t-

MG235I PRINCIPLES OF MANAGEMENT

I]NIT II
PLANNING:
Nature and purpose of planning- planning pIocess-T,?es of plans- objeatives- Managing by
objective(MeOj strategiis- TypJs of stmtegies - Policies - Decilion Making- Tlpes of decision
b"cision frluttng p-rocess-iRational'Eecision-Making Process -necision Making under
different conditions.
PART-A

l. What is planning?(Nov/Dec 2005)

Planning is deciding in advance what to do, how to do it, and whd is to do it lt is

selection among altemativei of future oourse of action for the enterprise as a whole and
each

a"fu.t."n, *itf,in it. Plans involve selecting enterprise objectives and determiniog ways of
achie\ing Lhem.

2. What are the natur€ and purpose of plantri4? (A.U Nov/Dec 2011) ,(Mayfiune 2006)

. A primary function
. A dynamic process
. Based on objectives and policies
. A selection process
. Pervasiveness ofplanning
. An intellectual process
. Directed towards elficiency
. Focus with future activities
. Flexibilityof planning
. Based on facts
 e 2013).(Nov/Dec
planning/ob.iectives of pranning?(May/Ju
of
3. what are the importatrc€
2005), (APrMaY 2005)

! PrimarY ofPlanning
> To achieve objectives -
)> To coPe with unceMinty and change
> T ., facititate control
> To helo in coordination
o r. in"'."ut" otg-i-tional effecliveness
! To euide decision-makinS 2004)
,. **ir*",?l.i* innoi'"a in pr'nnine proctss?(Nov/Dec

o ldentifi cation of oPPortunilies

o Establishment of objectives
o Developing Planning Premrses
o ldentifi cation of altemahves
o Evaluation of altematlves
o Selecting an alrcmatives
o Formulating derivative Plans
i Et*f'fitftinE t"qutnce oIactivities

5.whatarethedifferedttypesofplans?(A-UNov/Dec2012),(May[une2012)'

'. OPerational Plan

Tactical plan
.
Slmtegic Plan
.
ContingencY Plan
6. D€Ihe operational Plan?
that occur
on the specific prooedures and processes
-routine
oDerational plans are tbotsed t'sks or the
AII
lowest levels ot the
ffi;;fi;;;t the
wirhin th; '[fl;li"T
;;;*i**f ;*t l?iitlt"5'li*"*" or ongoing prans Siosre-use
prans are those

"';'lx'"t""J Hlf,i'"ii F,i.;},.{:ffi

several urn6 Hii::#sffi'*"15;:"J.:*}:;1n""
..eated ;ith lhe intent to be used
7. Defrne tactical Plan' t:$:#;r,'il'":"1
prans bv Eansll'"1*::'J'"i3;'li:
f,':;ITl'1';l-**
Tactical plons strppon stratesic
"'i"cill'"T".1vrilfl,".11'l'""i".J;n
l*o : .-,, ,'^,- the responsibilitv and
distinct area of tle
the organization
organtzatton
'ilIfjiii,f,r",,
.mentsl0- p"*
-^." ofthe strateglc plarr.
strategic plan.
lower-level depafl ^frhe
functionaliry of
^^,.,
*. #;ffi;; pru"'
";toi"gi"
xo"/Dec 2011)
i'r"u
and begin with an
wi6 $e entire organization' in'mindl
S{rategic plaos are designed design aod execute
manaeers'.sulhtttE3tdtp"'g"-:rd#:;Il'of the organization'
.ganiri';.;irlion pictqre oi the 0
ToP-level
stitegic plans to paint a
Essentially, strategic plans look ahead to where the organization wants to be in three, five, even
ten years. Strategic plans, provided by topJevel managerc, serae as the framework for lower_
levelplanning.
9. Define contingen.y plan.
Cortingency plans allow a manager to be flexible and change-sawy by providing an
altemative course of action, which can be implemented il and when an original plan fails to
produce the anticipated result.
10. Distinguish between strategic and tactical planning. (.4"U. Nov/Dec 20ll),(Nov/Dec
2008)
Stratesic Dlannins Trctical DIan ns
l. Strategy- a plan, method, or series of Tactics- a system or a detail of tactlcs.
maneuvers or stmtagems for obtaining a a plan, procedure, or expedient for promoting
soecific soal or result. a desired end or result.
2. Stratesic olannins is macro-oriented Tactical Dlarr trs is micro-oriented
Areas tlrat are covered in tactical planning
3. Strategic planning includes arcas like your
include (i) monthly or quarterly sales goals;
(i) business' market share; (ii) professional
(ii) improving customer service in specific
career palh; (iiil Iile and/or business vision:
(iv) investment goals; (v) personal and/or areas, (iii) reducing the number of
your
prolessional opportunity costs: (vi) mission:
outside cominitrnents so that you can simplify
and (v) the allocation ofresources. your life-and (iv) creating action plans for
vaw s]rratestc Ais picture) obiectives.
4. It is focuses on the core of Who (you This type of short term planning is all about
are), What (you want to accomplish) and the IIop (i.e.. process) of gening things
Why (do you \,!ant to accomplish the what) doing.
of orpanizations atrd oeoDle.

