FUNCTIONS OF MANAGEMENT

1. FUNCTIONS OF MANAGEMENT

2. Planning

3. Meaning of Planning Planning is the process of determination of a course of action to achieve the desired goals or objectives. Planning requires anticipating the future and consciously deciding what to do, how to do, when to do and who to do it.

4. Where we want to go? Where we are? Where we want to go? Bridge (Called as Planning) Thus, Planning bridges the gap between Where we are and where we want to go.

5. Defining Organizational Objectives List alternative ways of reaching Objectives Develop premises for each alternative Choose the best alternative for each alternative Follow up Put the plans into action Formation of Supportive Plans _Planning Process

6. Increase Production • New Technology • Sales Promotion Increase profit by 20% • Increase Sales • Reduce Cost • Advertisement Increase production See the plan, whether going accordingly or not Put the plans into action Planning for increased capacity of Production _Planning Process

7. Contributes to Objectives: Planning provide direction to activities. Features of Planning Primacy of Planning: Planning is the first function to be performed by every manager. Forward Looking: Planning always means looking ahead or planning is a futuristic function. Pervasive: Planning is required at all levels of the management. Efficiency in Operation: Planned activities bring reduction in cost, as a result the efficiency improves Involves Choice: It involves searching of alternatives and selection of the best one to achieve specified objectives. Continuous Process: It modify existing plans according to changing environment and prepare new plan for future. Intellectual Process: It is an intellectual exercise involving foresight, imagination, intelligence and sound judgement.

8. Off-Sets Uncertainties: It involves forecasting or anticipating of future events. This helps to reduce uncertainties for the business. Importance of Planning Focuses attention on objectives: Planning focuses on objectives of the company and provides direction for all the department and individual working towards the objectives. Improves efficiency and leads to economical operations: Planning avoids confusion and clashes and wastage of resources by facilitating the organization predetermined course of action, which lead to economic and efficient operation. Helps in Co-ordination: Planning makes co-ordination of various activities, departments and groups relatively easy. Planned programmes of activity serve as the basis of harmonizing the efforts of different departments and individuals. Encourages Innovation and Creativity: Planning is an intellectual process. Thus, there is a great scope of finding new, innovative and creative ideas to perform a particular job. Facilitates Control: It helps in setting objectives and laying down performance standards. This will enable the management to check performance of subordinates.

9. Probable Questions • One of the functions of management is closely connected with creativity and innovation. Identify the management functions. • Which functions of management is considered as the base of all other function ? • State any two consequences if there was no planning. • What is meant by ‘Pervasiveness of planning’ ? • Planning requires logical and systematic thinking rather than getting work done. Which feature of planning is highlighted here ? • What is the focus of planning ? • How does planning reduce the risks of uncertainty ? • ‘Planning provides directions’. State two benefits derived from it. • While formulating a plan, the manager is required to make certain assumptions about the future. What are these assumptions called ?

10. Goals Objectives Strategies Policies Procedures Methods Rules Budgets Programme HIERARCHY OF PLANS

11. 1. Goals Goals are collective ends towards which organisations direct their energies and activities. e.g. • To be No.1 Company in the Market. • Improvement in the quality of product. etc

12. 2. Objectives Objectives are the ends towards which the activities of an enterprise are directed. The main Features of Objectives: • Each objectives should relate to a specific area of business • It should be relate to the result expected and not the activity to be performed. • It should be measureable and stated in quantitative terms • It should refer to the time period within which it must be accomplished. • It should be challenging, but achievable. e.g., increase monthly sales by 20%,

13. 3. Strategies A Strategy is a plan of action to achieve specified business goals in the competitive environment. Features of Strategies: • It relates to several areas of operations of the org. • It is expected to have, a significant impact on the organisation’s future growth and prosperity. • It is formulated after the analysis of evironmental forces like suppliers , customer, competitors etc. • It is mostly on the future scenario. e.g., charging a lower price for the product, advertising more heavily than competitors.

14. 4. Policies Policy is a statement of an organisation’s intention to act in certain ways when specific types of circumstances arise. Features of Policy: • It is an expression of intentions of top management. • It is based on objectives of the enterprise. • It is long lasting. • It is a realistic. It can be translated into action. • It is consistent with other policies of the enterprise and even with the policies of the Government. e.g., not to sell on credit, deal with only wholesalers etc.

15. 5. procedures It is a systematic way of handling regular events. It lays down a series of steps to be taken to do a particular job. Features of Procedures: • It essentially involve methods or steps of doing different jobs. • It is pervasive in nature. • It facilitate decision - making. • It help in implementation of policies. e.g., a procedure for hiring the employees, collection of payments etc.

16. 6. methods Methods specifies how one step of a procedure is to be performed. e.g., for the valuation of stock, the orgnisation must decide in advance what methods has to be adopted (LIFO or FIFO) etc

17. 7. Rules Rules are specific regulations which must be followed by the employees in an organisation. It is specific statements telling the employees what must or must not be done. e.g., No. Smoking etc.

