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1
PAN African eNetwork Project
Course Name ndash DBMSubject Name ndash Principles and Practice of
Management
Semester ndash
Facult Name ndash Dr Deepmala Soni
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EARLY CONTRIBUTIONS
Before the systematic study of management which started close to19th century contributions in the field came from a variety of
sources Those contributions provided some insights about how
resources could be utilized more effectively However those
contributions were outside the field of business and other economicorganizations
In the field of business organizations some stray contributions have
come from obert wen ames att $harles Babbage and Henry
Town Their contributions came bit by bit and in haphazard manner
and have failed to stimulate to study management as a distinctdiscipline However their ideas created an awareness about
managerial problems By the end of 19th century a stage was set for
taing systematic study of management and the beginning was made
by Taylor in the early part of ampth century which too thesha e of scientific mana ement
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TAYLOR AND SCIENTIFIC MANAGEMENT
The concept of scientific management was introduced by (redric
inslow Taylor in )+ in the beginning of ampth century This
concept was further carried on by (ran and illian -ilbreth Henry
-antt -eorge Berth dward (elen etc Taylor has defined
scientific management as follows0Scientific management is concerned with knowing exactly what you
want your men to do and then see in that they do it in the best and
cheapest wayrdquo
ince Taylor has put the emphasis on solving managerial problemsin a scientific way often he is called as father of scientific
management and his contributions as the principles of scientific
management
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n the basis of his eperiments he published many papers
and boos and all his contributions were compiled in his boo2cientific 3anagement4 Taylor4s contributions can be described
in two parts lements and tools of scientific management and
principles of scientific management
ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT
Taylor conducted various eperiments at his wor places to find
out how human beings could be made efficient by standardizing the
wor and better method of doing the wor These eperiments have
provided the following features of scientific management
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1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the
wor Before Taylor4s scientific management a worer used to plan
about how he had to wor and what instruments were necessary for
that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to
see how the worers were performing This was creating a lot of
problems and Taylor emphasized that planning should be left to the
supervisor and the worer should emphasize only operational wor
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amp FUNCTIONAL FOREMANSHIP eparation of planning from
doing resulted into development of supervision system which could
tae planning wor ade6uately besides eeping supervision on
worers
for this purpose Taylor evolved the concept of functional
foremanship based on specialization of functions
In this system eight persons are concerned with planning 7i8 route
cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8
disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8
maintenance foreman and 7iv8 gang boss +ll of them give directions
to worers on different aspects of wor
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3 JOB ANALYSIS ob analysis is undertaen to find out the one
best way of doing the thing The best way of doing a 5ob is one which
en6uires the least movements conse6uently less time and cost The
best way of doing the thing can be determined by taing up time
motionfatigue studies7i8 Time study involves the determination of time a movement taes
to complete The movement which taes the minimum time is the best
one This helps in fiing the fair wor for a period
7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful
movements and performing only necessary movements This reduces
the time taen in performing a wor and also the fatigue of worers
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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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A
B
C
D
E
F
G
H
I
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In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Alanning
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
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+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
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Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
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+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
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peifi 2ersamps (iretional Plans
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
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What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
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34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
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teps in a +ypial )50 Program
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-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
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As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
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(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
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0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
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+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
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(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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(eisions in the )anagement -ampntions
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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Copyright copy Amity University
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EARLY CONTRIBUTIONS
Before the systematic study of management which started close to19th century contributions in the field came from a variety of
sources Those contributions provided some insights about how
resources could be utilized more effectively However those
contributions were outside the field of business and other economicorganizations
In the field of business organizations some stray contributions have
come from obert wen ames att $harles Babbage and Henry
Town Their contributions came bit by bit and in haphazard manner
and have failed to stimulate to study management as a distinctdiscipline However their ideas created an awareness about
managerial problems By the end of 19th century a stage was set for
taing systematic study of management and the beginning was made
by Taylor in the early part of ampth century which too thesha e of scientific mana ement
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TAYLOR AND SCIENTIFIC MANAGEMENT
The concept of scientific management was introduced by (redric
inslow Taylor in )+ in the beginning of ampth century This
concept was further carried on by (ran and illian -ilbreth Henry
-antt -eorge Berth dward (elen etc Taylor has defined
scientific management as follows0Scientific management is concerned with knowing exactly what you
want your men to do and then see in that they do it in the best and
cheapest wayrdquo
ince Taylor has put the emphasis on solving managerial problemsin a scientific way often he is called as father of scientific
management and his contributions as the principles of scientific
management
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n the basis of his eperiments he published many papers
and boos and all his contributions were compiled in his boo2cientific 3anagement4 Taylor4s contributions can be described
in two parts lements and tools of scientific management and
principles of scientific management
ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT
Taylor conducted various eperiments at his wor places to find
out how human beings could be made efficient by standardizing the
wor and better method of doing the wor These eperiments have
provided the following features of scientific management
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1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the
wor Before Taylor4s scientific management a worer used to plan
about how he had to wor and what instruments were necessary for
that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to
see how the worers were performing This was creating a lot of
problems and Taylor emphasized that planning should be left to the
supervisor and the worer should emphasize only operational wor
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amp FUNCTIONAL FOREMANSHIP eparation of planning from
doing resulted into development of supervision system which could
tae planning wor ade6uately besides eeping supervision on
worers
for this purpose Taylor evolved the concept of functional
foremanship based on specialization of functions
In this system eight persons are concerned with planning 7i8 route
cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8
disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8
maintenance foreman and 7iv8 gang boss +ll of them give directions
to worers on different aspects of wor
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3 JOB ANALYSIS ob analysis is undertaen to find out the one
best way of doing the thing The best way of doing a 5ob is one which
en6uires the least movements conse6uently less time and cost The
best way of doing the thing can be determined by taing up time
motionfatigue studies7i8 Time study involves the determination of time a movement taes
to complete The movement which taes the minimum time is the best
one This helps in fiing the fair wor for a period
7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful
movements and performing only necessary movements This reduces
the time taen in performing a wor and also the fatigue of worers
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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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A
B
C
D
E
F
G
H
I
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In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
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Copyright copy Amity University
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Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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Copyright copy Amity University
TAYLOR AND SCIENTIFIC MANAGEMENT
The concept of scientific management was introduced by (redric
inslow Taylor in )+ in the beginning of ampth century This
concept was further carried on by (ran and illian -ilbreth Henry
-antt -eorge Berth dward (elen etc Taylor has defined
scientific management as follows0Scientific management is concerned with knowing exactly what you
want your men to do and then see in that they do it in the best and
cheapest wayrdquo
ince Taylor has put the emphasis on solving managerial problemsin a scientific way often he is called as father of scientific
management and his contributions as the principles of scientific
management
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Copyright copy Amity University
n the basis of his eperiments he published many papers
and boos and all his contributions were compiled in his boo2cientific 3anagement4 Taylor4s contributions can be described
in two parts lements and tools of scientific management and
principles of scientific management
ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT
