PPM Session 2.ppt

76
7/23/2019 PPM Session 2.ppt http://slidepdf.com/reader/full/ppm-session-2ppt 1/76 1 PAN African eNetwork Project Course Name – DBM Subject Name – Principles and Practice of Management  Semester – Facult Name – Dr! Deepmala Soni

Transcript of PPM Session 2.ppt

Page 1: PPM Session 2.ppt

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1

PAN African eNetwork Project

Course Name ndash DBMSubject Name ndash Principles and Practice of

Management

Semester ndash

Facult Name ndash Dr Deepmala Soni

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EARLY CONTRIBUTIONS

Before the systematic study of management which started close to19th century contributions in the field came from a variety of

sources Those contributions provided some insights about how

resources could be utilized more effectively However those

contributions were outside the field of business and other economicorganizations

In the field of business organizations some stray contributions have

come from obert wen ames att $harles Babbage and Henry

Town Their contributions came bit by bit and in haphazard manner

and have failed to stimulate to study management as a distinctdiscipline However their ideas created an awareness about

managerial problems By the end of 19th century a stage was set for

taing systematic study of management and the beginning was made

by Taylor in the early part of ampth century which too thesha e of scientific mana ement

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TAYLOR AND SCIENTIFIC MANAGEMENT

The concept of scientific management was introduced by (redric

inslow Taylor in )+ in the beginning of ampth century This

concept was further carried on by (ran and illian -ilbreth Henry

-antt -eorge Berth dward (elen etc Taylor has defined

scientific management as follows0Scientific management is concerned with knowing exactly what you

want your men to do and then see in that they do it in the best and

cheapest wayrdquo

ince Taylor has put the emphasis on solving managerial problemsin a scientific way often he is called as father of scientific

management and his contributions as the principles of scientific

management

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n the basis of his eperiments he published many papers

and boos and all his contributions were compiled in his boo2cientific 3anagement4 Taylor4s contributions can be described

in two parts lements and tools of scientific management and

principles of scientific management

ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT

Taylor conducted various eperiments at his wor places to find

out how human beings could be made efficient by standardizing the

wor and better method of doing the wor These eperiments have

provided the following features of scientific management

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1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the

wor Before Taylor4s scientific management a worer used to plan

about how he had to wor and what instruments were necessary for

that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to

see how the worers were performing This was creating a lot of

problems and Taylor emphasized that planning should be left to the

supervisor and the worer should emphasize only operational wor

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amp FUNCTIONAL FOREMANSHIP eparation of planning from

doing resulted into development of supervision system which could

tae planning wor ade6uately besides eeping supervision on

worers

for this purpose Taylor evolved the concept of functional

foremanship based on specialization of functions

In this system eight persons are concerned with planning 7i8 route

cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8

disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8

maintenance foreman and 7iv8 gang boss +ll of them give directions

to worers on different aspects of wor

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3 JOB ANALYSIS ob analysis is undertaen to find out the one

best way of doing the thing The best way of doing a 5ob is one which

en6uires the least movements conse6uently less time and cost The

best way of doing the thing can be determined by taing up time

motionfatigue studies7i8 Time study involves the determination of time a movement taes

to complete The movement which taes the minimum time is the best

one This helps in fiing the fair wor for a period

7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful

movements and performing only necessary movements This reduces

the time taen in performing a wor and also the fatigue of worers

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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A

B

C

D

E

F

G

H

I

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In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Alanning

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

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atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

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+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

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Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

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Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

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+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

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+ypes 0f Plans

B4e+dt9

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peifi 2ersamps (iretional Plans

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+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

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What do )anagers Plan -or

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34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

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teps in a +ypial )50 Program

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-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

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As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

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(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

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0vervie 0f )anagerial (eision )a$ing

