1. Principles of Management
Planning
Decision Making
MBO

2. 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.

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

4. 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

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

6. Types of Planning
Strategic planning
Operational planning

7. Types of Plans Mission or Purpose Policies Procedures Rules Programme
Budget

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

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

10. 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

11. Decision-making Techniques
Brainstorming
Synetics
Operations research

12. 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.”

13. 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

14. 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

15. 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

16. 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

17. Thank You