UNIT 3

PLANNING
• Planning - The Basic Principle
“If you do not know where you are, it is
impossible to determine how you can get to
where you want to be.” “If you know where you
are and if you know where you want to go, the
task is to find the best route to go there.”
 Planning Defined
Planning is going from known to unknown.
Planning is deciding in advance what to do, how
to do it, when to do it and who is to do it.
 WHAT IS PLANNING
• Planning is the process of thinking about the
activities required to achieve a desired goal.
• It involves the creation and maintenance of a
plan, such as psychological aspects that require
conceptual skills.
• There are even a couple of tests to measure
someone’s capability of planning well.
• As such, planning is a fundamental property of
intelligent behavior. 
 Features of Planning

Focuses on
Primary
Achieving Pervasive
Function
Objectives

Involve
Continuous
Decision
Process
Making
 Importance of Planning
Provides
Direction

Establishes
Standards for Reduces the risk
Controlling of Uncertainty

Facilitates
Decision Making Promotes
Innovative Ideas

Reduces
Overlapping &
Wasteful
Activities
 Setting Objectives

Developing Premises
Process
Identifying alternatives courses of action
of
Planning Evaluating alternative course

Selecting an alternative

Implement the plan

Follow up action
 Planning Process
As planning is activity there are certain reasonable
measures for every manager to follow:
(1) Setting Objectives
• This is the primary step in the process of planning
which specifies the objective of organisation i.e.
what an organisation wants to achieve.
• The planning process begins with the setting of
objectives.
• Objectives are end results which the management wants to achieve
by its operations.
• Objectives are specific and are measurable in terms of units.
• Objectives are set for the organisation as a whole for all departments
and then departments set their own objectives within the framework
of organisational objectives.

Example:
• A mobile phone company sets the objective to sell
2,00,000 units next year, which is double the
current sales.
(2) Developing Planning Premises
• Planning is essentially focused on the future
and there are certain events which are
expected to affect the policy formation.
• Such events are external in nature and affect
the planning adversely if ignored.
• Their understanding and fair assessment are
necessary for effective planning.
• Such events are the assumptions on the basis of
which plans are drawn and are known as
planning premises.
Example:
• The mobile phone company has set the
objective of 2,00,000 units sale on the basis of
forecast done on the premises of favourable
Government policy towards digitization of
transactions.
(3) Identifying Alternative Courses of Action
• Once objectives are set, assumptions are made.
• Then the next step is to act upon them.
• There may be many ways to act and achieve objectives.
• All the alternative courses of action should be identified.
Example:
• The Mobile company has many alternatives like reducing
price, increasing advertising and promotion, after sale
service etc.,
(4) Evaluating Alternative Course of Action
• In this step, the positive and negative aspects of each
alternative need to be evaluated in the light of
objectives to be achieved.
• Every alternative is evaluated in terms of lower cost,
lower risks, and higher returns, within the planning
premises and within the availability of capital.
Example:
• The mobile phone company will evaluate all the
alternatives and check its pros and cons.
• (5) Selecting One Best Alternative
• The best plan which is the most profitable plan and
with minimum negative effects is adopted and
implemented.
• In such cases, the manager’s experience and judgement
play an important role in selecting the best alternative.
Example:
• Mobile phone company selects more T.V advertisements
and online marketing with great after sales service.
(6) Implementing the Plan
• This is the step where other managerial functions come into the
picture.
• This step is concerned with “DOING WHAT IS REQUIRED”
• In this step, managers communicate the plan to the employees
clearly to convert the plans into action.
• This step involves allocating the resources, organising for labour and
purchase of machinery.
Example:
• Mobile phone company hires salesman on a large scale, creates T.V
advertisement, and starts online marketing activities and set up
service workshops.
(7) Follow Up Action
• Monitoring the plan constantly and taking feedback at regular
intervals is called follow-up.
• Monitoring of plans is very important to ensure that the plans are
being implemented according to the schedule.
• Regular checks and comparisons of the results with set standards
are done to ensure that objectives are achieved.
Example:
• A proper feedback mechanism was developed by the mobile phone
company throughout its branches so that the actual customer
response, revenue collection, employee response, etc. could be
known.
• Q. “To See Whether Plans Are Being
Implemented and Activities Are Being
Performed According to Schedule,” is a Step of
Planning Process. Identify the Step.
Answer:
• Follow up action.
• Q. Which is the Most Crucial Step in Planning
Process?
Answer:
• Setting objectives.
• Q. What is Meant by ‘follow Up’ as Involved in
the Planning Process?
Answer:
• It means to ensure the actual work is taking
place as per the planned work.
 Types of Plan

