topic+3+ +management+functions+of+planning+and+organizing
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PLANNING AND ORAGANISING
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Selecting missions and objectives as wellas the actions to them which requires
decision - making, that is, choosing acourse of action from among thealternatives.
PLANNING
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TYPES OF PLANS
The ends towards which activity is aimed.
The determination of the basic long-term objectives ofan enterprise and the adoption of the courses of actionand allocation of resources necessary to achievethese goals.
General statements or understandings thatguide or channel thinking in decision making
The basic purpose or function or tasks of an enterpriseor agency or any part of it.
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Plans that establish a required method of
handling future activities
Spell out specific required actions or non-action,allowing no discretion
A complex of goals, policies, procedures, rules, taskassignments, steps to be taken, resources to beemployed, and other elements necessary to carry outa given course of action
A statement of expected results expressed innumerical terms
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STEPS IN PLANNING
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An objective isverifiablewhen
at the end of the period one candetermine whether or not it has
been achieved.Clear and verifiable objectivesfacilitate measurement of the
surplus as well as the effectiveness
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Relationship of Objectives and the Organizational Hierarchy
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Different types ofObjectives
Quantitative objectives:-these are
objectives that can be measured.E.g.:-to achieve a return on investment of12 % at the end of the current fiscal year.
Qualitative objectives:-these areobjectives that are vague and cannot bemeasured.E.g.:-to make a reasonable profit.
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MANAGEMENT BY OBJECTIVES
(MBO)
A comprehensive managerial
system that integrates many key
managerial activities in asystematic manner and isconsciously directed toward the
effective and efficient achievement
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Benefits of management
by objectivesImprovement of managing through results-orientedplanningClarification of organizational roles and structures
as well as delegation of authority according to theresults expected of the people occupying the roles.
Encouragement of commitment to personal and
organizational goals
Development of effective controls that measuresresults and lead to corrective actions
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SYSTEM APPROACH TO MANAGEMENT BYOBJECTIVES
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Failures of management by
objectivesManagers fails to teach the philosophy of MBO tosubordinates
Failure to give guidelines to goal setters
Difficulty of setting goals by themselves
Not Emphasizing on short- term goals
Danger of inflexibility
Overuse of quantitative goals
Forgetting that managing involves more than goalsetting
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STRATEGIES,POLICIES,ANDPLANNING PREMISES
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STRATEGY
The determination of the mission or purpose andthe basic long-term objectives of anenterprise,followed by the adoption of courses ofaction and allocation of resources necessary to
achieve these aims.
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POLICIES General statements or understandings that guide
managers thinking in decision making.Theyensure that decisions fall within certainboundaries.
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THE STRATEGIC PLANNING
PROCESS Inputs to the organisation
Industry Analysis
Enterprise Profile
Orientation, Values, and Vision of Executives
Mission ,Major Objectives, and Strategic Intent
Present and Future External Enviornment Internal Enviornment
Development of Alternative Strategies
Evaluation and Choice of Strategies
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Consistency Testing and Contigency Planning Medium and Short Range Planning
,Implementation through Organising ,Staffing,Leading ,and Controlling
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Inputs to the organisation
It includes various organisational inputs ,includingthe goal inputs of the claimants.
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Industry Analysis
The focus should be on the kind of competitionwithin a industry , the possibility of new firmsentering the market , the availability of substituteproducts or services ,and the bargainingpositions of the suppliers as well as the buyers orcustomers.
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Enterprise Profile
It is the starting point for determining where the
company is and where it should go Top managers determine the enterprises missionand
clarify its geographic orientation ,such as whether itshould operate in selected regions ,throughout the
home country..
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Orientation , values and vision ofexecutives
Executives set the organisational climate, and they
determine the direction of the firm through theirvision that answers what do we want to become
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Mission ,major objectives , and
Strategic Intent
Missiona statement that answers the question what is our business ?
Major objectives end points toward which theactivities of the enterprise are directed.
Strategic Intentthe commitment to win in thecompetitive enviornment.