Taylor conducted various eperiments at his wor places to find
out how human beings could be made efficient by standardizing the
wor and better method of doing the wor These eperiments have
provided the following features of scientific management
7232019 PPM Session 2ppt
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Copyright copy Amity University
1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the
wor Before Taylor4s scientific management a worer used to plan
about how he had to wor and what instruments were necessary for
that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to
see how the worers were performing This was creating a lot of
problems and Taylor emphasized that planning should be left to the
supervisor and the worer should emphasize only operational wor
7232019 PPM Session 2ppt
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Copyright copy Amity University
amp FUNCTIONAL FOREMANSHIP eparation of planning from
doing resulted into development of supervision system which could
tae planning wor ade6uately besides eeping supervision on
worers
for this purpose Taylor evolved the concept of functional
foremanship based on specialization of functions
In this system eight persons are concerned with planning 7i8 route
cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8
disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8
maintenance foreman and 7iv8 gang boss +ll of them give directions
to worers on different aspects of wor
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Copyright copy Amity University
7232019 PPM Session 2ppt
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3 JOB ANALYSIS ob analysis is undertaen to find out the one
best way of doing the thing The best way of doing a 5ob is one which
en6uires the least movements conse6uently less time and cost The
best way of doing the thing can be determined by taing up time
motionfatigue studies7i8 Time study involves the determination of time a movement taes
to complete The movement which taes the minimum time is the best
one This helps in fiing the fair wor for a period
7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful
movements and performing only necessary movements This reduces
the time taen in performing a wor and also the fatigue of worers
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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
7232019 PPM Session 2ppt
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
7232019 PPM Session 2ppt
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
7232019 PPM Session 2ppt
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University
gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
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(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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Copyright copy Amity University
n the basis of his eperiments he published many papers
and boos and all his contributions were compiled in his boo2cientific 3anagement4 Taylor4s contributions can be described
in two parts lements and tools of scientific management and
principles of scientific management
ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT
Taylor conducted various eperiments at his wor places to find
out how human beings could be made efficient by standardizing the
wor and better method of doing the wor These eperiments have
provided the following features of scientific management
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Copyright copy Amity University
1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the
wor Before Taylor4s scientific management a worer used to plan
about how he had to wor and what instruments were necessary for
that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to
see how the worers were performing This was creating a lot of
problems and Taylor emphasized that planning should be left to the
supervisor and the worer should emphasize only operational wor
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Copyright copy Amity University
amp FUNCTIONAL FOREMANSHIP eparation of planning from
doing resulted into development of supervision system which could
tae planning wor ade6uately besides eeping supervision on
worers
for this purpose Taylor evolved the concept of functional
foremanship based on specialization of functions
In this system eight persons are concerned with planning 7i8 route
cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8
disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8
maintenance foreman and 7iv8 gang boss +ll of them give directions
to worers on different aspects of wor
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Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 876Copyright copy Amity University
3 JOB ANALYSIS ob analysis is undertaen to find out the one
best way of doing the thing The best way of doing a 5ob is one which
en6uires the least movements conse6uently less time and cost The
best way of doing the thing can be determined by taing up time
motionfatigue studies7i8 Time study involves the determination of time a movement taes
to complete The movement which taes the minimum time is the best
one This helps in fiing the fair wor for a period
7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful
movements and performing only necessary movements This reduces
the time taen in performing a wor and also the fatigue of worers
7232019 PPM Session 2ppt
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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
7232019 PPM Session 2ppt
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
7232019 PPM Session 2ppt
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
7232019 PPM Session 2ppt
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
7232019 PPM Session 2ppt
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
7232019 PPM Session 2ppt
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Alanning
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
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+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
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Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
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+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
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peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
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What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
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34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
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teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
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httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
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eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
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eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
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valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
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(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
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+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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Copyright copy Amity University
1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the
wor Before Taylor4s scientific management a worer used to plan
about how he had to wor and what instruments were necessary for
that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to
see how the worers were performing This was creating a lot of
problems and Taylor emphasized that planning should be left to the
supervisor and the worer should emphasize only operational wor
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Copyright copy Amity University
amp FUNCTIONAL FOREMANSHIP eparation of planning from
doing resulted into development of supervision system which could
tae planning wor ade6uately besides eeping supervision on
worers
for this purpose Taylor evolved the concept of functional
foremanship based on specialization of functions
In this system eight persons are concerned with planning 7i8 route
cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8
disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8
maintenance foreman and 7iv8 gang boss +ll of them give directions
to worers on different aspects of wor
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Copyright copy Amity University
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3 JOB ANALYSIS ob analysis is undertaen to find out the one
best way of doing the thing The best way of doing a 5ob is one which
en6uires the least movements conse6uently less time and cost The
best way of doing the thing can be determined by taing up time
motionfatigue studies7i8 Time study involves the determination of time a movement taes
to complete The movement which taes the minimum time is the best
one This helps in fiing the fair wor for a period
7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful
movements and performing only necessary movements This reduces
the time taen in performing a wor and also the fatigue of worers
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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
7232019 PPM Session 2ppt
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
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+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
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Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
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+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
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peifi 2ersamps (iretional Plans
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
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What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
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34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
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teps in a +ypial )50 Program
7232019 PPM Session 2ppt
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-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
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As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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(eision )a$ing Conditions
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omplete ertainty aoampt the famptampre
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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(eision )a$ing ProessIdentification of a
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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eletion of Alternative
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7232019 PPM Session 2ppt
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valampation of Alternatives
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( i i ) $i U d
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(eision )a$ing Under
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bull ltis$ Analysis
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7232019 PPM Session 2ppt
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(eisions in the )anagement -ampntions
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7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
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7232019 PPM Session 2ppt
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(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
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ndash selet the alternative that maimizes the li$elihood ofahieving the goal