What is Plan?
A plan is a document showing detailed scheme, program and
strategy, worked out in advance for fulfilling an objective.
The plans may be grouped into two broad categories:
1. Standing Plans: Objectives
Strategy
Policy
2. Single Use Plans: Procedures
Methods
Rules
Budget
Programme
1. Standing plans: A standing plan is one which is used
again and again whenever a particular situation
arises.
Objectives: Objectives are the ends which the
management seeks to achieve within a given time
period.
Strategy: Strategy is a comprehensive plan made in
response to changes in the business environment to
achieve the organisational objectives.
Policies: are the general statements that guide thinking
or channelize energy towards a particular direction.
2. Single use plans: It is one time use plan which is specifically
designed to achieve a particular goal.
Procedures: It is a chronological sequence of various steps to be
taken in order to perform an activity in an efficient manner.
Methods: It is a prescribed process in which a particular operation
or an activity is performed.
Rules: Rules are the specific statements that inform what is to be
done.
Budget: It is the statement of expected result expressed in
numerical terms over a specific period of time.
Programme: It is a combination of objectives, policies, procedures,
rules, tasks and other elements, which are designed to get a
systematic working in the organization.
Decision Making
 Decision Making
What is Decision Making?
A choice made between alternative courses of
action in a situation of uncertainty.

Definition of Decision Making : “Decision -making

involves the selection of a course of action from
among two or more possible alternatives in order
to arrive at a solution for a given problem”.
 6 C’s of Decision Making
1.Construct a clear picture of precisely what must be
decided.
2.Compile a list of requirements that must be met.
3.Collect information on alternatives that meet the
requirements.
4.Compare alternatives that meet the requirements.
5.Consider the“what might go wrong” factor with each
alternative.
6.Commit to a decision and follow through with it.
Process of Decision Making

Defining the
problem

Gathering
Take follow information
up action and collecting
data

Developing
Plan and
and weighing
execute
the options

Choosing best
possible
option
 Types of Decision Making
1. Programmed and Non-Programmed Decisions:
Programmed decisions: are concerned with the problems of repetitive nature or
routine type matters.
 These decisions are taken generally by lower level managers.
 For e.g. purchase of raw material, granting leave to an employee and supply
of goods and implements to the employees, etc.
Non-programmed decisions: relate to difficult situations for which there is no
easy solution.
 For e.g. opening of a new branch of the organisation or a large number of
employees absenting from the organisation or introducing new product in the
market, etc., are the decisions which are normally taken at the higher level.
2. Routine and Strategic Decisions:
Routine decisions : are related to the general functioning of the organisation.
 They do not require much evaluation and analysis and can be taken quickly.
 Ample powers are delegated to lower ranks to take these decisions within the
broad policy structure of the organisation.
Strategic decisions : are important which affect objectives, organisational goals
and other important policy matters.
 These decisions usually involve huge investments or funds.
 These are non-repetitive in nature and are taken after careful analysis and
evaluation of many alternatives.
 These decisions are taken at the higher level of management.
3. Organisational and Personal Decisions:
Organisational Decisions: When an individual takes decision as an
executive in the official capacity, it is known as organisational
decision.
Personal Decisions: If decision is taken by the executive in the
personal capacity (thereby affecting his personal life), it is known
as personal decision.
4. Major and Minor Decisions:
Major Decision: Decision pertaining to purchase of new factory
premises is a major decision.
 Major decisions are taken by top management.
Minor decision: Purchase of office stationery is a minor decision
which can be taken by office superintendent.
5. Individual and Group Decisions:
Individual Decision: When the decision is taken by a single
individual, it is known as individual decision.
 Usually routine type decisions are taken by individuals within the
broad policy framework of the organisation.
Group decisions : are taken by group of individuals constituted in
the form of a standing committee.
 The main aim in taking group decisions is the involvement of
maximum number of individuals in the process of decision
making.
 Techniques of Decision Making
• People generally hold meetings to come to a
decision. However, group decision making is not
very easy.
• Things like incomplete information and narrow
perspectives can make your group decision making a
challenge.
• Also, groups often make ineffective decisions
because they either fail to list alternative solutions
or do a poor job of evaluating and selecting
solutions.
 leader is key

