Planning

1. Planning

2. Planning • To Do • Decide in advance • What? • When? • Who? • How?

3. Nature of Planning • Contribute to the purpose and objectives – Facilitate the accomplishment • Primacy of planning – Precedes the execution of all managerial function (e.g) organizing, directing…etc • Popularity of planning – varies with authority and nature of supervisor plan • Efficiency of plans – measured by contribution to objectives (e.g) cost

4. Types of Plans Standing Plans Used over a period of time Single-use Plans Used for only specific periods good Based on facts, well-balanced, minimum procedures and up-to-date

5. Steps in Planning Being Aware of Opportunity In light of: Market, Competition, Customers, Strength and weakness. Setting Objectives In light of: Where the company wants to be and what it wants to accomplish and when Considering Planning Premises In what environment Internal or external will the plan operates Identifying Alternatives What are the most promising alternatives for accomplishing the objectives Comparing Alternatives In light of goals sought: Which alternative will provide the best chance of meeting the goals at the lowest cost and highest profit Choosing Alternative Selecting the course of action to be pursued Formulating Supporting Plan Such as plans to: Buy equipment Buy material Hire and train workers Develop a new product Quantifying Plans by Making Budget Develop such budgeting as: Volume and price of sales

6. Limitations of Planning • Lack of accurate information • Problem of change ( Technology/Customer taste) • Failure of people (not qualified) • Internal inflexibility • External inflexibility • Rigidity in planning • Time and cost factor

7. Planning Premises • It is a framework anticipated environment in which plans are expected to operate include assumptions forecast of the future and known condition.

8. Important of Forecasting • Help in effective planning by providing scientific and reliable basis for anticipating future operation • Reducing area of uncertainty • Managers think ahead and search for best decision • Managerial control

9. Forecasting Methods Qualitative Techniques Opinion Polls Brainstorming Delphi Method Quantitative Techniques Input-output analysis Curve fitting Time Series

10. Corporate Planning Definition Kind of Plans • Process of determining the major objectives of an organization and it policies and strategies • Vision: inspired picture of future • Mission = Purpose • CEO: Chief Executive Officer

11. Organizing

12. Definition • Organizing refers to the formal grouping people and activities to achieve firm objective.

13. Relationship of Objectives and Organizational Levels Board of Directors Organization Hierarchy Top-Level Managers Middle Managers Lower-Level Managers

14. Organizational Theory • Organization Theory is the study of structure, functioning and performance of organizations and behavior of groups.

15. Principle of Organization The success of an organization can be ensured better if the following basic principle are observed Unity of objectives Efficiency Span of management Division of work – Proper Departmentalization Functional definition – Duties are defined Scalar Principle (Chain of Command) - Line of Authority (Subordinate and Supervisor) Unity of Command Authority and responsibility Balance Facilitation and Continuity

16. Span of Management • The number of subordinates in an organization who are required to report to each manager • Wide span - many subordinates report to a manager - typical of flat organizations • Narrow span - few subordinates report to a manager - typical of tall organizations

17. CEO Tall hierarchy Relatively narrow span of management CEO Flat hierarchy Relatively wide span of management Span of Management

18. 3 Levels Span of Management=45

19. 3 Span of Management=15

20. Types of Organization • Military of line system – from top to the lower vertically • Functional Organization – separate departments but interrelated jobs • Line and staff system • Matrix system – individual may have any number of supervisors and projects. • Hybrid – employs functional and divisional departmentalization management

21. Departmentation Functional Provide specialization on the basis of overall function • Divisional • Product • Customer • Location

22. Centralization and Decentralization Decision – making authority is retained at the top of the managerial hierarchy Decision – making authority is pushed downward to the lower management levels • Effective and easily achieved, clear control and no conflict • Acted quickly and innovative, and easy to control

23. Mistakes in Organization • Failure to plan properly • Failure to clarify relationship • Failure to delegate and balance authority • Lack of responsibility and authority • Staff personnel doing unauthorized tasks • Multiple subordination • Over organizing

24. How to Delegate Authority Work to each person's strengths Avoid bad relationship assignments Make sure the person you are tapping on the shoulder can handle their new assignments Avoid favoritism or singling out individuals Delegate with care