18. 8. Budgets A Budget is a statement of expected results expressed in quantitative terms. e.g., Sales Budget, purchase budget etc.

19. 9. programmes Programmes are concrete plans prepared with definite objectives to accomplish certain specific activity. It is a combination of objective, strategy, policy, procedures, methods, rules and budget. All these plans together form a programme.

20. Planning Leads To Rigidity: It involves laying down plans of action in advance. It might lead to inflexibility or rigidity by compelling the managers to conform to the plans. It may prove to be costly in dynamic environment LIMITATIONS OF PLANNING Planning may not work in a Dynamic Environment: The business environment is dynamic. Managers cann’t fully depend upon plans since it meant for stable environment. They have to adopt suitable measures or strategies to get the desired result in case of turbulent environment Planning reduces Creativity: Planning may prevent the managers from taking initiative and doing creative things to deals with the changes in the environment. Planning involves Huge Cost: Planning is a costly affair. It is prepared right from collecting information to analyzing it , discussing with the professional experts and Board of Directors meeting. Planning is a Time-Consuming Process: Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation. Planning does not Guarantee Success: Planning in itself does not guarantee success, it needs effective implementation.

21. Home Work: • Hots Questions • One of the functions of management is closely connected with creativity and innovation. Identify the management functions • Which functions of management is considered as the base of all other function ? • State any two consequences if there was no planning. • What is meant by ‘Pervasiveness of planning’ ? • Planning requires logical and systematic thinking rather than guen work. Which feature of planning is highlighted here ? • What is the focus of planning ? • How does planning reduce the risks of uncertainty ? • ‘Planning provides directions’. State two benefits derived from it. • Explain how controlling is not possible without planning. • Name any two factors which affect business plans. • While formulating a plan, the manager is required to make certain assumptions about the future. What are these assumptions called ? • How are alternative courses of action evaluated wile formulating a plan ? • How should a manager select the best possible course of action ? • Strategy is a comprehensive plan which includes three dimensions. Enumerate them. • Name the type of plan which serves as a guide for overall business planning and define the future state of affairs which the organization strives to realise.

22. Name the type of plan which provides a basis for interpreting the strategy. • State the relationship between policies and objectives. • Name the type of plan in which the minutest details are worked out, that is procedures, rule and budget within the broad frame work of policy. • Name the type of plan which is also a control device from which deviation can be taken care of. • Though a budget is a control device from which deviations can be taken care of, yet it comes under planning. Why ? • ‘Offering 30% jobs to women.’ What type of plan is it ? • Puneet electronics decides to sell television sets though exchange of old television sets. What type of plan is it ? • A company needs a detailed plan for its new project-Construction of shopping mall. What type of plan is it ? • Which function of management is considered as the base of all other functions ? • Which limitation of planning suggest that the employees step thinking and become the blind follows of plan ? • In which type of plan the sequences to perform a job are determined ? • Which plan suggests acts and non-action of employees ? • ‘No Smoking’-this statement is related to which type of plan ?

23. Mc Donald co. does not give its franchise to any other co. Which is running food business. This is related to which type of plan ? • In which step of planning process the planners make predictions and assumptions regarding future ? • ‘No enterprise can achieve its objectives’. Do you agree with this statement ? Give any five reasons in support of your answer. • Planning is not a guarantee of success of a business. Comment. • ‘Sometimes planning fails in spite of the best efforts of management’. Do you agree ? Give any five reasons in support of your answer. • Give two examples of goal, objectives, policy. Very Short Answer type :— • Define planning. • Point out whether Planning is a physical or mental activity. • Does planning eliminate risk ? • How does planning affect initiative ? • Name the managerial function, which is the beginning and end of all managerial activities. • Name three types of plan. • ‘Planning in mental preposition to do things!’ Who thinks so ? • Why is planning regarded as pervasive function of management ?

24. How does planning restrict creativity ? • What is meant by policies as a type of plans ? • Explain rule as a type of plan ? • Name the other name of directional plan. Short Answer Type Questions :— 1. Enumerate the differences between policies and strategies. 2. Distinguish between rules and methods. 3. State the limitations of planning. 4. How does planning help co-ordination ? 5. Explain the characteristics of a sound plan. 6. Write features of planning. 7. Why does planning fail sometimes in spite of the best efforts of management? 8. Planning involves choice. Explain. Long Answer Type Questions :— 1. Explain briefly any six points which highlighted the importance of planning. 2. State steps involved in planning process. 3. Planning is looking ahead and controlling is looking back. Explain. 4. What is planning ? How can Government policies and technological changes create problems in Planning ?

25. 5. How does planning help co-ordination, facilitate decision making and promote creativity ? 6. How does planning reduce the risk of uncertainty, provide the bases of control and lead to economy ? • In spite of best efforts of managers sometimes planning fails to achieve desired results due to its limitations. Explain any six limitations .

26. The End