Make sure you know who is leading a specific

project or task and has the final responsibility.

There are several things the leader can do to

help a group make decisions more efficiently:
• Clarify the goal of the meeting. Create
expectations with actionable agenda points.
• When people seem totally blocked and unable
to come to a decision, go back to the initial
question or purpose and phrase it in other
words.
 Brainstorming
• Brainstorming is a group decision making
technique designed to increase the range of
ideas and solutions available for the group to
explore. The goals is to generate as many
ideas as possible. This technique doesn’t
provide a solution or decision itself. Instead, it
produces a list of ideas that will later be
considered, discussed, and evaluated when it
is time to reach a final decision.
 The ground rules of brainstorming include
the following:
• Don’t judge. Whether an idea is good or bad doesn’t matter.
Judging and criticizing isn’t good for the mood and creative flow.
People shouldn’t feel afraid to speak up. Empower your co-
workers.
• Assign a moderator. Although the entire point of a brainstorm
involves a free flow of ideas, you can quickly get off track. Choose
a moderator who knows the project and can drive conversations
toward original thought and successful teamwork.
• Change physical environment. Switching environments can
influence the way your brain works and what kind of ideas come
to mind. Stimulate your brain by brainstorming outside or in
another room.
• Independently prepare. Give everyone about ten minutes to come
up with their own ideas before you discuss them together. This way
you’ll make sure you won’t get stuck with common suggestions but
you’ll probably have more diverse ideas to begin with.
• Identify goals. You don’t want to waste time endlessly writing
down ideas. Clearly state the goal of the brainstorming session so
that everyone stays focused. For example: “Identify ten possible
ways to get more employee happiness.”
• Set a time limit. By setting a time limit, you know that the agreed
upon goals must be met by a certain time. This will encourage you
to stay on track and come up with as many ideas as possible within
the timeframe.
• Avoid groupthink. Groupthink occurs when people in groups seek
to eliminate conflict entirely. Positive reinforcement and
agreements are great, but shouldn’t stand in the way of critical
thinking, creativity, and quality.
• Write everything down. Every idea, good or bad, should be
briefly put down on paper or a whiteboard because you won’t
remember everything. You don’t want to end up scratching your
head because you forgot all those great ideas.
• Work together. Don’t get attached to your own ideas. Everyone
will have good and bad ideas, but in the end it’s all about the best
ideas that solve the problem. So, help develop other people’s
ideas too.
 Nominal Group Technique