10. What are the advantages ofplatrning?

.
Planning frcilitates management by objectives.
.
Planning minimizes uncertainlies.
.
Planning facilitates co-ordination.
.
Planning improves employee's moral.
o Planninghelps in achieving economies.
.
Planoing facilitates controlling.
.
Planning provides competitive edge.
.
Planning effourages innoYations.
I 1. What are the disadvatrtages of platrnilg?

> Rigidity
! Misdirected Planning
> Time consuming
F Probability in planning
! False sense ofsecurity
> Expensive
12. What is ar obiective?
step within a designated
a short-tenn' measurable
An obiective is a sub goal' It identifies goal'
o*r"a #iri?ii"ii. to'ing io*utd utl'it'ine a long-term
I 3. What is the importance of objectives'

.t Market share is high.

t Consumersatisfaction'
.:. Novel ideas.
.:. Coopemtion eveDrwhere'
.:. More output.
* Cost contiol.
* LoyaltY ofemPloyees'
{' Different kinds of Products'

14. What are the rdvaBtages of obj€ctives?

/ Prcper Plarming
/ Single motivation
/ Dircct coordination
. / C^ntol Process is standard
r' htesration
/ Detintralizat ion ofauthoritY

16. Define MBO. (MaY/June 2012)

of sefling objectives in the
Manasement by objectives (MBO) is that lhe processis called as M-anagement by
orsanizarion lo give a sense
or ai-",iJ,] ; il "*i,";
obiectives.lr refers ro tt'" p'o"o' o't"n"l"g
gJik'i;;;:;;i;'t"" t" that thev know whal thev
are"supposed to do at the workplaoe'
and helps
and responsibilities for the employees
Manasement by Objectives defines rcles
J;iffi;;;i;tui,re course of action in the orgnizalion'
'""*wtaiare rte tenelits ofMBo?(Nov/Dec2004)
i'1.
/ lmprovement of managlng
/ Clarification of orgatrization
y' Personnel satisfaction
/ Team work
/ Development ofeffective control
/ Fast decision-making
18. What are the limitations ofMBO?{May/June
2007)

. Failure lo leach rhe philosophy of

MBO
. failure to give guidelines !o goals seners
. Difliculty of setting goals
. tmphasis on shon_term goals
. Dangerof inflexibiliry
. . Time consuming
. Increased paper wo*

19. Defitre Strategy. (.dU Nov/Dee 20t2) (Nov/Dec 2006)

S&ategy of an organization is the progremmed of action and development

resouaces to attain its objectives. of

20. What are the features ofstr.tegi€s?

:,::gli* 9*1r"g."iuii"" -n""pt

a particutar siluarion. Every siruation
it is desisned
to meet ihe demands of
^ ; dtiiei;i;";&d[$;
requires
have 1o be revised Fequently because
o[;nanges tn the srtuation.
nralegres are a complex plan encompassing
other plans in order to achieve
organizational objectives.
k aylrg looking: ir has ro do orienrarion rowards the
tuturc- Srralegic
-tj:l,:r.I
actron rs required in a re\x situarion. Nothing new requiring
the past. So strategy is i€levant
,otrtio ._ .*i"iin
onlv- to hfture. It may take advantag€s of the past
analvsis
StraLegl. provides the direction in which humar and ph)sical
deployed. for achieving organizationur ' goul,
resources- will be
:l::1.! ry
enuronment pressure andconstraints-
in ,h" f;' li
Shategy is the right combination of factors
both extemal and intenul. [n relating
can organization to its environmenr
.management mus{ also consider the intemal
lactors too. parlicularly in terms of its
do and what it cannordn
stren$hs und weakness, is ti ;;; ;il;;
involve even contradictory action. Since,
::,-.fl_rry
on enlrronmenlal variables: a manager
srrategic aclion depends
may take an action foa'ay am mav ;erir"
or revese his sleps lomonow dependling
on the siruation.
 of strategy?
21. What is the importatrce

':ffffi$fr
gqT*{Et1r,nr.3#;}1$[:i:;njffi
" i,,$if**d""lHu,'l:t*i
is ff *$'##f *T*## "Hl:"*,
ess
*
! StiategY formulation
orsanization' and lo
lo take advanEge o[ environmental opPortunilies
> lt e;ables lhe eflterprise
usetul framework for suidins'
combat envircomental
thinking and action ""S;::"t;i;';;;
22. What is Policy?
are geneml
..policy' is defined by KoonE and o oonnerr as--l9lic'ies
The lerm decision mal(Ing '
guide managers rhinking in
*r"..,1i,'"r*Jii*.1*ii'ngswhich

23. What are the types

ofPolicies?

o Originated PolicY'
o APPealed PolicY'
o tmolied PolicY'
o ExiemaltY imPosed PolicY'
o Basic Policies'
o General Policitx'
o DePanment Policies'
determitritrg the poliry making?
24. What are the factors

policy making:
Factors determitring the

oftle top management'

