 Departmental objectives
 Unit objectives
Objectives of subordinates
 Performance Goal
 Development Goal

30. Management by Objective(MBO)
• MBO is a process of agreeing upon objectives within an
organization between employee and management, to the
Organization objectives.
• The term ‘MBO’ was first introduced by Peter Drucker in his
1954 book ‘The Practice of Management’ .

31. MBO Process
Define
Organization
Goal
Define
employee
objectives
Continuous monitoring of
employee performance
and progress
Performance
evolution and
Review
Providing
feedback
Performance
appraisals

32. Objective should be SMART

33. Strategy
Strategy is comprehensive plan for accomplishing an
organization objectives.
These comprehensive plan includes :
 Determine long term objectives of an organization.
 Developing plan and policies design to achieve these
objectives
 Allocating resources necessary to implement the plan

34. Strategy continue…
Strategy can be formulated on three different level :
 Corporate level
 Business level
 Functional or department level

35. Example for Marketing strategy
Organization
Marketing strategy
address certain
question
Who are the
customers ?
What is the
demand for
the product
?
Which channel
of distribution
to use ?
What is the
pricing policy
?

36. Strategy continue…
SWOT analysis ( SWOT Matrix )
A structured planning method to evaluate the strengths
weaknesses, opportunities and threats involve in business or
project objective .
It can be applied for product, place ,industry or person.

37. SWOT continue……

38. Strategy continue….
Tata Motor’s SWOT Analysis :
Strengths :
• Strong financial condition.
• High amount of foreign investment.
• Successful new product launch in last 5
year.
• Joint ventures, strategic alliances, Take
over and mergers .
Weaknesses:
• Lack of working capital
• Excess Debt
• Falling behind in R&D
• No control over strategic direction
Opportunities:
• Favorable government policies
• Expanding new geographic areas
• Expanding product lines
• Increase market share from
competitors
Threats:
• Rising material cost
• Entrance of new competitors
• Natural disaster
• Slow market growth

39. Policy
“A course or principle of action adopted or proposed by an
organization or Individual”
OR
“Policy guides to managerial actions and decisions in the
implementation of strategy”

40. Examples for Policy
• HR Policies
• Purchasing Department have purchasing policies.
• SOP (standard operation practices)

41. What is Planning Premises?
• In the words of Dr. George R Terry
“Premises are assumptions
providing background against
which estimated events affecting
the planning will take place”.
• It can also be understood as it is
the expected environment
considered when planning

42. Types of Planning Premises
Internal and External
Controllable and
Uncontrollable
Tangible and Intangible Constant and Variable
Types of Planning
Premises

43. Internal Premises
Internal Premises come from the business itself
e.g. sales forecasts, supply of materials

44. External Premises
• External Premises come from the external environment. That
is, economic, social, political, cultural and technological
environment. External premises cannot be controlled by the
business.

45. Controllable Premises
• Controllable Premises are those which are fully controlled by
the management. They include factors like products, rules etc.

46. Semi-controllable Premises
• This includes assumptions about those factors which are only
partially controllable through suitable management policies
and decisions, but cannot be fully controlled by the
management

47. Uncontrollable Premises
• Uncontrollable Premises are those over which the
management has absolutely no control. They include weather
conditions, consumers' behaviour, government policy, natural
calamities, wars, etc.

48. Tangible Premises
• Tangible Premises can be measured in quantitative terms.
They include units of production and sale, money, time, hours
of work, etc.

49. Intangible Premises
• Intangible Premises cannot be measured in quantitative
terms. They include goodwill of the business, employee's
morale, employee's attitude and public relations.

50. Employee Morale

51. Constant Premises
• Constant Premises do not change. They remain the same,
even if there is a change in the course of action. They include
men, money and machines.

52. Variable Premises
• Variable Premises are subject to change. They change
according to the course of action. They include union-
management relations.

53. Global Planning
• The plan developed by the organization to target growth on a
global level.
• Because “the world is becoming smaller and smaller!!!”

54. Global Strategy Formulation
Assessment and Adjustment of Core Strategy
Market/Competitive Analysis - Internal Analysis
Formulation of Global Strategy
Choice of Target Countries, Segments, and Competitive Strategy
Development of Global Marketing Program
Implementation
Organizational Structure - Control

55. Market and Competitive Analysis
• First, understand the structure of the global market industry;
the common features of customer requirements and choice
factors.
• Internal analysis
Are we ready for the move yet?

56. Competitive Strategies
Michael Porter's Three Generic Strategies

57. Bases for Global Market Segmentation
Environmental
Variables
Marketing
Management
Variables
Geographic
Variables
Political
Variables
Economic
Variables
Cultural
Variables
Promotion
Variables
Product
Variables
Price
Variables
Distribution
Variables
Bases for International
Market Segmentation

58. Global Marketing Program Development
• Product offering :The degree of standardization and
adaptation in the product offering.
• The marketing approach: The marketing program
beyond the product variable.
• The location and extent of value-adding activities:
• Pooling production.
• Exploiting factor costs or capabilities.
• Strategic alliances.
• Concurrent engineering.
• Competitive moves to be made: Cross-subsidization
using resources accumulated in one market to wage a
competitive battle in another.

59. Implementing Global Marketing
• Success will come from a balance between local and regional
/ global concerns.
• “Think globally, act locally” is the operative phrase for global
marketers competing in country markets.
• Product choices should consider individual markets as well as
transfer products from one region to another.

60. Global Marketing Pitfalls to Avoid
• Insufficient local market research.
• The tendency to over standardize the product.
• Inflexibility in planning and implementation.
• The “Not-Invented-Here” syndrome (NIH).
How to avoid the NIH syndrome?
oEnsure that local managers participate in the
development of global brand marketing strategies.
oEncourage local managers to develop ideas for
regional or global use.

61. Conclusion
• Why Planning?
• Decision Making
• Objectives and Strategies
• Planning Premises
• Global Planning

62. Thank You