MANAGEMENT FUNDAMENTALS

Planning in learning organizations.TypesStepsMBOMBEPlanning premises.

PLANNING

“Planning is deciding the best alternative among others to perform different Managerial operations in order to achieve the predetermined goal.”

Planning is chalking out plan of action, i.e. the result envisaged in the line of action to be followed, the stages to go through, the methods to use.

- HENRY FAYOL

NATURE OF PLANNING

Planning is goal oriented.It is an intellectual process.It is forward looking.It is pervasive.It is primary function of management.It is selective in nature.It enables to face the risk.It is a continuous process.It improves the efficiency.

POEM ON PLANNING

I keep six honest serving men,They taught me all I know,

Their names are what, where and when,

And how and why and who. -RUDYARD

KIPLING

LEARNING ORGANIZATION

A learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself.

Learning organizations develop as a result of the pressures facing modern organizations and enables them to remain competitive in the business environment.

A learning organization has five main features

Systems thinkingPersonal masteryMental modelsShared vision Team learning

Learning in organization

“A successful company is one that can learn effectively” - Arie

de Geus

Learning is essential for an organization to adapt, improve and innovate.

We are all conditioned to learn from the obvious consequences of our actions.

We do not touch the hot stove again after the first try.

We are also conditioned to identify obvious problems and apply quick solutions.

Quick solutions do not always address the root issue and often lead to unintended consequences in other parts of the system or organization.

TYPES OF LEARNING

There are three types of organizational learning:-

Single-loop learning.

Double-loop learning.

Triple- loop learning.

TYPES OF LEARNING

Single-loop learning: Occurs when errors are detected and corrected without modifying a firm’s existing policies, goals, or assumptions.

Double-loop learning: Occurs when errors are detected and corrected such that a firm’s existing policies, goals, and/or assumptions are called into question and challenged.

Triple-loop learning: Occurs when firms learn how to effectively carry out single- and double-loop learning. This requires identifying the various factors (both individual and organizational) that help to facilitate organizational learning. With triple-loop learning, firms “learn how to learn.”

TYPES OF LEARNING

TYPES OF LEARNING

STEPS IN LEARNING ORGANIZATIONS

Establishing verifiable goals.Establishing planning premises.Deciding the planning period.Finding Alternative course of action.Selecting a course of action.Developing a derivative plan.Measuring and controlling the

progress.

MBO (MANAGEMENT BY OBJECTIVE)

Management by objective(MBO) is a systematic and organized approach that aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization.

It allows management to focus on achievable goals and to attain best possible results from available resources.

One of the concepts of MBO is that all mangers should participate in the strategic planning process for better implementation of plans. It includes ongoing tracking and feedback in the process to reach objectives.

Origin of the MBO concept

MBO was first outlined by Peter Druker in 1954 in his book “The Practice of management”.

MBO has been accepted in many businesses.

Basic Principles of MBO

Unity of management action is ,more likely to occur when there is pursuit of a common objective.

The greater the focus on results on a time scale, the greater likelihood of achieving them.

The greater the participation in setting meaningful work with accountable results , the greater the motivation for completing it. These call for:

Application of MBO

The MBO concept is appropriate for knowledge-based enterprises where staff is competent.

Appropriate in situation where one wishes to build;

Employees management and self-leadership skills

And tap their creativity, tact knowledge and initiative.

Used by chief executives of multinational corporations for their country managers abroad.

Advantages of MBO

Better utilization of resources.Development of personnel.Better team work.Concentration on Key Result Areas.Objective Evaluation.Result Orientation.Sound Organizational Structure.

MBE (Management by Exception)

What is MBE? • Management by Exception (MBE) is a "policy by

which management devotes its time to investigating only those situations in which actual results differ significantly from planned results.’’- Frederick Winslow Taylor.

• Attention and priority is given only to material deviations requiring investigation and correction. It is a part of motivational and control techniques.

• Its objective is to facilitate managements focus on important tasks.

Process of MBE

Identifying and specifying Key Result Areas.Setting standards and outlining permissible

deviations. Comparing actual results with the

standardsComputing and analyzing deviations. Identifying non - permissible, that is, critical

deviations.Strategizing and taking corrective actions

Significance of MBE

• Proper and timely decision making and appropriate flow of action and employees’ activities.

• Better utilization of managers’ time by bringing to their attention only those conditions that appear to need managerial action.

• Easy identification of discrepancies.• Benefit to customers since MBE makes it easier

for the business to grow and improve its service rather than use valuable resources on routine tasks.

PLANNING PREMISES

Planning premises means

systemic and logical estimate for future factors affecting planning.

Planning premises are the

assumptions providing a background against which the estimated events Affecting the planning take place- Dr.G.R.Terry.

CLASSIFICATION OF PLANNING PREMISES

Internal and External Premises.

Tangible and Intangible Premises.

Controllable and Non-controllable Premises.

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