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7232019 PPM Session 2ppt

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EARLY CONTRIBUTIONS

Before the systematic study of management which started close to19th century contributions in the field came from a variety of

sources Those contributions provided some insights about how

resources could be utilized more effectively However those

contributions were outside the field of business and other economicorganizations

In the field of business organizations some stray contributions have

come from obert wen ames att $harles Babbage and Henry

Town Their contributions came bit by bit and in haphazard manner

and have failed to stimulate to study management as a distinctdiscipline However their ideas created an awareness about

managerial problems By the end of 19th century a stage was set for

taing systematic study of management and the beginning was made

by Taylor in the early part of ampth century which too thesha e of scientific mana ement

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TAYLOR AND SCIENTIFIC MANAGEMENT

The concept of scientific management was introduced by (redric

inslow Taylor in )+ in the beginning of ampth century This

concept was further carried on by (ran and illian -ilbreth Henry

-antt -eorge Berth dward (elen etc Taylor has defined

scientific management as follows0Scientific management is concerned with knowing exactly what you

want your men to do and then see in that they do it in the best and

cheapest wayrdquo

ince Taylor has put the emphasis on solving managerial problemsin a scientific way often he is called as father of scientific

management and his contributions as the principles of scientific

management

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n the basis of his eperiments he published many papers

and boos and all his contributions were compiled in his boo2cientific 3anagement4 Taylor4s contributions can be described

in two parts lements and tools of scientific management and

principles of scientific management

ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT

Taylor conducted various eperiments at his wor places to find

out how human beings could be made efficient by standardizing the

wor and better method of doing the wor These eperiments have

provided the following features of scientific management

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1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the

wor Before Taylor4s scientific management a worer used to plan

about how he had to wor and what instruments were necessary for

that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to

see how the worers were performing This was creating a lot of

problems and Taylor emphasized that planning should be left to the

supervisor and the worer should emphasize only operational wor

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amp FUNCTIONAL FOREMANSHIP eparation of planning from

doing resulted into development of supervision system which could

tae planning wor ade6uately besides eeping supervision on

worers

for this purpose Taylor evolved the concept of functional

foremanship based on specialization of functions

In this system eight persons are concerned with planning 7i8 route

cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8

disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8

maintenance foreman and 7iv8 gang boss +ll of them give directions

to worers on different aspects of wor

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3 JOB ANALYSIS ob analysis is undertaen to find out the one

best way of doing the thing The best way of doing a 5ob is one which

en6uires the least movements conse6uently less time and cost The

best way of doing the thing can be determined by taing up time

motionfatigue studies7i8 Time study involves the determination of time a movement taes

to complete The movement which taes the minimum time is the best

one This helps in fiing the fair wor for a period

7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful

movements and performing only necessary movements This reduces

the time taen in performing a wor and also the fatigue of worers

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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A

B

C

D

E

F

G

H

I

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In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

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Copyright copy Amity University

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

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atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

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+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

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M++e4s

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=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

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34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

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(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

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Dust 54-

$+44+ty B+tte4y i-e 2

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Cm5+

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

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iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

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Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 3: PPM Session 2.ppt

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Copyright copy Amity University

TAYLOR AND SCIENTIFIC MANAGEMENT

The concept of scientific management was introduced by (redric

inslow Taylor in )+ in the beginning of ampth century This

concept was further carried on by (ran and illian -ilbreth Henry

-antt -eorge Berth dward (elen etc Taylor has defined

scientific management as follows0Scientific management is concerned with knowing exactly what you

want your men to do and then see in that they do it in the best and

cheapest wayrdquo

ince Taylor has put the emphasis on solving managerial problemsin a scientific way often he is called as father of scientific

management and his contributions as the principles of scientific

management

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Copyright copy Amity University

n the basis of his eperiments he published many papers

and boos and all his contributions were compiled in his boo2cientific 3anagement4 Taylor4s contributions can be described

in two parts lements and tools of scientific management and

principles of scientific management

ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT

Taylor conducted various eperiments at his wor places to find

out how human beings could be made efficient by standardizing the

wor and better method of doing the wor These eperiments have

provided the following features of scientific management

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Copyright copy Amity University