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5oampnded ltationality
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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What Is Intampition
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-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
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+han$ Boamp
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amp FUNCTIONAL FOREMANSHIP eparation of planning from
doing resulted into development of supervision system which could
tae planning wor ade6uately besides eeping supervision on
worers
for this purpose Taylor evolved the concept of functional
foremanship based on specialization of functions
In this system eight persons are concerned with planning 7i8 route
cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8
disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8
maintenance foreman and 7iv8 gang boss +ll of them give directions
to worers on different aspects of wor
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3 JOB ANALYSIS ob analysis is undertaen to find out the one
best way of doing the thing The best way of doing a 5ob is one which
en6uires the least movements conse6uently less time and cost The
best way of doing the thing can be determined by taing up time
motionfatigue studies7i8 Time study involves the determination of time a movement taes
to complete The movement which taes the minimum time is the best
one This helps in fiing the fair wor for a period
7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful
movements and performing only necessary movements This reduces
the time taen in performing a wor and also the fatigue of worers
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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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A
B
C
D
E
F
G
H
I
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In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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7232019 PPM Session 2ppt
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Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
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+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
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Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
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+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
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34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
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teps in a +ypial )50 Program
7232019 PPM Session 2ppt
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-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
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Ate4+ti8es
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Cm5+
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HP
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NEC
Sy
Ts9i+
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- + Ate4+ti8e
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- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
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HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
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5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
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+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
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iiti+ted
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+sed de7isis
+ues 4
et9i7s(+sed
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met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
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A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
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+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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3 JOB ANALYSIS ob analysis is undertaen to find out the one
best way of doing the thing The best way of doing a 5ob is one which
en6uires the least movements conse6uently less time and cost The
best way of doing the thing can be determined by taing up time
motionfatigue studies7i8 Time study involves the determination of time a movement taes
to complete The movement which taes the minimum time is the best
one This helps in fiing the fair wor for a period
7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful
movements and performing only necessary movements This reduces
the time taen in performing a wor and also the fatigue of worers
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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
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(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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3 JOB ANALYSIS ob analysis is undertaen to find out the one
best way of doing the thing The best way of doing a 5ob is one which
en6uires the least movements conse6uently less time and cost The
best way of doing the thing can be determined by taing up time
motionfatigue studies7i8 Time study involves the determination of time a movement taes
to complete The movement which taes the minimum time is the best
one This helps in fiing the fair wor for a period
7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful
movements and performing only necessary movements This reduces
the time taen in performing a wor and also the fatigue of worers
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httpslidepdfcomreaderfullppm-session-2ppt 976Copyright copy Amity University
7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
7232019 PPM Session 2ppt
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
7232019 PPM Session 2ppt
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
7232019 PPM Session 2ppt
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
7232019 PPM Session 2ppt
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Copyright copy Amity University
Alanning
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
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+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel
fatigue and cannot wor with full capacity Therefore they re6uire
rest in between hen the rest is allowed they start woring with full
capacity
Thus 5ob analysis as given by Taylor suggests the fair
amount of a day4s wor re6uiring certain movements and rest periods
to complete it
7232019 PPM Session 2ppt
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STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
7232019 PPM Session 2ppt
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
7232019 PPM Session 2ppt
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
7232019 PPM Session 2ppt
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1476Copyright copy Amity University
wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
7232019 PPM Session 2ppt
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
7232019 PPM Session 2ppt
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1776Copyright copy Amity University
He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Copyright copy Amity University
Alanning
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
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34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1076Copyright copy Amity University
STANDARDISATION +s far as possible standardization should
be maintained in respect of instruments and tools period of wor
amount of wor woring conditions cost of production etc These
things should be fied in advance on the basis of 5ob analysis and
various elements of costs that go in performing a wor
SCIENTIFIC SELECTION AND TRAINING OF
$ORERSamp Taylor has suggested that worers should be selected
on scientific basis taing into account their education wor
eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part
from selection proper emphasis should be given on the training of
worers which maes them more efficient and effective
7232019 PPM Session 2ppt
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1276Copyright copy Amity University
ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
7232019 PPM Session 2ppt
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1476Copyright copy Amity University
wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
7232019 PPM Session 2ppt
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
7232019 PPM Session 2ppt
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1776Copyright copy Amity University
He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1876Copyright copy Amity University
= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
7232019 PPM Session 2ppt
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Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
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=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
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(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
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Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
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5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn
higher wages by putting in etra effort worers will be motivated to
earn more Taylor himself applied the concept of differential piece
rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be
based on individual performance and not on the position which he
occupies (urther the wage rate should be fied on accurate
nowledge and not on estimates
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1276Copyright copy Amity University
ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
7232019 PPM Session 2ppt
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1476Copyright copy Amity University
wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
7232019 PPM Session 2ppt
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
7232019 PPM Session 2ppt
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1876Copyright copy Amity University
= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
7232019 PPM Session 2ppt
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Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
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+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
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Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
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+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
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peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
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What do )anagers Plan -or
Idi8idu+
Em5yees
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7232019 PPM Session 2ppt
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34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
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teps in a +ypial )50 Program
7232019 PPM Session 2ppt
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-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
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bull Improved ontrols
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
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Ashpillai IM
f
7232019 PPM Session 2ppt
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eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
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eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
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(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
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(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