• This group decision making technique is

similar to brainstorming except that it’s more
structured.
• The nominal group technique involves the
following steps:
• Write down ideas in private. After the problem
at hand is defined and understood, members
silently generate their ideas in writing without
discussion with each other.
• Share ideas. Take turns reporting your ideas to
the group, one at a time, while a facilitator writes
them on a flip chart or whiteboard. Again, no
group discussion occurs. This listing continues
until each member has no more ideas to share.
• Discuss ideas. The next step is discussing all
ideas. The purpose of this discussion is to
clarify, criticize, or defend the stated ideas.
• Vote on ideas. Each person privately and
anonymously prioritizes the ideas according to a
rank-ordering system.
• Calculate the group decision. The final decision
is calculated mathematically, based on the
votes of the previous step.
 Delphi method
• The Delphi method is a structured
communication technique or method,
originally developed as a systematic,
interactive forecasting method which relies on
a panel of experts.
• Delphi is being used as Qualitative research
method.
• Delphi is based on the principle that forecasts
(or decisions) from a structured group of
individuals are more accurate than those from
unstructured groups. The technique can also
be adapted for use in face-to-face meetings,
and is then called mini-Delphi or Estimate-
TalkEstimate (ETE).
 Procedure
• The experts answer questionnaires in two or more
rounds. After each round, a facilitator or change
agent provides an anonymous summary of the
experts’ forecasts from the previous round as well as
the reasons they provided for their judgments. Thus,
experts are encouraged to revise their earlier
answers in light of the replies of other members of
their panel. It is believed that during this process the
range of the answers will decrease and the group
will converge towards the "correct" answer.
• Finally, the process is stopped after a
predefined stop criterion (e.g. number of
rounds, achievement of consensus, stability of
results) and the mean or median scores of the
final rounds determine the results.[6
 UNIT 4
ORGANISING
 What is Organising

"Organization is the process of identifying and

grouping of the works to be performed,
defining and delegating responsibility and
authority and establishing relationships for the
purpose of enabling people to work most
efficiently".
Process of Organising
Identification and
Division of work

Departmentation

Assignment of
Duties

Establishing
reporting
relationship
 Importance of Organising
1. Benefits of Specialization
2. Clarity in Working Relationship
3. Optimum Utilization of Resources
4. Adaptation to Change
5. Effective Administration
6. Development of Personnel
7. Expansion and Growth
 Organization Structure
Organization structure refers to the framework within which
managerial and operating tasks are performed.
An organizational structure defines how activities such
as task allocation, coordination and supervision are
directed toward the achievement of organizational aims.
 Organizations need to be efficient, flexible, innovative and
caring in order to achieve a sustainable competitive
advantage
 It specifies the relationships between people, work and
resources.
 A good organization structure should be dynamic so that it
can change and adjust as per the situations or conditions.
Organizational Structure
 Types of Organizational Structure

1. Functional Structure: Refers to grouping of

jobs of similar nature under one department.
2. Divisional Structure: When jobs related to
one product are grouped under one
department, it is termed as divisional
structure.
 Staffing
Meaning:
Staffing is the process of filling positions/posts in
the organization with adequate and qualified
personnel .
Staffing is the process of acquiring, deploying, and
retaining a workforce of sufficient quantity and
quality to create positive impacts on the
organizations effectiveness
 Definition
According to McFarland, “Staffing is the function by
which managers build an organization through the
recruitment, selection, and development of
individuals as capable employees.”
According to Koontz, O’Donnell and
HeinzWeihrich,“The management function of staffing
is defined as filling position in the organization
structure through identifying workforce requirements,
inventorying the people available, recruitment,
selection, placement, promotion, appraisal,
compensation, and training of needed people.
 Features
• Pervasive function of management.
• Dynamic in nature.
• Vast scope
 Objectives of Staffing
• To understand all function of in an
organization.
• To understand manpower planning so that
people are available at right time and at aright
place.
• To understand issues related to job analysis
and to overcome the problem.
 Importance
• Training and Development.
• Effective Co-ordination.
• Effective Recruitment & Placement.
• Building effective human resource.
• Optimum Use of Resource.
• Enhances Corporate Image.
• Job Satisfaction.
 Elements of Staffing
• Manpower planning
• Job analysis
• Recruitment and selection
• Training and Development
• Performance appraisal