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1 | P a g e
N GIND SKH NDW LCOLLEGE OFM N GEMENTSTUDIES
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PRINCIPLES OF MANAGEMENT 2
S.Y.B.M.S. B
Project Topic Coke(PLANNING, CONTROLLING,
ORGANISING, LEADERSHIP)
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TO:- PROF. RUPA MAM
GROUP NO 03
GROUP MEMBERS ARE:
PRITISH RAUT 3015
VIVEK RAWAT 3016
JUGAL RUPAREL 3017
JITESH SAIYA 3018
BHAVIT SALVI 3019
JINESH SAMPAT 3020
SACHI SANGHARAJKA 3021
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INTRODUCTION
World's #1 soft-drink company.
Owns four of the top five soft drink brands.
Makes more than 400 drink products.
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HISTORY
Invented byDr.John S. Pemberton
Introduced on8thMay, 1886.
Country of OriginUnited States
Head Quarters located in Atlanta, GeorgiaName Given ByFrank Robbinson
Methods of management
Management has been described as getting things done by other people.
Managers have responsibility for enabling anorganisationto achieve its
objectives.They are therefore responsible forplanning,organising, andcontrolling organisational activities. Managers set budgets, monitor
those budgets, and identify ways of making sure that the budget is kept
to. In addition managers manageresources- people, plant, time,
materials, finance, etc. People sometimes think that management is a
very precise science. However recent research has shown that this
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idealistic picture is often quite different from the reality.
In the real world, managers operate in a whirl of activity, constantly
having to switch their attention from one subject, problem orpersonto
another. They live in an uncertain world, where relevant and usefulinformation is often mixed up with gossip and speculation.
Theplanningprocess
Planning is the primary function of
management process.It is the starting point of the whole Managementprocess as other management functions are related to planning function.
According to PHILIP KOTLER,Planning is deciding in the
present what to do in the future. It is the process whereby
companies reconcile their resources with their objectives and
resources.
Plans are developed in order to set out a route map to help inachieving
objectives.Whilst the plan is made by managers with consideration to
internal factors such asresources available, the direction of previous
plans, the organisations objectives etc, it is also important to consider
external influences.External influences that effect planning include the
actions ofcompetitors,and a range of social, legal, economic, and
technological factors.A plan therefore needs to be designed to take
account of the externalenvironment.
For example, if the organisation is planning to expand it is important tomake sure that themarket will justify such an expansion (which depends
on social andeconomic factors such as consumer tastes and incomes).
The planning process can therefore be illustrated in the following way: >
Large companies like Coca-Cola, Kellogg's, and BT will create a
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number of plans. At the highest level they will create an organisation
wide plan termedcorporate strategy.This will be supported by a range
of lower level plans includingmarketingplans, production plans,advertising plans, human resources plans etc.
Production planning will also concern thedevelopmentof new products,
involvingresearch and developmentof new products, the production of
prototypes, and the final product selection.
Leaders are proactive. They makechangehappen instead of reacting to
change. The future requires corporate leadership with the skills to
integrate many unexpected and seemingly diverse events into its
planning. Every organization mustplanfor change in order to reach itsultimate goal. Effectiveplanninghelps an organization adapt to change
by identifying opportunities and avoiding problems. It sets the direction
for the other functions of management and for teamwork. Planning
improves decision-making. All levels of management engage in
planning.
Strategic Planning
Strategic planning produces fundamental decisions and actions thatshape and guide what an organization is, what it does, and why it does it.
It requires broad-scale information gathering, an exploration of
alternatives, and an emphasis on the future implications of present
decisions. Top level managers engage chiefly in strategic planning or
long range planning. They answer such questions as "What is the
purpose of this organization?" "What does this organization have to do
in the future to remain competitive?" Top level managers clarify the
mission of the organization and set its goals. The output needed by topmanagement for long range planning is summary reports about finances,
operations, and the external environment.