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5 d d lt ti lit
7232019 PPM Session 2ppt
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5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
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atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
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(eision)a$ing tyles
7232019 PPM Session 2ppt
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-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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ECONOMY hile applying scientific management not only
scientific and technical aspects should be considered but ade6uate
consideration should be given to economy and profit (or this
purpose techni6ues of cost estimates and control should be adopted
The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages
lt MENTAL REOLUTION cientific management depends on
the mutual cooperation between management and worers (or this
cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important
feature of scientific management because in its absence no principle
of scientific management can be applied
7232019 PPM Session 2ppt
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
7232019 PPM Session 2ppt
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
7232019 PPM Session 2ppt
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
7232019 PPM Session 2ppt
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
7232019 PPM Session 2ppt
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Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
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+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
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Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
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+ypes 0f Plans
B4e+dt9
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7232019 PPM Session 2ppt
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peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
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What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
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7232019 PPM Session 2ppt
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34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
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teps in a +ypial )50 Program
7232019 PPM Session 2ppt
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-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
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As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
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(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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0vervie 0f )anagerial (eision )a$ing
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7232019 PPM Session 2ppt
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+ypes of (eisions
rogrammed
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4utie 54ems
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It is de7isi m+i
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+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
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+ypes of (eisions at 2arioamps
9evels
P44+mmed
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N544+mmed
De7isis
Le8e i
O4+i+ti
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P4em
Ashpillai IM
7232019 PPM Session 2ppt
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(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
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Ashpillai IM
f
7232019 PPM Session 2ppt
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eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
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eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
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valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
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(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
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(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
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5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
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De7isis +sed
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(eision)a$ing tyles
7232019 PPM Session 2ppt
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A+yti7
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o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
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+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management
The fundamental principles that Taylor saw underlying the scientific
management may be
given below
1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor
has emphasized that in scientific management organized nowledge
should be applied which will replace rule of thumb hile the use of
scientific method denotes precision in determining any aspect of
wor rule of thumb emphasizes estimation ince eactness of
various aspects of wor lie day4s fair wor standardization in
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httpslidepdfcomreaderfullppm-session-2ppt 1476Copyright copy Amity University
wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
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In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
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Ate4+ti8es
A7e4
Cm5+
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HP
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NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
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E8+u+ti -
Ate4+ti8es
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HP
Sy
Ts9i+
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NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
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P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
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+d
7seue7es
+4e
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+4e 7e+4
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+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
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sisgt
edegt
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iiti+ted
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured
precisely and should not be based on mere estimates This approach
can be adopted in all aspects of managing
amp HARMONY IN GROUP ACTON Taylor has emphasized that
attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual
give and tae situation and proper understanding so that group as a
whole contributes to the maimum
= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific
management is based on mutual confidence cooperation and
goodwill $ooperation between management and worers can be
developed through mutual understanding and a change in thining
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1576Copyright copy Amity University
gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
7232019 PPM Session 2ppt
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1776Copyright copy Amity University
He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
7232019 PPM Session 2ppt
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2076Copyright copy Amity University
GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University
= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
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httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of
restricted production either by management or by worer Therefore
he advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall bedivided
MA)IMUM OUTPUT cientific management involves
continuous increase in production and productivity instead of
restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention
towards increasing the size of the surplus until the size of the surplus
becomes so large that it is necessary to 6uarrel over how it shall be
divided
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1676Copyright copy Amity University
FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 1876Copyright copy Amity University
= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
7232019 PPM Session 2ppt
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
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ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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FAYOLS ADMINISTRATIE MANAGEMENT
Aerhaps the real father of modern operational management theory is
the (rench industrialist Henry (ayol His contributions are generally
termed as operational management or administrative management(ayol4s contributions were first published in boo form titled
2administration industrielle at generale4 in (rench language in 191
However the boo was not made available outside (rance and was
not translated until 19amp9 Its nglish version was published in 19gt9 in
the )nited tates of +merica Therefore in the early period (ayol4s
contributions could not mae much impact on the development of
management thought
7232019 PPM Session 2ppt
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
7232019 PPM Session 2ppt
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
7232019 PPM Session 2ppt
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
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iiti+ted
de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration
Therefore management is a universal phenomenon However he
has emphasized that principles of management are fleible and not
absolute and are usable regardless of changing and special
conditions
F+y de-ied m++emet +s -samp
0To manage is to forecast and to plan to organize to coordinate
and to controlrdquo He found that activities of an industrialorganization could be divided into si groups
1 Technical 7relating to production8
amp $ommercial 7buying selling and echange8
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
7232019 PPM Session 2ppt
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
7232019 PPM Session 2ppt
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University
= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
7232019 PPM Session 2ppt
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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= (inancial 7search for capital and its optimum use8
gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and
3anagerial 7planning organization command coordination and
control8
He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of
management and 7iii8 elements of management
MANAGERIAL 0UALITIES AND TRAINING
(ayol was the first person to identify the 6ualities re6uired in a
manager +ccording to him there are si types of 6ualities that a
manager re6uires These are as follows
1 Ahysical 7health vigour and address8
7232019 PPM Session 2ppt
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
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amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University
= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
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organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
7232019 PPM Session 2ppt
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
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Copyright copy Amity University
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Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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amp 3ental 7ability to understand and learn 5udgment mental vigour
and capability8
