3 pom kc 6 sep. 2010

Principles of Management,[object Object],Planning & Organizing,[object Object]

Types of Plans,[object Object],Specify actions toachieve tactical plans(very short-term),[object Object],OperationalPlans,[object Object],Steps for achieving strategic objectives(usually one year or less),[object Object],TacticalPlans,[object Object],StrategicPlans,[object Object],Establish long-rangeobjectives,[object Object]

Types of Plans,[object Object],Mission / Purpose (Strategic Plans),[object Object],The ‘reason for existence’ of an organization,[object Object]

Type of Plans ,[object Object],Objectives/ Goals,[object Object],The end towards which activity of an organization is aimed, e.g.,[object Object],For a Business enterprise – profit, surplus creation;,[object Object],For an vocational NGO – to provide means of livelihood to maximum people in the area they are serving,[object Object],Strategies,[object Object],Determination of the long term objectives and adoption of a course of action,[object Object],Gives a frame work for linked action-plans, communicated systematically to guide thinking and actions. ,[object Object]

Type of Plans ,[object Object],Policies,[object Object],“Plans” that are general directional statements (or understandings) that guide/help in decision making:,[object Object],Repeat decisions taken ‘reflexively’;,[object Object],Delegation of tasks without loss of control,[object Object],Some discretion is permissible depending on circumstances thus encouraging initiative within limits and situational adjustments;,[object Object],Issues with “Policy”,[object Object],Seldom documented in writing,[object Object], Subject to interpretations,[object Object]

Type of Plans ,[object Object],Procedures,[object Object],Plans that are chronological sequences of required actions: task-oriented in nature;,[object Object],Cuts across department boundaries (sub-systems) in an organization: e.g. attendance, applying for leave,[object Object],Procedures and policies are inter related: e.g. authorization for paid leave,[object Object],Rules,[object Object],Specific actions or non-actions allowing no discretion,[object Object],What is acceptable and what is not?,[object Object]

Type of Plans ,[object Object],Programmes,[object Object],Action plans (mainly non-routine or for changed activities) including, task assignments, steps to be taken, resources to be deployed etc. to achieve a (new/renewed) goal;,[object Object],Primary program may require supporting programs, spreading across the enterprise;,[object Object],Perfect coordination between supporting & primary programs essential to avoid delays, unnecessary costs and expected roll-out.,[object Object],Programs are a complex of (sub)goals, policies, rules and other elements necessary for the course of action e.g. obtaining ISO certification.,[object Object]

Type of Plans ,[object Object],Budgets,[object Object],A statement of expected results expressed in “Numerical terms” e.g. financial operating budget = “profit plan”;,[object Object],Budgets enforce precision in thinking:,[object Object],Making a budget is ‘planning’ by itself;,[object Object],Encourages innovation – a “different” way to work,[object Object],Budgets serve for ‘Control’:,[object Object],Enforces discipline in execution of plans;,[object Object],Instills cost consciousness;,[object Object],Makes people (constantly) plan!,[object Object]

Being aware of ,[object Object],challenges/,[object Object],opportunity,[object Object],Setting Goals/,[object Object],Objectives,[object Object],Planning premises,[object Object],Identifying,[object Object],alternatives,[object Object],Market, Customer’s,[object Object], wants, Competition,,[object Object],Own strengths,[object Object], & weakness ,[object Object],What to accomplish,[object Object],& when,[object Object],Internal & external,[object Object],Environment/conditions ,[object Object],Formulating ,[object Object],Supporting,[object Object],plans,[object Object],Budgeting,[object Object],(Quantifying Plans),[object Object],Comparing &,[object Object], choosing an,[object Object],alternative,[object Object],e.g., Sales budget,[object Object],Operational Expense budget,,[object Object],Capital expenditure budget,[object Object],e.g., plan to buy,[object Object],New machines, recruit & train,[object Object],Employees, develop product etc,[object Object],Decision,[object Object],making,[object Object],Steps in Planning,[object Object]

Planning Period,[object Object],Short term plans e.g. raw material buying plan in a factory,[object Object],Long term plans e.g. product development plan, plant/production facility installation;,[object Object]

Steps in Planning,[object Object],Being aware of,[object Object], Opportunity,[object Object],Setting Goals/,[object Object],Objectives,[object Object],Considering Market,,[object Object],Competition, Customer’s,[object Object], wants, Own strengths,[object Object],& weaknesses,[object Object],What to accomplish,[object Object],& when,[object Object],Objective = Important end towards which activities,[object Object], are directed; therefore needs verification at the end,[object Object], of the plan period.,[object Object]