Strategic planningis the process of developing and analyzing the
organization's mission, overall goals, general strategies, and allocating
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resources. A strategyis a course of action created to achieve a long-
term goal. The time length for strategies is arbitrary, but is probably two,
three, or perhaps as many as five years. It is generally determined by
how far in the future the organization is committing its resources. Goals
focus on desired changes. They are the ends that the organization strivesto attain. Traditionally strategic planning has been done annually.
However, many companies are doing away with annual business plans
altogether and moving to a system of continuous planning, to permit
quicker response to changing conditions. Thus, the strategic plan
involves adapting the organization to take advantage of opportunities in
its constantly changing environment.
Chunka Mui and Larry Downes in Unleashing the Killer App: DigitalStrategies for Market Dominance(Harvard Business School Press,
1998) suggest that strategic planning will be replaced by "digital
strategy." They make the argument that business change originates with
technology -- particularly with new computer-based products and
services that transform industries, the way American Airlines' SABRE
system transformed travel. Top management must formulate digital
strategies (software and digitally delivered services) that not only
support business but also actually dictate how business is done.
The planning process is rational and amenable to the scientific approach
to problem solving. It consists of a logical and orderly series of steps.
Strategic planning sets the stage for the rest of the organization's
planning. The tasks of the strategic planning process include:
*Define the mission.
*Conduct a situation or SWOT analysis by assessing strengths and
weaknesses and identifying opportunities and threats.
*Set goals and objectives.
*Develop related strategies (tactical and operational).*Monitor the plan.
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Control
Control is concerned with making sure that plans are kept to and taking
appropriate actions when production is falling behind plan. A production
budgetsets out plannedoutputfor ongoing periods. Variances from the
plan can then be identified, and where production is falling behind plan
it will be possible to allocate extraresourcesand management time to
getting back on plan - i.e. a control process.
Production reports set out targets and performance so that it is possible
to see at a glance, how effective production is. Reports will set out
targets achieved, variances from the production budget, as well as areas
where there are problems that need sorting out.
The word 'control' means the ability to direct or restrain. A controllercarries out a function automatically.
Planning, control are three important aspects of effective production.
Production plans set out thetargets,time scales and methods of
production. Targets set out quantities and types of products to be
produced within a given time frame and need to be closely allied to
meeting the needs of themarket.Production plans can be set out on a
weekly, monthly or longer period. For example, in acompanylike Audi
production planning will be tied to developing new models and
expanding production of existing lines.
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Planning - control can thus be seen as a cyclical process. The plans
provide a tool for controlling production. The reports provide an analysis
and evaluation of the success of the planning/control process. The
findings of the reports can then be used for developing new plans and
adjusting existing ones, and for creating new control procedures.
Organisations like Travis Perkins employ a plan-action-report cycle formost of their activities.
Controlling
Controlling is directly related to planning. The controlling processensures that plans are being implemented properly. In the functions of
management cycle - planning, organizing, directing, and controlling -
planning moves forward into all the other functions, and controlling
reaches back. Controlling is the final link in the functional chain of
management activities and brings the functions of management cycle
full circle. Controlis the process through which standards for
performance of people and processes are set, communicated, and
applied. Effective control systems use mechanisms to monitor activitiesand take corrective action, if necessary. The supervisor observes what
happens and compares that with what was supposed to happen. He or
she must correct below-standard conditions and bring results up to
expectations. Effective control systems allow supervisors to know how
well implementation is going. Control facilitates delegating activities to
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employees. Since supervisors are ultimately held accountable for their
employees' performance, timely feedback on employee activity is
necessary.
Control Process
The control process is a continuous flow between measuring, comparing
and action. There are four steps in the control process: establishing
performance standards, measuring actual performance, comparing
measured performance against established standards, and takingcorrective action.
Step 1.Establish Performance Standards.Standards are created when objectives are set during the
planning process. A standard is any guideline established as the basis
for measurement. It is a precise, explicit statement of expected results
from a product, service, machine, individual, or organizational unit. It is
usually expressed numerically and is set for quality, quantity, and time.
Toleranceis permissible deviation from the standard. What is expected?How much deviation can be tolerated?
Step 2.Measure Actual Performance.