= 3oral 7energy firmness initiative loyalty tact and dignity8
gt ducational 7general ac6uaintance with matters not belonging
eclusively to the function performed8 Technical 7peculiar to the function being performed8 and
perience 7arising from the wor8
7232019 PPM Session 2ppt
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GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University
amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University
gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
7232019 PPM Session 2ppt
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
7232019 PPM Session 2ppt
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
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Copyright copy Amity University
7232019 PPM Session 2ppt
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Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
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HP
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NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
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Ts9i+
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NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
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+d
7seue7es
+4e
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+4e 7e+4
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+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2076Copyright copy Amity University
GENERAL PRINCIPLES OF MANAGEMENT
(ayol has given fourteen principles of management He has made
distinction between management principles and management
elements hile management principle is a fundamental truth and
establishes causeeffect relationship management element denotes
the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things
7i8The list of management principles is not ehaustive but suggestive
and has discussed only those principles which he followed on most
occasions
7ii8Arinciples of management are not rigid but fleible
Carious principles of management are as follows
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University
amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University
= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University
gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
7232019 PPM Session 2ppt
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
7232019 PPM Session 2ppt
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
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34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
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teps in a +ypial )50 Program
7232019 PPM Session 2ppt
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-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
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(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
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0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
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Ris
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+te4+ti8e
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( S+tis-i7i
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
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Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
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Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
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Se48i7e+iity
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Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
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eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
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p y
R+ti+De7isi
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de-ied +
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+d st+e
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5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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De7isis +sed
-eeis +demtis
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
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A+yti7
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R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
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Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
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1 DIISION OF $OR (ayol has advocated division of wor to
tae the advantage of specialization +ccording to him
specialization belongs to natural order The worers always wor on
the same part the managers concerned always with the same
matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and
adaptation which reduces outputDyet division of wor has its limits
which eperience and a sense of proportion teach us may not be
eceeded This division of wor can be applied at all levels of theorganization
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University
amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
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= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University
gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
7232019 PPM Session 2ppt
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
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Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
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+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
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+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
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+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
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peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
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Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
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o-
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o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University
amp AUTHORITY AND RESPONSIBILITY The authority and
responsibility are related with the latter the corollary of the former
and arising from it (ayol finds authority as a continuation of official
and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities
such as intelligence eperience moral worth past services etc
esponsibility arises out of assignment of activity In order to
discharge the responsibility properly there should be parity of
authority and responsibility
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University
= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University
gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
7232019 PPM Session 2ppt
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
7232019 PPM Session 2ppt
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
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Copyright copy Amity University
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Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
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F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
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=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
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Di4e7ti8e
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R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
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Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
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Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
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5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
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met+
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Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University
= DISCIPLINE +ll the personnel serving in an organization should
be disciplined Eiscipline is obedience application energy behavior
and outward mar of respect shown by employees Eiscipline may be
of two types selfimposed discipline and command discipline elf
imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand
discipline stems from a recognized authority and utilizes deterrents to
secure compliance with a desired action which is epressed by
established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a
discipline can be obtained by sanctions in the forms of remuneration
warnings suspension demotion dismissal etc
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University
gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University
2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
7232019 PPM Session 2ppt
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
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Copyright copy Amity University
7232019 PPM Session 2ppt
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Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
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F4eue7y - Use
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St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
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M++emets
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=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
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( 544+mmed P4y st4u7tu4ed
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
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Non- rogrammed
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+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
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Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
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Ideti-i7+ti -
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See7ti - +
Ate4+ti8e
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Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
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Fi+ 79i7e
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
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o-
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o r A m b i g u i t y
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-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University
gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior
The more completely an individual has a reporting relationship to a
single superior the less is the problem of conflict in instructions and
the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered
unity of command as an important aspect in managing an
organization
UNITY OF DIRECTION +ccording to this principle each
group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in
the sense that the former is concerned with functioning of the or
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University
2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
7232019 PPM Session 2ppt
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
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Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
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Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
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Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
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Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
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Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
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Copyright copy Amity University
7232019 PPM Session 2ppt
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Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
