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UNIT 2
INTRODUCTION TO
FUNCTIONS OF
MANAGEMENT
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FUNCTIONS OF MANAGEMENT
PLANNING:
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PLANNING
ACCORDING TO Killen:
NATURE OF PLANNING
PLANNING IS GOAL-ORIENTED:
Planning is made to achieve the desired
objectives of the business.
PRIMACY OF PLANNING:
Planning pervades all managerial activity, it
is the function of every manager. It facilitates
organising,staffing,directing,and controlling .
PLANNING IS AN INTELLECTUAL ACTIVITY:
Planning is an intellectual process and the
quality of planning will vary according to the quality of
the mind of the managers.
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ELASTICITY IN PLANNING:
The process of planning should be adaptable to changing
environmental conditions.
PLANNING AIMS AT COORDINATION:
Planning co-ordinates the what, who, how, where and why
of planning, without the co-ordination of different activities, one
cannot have united and synchronized efforts.
PLANNING IS A CONTINOUS PROCESS:
Planning is always continues in the organisation in one or
the other form. Plans are there modified and then certain
deficiencies also point out and framed accordingly, in this way
planning is a continuous process.
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IMPORTANCE OF PLANNING
1.
2.
3.
4.
5.
6.
7.
8.
9.
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TYPES OF PLANNING
STRATEGIC PLANNING: A strategic planning is
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STP
relates to a period of less than one year, e.g product
design , training of work force, reduction of inventory
level . MTP covers a period of over one year but less than
five year e.g. new product development, product publicity,
increasing return on investment. A planning for five years
to 20 years or more is known as long term planning. e.g.
globalization of production and marketing , increase in
market share , Public image.
PROACTIVE PLANNING: PP involves designing suitable
course of action in anticipation of likely changes in the
relevant environment. In India, cos like Reliance
Industries, Hindustan lever, etc have adopted this kind of
approach.
REACTIVE PLANNING: In RP, organization's response
come after the environmental changes have taken place.
After the changes take place, organizations start planning.
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PROCESSOFPLANNING
Establishm
Establishm
ent
entofof
objective
objective
Collection
Collectionofof
information
information
and
and
forecasting
forecasting
Development
Developmentofof
the
theplanning
planning
premises/
premises/
Assumptions
Assumptions
Search
Searchofofthe
the
alternatives
alternatives
Evaluation
Evaluation
and
andfollow
followup
up
Selection
Selectionofof
plan
planand
and
development
developmentofof
derivative
derivativeplans
plans
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Evaluation
Evaluationofof
alternatives
alternatives
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Planning
premises
Internal
Premises
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External
Premises
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INTERNAL PREMISES:
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FORECASTING
Forecasting is a systematic attempt to explore future
SIGNIFICANCE OF FORECASTING.
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LIMITATIONS OF FORECASTING
It should not be forgotten that all forecasts are
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PROCESS OF FORECASTING
1. UNDERSTANDING THE PROBLEM:
The first step in the FP is the understanding of real problem
about which forecasts are to be made. A manager must know
clearly the purpose of forecasting.
2. ESTIMATION OF FUTURE:
The prosperity of the future can be estimated with the help of
past experience and performance as well as the talents
possessed by top management executives.
2. COLLECTION OF RESULTS:
All the information can be collected. Relevant records
prepared and maintained to collect the results.
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4. COMPARISON OF RESULTS:
The actual results are compared with estimated
results to know deviations.
5. REFINING THE FORECASTS:
If any factors or conditions have changed during the
period understudy, then those factors or conditions
have to be taken in consideration for the future
estimation, this will help in refining the process of
forecasting.
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KEY TO PLANNING
PRINCIPLE OF CONTRIBUTION TO OBJECTIVES:
For
efficient planning well-defined objectives are needed. Objectives
are to be rational (sensible) and understandable.
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DECISION MAKING
ACCORDING TO McFarland A decision is an act of choice
wherein an executive forms a conclusion about what must be
done in a given situation . A decision represents a course of
behaviour chosen from a number of possible alternatives
Decision making is a process of selection from a set of alternative
course of action which is thought to fulfill the objectives of
decision problem more satisfactorily than others.
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CHARACTERISTICS OF A DECISION
Decision is the choice of the best course among
alternatives.
organisation.
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DIFFICULTIES IN DECISION-MAKING
INCOMPLETE
INFORMATION:
Lack of information in
decision-making, makes the process incomplete.
INEFFECTIVE COMMUNICATION:
IC makes implementation
difficult. The manager should therefore care to communicate all
decisions to the employees in clear, precise and simple
language.
UN-SUPPORTING ENVIRONMENT:
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THANK
YOU
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