Conceptual Skills

Conceptual skill involves the ability to view the organization as a whole and recognize its
relationships to the larger environment (business world). In other words, conceptual skill
involves visualizing the different parts of an organization as one big whole and
understanding the whole's interaction with its relevant environment.

Communication Skills

Communication skills reflect a managerial ability to send and receive information,

thoughts, feelings, and attitudes. Middle and operating-level managers spend a large
portion of their time communicating. The basic communication skills are classified into
writing, oral, and non-verbal (facial expressions, body posture, etc.). Communication skills
are very crucial to all managers. No matter what wise ideas a manager has, they are
meaningless unless they can communicate them effectively. Communication skills are
necessary for effectively displaying interpersonal, technical, and conceptual skills.

1.7 Universality of Management

Universality of management refers to the idea that the basic principles and functions of
management apply to all organizations, regardless of their size, industry, or location. This
means that the same management skills and techniques can be used to manage a small
business, a large corporation, a non-profit organization, and a government agency.

The universality of management is based on the fact that all organizations have certain
common goals, such as:

• To achieve their mission and objectives

• To be efficient and effective
• To adapt to change and survive
• To satisfy their customers or stakeholders

In order to achieve these goals, all organizations need to perform certain basic
management functions, such as: Planning, Organizing, Leading, and Controlling.
Is Management Science or Art Profession?

Management is a profession that combines elements of both science and art. It is a

science because it has a systematic body of knowledge and principles that can be applied
to manage organizations. It is an art because it requires personal skills, creativity, and
experience to apply these principles effectively.

Management is a profession because to say a given field is a profession, it must fulfill the
following criteria:

• Specialized knowledge
• Competent application
• Community application
• Social responsibility
• Self-control

Chapter Two: The Planning Function

Introduction

Planning has been practiced by human beings since times immemorial. In fact, we cannot
conceive of human civilization without some elements of planning. In order to progress in
life, an individual must plan. Planning enables individuals to bridge the gap between aim
and achievement.

"Planning is a thinking process, an organized foresight and vision based on fact and
experience that is required for intelligent action." In most cases, it is the foundation of
other managerial functions, and without it, it is impossible to carry out tasks effectively.

2.1 Concepts and Need for Planning

2.1.1 Concepts of Planning

Planning can be defined as determining objectives and outlining the course of actions
needed to achieve these objectives. Planning involves:
 • Determination of objectives
• Formulation of programs and courses of action for their attainment
• Development of schedules and timing of action
• Assignment of responsibilities for their implementation

Planning encompasses defining the organization’s objectives or goals, establishing an

overall strategy, and developing a comprehensive hierarchy of plans to integrate and
coordinate. It is concerned with ends (what is to be done) and means (how it is to be done).

In planning, managers do the following:

• Assess the future

• Determine objectives of the organization and develop overall strategies
• Determine resources needed to achieve the objectives

Planning answers six basic questions in regard to any intended activity: what, when, where,
who, how, and how much.

2.1.2 Need for Planning

Planning is important for every organization, irrespective of its size, objectives, and
location. Decisions without planning would become random, which may lead to failure of
the entire organization.

Planning is important for several reasons:

1. It provides direction for an organization by specifying objectives.

2. It reduces risks and uncertainty of the future.
3. It allows organizational members to concentrate on common objectives.
4. It provides criteria for decision-making.
5. It provides a basis for control or facilitates control.

2.2 Types of Plans

Plans can be classified into different types based on various criteria: repetitiveness, time
dimension, and scope or breadth dimension.
A. Classification of Plans Based on Repetitiveness

On the basis of repetitiveness, plans can be classified into:

• Single-use plans
• Standing plans

Single-Use Plans

Single-use plans are designed to accomplish objectives usually within a relatively short
period of time. These plans are non-recurring in nature and deal with problems that will
probably not be repeated in the same form in the future. Single-use plans include:

• Programs and Schedules: A set of goals, policies, procedures, rules, job

assignments, resources to be employed, and other elements necessary to carry out
a given course of action.
• Projects: Specific action plans formulated to complete various aspects of a
program, which can be distinctly identified as a clear-cut grouping of activities with
definite objectives and completion time.
• Budgets: A detailed outline of your expected income and expenses over a specific
period, typically on a monthly or yearly basis. It provides a framework for managing
finances and achieving financial goals.