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Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
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atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
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Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
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+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
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Ris
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+te4+ti8e
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( S+tis-i7i
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E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
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Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
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$+44+ty
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Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
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P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
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A7e4
Cm5+
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HP
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Sy
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- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
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HP
Sy
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See7ti - +
Ate4+ti8e
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Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
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+4e 7st+t
+d st+e
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Fi+ 79i7e
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5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University
organization in respect of its grouping of activities or planning while
the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction
provides better coordination among various activities to be
undertaen by an organization
1 SUBORDINATION OF INDIIDUAL TO GENERAL
INTERESTamp $ommon interest is above the individual interest
Individual interest must be subordinate to general interest when
there is conflict between the two However factors lie ambition
laziness weaness etc tend to reduce the importance of general
interest Therefore superiors should set an eample in fairness and
goodness The agreement between the employers and the employees
should be fair and there should be constant vigilance and
supervision
7232019 PPM Session 2ppt
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2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
7232019 PPM Session 2ppt
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Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2876
Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2976
Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3076
7232019 PPM Session 2ppt
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Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3276
Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
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Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University
2 REMUNERATION OF PERSONNEL emuneration of
employees should be fair and provide maimum possible
satisfaction to employees and employers (ayol did not favor profit
sharing plan for worers but advocated it for managers He was also
in favor of nonfinancial benefits though these were possible only in
the case of largescale organizations CENTRALISATION verything which goes to increase the
importance of subordinate4s role is decentralization everything
which goes to reduce it is centralization In small firms
centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of
the managers and employees are constantly changing it is desirable
that the degree of centralization or decentralization may itself vary
constantly
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2776
Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2876
Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2976
Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3076
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3176
Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3276
Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2776
Copyright copy Amity University
9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It
suggests that each communication going up or coming down must
flow through each position in the line of authority It can be short
circuited only in special circumstances when its rigid following
would be detrimental to the organization (or this purpose (ayol has
suggested 2gang plan4 which is used to prevent the scalar chain
from bogging down action His scalar plan and gang plan can be
presented as follows
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2876
Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2976
Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3076
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3176
Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3276
Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
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It is de7isi m+i
y 54e7edet
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Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
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I(st4u7tu4ed
Ty5e -
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
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eed e 7m5ute4s
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Sy
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Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
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de-ied +
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
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Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2876
Copyright copy Amity University
A
B
C
D
E
F
G
H
I
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2976
Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3076
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3176
Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3276
Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
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F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
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=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
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Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
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Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
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Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
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A7e4
Cm5+
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HP
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NEC
Sy
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Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
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+sed de7isis
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et9i7s(+sed
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+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 2976
Copyright copy Amity University
In the above figure + is the top man having immediate subordinates
B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the
communication must flow from + to B to $ to E and so on while
coming from the top to down imilarly it must flow from - to ( to
and so on while going up It means if any communication is going
from ( to A it will flow from ( to + via E$ and B and coming
down to A via 3G and (ayol suggests that this scalar chain
system taes time and therefore can be substituted by gang plan
without weaening the chain of command In order to maintain
authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action
taen
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3076
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3176
Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3276
Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3076
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3176
Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3276
Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
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S74ee ty5e
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Se48i7e+iity
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C4ite4i+
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Dust 54-
$+44+ty B+tte4y i-e 2
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Ate4+ti8es
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Sy
Ts9i+
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See7ti - +
Ate4+ti8e
A7e4Cm5+
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HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3176
Copyright copy Amity University
11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it
brings loyalty in the organization The application of e6uity
re6uires good sense eperience and good nature for soliciting
loyalty and devotion from subordinates
1amp STABILITY OF TENURE Go employee should be removed
within short time There should be reasonable security of 5obs
tability of tenure is essential to get an employee customed to
new wor and succeeding in doing it well )nnecessary turnover
is both cause and effect of bad management
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3276
Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
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Ate4+ti8es
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Sy
Ts9i+
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See7ti - +
Ate4+ti8e
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Assemed
HP
A55e
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Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
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+sed de7isis
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et9i7s(+sed
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+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3276
Copyright copy Amity University
1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative
Initiative is concerned with thining out and eecution of a plan
Initiative increases zeal and energy on the part of human beings
1gt ESPIRIT DE CORPS This is the principle of 2union is strength4
and etension of unity of command for establishing team wor The
manager should encourage spirit de corps among his employees The
erring employees should be set right by oral directions and not by
demanding written eplanations ritten eplanations complicate thematters
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3376
Copyright copy Amity University
ELEMENTS OF MANAGEMENT
(ayol holds that management should be viewed as a process
consisting of five elements He has regarded these elements as
functions of management These are planning organization
commanding coordination and controlling He has regarded
planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes
in directions which cause weaness in the organization $reation of
organization structure and commanding function is necessary to
eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is
proceeding according to plan (ayol holds the view that these
functions are re6uired at all levels of management and in all types
of organizations
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3476
Copyright copy Amity University
Both have emphasized that management actions can be effective if
these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are
ac6uirable and can be ac6uired through training Therefore
organizations should mae attempts to develop these
Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational
ob5ectives
Dissimi+4ityamp
There is more dissimilarity between the approaches of Taylor and
(ayol as compared to similarity This is because of the fact that
Taylor has concentrated on the shop floor efficiency while (ayol
has concentrated on higher managerial levels The dissimilarity
between the two is presented below
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
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iiti+ted
de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3576
Copyright copy Amity University
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3676
Copyright copy Amity University
Alanning
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
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rogrammed
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
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Le8e i
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
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Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
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e)ay of hining
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igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3776
What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing
an overall strategy and developing a omprehensive
set of plans to integrate and oordinate organizational
or$ ndash informal planning nothing is ritten don
bull little or no sharing of goals
bull general and la$ing in ontinampity
ndash formal planning ritten
bull defines speifi goals
bull speifi ation programs eist to ahieve goals
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
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De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
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S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
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P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
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Cm5+
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HP
A55e
NEC
Sy
Ts9i+
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- + Ate4+ti8e
$i54 A7e4E8+u+ti
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Ate4+ti8es
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HP
Sy
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NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
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+d
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+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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De7isis +sed
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De7isis +sed
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3876
Why (o )anagers Plan ndash Planning is the primary management fampntion that
estalishes the asis for all other management
fampntions
ndash Planning estalishes oordinated effort
ndash Planning redampes ampnertainty
ndash Planning redampes overlapping and astefampl
ativities ndash Planning estalishes goals and standards ampsed in
ontrolling
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
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Sy
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- + Ate4+ti8e
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E8+u+ti -
Ate4+ti8es
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HP
Sy
Ts9i+
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NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 3976
atampre of Planningbull Involves rational approach
bull It is a process
bull It is an open System Approachbull Planning is future oriented
bull Involves choice from among alternatives
bull Planning occurs at all levels of Mgtbull It is flexible
bull Pervasive amp Continuous
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
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Ituiti
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iiti+ted
de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
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Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4076
+he Planning Proess
bull Pereive the prolem at hand
bull stalish hat do yoamp ant to ahieve aoampt it
bull stalish the planning premises
bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have
bull Choose one appropriate plan and $eep alternative plansready
bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange
them in a proper seampene
bull Implement the plan
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4176
Types of PlansStrategic plans apply to the entireorganization
estalish organizationrsquos overall goalssee$ to position the organization interms of its environment
Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
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Ty5e -
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
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f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
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5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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Citi8e(
+sed
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4276
Planning In +he ierarhy 0f 0rganizations
Strategic
Planning
Operational
Planning
T5
E6e7uti8es
Midde(Le8e
M++e4s
Fi4st(Le8e
M++e4s
+ypes of Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
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httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
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Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
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S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
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C4ite4i+
Rei+iity
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P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
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Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
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de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4376
+ypes of Plans
Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly
ampnertain organizational environments
Short-term plans over one year or less
Specific plans learly defined ith little room forinterpretation
reampired larity and preditaility often do not eist
Directional plans fleile plans that set oampt general
gampidelines
provide foamps ithoampt limiting oamprses of ation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
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ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
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Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
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+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
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d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4476
+ypes 0f Plans
B4e+dt9
St4+tei7
O5e4+ti+
S5e7i-i7ity
Di4e7ti+
S5e7i-i7
F4eue7y - Use
Sie use
St+di
Time F4+me
L te4m
S94t te4m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
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R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4576
peifi 2ersamps (iretional Plans
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
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ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
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Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
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Siegt e(
de-ied +
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
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+sed
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
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o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4676
+ypes of Plans
bull Single-use plans onetime plans speifially designed
to meet the needs of a ampniampe sitampation
bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly
ndash inlampde poliies proedampres and ramples
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
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De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
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S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
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Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
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NEC
Sy
Ts9i+
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- + Ate4+ti8e
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E8+u+ti -
Ate4+ti8es
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Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4776
What do )anagers Plan -or
Idi8idu+
Em5yees
Olte7ti8e
T5
M++emets
Olte7ti8e
De5+4tmetM++e4s
Olte7ti8e
Di8isi
M++e4s
Olte7ti8e
=I74e+se 54-itsgt 4e+4dess- t9e me+s
=I +t t see +
sii-i7+t im548emet
i t9is di8isis 54-its
=$e eed t im548e
t9e 7m5+ys 5e4-4m+7e
=Dt 44y +ut
u+ityamp ltust 4 -+st
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
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Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
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Siegt e(
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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De7isis +sed
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
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Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4876
34
0+ comprehensive managerial system that integrates
many ey managerial activities in a systematic manner
and is consciously directed towards the effective and
efficient achievement of organizational and individual
ob5ectives Koontz
M++emet By Olte7ti8es MBO
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
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+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
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I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
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HP
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Sy
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Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
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+4e 7st+t
+d st+e
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7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
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+sed
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 4976
teps in a +ypial )50 Program
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
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C4ite4i+
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P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
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+d st+e
N time 4 7st
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Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
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+sed
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+sed
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5076
-eatampres of )50
bull A philosophy not a tehniampe
bull hort term 6 long term o7etives
bull Performane appraisal
bull Planning is an Integral part
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
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Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
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Sy
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- + Ate4+ti8e
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Ate4+ti8es
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See7ti - +
Ate4+ti8e
A7e4Cm5+
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HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5176
