Principles of Management Planning Decision Making MBO www.mbainfoline.com

PLANNING Planning is necessarily forward looking. It is looking into the future. It bridges the gap between where we are and where we want to go. It involves visualising a future course of action and putting it into a logical way.

Purpose of Planning To achieve objectives To make things happen To cope up with change To control the events

Principles of Planning Take time to plan Planning can be top-down and bottom-up Involve and communicate with all those concerned Plans must be flexible and dynamic Evaluate and revise

Steps in Planning Establish goals Establish planning premises Decide the planning period Develop alternatives and select the course of action Derivative plans Review periodically

Types of Planning Strategic planning Operational planning

Types of Plans Mission or Purpose Policies Procedures Rules Programme Budget

Decision - Making “It is the selection of a future course of action from among various alternatives.”

Types of Decisions Programmed and non-programmed decisions Operational and strategic decisions Organisational and personal decisions Individual and group decisions

Steps in Decision – making Process Problem definition Analysing the problems Developing the alternatives Evaluating the alternatives Selecting and implementing the decision Follow-up and feedback

Decision-making Techniques Brainstorming Synetics Operations research

Management By Objectives (MBO) “MBO is a process whereby the superior and subordinate managers of an organisation jointly identify the common goals, define each individual’s major areas of responsibility in terms of the results expected of him, and use these resources as guides for operating the unit and asessing the contribution of each of its members.”

Characteristics of Objectives Objectives have hierarchy Objectives can be short-term and long-term Objectives can be quantitative and qualitative Objectives can have conflict with each other

Process / Steps - MBO Establishment of objectives for the whole organisation Preparation by subordinates, of specific goals within the framework provided by the superior managers Discussion for an agreement on the goals by superior and subordinate managers

Process / Steps – MBO (Cont..) 4. Review of the progression at regular intervals by both superior and subordinate managers based on the predetermined goals 5. Corrective measure, if required, based on the review

Advantages/Benefits of MBO Clarity of objectives is possible at every level of the hierarchy Activities of the organisation can be systematized as every one has clarity of objectives Performance appraisal can be smooth as every one knows their expectations Democratic setup can be created and morale of employees can be increased as they have been given chance in deciding the objectives

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