Part 2.1 Plannning Function of Management

04/17/2023Research Institute of Posts And Telecommunication

POST AND TELECOMMUNICATION INSTITUTE OF TECHNOLOGY

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PART 3

PLANNING - FUNCTION OF

MANAGEMENT


MANAGEMENT

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Management has been described as a social process involving responsibility for economical and effective planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic process consisting of various elements and activities. These activities are different from operative functions like marketing, finance, purchase etc. Rather these activities are common to each and every manger irrespective of his level or status.

Different experts: Has been defined various Functions of management


CLASSIFING THE FUNCTIONS OF MANAGEMENT

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According to George & Jerry, “There are four fundamental functions of management i.e. planning, organizing, actuating and controlling”.

Luther Gullick definning planning as a keyword POSDCORB as below:

where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co. for Co-ordination, R for reporting & B for Budgeting.

Widely accepted are functions of management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.


FUNCTIONS OF MANAGEMENT

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Old TheoriesPlanningOrganizingLeadingControlling

And the Others:

Now most acceptedPlanningOrganizingStaffingDirecting Controlling


FUNCTIONS OF MANAGEMENT

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WHAT IS PLANNING

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It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals.

According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”.


WHAT IS PLANNING

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A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.


WHAT IS PLANNING

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Means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed program regarding future courses of action. It is rightly said “Well plan is half done”. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.


WHAT IS PLANNING

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According to Urwick, “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.


Other Functions Of Management

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2.Organizing It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as


2.ORGANIZING

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A process involves: Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.


3.STAFFING

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It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed in the structure”.


3.STAFFING

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Staffing involves:Manpower Planning (estimating man power in terms of searching,

choose the person and giving the right place). Recruitment, Selection & Placement. Training & Development. Remuneration. Performance Appraisal. Promotions & Transfer.


4. DIRECTING

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It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inter-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals


4. DIRECTING

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Direction has following elements: Supervision Motivation Leadership Communication


ELEMENTS OF DIRECTION

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Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.


5.CONTROLLING

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It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”.


CONTROLLING STEPS

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Controlling has following steps:Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding

out deviation if any. Corrective action.


PLANNING IN DETAILS

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Planning requires a systematic approach. Planning starts with the setting of goals and objectives to

be achieved. Objectives provide a rationale for undertaking various

activities as well as indicate direction of efforts. Moreover objectives focus on the attention of managers on

the end results to be achieved.


PLANNING IN DETAILS

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As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective.

As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager.

Such goals should be specified in qualitative terms. Hence objectives should be practical, acceptable, workable

and achievable.


PLANNING IN DETAILS

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1. Define of present situation

2. Establish goals and objectives

3. Forecast aids and barriers to goals and

objectives

4. Develop action plan to reach goals

and objectives

5. Develop budgets

6. Implement of plan

7. Control of the plans

Eval

uatio

n an

d fe

edba

ck


Goals and Objectives - SMARTER

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SMARTER is an acronym, that is, a word composed by joining letters from different words in a phrase or set of words. In this case, a SMARTER goal or objective is:

Specific

Measurable:

Acceptable

Realistic

Time frame

Extending

Rewarding


STEPS OF PLANNING

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PLANNING IN TERM OF TIME

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Planning in term of time:Long term planning;Short term planning;

Planning in term of Scale Overall Planning or Detail Planning

Planning in term of Specific sectors of Economy


Q & A

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Part 2.1 Plannning Function of Management