Basic Managerial Functions : Basic Managerial Functions Organizing Leading Controlling Planning PLANNING: PLANNING “ Well plan is half done ”. PowerPoint Presentation: “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 PowerPoint Presentation: 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 : 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 : Proper planning accomplishes the following Managing Uncertainty Better Focus Improves Coordination Basis for Control Improves Effectiveness Types Of Plans: Long term & Short term Formal & Informal Plans Proactive & Reactive Plans Strategic & Operational Plans Types Of Plans The Planning Process : The Planning Process GOAL SETTING Identification and formulation of objectives DEVELOPING PLANS Choices between alternative plans IMPLEMENTATION Execution of the plan Reactive Planning Revision of goals and plans Successful Planning Process : Successful Planning Process Everyone participates Board and staff educated about planning Board and staff explore new ideas Board takes advantages of opportunities Necessary resources available Making Planning Effective : Making Planning Effective Linked to Long term objectives Consistency Everyone participates Feasible Flexible Simple Top Management Support Barriers to Effective Planning: Barriers to Effective Planning What Is an Objective?: What Is an Objective? “objective are goals, aims or purposes that organisation wish over varying periods of time” Management By Objectives (MBO): 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 Five-Step MBO Process THE NATURE & PURPOSE OF MBO : 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: 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 : 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 : 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.