As95i+i
Advantages of )50bull elf steem 6 elf Atampalization
bull mphasis on resamplts
bull 0rg8 roles 6 stramptampres larified
bull Inreased ommitment
bull Improved ontrols
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5276
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
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ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
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Ty5e -
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Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
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Ideti-i7+ti -
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Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
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Siegt e(
de-ied +
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N time 4 7st
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Fi+ 79i7e
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5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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De7isis +sed
-eeis +demtis
De7isis +sed
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Citi8e(
+sed
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
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C7e5tu+
igh
o-
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o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5376
(eision )a$ing
bull +he seletion of a oamprse of ation from
among alternatives
bull It is a omprehensive proess not simply
hoosing alternatives
bull (eision ma$ing is the ore of planning
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
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Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
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R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
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Reies est+is9ed74ite4i+
It is de7isi m+i
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Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
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E8+u+ti -
Ate4+ti8es
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Assemed
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A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5476
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
P47ess
Ty5es - P4ems +d De7isis
$e(st4u7tu4ed
( 544+mmed P4y st4u7tu4ed
( N544+mmed
De7isi(M+i Cditis Ce4t+ity
Ris
U7e4t+ity
De7isi M+e4 Stye
Di4e7ti8e
A+yti7
C7e5tu+
Be9+8i4+
De7isi(M+i A554+79
R+ti+ity
Buded R+ti+ity Ituiti
De7isi
C9se est
+te4+ti8e
( m+6imii
( S+tis-i7i
Im5emeti
E8+u+ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
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4 7utu4e
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De7isis +sed
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Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
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o-
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Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5576
0vervie 0f )anagerial (eision )a$ing
De7isi(M+i
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
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Reies est+is9ed74ite4i+
It is de7isi m+i
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Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
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Ate4+ti8es
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Assemed
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NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5676
+ypes of (eisions
rogrammed
A55ied t St4u7tu4ed
4utie 54ems
Reies est+is9ed74ite4i+
It is de7isi m+i
y 54e7edet
Non- rogrammed
Ust4u7tu4edgt 8e
i de-ied situ+tis -
+ (4e7u44i +tu4eReui4e sulte7ti8e
ltudmets
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5776
(eision )a$ing Conditions
ndashCertainty 0nly one state of natampre eists I8e8
omplete ertainty aoampt the famptampre
ndashUncertainty )ore than one states of natampre
eists ampt sampffiient info is not present soproailities of states are ampn$non
ndashRisk )ore than one states eists sampffiient info
is there to assign proailities to eah state8$ncertainty Certaintyis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
N544+mmed
De7isis
Le8e i
O4+i+ti
T5
Le4$e(st4u7tu4ed
I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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De7isis +sed
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+sed
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
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Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5876
+ypes of (eisions at 2arioamps
9evels
P44+mmed
De7isis
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I(st4u7tu4ed
Ty5e -
P4em
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
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eed e 7m5ute4s
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Sy
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Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
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+4e 7e+4
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+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
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De7isis +sed
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et9i7s(+sed
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Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 5976
(eision )a$ing ProessIdentification of a
problem
valuation of
Alternatives
(ev of
Alternatives
Allo )eights to
Criteria
Id Of (ecision
Criteria
Selection of
Alternative
IMPM+AIO+
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
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iiti+ted
de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6076
P4em
Ideti-i7+ti
=My m++e4s
eed e 7m5ute4s
Ideti-i7+ti -
De7isi C4ite4i+
P4i7e
B+tte4y i-e
$+44+ty
S74ee ty5e
Rei+iityDust P4-
Se48i7e+iity
A7+ti - $ei9ts t
C4ite4i+
Rei+iity
Se48i7e+iity
P4i7e
Dust 54-
$+44+ty B+tte4y i-e 2
S74ee ty5e 3
De8e5met -
Ate4+ti8es
A7e4
Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Im5emet+ti
- + Ate4+ti8e
$i54 A7e4E8+u+ti
- De7isi
E--e7ti8eess
E8+u+ti -
Ate4+ti8es
A7e4Cm5+
Assemed
HP
Sy
Ts9i+
A55e
NEC
See7ti - +
Ate4+ti8e
A7e4Cm5+
Assemed
HP
A55e
NEC
Sy
Ts9i+
Decision Making
Ashpillai IM
f
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
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De7isis +sed
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+sed de7isis
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Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6176
eletion of Alternatives
bull periene
bull perimentation
bull ltesearh 6 Analysis
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
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iiti+ted
de7isis
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+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6276
eletion of Alternative
o- to Select anAlternative
COIC
MA(
xperimentation
esearch amp
Analysis
eliance on Past
Ashpillai IM
l ti f Alt ti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6376
valampation of Alternatives
bull =ampantitative 6 =ampalitative -ators
bull )arginal Analysis
bull Cost ffetiveness Analysis
Ashpillai IM
( i i ) $i U d
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6476
(eision )a$ing Under
Unertainty
bull ltis$ Analysis
bull (eision +rees
bull Preferene theory
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
e65e4ie7e
De7isis +sed
-eeis +demtis
De7isis +sed
et9i7+ 8+ues
4 7utu4e
De7isis
+sed
su7s7ius
d+t+
De7isis +sed
sisgt
edegt
4 t4+ii
Ituiti
A--e7t(
iiti+ted
de7isis
E65e4ie7ed(
+sed de7isis
+ues 4
et9i7s(+sed
de7isis
Su7s7ius
met+
547essi
Citi8e(
+sed
de7isis
Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
A+yti7
Di4e7ti8e Be9+8i4+
R+ti+ Ituiti8
e)ay of hining
C7e5tu+
igh
o-
o l e r a n c e f
o r A m b i g u i t y
Ashpillai IM
-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6576
(eisions in the )anagement -ampntions
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
M+i
P4em is
7e+4 +d
u+miuus
Siegt e(
de-ied +
is t e +79ie8ed
A +te4+ti8es
+d
7seue7es
+4e
P4e-e4e7es
+4e 7e+4
P4e-e4e7es
+4e 7st+t
+d st+e
N time 4 7st
7st4+its e6ist
Fi+ 79i7e
i m+6imie
5+y--
Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6676
ltationality in (eision )a$ing
bull Analysis reampiring a lear goal a lear
ampnderstanding of alternatives y hih a goal
an e ahieved
bull An analysis and evalampation of alternatives interms of goals soampght needed information
and a desire to optimize
Ashpillai IM
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
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hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6776
+he )anager As ltational
(eision )a$er
ndash Assumptions of Rationality deision
ma$er oampldgt ndash e o7etive and logial
ndash arefamplly define a prolem
ndash have a lear and speifi goal
ndash selet the alternative that maimizes the li$elihood ofahieving the goal
ndash ma$e deision in the firmrsquos est economic interests
Assampmptions 0f ltationality
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6876
p y
R+ti+De7isi
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P4em is
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Ashpillai IM
5 d d lt ti lit
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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Ashpillai IM
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 6976
5oampnded ltationality
bull ltational ation limited dampe to la$ of
information time or aility to analyze
alternatives in light of a goal soampght ampnlear
goals or a la$ of aility to ta$e a ris$
Ashpillai IM
ti fi i
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
De7isis +sed
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7076
atisfiing
bull +endeny of managers to ma$e deisions
hile faing a sitampation of oampnded
rationality
bull Usampally the oamprse of ation good
enoampgh is hosen
Ashpillai IM
+h ) A I t iti
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7176
+he )anager As Intampitive
(eision )a$er ndash ntuitie decision making
amponsioamps proess of ma$ing deisions
on the asis of eperiene and
aampmamplated 7ampdgment
bull does not rely on a systemati or thoroampgh
analysis of the prolem
bull generally omplements a rational analysis
Ashpillai IM
What Is Intampition
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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Ashpillai IM
(eision)a$ing tyles
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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-eat res of ffeti e
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7276
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7232019 PPM Session 2ppt
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7376
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7232019 PPM Session 2ppt
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Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
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7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7476
Copyright copy Amity University
-eatampres of ffetive
(eisionsbull Ation 0riented
bull oal (iretion
bull ffiieny in Implementation
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7576
Copyright copy Amity University
+o )a$e ffetive
(eisions 8 8 8bull Categorial Interpretation
bull Appliation of 9imiting -ator
bull Adeampate Information
bull Considering 0thersrsquo 2ies
bull +imeliness
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
7232019 PPM Session 2ppt
httpslidepdfcomreaderfullppm-session-2ppt 7676
+han$ Boamp
Pe+se -4+4d yu4 ue4y
Tampdsoniamityedu
CCamp m+lt+mity5++-et7m
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