Standing Plans

Standing plans are types of plans that can be used again and again. They remain useful for
long periods in dealing with repetitive situations.

Established Plans

These continue to apply until they are modified or abandoned. They include: Policies,
Procedures, and Rules.
Policy

Policy is a general statement designed to guide employees' actions (administrative action)

in recurring situations. It establishes broad limits and provides direction. Thus, policies are
guidelines.

Procedures

Procedures are well-thought-out courses of action. They prescribe the specific way in
which a piece of work is to be done. Procedures are called "action guidelines." They are
generally derived from policies, where policies define a broad field; procedures show a
sequence of activities in that area. The emphasis is on the chronological step-by-step of
required actions.

Rules

Rules are ongoing specific plans influencing human behavior or conduct at the workplace.
They are very specific and detailed guides to action. A rule is an established guide for
conduct. Rules include definite things to do and not to do.

B. Classification of Plans Based on Time Dimension

Taking time into consideration, a plan can be categorized into three types. Basically,
planning deals with the future, and the future is measured in time. Hence, it is convenient
and acceptable to think of different kinds of planning in terms of the time periods for which
the planning is intended.

I. Long-Range Plans

Long-range plans are those plans that have a longer time horizon; they are concerned with
the distant future rather than the immediate future. The time may range from 5 to 10 years
based on the size and the type of organizations.

II. Intermediate Plans

Intermediate-range plans are those plans with a time horizon between one and five years.
They range between long-term and short-term plans.
III. Short-Range Plans

Short-range plans are those plans with a time dimension. It is not possible to have a right
time horizon guideline. For a plan to be short-range or long-range, it depends on the size of
an organization and the nature of the business of an organization. So a short-range plan for
one organization may be an intermediate or long-range plan for another organization.

Classification of Plans Based on Scope or Breadth

Plans can be classified into three types: Strategic Plans, Tactical Plans, and Operational
Plans.

I. Strategic Plan

The strategic plan contains the answers to who, what, when, where, how, and how much
for achieving strategic goals, which are long-term, companywide goals established by top
management.

II. Tactical Plans

Tactical plans are concerned with implementing strategic plans by coordinating the work
of different departments in the organization. They try to integrate various organizational
units and ensure commitment to strategic plans.

Tactical plans have more details, shorter time frames, and narrower scopes than strategic
plans; they usually have a span of one year or less.

• A tactical plan is a plan used to develop the means needed to activate and
implement a strategy.
• It is the process of making detailed decisions about what to do, who will do it, and
how to do it.

Tactical planning is the process of developing action plans through which strategies are
executed. It is usually set by middle-level managers. Middle managers interpret these
goals and develop tactical plans for their departments that can be accomplished within
one year or less.
In order to develop tactical plans, middle management needs detailed reports (financial,
operational, market, and external environment).

III. Operational Plans

Operational planning is most specific and detailed.

• It is made at the operational level and is concerned with the day-to-day, week-to-
week activities of the organization.
• It is mainly of a short-range nature and more specific and detailed.
• Examples: Production schedules, sales plans, lesson plans.

Planning Process

Planning is not something made all at once. The planning process is rational and amenable
to the scientific approach to problem-solving. It consists of a logical and orderly series of
steps. A person involved in planning passes through several steps to make effective plans.

The process of planning indicates the major steps taken in planning. The steps generally
involved in planning are:

I. Setting Objectives

The first step in planning is to establish objectives for the enterprise and for each
subordinate work unit.

• Objectives are the driver of planning processes. They are established at all levels of
the structure, beginning at the top level and running down to first-line managers.
• Strategic goals and objectives are developed to bridge the gap between current
capabilities and the mission. They are aligned with the mission and form the basis
for action plans.
• Objectives are sometimes referred to as performance goals.

Objectives should possess the following characteristics:

Objectives can be read as SMART in short:

 • Specific: Goals should be clear and specific, stating exactly what needs to be
accomplished. Avoid vague or ambiguous language and focus on defining the goal.

SMART Objectives (Continued):

• Measurable: Goals should be quantifiable and include criteria for measuring

progress and success. This allows tracking progress and