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Present and future externalenviornment
It is assessed in terms of threats andoppourtunities
The evaluation focuses on the competitivesituation as well as on the economic ,social,political ,legal , demographic and geographicfactors.
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Internal Enviornment
The firms internal enviornment should be audited
evaluated with respect to its resources and itsweaknesses and strengths in research and
development ,production ,operation ,procurement,marketing ,products and services
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Consistency testing and
contingency
During all phases of the strategic planning process,consistency testing is essential.
Since the future cannot be predicted with a highdegree of certainity, contingecy plan need to be
prepared
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Medium and shortrange
planning,Implementation throughorganising ,staffing ,leading and
controlling
Implementation of the strategy reqiures organising,staffing is filling and keeping filled the positions inthe organisation structure and providing leadership
through motivation and effective communication
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TOWS Matrix by Weihrich
TOWS Matrix has been introduced for analysing
the competitive situation of the company oreven of a nation that leads to the development
of 4 distinct sets of strategic alternatives
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Four alternative strategies
The strategies are based on the analysi
of external and internal enviornment - threats and oppourtunities
-weaknesses and strengths
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Blue ocean strategy
The blue ocean strategy focuses on theuncontested market by offering a product or
service that is unique in a market space wherethere is no competitor , thus making competitionirrelevant.
Rather than competing in an existing demand
situation , the blue ocean strategy attempts tocreate and develop new demand for its products or
services.
Eg; Toyota , the maker of lexus ,created value for
the buyer.
B i P tf li M t i
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Business Portfolio Matrix
BOSTON
CONSULTING GROUP
The Boston Consulting Group developed thebusiness portfolio matrix.
It shows the linkages between the growth rate ofthe business and the relative competitive positionof the firm , identified by the market share.
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Major kinds of strategies and
policies
The major strategies and policies are in the areasof growth , finance , organisation , personnel ,
public relations , products or services , andmarketing.
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Porters generic strategies
Industry Analysis
Overall Cost Leadership Strategy
Differentiation Strategy
Focused Strategy
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Forecasting with the Delphi
Technique
Technique developed by Olaf Helmer and hiscolleagues at the RAND Corporation ,has a degreeof scientific responsibility and acceptance.
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THE NATURE OF ORGANISINGENTERPRENEURING AND
REENGINEERING
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FORMAL AND INFORMALORGANISATION
FORMAL ORGANISATIONIntentional structure of roles in formally organized
enterprise
It should be flexible
Opportunities for creative talents
INFORMAL ORGANISATION
A network of interpersonal relationship arisingwhen people associate with each other.
Easier to ask help from person who is of anotherdepartment who we know personally.
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NARROW AND WIDE SPAN
NARROW SPAN ORGANISATIONClose supervision
Close control
Fast communication b\w subordinates andsuperiors
WIDE SPAN ORGANISATION
Superiors are forced to delegate
Clear policies must be made
Subordinates must be carefully selected
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INTRAPRENEUR ANDENTREPRENEUR
INTRAPRENEURWho focuses on innovation and creativity and
achieves the objectives by operating withinthe organization.
ENTREPRENEUR
Who focuses on innovation and creativity andachieves the objectives by operating outside
the organization.
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REENGINEERING
The fundamental rethinking and radical
redesign of business processes to achievedramatic improvements in criticalcontemporary measures of performance suchas cost ,quality , service and speed.