':' Foresightatlitrdes'
':'
.:.
Publio
tom workers'
Technolog/
'1 Response from workers
of competitors -
'3' Posiibleresctions
* Co'"rn'*t t"gutution aitd control'
* Financial inPlicalion'
{' Business and general environment'
(Nov/Dec 2000'
25. Deline decision makilg?
moie altematives' The deoision
a d..ision is the selc'lbn of a course of action ftom two'or
"
tt otsteps leading to that selection"-
."rril"ril'"]i ''t*'"*
 26. What are the characteriJtics ofdecision making?

o [t is a process ofmakiDg a choice from altemative course of action.

o Decision is the end process preceded by deliberation and reasoning-
o Decision making is a focal point at which plans, policies, and objectives are
translated into conqete action.
o Rationality is another characteristic of decision-making.the human brain with its
ability to leam to r€member and to relate many complex factors makes this
rationality possible.
o Decision-making involves commihnent. The mzrnagement is committed to decision
for two reasons.Iirslly it leads to the stability ofthe concem and secondly, every
decision taken becomes part oftlrc expectations of the people involved in the
organization.
o The purpose ofdecisioo-making is to select the best altemative, which can
significantly contribute towards organizational aims.

27. Write down the steps involved decision makitrg?

o Decision making pmcess

. Investigate the situation
. Develop altematives

28. What are types of decision?

{Programmed and non-programmed decisions

rl\4ajor and supplemenhry decisions
&Routine and strategic decisions
*Policy and operating decisions
{Personal and organizational decisions
*llndividual and group decisions

29. What are the factors infllrenciog decision making?

. Time pressures
. manager's values
. Organizational policy
. Other facto.s
30. State any two decision makirg strategies.(Apr/May2006).

(a) Decision tree medrod

(b) oporations research
(c) Break even analysis
(d) simulation or stochas{ic techniques.
 3l- What do you t€rm ,bounded rationality' in decisior rnaking?(ApriUMay 2{105)

Ifpeople are having time and cogdtive ability for rn:tking decisions, it is said to
.bounded rationality. be

32. What are theyarious fypes ofdecision making models? (ApriyMay 2005)

(a) Econologic Model or Economic Man Model.

(b) Administrative man model or Boulded Rationalitv model.
(c) Implicit favourite Model orGamesman Model.

33.Deline the term .Planning premises'?(Apr/May 2007)

Planning premises are defined as lhe anticipated envitonment in which plans are
expected to operate. Premises are the assumptions on which plans are formulated.

34. Dislinguish between policies and st atcgies.(Apr/May 2007)

Policies Stratesi
l.Policies are the guidelines ro decision Strategy is the long-temr view ard to see the
making. big picture.
2.Policies are formulated by top and middle Strategic planning is made by top level
levei management. maoageme only.
3.Policies are the means for achieving Strategy is colcemed with positioriing the
organizational goals. business in the market and establishirrg a
reputation with customeN,employers and
other stake holders.
\
J5. tl|e fore@stiog techniques used for decision making.(May/June 2007), (Apr/Mry
-List
2008),(AprVMay 2010),O{ay[une 2013)

1. Consumer Survey method.

2. Expert opinion (Delphi) Method.
3. Sales force opinion Method.
4. Test mfiket method
5. Controlled experiments methd
6. Trend Eojection method
7. Leading irdicators method.
8. Regression method.
 36. What is DSS? (Noy/Dec 2007)

Decision support systems are aDoliedb-roadly

to systems that aid decision making by
providing rhe answers ro a series oflwhat if"
q.i""iri"- ij."irl", .rro"i'.r.i"il. arra"
expert systems, natural language systems,
artifiiiut int"Iig"r"" b*"a
systems. "yrt".'r'*aL.*fig"

J7. What h the.importatrce ofseltitrg orgrtri"rtional

objectivel io a modern compler
organ iza tion?(Nov/Dec 2009)

objeclives provide the basic for plaruring.

objectives facilitate c_oordination of work

objectives motivate emplo) eds.

,betterobjectives
control-
provide the yardstick to measure the performanc€
ofthe employees and hence

38. Mention the chamcterislics of.programmed, and .Non_programmed,

(Nov/Dec
decisioIs.
2009)

Programmed decisions
Non-programmed decisions
repe&.lve oeclsloN arc called They are maile ,nder unusual situaions that
programmed decisioas.
have not been often addressed.
z.l\urcs or guloelmes are used to make No rules to be followed to make this decision
programmed decisions.
since the decision is new.
r.rnls qecrctons are made by lower
lwel This decisions a.e made-by top level
management and it does not involve risk and management
uncertain Iy.
and it
involves risk and
uncertainly.

39.What you meao by policy?(AprMay20l0)

Policy is a staremenr. and prederermined guiderine that provides

directions for decision
ma(rng and taktng afiion. Policies may be based upon
a thorough analysis ofobiectives and it
should be consislent with the company.s mission
ana phitosoph'v.
-'