Supervisors collect data to measure actual performance to
determine variation from standard. Written data might include time
cards, production tallies, inspection reports, and sales tickets. Personal
observation, statistical reports, oral reports and written reports can be
used to measure performance. Management by walking around, or
observation of employees working, provides unfiltered information,extensive coverage, and the ability to read between the lines. While
providing insight, this method might be misinterpreted by employees as
mistrust. Oral reports allow for fast and extensive feedback.
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Step 3. Compare Measured Performance Against
Established Standards.
Comparing results with standards determines
variation. Some variation can be expected in all activities and the range
of variation- the acceptable variance - has to be established.
Management by exceptionlets operations continue as long as they fall
within the prescribed control limits. Deviations or differences thatexceed this range would alert the supervisor to a problem.
Step 4.Take Corrective Action.The supervisor must find the cause of deviation
from standard. Then, he or she takes action to remove or minimize the
cause. If the source of variation in work performance is from a deficit in
activity, then a supervisor can take immediate corrective action and get
performance back on track. Also, the supervisors can opt to take basic
corrective action, which would determine how and why performance has
deviated and correct the source of the deviation. Immediate corrective
action is more efficient; however basic corrective action is the moreeffective.
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Types of Control
Controls are most effective when they are applied at key places.
Supervisors can implement controls before the process begins (feed
forward), during the process (concurrent), or after it ceases (feedback).
Feedforward controlsfocus on operations before they begin. Theirgoal is to prevent anticipated problems. An example of feed forward
control is scheduled maintenance on automobiles and machinery.
Regular maintenance feeds forward to prevent problems. Other
examples include safety systems, training programs, and budgets.
Concurrent controlsapply to processes as they are happening.Concurrent controls enacted while work is being performed include anytype of steering or guiding mechanism such as direct supervision,
automated systems (such as computers programmed to inform the user
when they have issued the wrong command), and organizational qualityprograms.
Feedback controlsfocus on the results of operations. They guidefuture planning, inputs, and process designs. Examples of feedback
controls include timely (weekly, monthly, quarterly, annual) reports sothat almost instantaneous adjustments can be made.
Characteristics of Effective Controls
Control systems must be designed properly to be effective. When control
standards are inflexible or unrealistic, employees cannot focus on theorganization's goals. Control systems must prevent, not cause, the
problems they were designed to detect.
Performance variance can also be the result of an unrealistic standard.
The natural response for employees whose performance falls short is to
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blame the standard or the supervisor. If the standard is appropriate, then
it is up to the supervisor to stand his or her ground and take the
necessary corrective action.
An exampleof effective controls is the dashboard on a car. There aremany things that can go wrong with a car. Only the most critical items to
the car's operation are the focus on the dashboard (oil level, engine heat,
fuel gauge, etc.). Variations in these items are most likely to inflict the
most damage to the car. The critical items on the dashboard are easily
understood and used by drivers. They point out a problem and specify a
solution. They are accurate and timely. They call the driver's attention to
variations in time to prevent serious damage. Yet, there is not so much
information on the dashboard that the driver is overwhelmed.
Methods of management
Management has been described as getting things done by other people.
Managers have responsibility for enabling anorganisationto achieve its
objectives.They are therefore responsible forplanning,organising, andcontrolling organisational activities. Managers set budgets, monitor
those budgets, and identify ways of making sure that the budget is kept
to. In addition managers manageresources- people, plant, time,
materials, finance, etc. People sometimes think that management is a
very precise science. However recent research has shown that this
http://www.thetimes100.co.uk/glossary--organisation-1732.phphttp://www.thetimes100.co.uk/glossary--organisation-1732.phphttp://www.thetimes100.co.uk/glossary--organisation-1732.phphttp://www.thetimes100.co.uk/glossary--objectives-147.phphttp://www.thetimes100.co.uk/glossary--objectives-147.phphttp://www.thetimes100.co.uk/glossary--planning-1742.phphttp://www.thetimes100.co.uk/glossary--planning-1742.phphttp://www.thetimes100.co.uk/glossary--planning-1742.phphttp://www.thetimes100.co.uk/glossary--resources-652.phphttp://www.thetimes100.co.uk/glossary--resources-652.phphttp://www.thetimes100.co.uk/glossary--resources-652.phphttp://www.thetimes100.co.uk/glossary--resources-652.phphttp://www.thetimes100.co.uk/glossary--planning-1742.phphttp://www.thetimes100.co.uk/glossary--objectives-147.phphttp://www.thetimes100.co.uk/glossary--organisation-1732.php -
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idealistic picture is often quite different from the reality.