(Hammer and Champy)
MANAGEMENT BY
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RGISING
MANAGEMENT BYPROCESS
REENERGISING THESYSTEM
TRANSFORMATIONPROCESS
BUSINESS PROCESSSYSTEM
HUMAN SYSTEM
TECHNOLOGYSYSTEM
MANAGEMENTSYSTEM
INFORMATION HANDLING SYSTEM
INPUTHUMANCAPITALTECHNOLOGY
OTHERS
OUTPUTPRODUCTSSERVICESPROFITSSATISFACTION
GOALINTEGRATION
STAKEHOLDERS OR CLAIMANTSEMPLOYEESCUSTOMERS
SUPPLIERSGOVERNMENTS
EXTERNAL VARIABLESOPPORTUNITIESCONSTRAINTS
OTHERS
THE ORGANIZING
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NTROLLING
FEASIBILITY STUDIES AND
FEEDBACKENTERPRISE
OBJECTIVES
SUPPORTING
POLICIES,OBJECTIVES ANDPLANS
IDENTIFICA-TION
ANDCLASSIFICA-TIONOFREQUIREDACTIVITIES
GROUPIN-G OF
ACTIVITIESACOORDI-NG TORESOURCE-S
DELEGATIO-N OF
AUTHORITY
HORIZON--TAL
ANDVERTICALCOORDIN-ATIONOFAUTHORITY
STAFFING
LEADING
CONTROLLING
THE ORGANIZINGPROCESS
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ORGANISATION STRUCTURE
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President
Assistant to
president Personal
Marketing
Market Research
Market planning
Advertising,promotion
Engineering
Engineering
administration
PreliminaryDesign
Electrical
engineeringMechanicalengineering
Hydraulicengineering
Packaging
Salesadministration
Sales
Production
Production
planning
Industrialengineering
Production
Engineering
Purchasing
Tooling
Generalproduction
Finance
Financial
planning
Budgets
General
accounting
Costaccounting
Statistics and
data processing
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President
Marketing Personal Purchasing Finance
Western
region
South west
region
Central region
South-east
region
Eastern
region
Personal
Engineering Production Accounting Sales
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PresidentPresidentPresident
Community citybanking
Corporatebanking
Institutional
banking
Real estate andmortgage loans
Agriculturalbanking
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Marketing
Instrument division
Engineering
Production
Personal
Indicator Lightsdivision
Accounting
Sales
PresidentPresident
purchasing
Industrial toolsdivision
Engineering
Production
Finance
Electronic meterdivision
Accounting Sales
sales
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EFFECTIVE ORGANISING ANDORGANIZATION CULTURE
ENSURING UNDERSTANDING OF
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ENSURING UNDERSTANDING OFORGANIZATION
Teaching the nature of organization.
Recognizing the importance of informal
organization.
Grapevine.
Benefit of informal organization.
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ORGANIZATIONAL CULTURE
The effectiveness of an organization is
influenced by the organization culture, which
affect the way the managerial functions of
planning, organizing, staffing, leading and
controlling are carried out.
O i ti l lt d t
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Organizational culture and managementpractice
PLANNING
Goals are set in autocraticmanner
Decision making is centralized.
ORGANIZING
Authority is centralizedefined
Narrow defined.
STAFFING Selected on the basis of
friendship
Training is narrowly definedspecialty
Goal - great deal of participation
Decentralized
Authority is decentralized
Broadly defined
Selection on the basis of
perfomence
Training is in many functional
area
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LEADING
Directive leadership
Communication flow top-down
CONTROLLING
Strict control
Focus on financial criteria
Participative leadership
Communication flow is top-
down, bottom-top,
horizontal and diagonal
Great deal of self control
Multiple criteria
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Define Organizational Culture Organization Culture , the general
pattern of behaviour , shared beliefs, andvalue that organization member have in
common.
INFLUENCE OF LEADER ON
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INFLUENCE OF LEADER ONORGANIZATIONAL GOAL
Value can be defined as fairlypermanent belief about what is appropriate andwhat is not that guides the actions and behaviorof employees in fulfilling the organizational aims.
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CONCLUSION
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Planning involves selecting the mission s andobjectives as well as the actions to achieve them.
Objectives are the end points towards whichactivities are aimed.
MBO is widely used for performance appriasaland employee motivation.
Statergy is the determination of the mission andits basic long term objectives and the adoption ofcourse of actions and allocation of resourcesnessacary to achieve these aims
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Formal organisation is the intentional structure ofroles and informal is a network of persoonal andsocial relations.
Departmentation can be applied where an
organisational expansion is needed. Organising involves developing an intentional
structure of roles for effectivew performance.
In short planning and organising are the first twostages in management and so if made a mistakeaffects the entire management.
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