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Information about PLANNING, ORGANIZING & MANAGING Slides

Published on December 12, 2009

Author: surn


Slide 1: by: Suresh R Norman MANAGING,PLANNING & ORGANIZINGSLIDES Slide 2: What is management all about? What is organization and organizational management? What is the manager and his role? Is management an art or a science? What are the principles of management science? Or is management only a practicing art or empirical field? Preview : Preview Managing is undoubtedly one of the key human activities. Managing people,and material resources is essential in the techno-commercial enterprise and also,in all other human worlds! Starting,from the family organisation to communities ,tribes and nations , there is no sphere of human activity where the importance and relevance of managing is not felt. As groups become bigger and group projects become larger, the responsibilities of managers and all the personnel in organisations increases many-fold. Hence it is required to have knowledge of management and its principles. Back-ground : Back-ground Our understanding of the principles of management has grown with time. Starting from self-organizing and self-management, with simpler projects and goals, family organisation and its goals ; progressing to more advanced group goals and projects – as seen in Institutions,Corporations,MNC’s and in societal governance. Slide 5: Managing can best be understood in practice – by sitting on the manager’s seat or gaddi,( even if you knew all the generic principles or commandments of management!) Still, this is a good point to begin- to understand the basic principles of management,if any. Task of the manager- managing group goals and related activities : Task of the manager- managing group goals and related activities Managing Projects Finance Materials People Development Marketing/ Sales&Service Production Export/ Import Slide 7: Operational management – study of managers and managing (Theory and practice), integrated with allied fields of knowledge. Integrated Systems approach – includes open-systems model and operational management. Operational-management : Operational-management The OPERATIONAL Management or MANAGEMENT Process School : The OPERATIONAL Management or MANAGEMENT Process School Recognizes the vast body of management knowledge relevant to managing [ It was Henri Fayol who first recognized management knowledge around management functions] It also absorbs knowledge relevant to managing from other related or peri-pheral fields of organized knowledge- eg. Decision theory,Motivation & leadership theories, Statistics, Systems theory, Social systems,Psychology etc. INPUT OUTPUT MODEL : INPUT OUTPUT MODEL Systems approach to Operational Management : Systems approach to Operational Management An enterprise is a part of a larger system ( eg. Johnson tile factory is a part of the entire tile industry), and also is a part of larger circles such as the economic system,society , etc. So any Biz. Or Organization is represented as an Open-System Model , that includes interactions between the enterprise and its external environment. This Open-System is modified to an Operational Management model- ie. I/Ps transformed to O/Ps through the 5 managerial functions. Slide 12: Task of the manager- to transfer inputs to outputs efficiently while achieving group objectives Fivefold functions of the manager- Planning Organizing Staffing Leading Controlling Required and related to fulfilling his/her tasks. Slide 13: What is Management? Management is the process of designing and maintaining an environment in which individuals working together in groups,efficiently accomplish selected aims. Definition of management …..continued : Definition of management …..continued Management applies to any type of Organisation Management definition applies to managers at all organisational levels. Managers perform 5 key functions- viz. planning,organizing,staffing,leading and controlling. The aim of all managers is to create a surplus (What is a surplus?) Managing is for more productivity,efficiency and effectiveness. Slide 15: What is productivity? It is defined as the ratio of output to input within a time period,with due consideration for quality. What is effectiveness? Effectiveness has to do with the goal at hand and its completion or the achievement of objectives ( How well is the task being done or the ends being met) Efficiency? Are the ends being achieved with the minimum or optimum means ? The Ten Managerial Goals -by Mintzberg : The Ten Managerial Goals -by Mintzberg Interpersonal roles The figurehead role The leader role The liaison role Informational roles The recepient role The dessiminator role The spokesperson role Slide 17: Decision roles The entrepreneurial role The disturbance-handler role The resource allocator role The negotiator role The five functions of managers are the main axis of the body of management knowledge : Planning – involves selecting missions and objectives and the actions to achieve them. It requires decision making regarding future courses of action from a set of alternatives. There are various types of plans , starting from broader mission and objectives, to more specific and detailed plans – eg. manufacturing plans, project plans, detailed procedures etc. The five functions of managers are the main axis of the body of management knowledge Slide 19: 2. Organizing – group goals are achieved when the cake is divided as required among a group of individuals. Each member of the group has a role to play for which he is given authority,knowledge,information,tools. Organizing involves establishing an intentional structure of roles for people to fill and function in, so that they may effectively achieve group tasks and objectives. Slide 20: 3. Staffing - Involves filling and keeping filled the positions in an organization structure. Staff requirements are ascertained before recruiting, selecting, placing, promoting, appraising,career-planning,training current and potential job-holders for maximising effective group goals achievment. Slide 21: 4.Leading – is influencing people , so that they will contribute to group and organization goals. It involves leadership ,inspiring team members, and also inter-personal relationships and motivation. Slide 22: 5. Controlling – is the measuring and correcting of activities of sub-ordinates to ensure that events conform to plans. Performance is measured against goals and plans and