Basic Managerial Functions

Organizing

Leading

Controlling

Planning

PLANNING

“Well plan is half done”.

• “Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses”. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals.

Urwick

• According to Koontz & O’Donell, “Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur”.

Steps in Planning Function

• Establishment of objectives• Establishment of Planning Premises• Choice of alternative course of action• Formulation of derivative plans• Securing Co-operation• Follow up/Appraisal of plans

Proper planning accomplishes the following

• Managing Uncertainty

• Better Focus

• Improves Coordination

• Basis for Control

• Improves Effectiveness

• Long term & Short term• Formal & Informal Plans• Proactive & Reactive Plans• Strategic & Operational Plans

Types Of Plans

The Planning Process

GOAL SETTINGIdentification and formulation of

objectives

DEVELOPING PLANSChoices between alternative plans

IMPLEMENTATIONExecution of the plan

Reactive Planning

Revision of goals and plans

Successful Planning Process

Everyone participates Board and staff educated about

planningBoard and staff explore new ideasBoard takes advantages of

opportunitiesNecessary resources available

Making Planning Effective

Linked to Long term objectivesConsistencyEveryone participates FeasibleFlexibleSimpleTop Management Support

Barriers to Effective Planning

What Is an Objective?

“objective are goals, aims or purposes that organisation wish over varying periods of time”

Management By Objectives (MBO)

A method whereby managers and employees define objectives for every department, project, and person and use them to monitor subsequent performance.

The Five-Step MBO Process

THE NATURE & PURPOSE OF MBO

MBO is concerned with goal setting and planning for individual managers and their units.The essence of MBO is a process of joint goal setting between a supervisor and a subordinate.Managers work with their subordinates to establish performance goals that are consistent with higher organizational objectives.MBO helps clarify the hierarchy of objectives as a series of well-defined means-ends chains.

Essential Steps for MBO

• Set Goals– The most difficult step.

• Develop Action Plan– For both workgroups and individuals.

• Review Progress/ Take corrective action– Periodic during the year.

• Appraise Overall Performance.– Review Annual Goals.

Advantages

• Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates.

• Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment.

• Clarity of goals.• Subordinates tend to have a higher

commitment to objectives.

Disadvantages

• The development of objectives can be time consuming, leaving both managers and employees less time in which to do their actual work.

• The elaborate written goals, careful communication of goals, and detailed performance evaluation required in an MBO program increase the volume of paperwork in an organization.