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I N T R O D U C T I O N

MANAGEMENTFUNCTIONS

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PROCESS OF MANAGEMENT/MANAGEMENT FUNCTIONS

FayolFOCCC

TerryPOAC

GullickPODSCORB

MassieDOSPCCD

Koontz & ODonnell POSDC

( Each term must be explained in brief)

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PLANNING

ORGANISING

STAFFINGDIRECTING

CONTROLLING

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PLANNING

Meaning

Features

Steps / Process

Advantages

Limitations

Components / Elements

MBO

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Planning is the selecting & relating of facts &

the making & using of assumptions regarding

the future in the visualization & formulation of

proposed activities believed necessary toachieve desired results.

- George R. Terry

Planning is deciding in advance what to do,

where to do it, how to do it, when to do it, whois to do it. Planning bridges the gap from where

we are to where we want to go.

- Koontz & ODonnell

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FEATURES

1) Primary task of mgmt.2) It is an intellectual process (It is a process of orderly

thinking. It requires ability to visualize the future.)

3) It is goal oriented

4) Future oriented5) All pervasive activity (From chairman to foreman,

everyone plans)

6) Continuous & dynamic activityadaptive &

innovative7) Basis of control

8) Time bound activity

9) Decision oriented

10)Based on facts

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STEPS/ PROCESS (TERRY)

1. SWOT analysis

2. Define objectives & clarify the problem

3. Obtain complete information about the activitiesto be planned

4. Classify & analyze the information (statistics,charts, ratios, etc.)

5. Establishing planning premises & constraints(Premises are assumptions providing abackground against which estimated eventsaffecting the planning will take place. Selection ofplanning premises & their use in planning dependsupon the skill, perception & experience of theplanner. Constraints are boundaries within which

the planning takes place)

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6. Determine alternate plans

7. Choose a proposed plan

8. Arrange detailed sequence & timing of the

proposed plan

9. Control devices

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ADVANTAGES

1) Basis of success ( failing to plan means planning tofail)

2) Better utilization of resources

3) Point out need for future changes

4) Encourages innovation & creativity5) Facilitates control

6) Improves competitive strength

7) Prevents hasty decisions

8) Managing crisis9) Sense to participation to employees

10)Promotes growth & development

11)To take care of future uncertainty

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LIMITATIONS

1) Accuracy of information regarding future

2) Costly & time-consuming (benefits may not match

cost)

3) Psychological barrier (the present is more desirable

than the future as it has some certainty)4) Delays action - emergencies

5) Stifles employee initiatives

6) Not suitable for small firms

7) False sense of securityonce plan is preparedimplementation will go smoothly

8) May not motivate people (Too high or too low goals)

9) Lack of ability to plan

10) Environmental constraints

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COMPONENTS/TYPES

1) Objective

2) Mission

3) Policy

4) Rules5) Schedules

6) Procedure

7) Programmes

8) Budget9) Method

10)Strategy

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MANAGEMENT BY OBJECTIVE (MBO)

MBO is a process whereby the superior and thesubordinate managers of an enterprise jointlyidentify its common goals, define each individual

major areas of responsibility in terms of resultsexpected of him & use these measures as guides inoperating the unit & assessing the contribution ofeach of its members.

- George Odiorne

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OBJECTIVES OF MBO

1) To measure & judge performance

2) Relating individual performance to organisationalgoals

3) To clarify the job to be done & expectationalperformance

4) To enhance communication between superior &sub-ordinate

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FEATURES OF MBO

1. A device for organisational control & integration

2. A basis of judgement to decide on salary &promotion

3. Also acts as a motivator4. Participative management

5. Result oriented

6. KRAs**

7. Periodic performance review

8. Emphasis on objectives

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STEPS/PROCESS- MBO

1) Setting of organisational objectives/ goals in KRAs

2) Departmental objs

3) Subordinate objectives

4) Action plans

5) Establishing Standards of perf

6) Periodic review of progress

7) Performance appraisal

8) Employee counselling

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ADVANTAGES-MBO

1. Better managing

2. Higher productivity

3. Targeted planning

4. Team work

5. Motivation

6. Efficient communication

7. Training & development

8. Objective appraisal

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LIMITATIONS-MBO

1. Failure to teach MBO phillosophy to employees

2. Costly process & time consuming

3. Difficulty in setting objectives

4. Emphasis on short term objectives

5. Increased paper work

6. inflexibility

7. Resistance to change

8. Lack of training

9. Paricipation problem