1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the

wor Before Taylor4s scientific management a worer used to plan

about how he had to wor and what instruments were necessary for

that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to

see how the worers were performing This was creating a lot of

problems and Taylor emphasized that planning should be left to the

supervisor and the worer should emphasize only operational wor

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Copyright copy Amity University

amp FUNCTIONAL FOREMANSHIP eparation of planning from

doing resulted into development of supervision system which could

tae planning wor ade6uately besides eeping supervision on

worers

for this purpose Taylor evolved the concept of functional

foremanship based on specialization of functions

In this system eight persons are concerned with planning 7i8 route

cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8

disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8

maintenance foreman and 7iv8 gang boss +ll of them give directions

to worers on different aspects of wor

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Copyright copy Amity University

7232019 PPM Session 2ppt

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3 JOB ANALYSIS ob analysis is undertaen to find out the one

best way of doing the thing The best way of doing a 5ob is one which

en6uires the least movements conse6uently less time and cost The

best way of doing the thing can be determined by taing up time

motionfatigue studies7i8 Time study involves the determination of time a movement taes

to complete The movement which taes the minimum time is the best

one This helps in fiing the fair wor for a period

7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful

movements and performing only necessary movements This reduces

the time taen in performing a wor and also the fatigue of worers

7232019 PPM Session 2ppt

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

7232019 PPM Session 2ppt

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University

amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University

= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University

2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

7232019 PPM Session 2ppt

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

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Ris

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Di4e7ti8e

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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Cm5+

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NEC

Sy

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

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sisgt

edegt

4 t4+ii

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iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 4: PPM Session 2.ppt

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Copyright copy Amity University

n the basis of his eperiments he published many papers

and boos and all his contributions were compiled in his boo2cientific 3anagement4 Taylor4s contributions can be described

in two parts lements and tools of scientific management and

principles of scientific management

ELEMENTS AND TOOLS OF SCIENTIFIC MANAGEMENT

Taylor conducted various eperiments at his wor places to find

out how human beings could be made efficient by standardizing the

wor and better method of doing the wor These eperiments have

provided the following features of scientific management

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Copyright copy Amity University

1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the

wor Before Taylor4s scientific management a worer used to plan

about how he had to wor and what instruments were necessary for

that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to

see how the worers were performing This was creating a lot of

problems and Taylor emphasized that planning should be left to the

supervisor and the worer should emphasize only operational wor

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Copyright copy Amity University

amp FUNCTIONAL FOREMANSHIP eparation of planning from

doing resulted into development of supervision system which could

tae planning wor ade6uately besides eeping supervision on

worers

for this purpose Taylor evolved the concept of functional

foremanship based on specialization of functions

In this system eight persons are concerned with planning 7i8 route

cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8

disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8

maintenance foreman and 7iv8 gang boss +ll of them give directions

to worers on different aspects of wor

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 776

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 876Copyright copy Amity University

3 JOB ANALYSIS ob analysis is undertaen to find out the one

best way of doing the thing The best way of doing a 5ob is one which

en6uires the least movements conse6uently less time and cost The

best way of doing the thing can be determined by taing up time

motionfatigue studies7i8 Time study involves the determination of time a movement taes

to complete The movement which taes the minimum time is the best

one This helps in fiing the fair wor for a period

7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful

movements and performing only necessary movements This reduces

the time taen in performing a wor and also the fatigue of worers

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

7232019 PPM Session 2ppt

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

7232019 PPM Session 2ppt

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

7232019 PPM Session 2ppt

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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A

B

C

D

E

F

G

H

I

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In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Alanning

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

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atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

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+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

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Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

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Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

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+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

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+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

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peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

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+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

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What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

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34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

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teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

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(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

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eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

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eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

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valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

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(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

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(eisions in the )anagement -ampntions

Ashpillai IM

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ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

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+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

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7232019 PPM Session 2ppt

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5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

