principles of management chapter 3 gtu mba

7/31/2019 Principles Of Management Chapter 3 GTU MBA

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Essentials of Planning andManaging by Objectives


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Definition of Planning

Planning involves selecting missions and objectives andthe actions to achieve them; it requires decision making,that is, choosing from among alternative future courses ofaction.


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Close Relationship of Planning and

Controlling


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Types of Plans

Plans can be classified as:

1. Missions or purposes

2. Objectives or goals

3. Strategies

4. Policies5. Procedures

6. Rules

7. Programs

8. Budgets


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Types of Plans

The mission, or purpose, identifies the basic purpose orfunction or tasks of an enterprise or agency or any part ofit.

Objectives, or goals, are the ends toward which activity isaimed.

Strategy is the determination of the basic long-termobjectives of an enterprise and the adoption of courses ofaction and allocation of resources necessary to achievethese goals.

Policies are general statements or understandings that

guide or channel thinking in decision making.


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Types of Planscont.

Procedures are plans that establish a required method ofhandling future activities.

Rules spell out specific required actions or nonactions,allowing no discretion.

Programs are a complex of goals, policies, procedures,rules, task assignments, steps to be taken, resources to beemployed, and other elements necessary to carry out agiven course of action.

A budget is a statement of expected results expressed in

numerical terms.


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Steps in Planning

1. Being aware of opportunities

2. Establishing objectives or goals

3. Developing premises

4: Determining alternative courses

5. Evaluating alternative courses

6. Selecting a course

7. Formulating derivative plans

8. Quantifying plans by budgeting


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Steps in Planning


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Verifiable Objectives

Objectives are the important ends toward whichorganizational and individual activities are directed.

An objective is verifiable when at the end of the periodone can determine whether or not the objective has been

achieved.


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The Nature of Objectives

Hierarchy of objectives

Key Results Areas: Areas in which performance is essentialfor success

Setting objectives and the organizational hierarchy

Multiplicity of objectives


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Relationship of Objectives and the

Organizational Hierarchy


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How to Set Objectives

Compare nonverifiable with verifiable objectives

Guidelines for setting objectives


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Evolving Concepts in MBO

MBO as used in this book

Management by objectives is a comprehensivemanagerial system that integrates many key managerialactivities in a systematic manner and is consciouslydirected toward the effective and efficient achievement oforganizational and individual objectives.


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Systems Approach to MBO


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Benefits of Management by Objectives

Clear Goals:

Motivate.

Improve managing through results-oriented planning.

Clarify organizational roles, structures, and the

delegation of authority. Encourage commitment to their personal and

organizational goals.

Facilitate effective controlling, measuring of results, andimplementation of corrective actions.


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Failures of Management by Objectives

List some failures and limitations of MBO.

What would you do to overcome the failures?

principles of management chapter 3 gtu mba

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