UNIT 2 POM.pptx PRINCIPLES OF MANAGEMENT

PRINIPLES OF MANAGEMENT

1. UNIT 2 PLANNING

2. UNIT II MG6851 – PRINCIPLES OF MANAGEMENT Syllabus: Nature and purpose of planning – planning process – types of planning – objectives – setting objectives – policies – Planning premises – Strategic Management – Planning Tools and Techniques – Decision making steps and process.

3. MG6851 Principles of Management 3 Planning Definition Planning as a process involves the determination of future course of action, that is why an action, what action, how to take action, and when to take action. These are related with different aspects of planning process. Terry has defined planning in terms of future course of action i.e., “ planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualisation and formalisation of proposed activities believed necessary to achieve desired result .”

4. Nature of Planning MG6851 Principles of Management 4

5. MG6851 Principles of Management 6

6. MG6851 Principles of Management 7

7. Types of Plans MG6851 Principles of Management 8

8. Types of Plans – Key Point Long-Term Plans Plans with time frames extending 5 years Short-Term Plans Plans with time frames of one year or less Specific Plans Plans that are clearly defined and leave no room for interpretation Directional Plans Flexible plans that set out general guidelines and provide focus, 7– 9

9. Types of Operational Plans MG6851 Principles of Management 10

10. Objectives of planning Planning is very useful. Hence, it has several objectives as it helps you gain control over things . It helps you increase efficiency, decreases unnecessary pressure from the organiser, and reduces the chances of mistakes . These are the aims, purposes that can be do by the organisation .

11. Objectives of planning Achievement of Organizational Objectives Fulfilment of Organizational Commitments It Facilitates Decision Making It Provides Stability to Organizations Overall View of Coordination Optimum Utilization of Resources/efficiency of Operations Development of Managers Promotes Innovation Basis for Control Reduction of Risk Morale Boost Up Facilitates Delegation

12. Setting objectives It should give pin-point the organization’s strength and weakness Setting areas of objectives Market standing Innovation Productivity Resources Profitability Manager& worker performance Public responsibility

13. Policies of planning It is based statement formulated to provide guidance in decision making Purposes of policy To save time and effort To speedup decision making To control administration To define objectives To simplify delegation of authority

14. Policy formulation process The policy process normally is seen as having a series of sequential parts or stages. These are (a) problem emergence, (b) agenda setting, (c) consideration of policy options, (d) decision making, (e) implementation, and (f) evaluation.

15. Planning Premises MG6851 Principles of Management 16

16. 17 Long range Vs Short range Long range plan Point of distinction Short range plan Covers many years & affects many departments of an organization Meaning Covers less than one year and is more specific & detail 5 yrs or more Time Up to one year Mission ,long term goals and strategies Deals with Current operations of organization Top management Prepared by Lower level executives