Mission,[object Object],Overall ,[object Object],Objectives &,[object Object],Key Result Areas,[object Object],Divisional Objectives,[object Object],Departmental Objectives,[object Object],Individual Objectives,[object Object],Hierarchy of Objectives,[object Object],Objectives set end results – they need to be supported by a hierarchy of sub-objectives, duly networked through the organization to avoid discord and wasted effort.,[object Object]

Hierarchy of Objectives,[object Object],The Organizational Objectives get trickled down into the objectives of :,[object Object],Divisions Departments  Individual objectives;,[object Object],The ‘cascade’ principle: seamless flow,[object Object],Mutual support & interlocking of goals is essential,[object Object],Managers must ensure that the components of the network fit each other;,[object Object],Departments/divisions can be ‘blind-sided’,[object Object]

Planning Premises & Strategies,[object Object],Setting Goals/,[object Object],Objectives,[object Object],Planning premises,[object Object],Identifying,[object Object],alternatives,[object Object],Comparing &,[object Object], choosing an,[object Object],alternative,[object Object],What to accomplish,[object Object],& when,[object Object],Decision,[object Object],making,[object Object],Internal & external,[object Object],environment,[object Object],Strategic Planning Process,[object Object],Strategy= determination of the purpose / the basic long-term ,[object Object], objectives; the adoption of courses of action and ,[object Object], allocation of resources required to achieve the aims.,[object Object]

Stakeholder,[object Object],Wishes &,[object Object],Shareholder,[object Object],demands,[object Object],Current,[object Object],External,[object Object],situation,[object Object],External,[object Object],Opportunity,[object Object],& Threat,[object Object],Forecast,[object Object],External,[object Object],situation,[object Object],Management,[object Object],Orientation,[object Object],Enterprise,[object Object],Profile,[object Object],Key success factors & ,[object Object],Alternative Strategies,[object Object],Purpose &,[object Object],Major objectives,[object Object],of enterprise,[object Object],Current,[object Object],resource,[object Object],situation,[object Object],Internal,[object Object],Strengths &,[object Object],Weakness,[object Object],Strategic,[object Object],choice,[object Object],Planning Premises & Strategies,[object Object],The Strategic Planning Process,[object Object]

Planning Premises,[object Object],Porter’s Five Forces : a ,[object Object],model for analysis of the,[object Object],external influences ,[object Object]

Planning Premises: forecast of demand,[object Object],[object Object]

Qualitative relies on judgment of experts to translate to quantities;

Time-series statistically interpolate demand on historical data;

Causal method  seek co-relation on cause and effect basis between two (or more) variables to quantify demand;

However, all forecasting methods are limited by:

Handling of un-quantifiable factors e.g. national pride

Unrealistic assumptions fuelled by a desire to succeed

Excessive data required (often unobtainable) to make accurate forecasts

Uncertainty with environmental changes: Technology, Govt. Policy, International alignments, New materials/sources, Climate etc.

Coping with uncertainties require:

Sensitivity analysis & “What if” scenarios (trust instinct!);

Planning for contingencies – with defined cut-in milestones.,[object Object]

Organising,[object Object],Organising is the process of defining and grouping activities and establishing authority relationships among them to attain organizational objectives.,[object Object]

Importance of Organizing,[object Object],Plan implementation,[object Object],Assignment of authority, responsibility, and accountability,[object Object],Division of work,[object Object],Establish relationships among individuals, groups & departments,[object Object],Allocation and deployment of organizational resources,[object Object]

Chain of Command,[object Object],AUTHORITY < RESPONSIBILITY,[object Object]

Chain of Command,[object Object],AUTHORITY > RESPONSIBILITY,[object Object]

Chain of Command,[object Object],AUTHORITY = RESPONSIBILITY,[object Object]

Span of Control,[object Object],Span of 8,[object Object],(Classical),[object Object],Span of 4,[object Object],(Contemporary),[object Object]

Classical Viewpoint,[object Object],SPAN OF 8,[object Object],Base level = 4096,[object Object],Managers (levels 1-4) = 585,[object Object]

Contemporary Viewpoint,[object Object],SPAN OF 4,[object Object],Base level = 4096,[object Object],Managers (levels 1-6) = 1365,[object Object]

Centralization & Decentralization,[object Object]

3 pom kc 6 sep. 2010

3 pom kc 6 sep. 2010

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3 pom kc 6 sep. 2010