Objectives
Describe the meaning, nature, importance, objectives, process, and techniques of planning.
Describe the concept, process, types, and techniques of decision-making.
Explain the concept, nature, and objectives of organizing.
List different types of organizations, organization structure, and design.
Describe centralization, decentralization, delegation, departmentation, and span of control.
Planning is a fundamental management function that involves:
Deciding what needs to be done, when, how, and by whom.
A logical process to outline an organization’s future objectives.
Can be long-range, intermediate, or short-range.
Essential for growth and dealing with uncertainties.
Improves Performance: Helps in achieving objectives efficiently.
Minimizes Risk: Reduces uncertainty by anticipating future scenarios.
Facilitates Coordination: Streamlines activities to avoid overlaps.
Provides Direction: Offers a clear path for actions.
Identifies Opportunities: Helps uncover future opportunities and threats.
Basis for Control: Establishes standards for measuring performance.
Objectives of Planning:
Achieve organizational goals.
Facilitate decision-making.
Provide stability to organizations.
Optimize resource utilization.
Develop managerial capabilities.
Promote innovation.
Goal-oriented: Focuses on achieving specific objectives.
Pervasive: Needed at all levels and segments of the organization.
Continuous Process: Plans are regularly updated.
Intellectual Process: Involves critical and creative thinking.
Futuristic: Anticipates and prepares for future challenges.
Contribution to objectives, efficiency, timing, alternative choices, flexibility, and competitive strategies.
Inaccuracy in forecasts.
Time-consuming processes.
Rigidity in adherence to plans.
Resistance to change.
False sense of security for managers.
Corporate Plan: Long-term strategy by top management.
Tactical Plan: Intermediate plan by middle management.
Operational Plan: Short-term plan for daily operations.
Single-use Plan: For specific projects (e.g., budgets, programs).
Standing-use Plan: For routine matters (e.g., policies, procedures).
Specific Plan: Clear tasks and resources defined.
Flexible Plan: Guidelines allowing for adjustments.
Analyze opportunities via SWOT.
Set specific goals and objectives.
Determine premises for planning.
Identify alternatives for action.
Evaluate and select the best alternative.
Formulate supportive plans.
Implement the plan.
Review process and outcomes.
Forecasting, SWOT analysis, scenario planning, benchmarking, participative planning, and use of staff planners.
Top-Down: Plans initiated at the top levels.
Bottom-Up: Plans initiated by lower management.
Composite: Combination of both methods.
Team Method: Collaborative planning by a team.
Unwillingness to set clear goals.
Resistance to accept change.
Environmental factors affecting change.
Constraints on resources and information.
Group dynamics causing ineffective planning.
Process of choosing among alternatives.
Resource Utilization: Ensures effective use of resources.
Problem Solving: Overcomes challenges to achieve goals.
Business Growth: Leads to profitability and sustainability.
Programmed vs. Non-Programmed
Routine vs. Basic decisions
Establish objectives.
Identify the decision.
Gather information.
Identify alternatives.
Weigh evidence for each alternative.
Choose the best alternative.
Take action and implement.
Review the decision.
SWOT analysis, decision trees, cost/benefit analysis, and others.
Combines resources and establishes relations to achieve goals.
Improves resource utilization and efficiency.
Defines work relationships and promotes better communication.
Line: Simplest form with clear command chain.
Functional: Based on specialization.
Matrix: Combination of functional and project-based teams.
Refers to the number of subordinates a manager can effectively supervise.
Narrow vs. Wide: Impacts costs, efficiency, and managerial relationships.
Planning and decision-making are integral to management success.
Organizing structures facilitate effective communication and reach of goals.