suitable corrective action is taken, to minimize the deviation between results and objectives. Some means of control- budget for expense control , material inspection record to ensure quality control, machine-hours records and man-hours reports, etc. Sources of error and deviation-people, machines or plans or materials must be identified. Slide 23: Co-ordination is not a separate function of the manager. Each of the managerial functions is like a path-way contributing to co-ordination , which is the essence of managership. Time spent in carrying out Managerial functions : Time spent in carrying out Managerial functions Planning Organising Leading Controlling Skills and Management levels : Skills and Management levels Top Management TM MM LM Technical skills Human skills Design/ Concep- tual skills Planning and Controlling : Planning and Controlling There is a close relationship between planning and control – the Siamese twins of management No deviation from plans Types of Plans : Types of Plans There are different types of plans , though all may refer to courses of future action. The manager must be aware of all of these – purpose or mission, objectives, strategies, policies (major or minor), procedures, rules,programs(major,minor &supporting),Budgets (numberized programs) Slide 28:  Slide 29: Mission or purpose - is the basic function or task of an enterprise or organization. For a business, its purpose may be to produce/market manufactured goods/services- that is its social function. (eg. to be among the top five national auto producers) This purpose can be fulfilled by its mission to manufacture a specific range of products - eg. Eco-nomic hatchback cars @ 50,000 per month. (Of course, surplus and profit are essential organization objectives, but they can only be realized through purpose and mission) Objectives : Objectives 2. Objectives are the destinations, (homing goals) towards which the organizational activities are directed. They are the desired end of all the enterprise teams planning, organizing, leading and controlling. Objectives may be enterprise objectives or Divisional objectives or Departmental objectives… ( as you will see in the hierarchy of objectives ) Strategies : Strategies Strategic planning in organizations, is based on the use of tactical plans, as in military operations, to get the advantage over the enemy or competition. Strategy involves action plans, policies, programs and resource mobilization, to achieve desired objectives effectively. The company may adopt a strategic line of business activity, marketing strategy, growth strategy etc. However, strategies only provide a framework for guiding thinking and action- not detailed plans to achieve enterprise objectives. Policies : Policies Policies are plans that guide or channelise our thinking – they are often not clearly spelt out, or written, but understood and implied by the organizational practices and actions of managers. Examples- Recruitment policy of an Organization to only recruit Post-graduates or Doctorates. Policy of issue of components from Stores only against Indent. Policy of internal promotions. Policies regarding suppliers, employees, customers etc. Policies continued…. : Policies continued…. Policies help in consistency in decision making and are also related to objectives. Policies help decide issues which would become problems otherwise. Policy saves time which would be spent on analysis of pros and cons of issues/actions. Policy could help in unifying other plans. Policies enable managers to safely delegate authority to sub-ordinates and yet ensure their actions are within acceptable boundaries or limits. Policies are guides in decision making – they allow for managers discretion, unlike rigid rules. Policies can be major or minor - company/department based Procedures : Procedures Procedures are plans that prescribe the method how activities are to be done, now and in future. They are guides to action, that give explicit details how certain activities must be carried out. Procedures cut across several department lines- eg. order processing procedures may involve accounts, finance, materials, Finance,Materials,Production, packing & shipping departments. Procedures support company policies – eg. Policy of immeadiate order handling will require supporting shipping procedures. Rules : Rules Rules spell out specific required actions or non-actions of the organizations employee- without exceptions. They allow no room for discretion, like in policies. They are the simplest plans and are guides to action, without any time sequence as in procedures. A rule may or may not be related to a procedure- eg. The rule that orders with L/C or bank draft payment only are to be confirmed was formerly a part of order procedure. Programs : Programs Programs are a mix of goals,policies,procedures,rules,task assignments,steps to be done,resources to be employed,etc. required to carry out a given course of action. Programs are supported by budgets. Programs may be major or minor, primary or supporting They involve co-ordination and synchronising Budgets : Budgets A budget is a statement of expected results expressed in numerical terms. It is called a numberized plan. The budget is a planning tool and a controlling method. A budget usually implements a program, and also itself may be a program. Budget may be expense budget or revenue budget or cash flow budget or capital expenditure budget etc. or labour-hour, machine-hour budgets. Budgets may be fixed program budgets or flexible variable budgets or the combined zero-base budget. Steps in Planning : Steps in Planning Being aware of Opportunity Considering Planning premises Identifying Alternatives Comparing Alternatives (referred to goals) Choosing an Alternative Formulating Support plans Numberizing Plans By making Budgets Setting Objectives or Goals Objectives : Objectives Objectives are the important ends towards which organizational and individual activities are directed. Verifiable objectives are preferred because it can be determined if the objective has been achieved within the planned time-frame. Also, measurement of surplus is now possible, and the efficiency and effectiveness of managerial actions. Overall objectives need to be supported by subobjectives and long-term and short-term objectives form a hierarchy. THE END : THE END Reference – Essentials of Management – Harold Koontz & Heinz Weihrich Slides by Suresh R Norman

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