In the real world, managers operate in a whirl of activity, constantly
having to switch their attention from one subject, problem orpersonto
another. They live in an uncertain world, where relevant and usefulinformation is often mixed up with gossip and speculation.
Concepts of Organizing
The working relationshipsvertical and horizontal associations
between individuals and groups
that exist within an organizationaffect how its activities are accomplished and coordinated. Effective
organizing depends on the mastery of several important concepts:
work specialization, chain of command, authority, delegation, span of
control, and centralization versus decentralization. Many of these
concepts are based on the principles developed by Henri Fayol.
Not only does a business's organizational structure help determine
how well its employees make decisions, but it also reflects how wellthey respond to problems. These responses, over time, can make or
break an organization. In addition, the organizational structure
influences employees' attitudes toward their work. A suitable
organizational structure can minimize a business's costs, as well as
maximize its efficiency, which increases its ability to compete in a
global economy. For these reasons, many businesses have tinkered
with their organizational structures in recent years in efforts to
enhance their profits and competitive edge.
Once managers have their plans in place, they need to organize the
necessary resources to accomplish their goals. Organizing,the
second of the universal management functions, is the process of
establishing the orderly use of resources by assigning and
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coordinating tasks. The organizing process transforms plans into
reality through the purposeful deployment of people and resources
within a decision-making framework known as the organizational
structure.
The organizational structure is defined as
The set of formal tasks assigned to individuals and departments
The formal reporting relationships, including lines of authority,
decision responsibility, number of hierarchical levels, and span of
managerial control
The design of systems to ensure effective coordination of
employees across departments
The organizational structure provides a framework for the hierarchy,
or verticalstructure,of the organization. An organizational chartis
the visual representation of this vertical structure.
The Organizational Process
Organizing, like planning, must be a carefully worked out and appliedprocess. This process involves determining what work is needed to
accomplish the goal, assigning those tasks to individuals, and
arranging those individuals in a decision-making framework
(organizational structure). The end result of the organizing process is
an organizationa whole consisting of unified parts acting in
harmony to execute tasks to achieve goals, both effectively and
efficiently.
A properly implemented organizing process should result in a work
environment where all team members are aware of their
responsibilities. If the organizing process is not conducted well, the
results may yield confusion, frustration, loss of efficiency, and limited
effectiveness.
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In general, the organizational process consists of five
steps (a flowchart of these steps is shown)
Figure 1 The organizational process.
1.Review plans and objectives.
Objectives are the specific activities that must be completed to
achieve goals. Plans shape the activities needed to reach those
goals. Managers must examine plans initially and continue to doso as plans change and new goals are developed.
2.Determine the work activities necessary to accomplishobjectives.
Although this task may seem overwhelming to some managers, it
doesn't need to be. Managers simply list and analyze all the tasks
that need to be accomplished in order to reach organizational
goals.
3.Classify and group the necessary work activities intomanageable units.
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A manager can group activities based on four models of
departmentalization: functional, geographical, product, and
customer.
4.Assign activities and delegate authority.
Managers assign the defined work activities to specific
individuals. Also, they give each individual the authority (right)
to carry out the assigned tasks.
5.Design a hierarchy of relationships.
A manager should determine the vertical (decision-making) and
horizontal (coordinating) relationships of the organization as a
whole. Next, using the organizational chart, a manager should
diagram the relationships.
BIBLIOGRAPHY
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www.google.com
www.cocacola.co.in
www.yahoo.com
Forebs magazine
THANK YOU
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