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CCamp m+lt+mity5++-et7m

Page 5: PPM Session 2.ppt

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1 SEPERATION OF PLANNING AND DOING Tayloremphasized the separation of planning aspect from actual doing of the

wor Before Taylor4s scientific management a worer used to plan

about how he had to wor and what instruments were necessary for

that The worer was put under the supervision of a supervisorcommonly nown as gang boss Thus supervisor4s 5ob was merely to

see how the worers were performing This was creating a lot of

problems and Taylor emphasized that planning should be left to the

supervisor and the worer should emphasize only operational wor

7232019 PPM Session 2ppt

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Copyright copy Amity University

amp FUNCTIONAL FOREMANSHIP eparation of planning from

doing resulted into development of supervision system which could

tae planning wor ade6uately besides eeping supervision on

worers

for this purpose Taylor evolved the concept of functional

foremanship based on specialization of functions

In this system eight persons are concerned with planning 7i8 route

cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8

disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8

maintenance foreman and 7iv8 gang boss +ll of them give directions

to worers on different aspects of wor

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Copyright copy Amity University

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3 JOB ANALYSIS ob analysis is undertaen to find out the one

best way of doing the thing The best way of doing a 5ob is one which

en6uires the least movements conse6uently less time and cost The

best way of doing the thing can be determined by taing up time

motionfatigue studies7i8 Time study involves the determination of time a movement taes

to complete The movement which taes the minimum time is the best

one This helps in fiing the fair wor for a period

7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful

movements and performing only necessary movements This reduces

the time taen in performing a wor and also the fatigue of worers

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

7232019 PPM Session 2ppt

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

7232019 PPM Session 2ppt

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Alanning

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

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atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

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+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

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Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

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Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

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+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

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+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

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peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

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+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

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What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

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34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

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teps in a +ypial )50 Program

7232019 PPM Session 2ppt

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-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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-eatampres of ffetive

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+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

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Page 6: PPM Session 2.ppt

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amp FUNCTIONAL FOREMANSHIP eparation of planning from

doing resulted into development of supervision system which could

tae planning wor ade6uately besides eeping supervision on

worers

for this purpose Taylor evolved the concept of functional

foremanship based on specialization of functions

In this system eight persons are concerned with planning 7i8 route

cler 7ii8 instruction card cler 7iii8 time and cost cler 7iv8

disciplinarian The remaining four persons are concerned with doingaspect of the wor These are 7i8 speed boss 7ii8 inspector 7iii8

maintenance foreman and 7iv8 gang boss +ll of them give directions

to worers on different aspects of wor

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3 JOB ANALYSIS ob analysis is undertaen to find out the one

best way of doing the thing The best way of doing a 5ob is one which

en6uires the least movements conse6uently less time and cost The

best way of doing the thing can be determined by taing up time

motionfatigue studies7i8 Time study involves the determination of time a movement taes

to complete The movement which taes the minimum time is the best

one This helps in fiing the fair wor for a period

7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful

movements and performing only necessary movements This reduces

the time taen in performing a wor and also the fatigue of worers

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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A

B

C

D

E

F

G

H

I

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In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

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Copyright copy Amity University

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Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

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atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

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Assemed

HP

Sy

Ts9i+

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NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 7: PPM Session 2.ppt

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3 JOB ANALYSIS ob analysis is undertaen to find out the one

best way of doing the thing The best way of doing a 5ob is one which

en6uires the least movements conse6uently less time and cost The

best way of doing the thing can be determined by taing up time

motionfatigue studies7i8 Time study involves the determination of time a movement taes

to complete The movement which taes the minimum time is the best

one This helps in fiing the fair wor for a period

7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful

movements and performing only necessary movements This reduces

the time taen in performing a wor and also the fatigue of worers

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

7232019 PPM Session 2ppt

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

7232019 PPM Session 2ppt

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

7232019 PPM Session 2ppt

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University

2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

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C4ite4i+

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Dust 54-

$+44+ty B+tte4y i-e 2

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Cm5+

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- + Ate4+ti8e

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HP

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NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 8: PPM Session 2.ppt

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3 JOB ANALYSIS ob analysis is undertaen to find out the one

best way of doing the thing The best way of doing a 5ob is one which

en6uires the least movements conse6uently less time and cost The

best way of doing the thing can be determined by taing up time

motionfatigue studies7i8 Time study involves the determination of time a movement taes

to complete The movement which taes the minimum time is the best

one This helps in fiing the fair wor for a period

7ii8 Mti study involves the study of movements in parts which areinvolved in doing a 5ob and thereby eliminating the wasteful

movements and performing only necessary movements This reduces

the time taen in performing a wor and also the fatigue of worers

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

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httpslidepdfcomreaderfullppm-session-2ppt 1076Copyright copy Amity University

STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

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httpslidepdfcomreaderfullppm-session-2ppt 1276Copyright copy Amity University

ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1476Copyright copy Amity University

wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

7232019 PPM Session 2ppt

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

7232019 PPM Session 2ppt

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

7232019 PPM Session 2ppt

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

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=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

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( 544+mmed P4y st4u7tu4ed

( N544+mmed

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Ris

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Di4e7ti8e

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R+ti+ity

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+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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HP

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NEC

Sy

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

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+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

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sisgt

edegt

4 t4+ii

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iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

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met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

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Page 9: PPM Session 2.ppt

7232019 PPM Session 2ppt

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7iii8 (atigue study shows the amount and fre6uency of rest re6uiredin completing the wor +fter a certain period of time worers feel

fatigue and cannot wor with full capacity Therefore they re6uire

rest in between hen the rest is allowed they start woring with full

capacity

Thus 5ob analysis as given by Taylor suggests the fair

amount of a day4s wor re6uiring certain movements and rest periods

to complete it

7232019 PPM Session 2ppt

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

7232019 PPM Session 2ppt

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

7232019 PPM Session 2ppt

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

7232019 PPM Session 2ppt

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

7232019 PPM Session 2ppt

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

7232019 PPM Session 2ppt

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

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In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Alanning

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

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atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

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+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

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Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

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Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

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+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

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+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

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M++e4s

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=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

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34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

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( 544+mmed P4y st4u7tu4ed

( N544+mmed

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Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

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( m+6imii

( S+tis-i7i

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

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Reies est+is9ed74ite4i+

It is de7isi m+i

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+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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- De7isi

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See7ti - +

Ate4+ti8e

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

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(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

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(eisions in the )anagement -ampntions

Ashpillai IM

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ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

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5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

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(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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-eat res of ffeti e

7232019 PPM Session 2ppt

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Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 10: PPM Session 2.ppt

7232019 PPM Session 2ppt

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STANDARDISATION +s far as possible standardization should

be maintained in respect of instruments and tools period of wor

amount of wor woring conditions cost of production etc These

things should be fied in advance on the basis of 5ob analysis and

various elements of costs that go in performing a wor

SCIENTIFIC SELECTION AND TRAINING OF

$ORERSamp Taylor has suggested that worers should be selected

on scientific basis taing into account their education wor

eperience aptitude physical strength etc + worer should be givenwor for which he is physically and technically most suitable +part

from selection proper emphasis should be given on the training of

worers which maes them more efficient and effective

7232019 PPM Session 2ppt

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1276Copyright copy Amity University

ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

7232019 PPM Session 2ppt

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1476Copyright copy Amity University

wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

7232019 PPM Session 2ppt

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

7232019 PPM Session 2ppt

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1776Copyright copy Amity University

He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1876Copyright copy Amity University

= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

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+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

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u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

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Be9+8i4+

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R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

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4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

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i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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valuation of

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7232019 PPM Session 2ppt

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bull periene

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

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bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

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ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

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and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

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Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

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bull does not rely on a systemati or thoroampgh

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Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

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Page 11: PPM Session 2.ppt

7232019 PPM Session 2ppt

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FINANCIAL INCENTIES (inancial incentives can motivateworers to put in their maimum efforts If provisions eist to earn

higher wages by putting in etra effort worers will be motivated to

earn more Taylor himself applied the concept of differential piece

rate system which was highly motivating To mae the differential piece rate system wor Taylor has suggested that wages should be

based on individual performance and not on the position which he

occupies (urther the wage rate should be fied on accurate

nowledge and not on estimates

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1276Copyright copy Amity University

ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

7232019 PPM Session 2ppt

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1476Copyright copy Amity University

wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

7232019 PPM Session 2ppt

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

7232019 PPM Session 2ppt

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1776Copyright copy Amity University

He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1876Copyright copy Amity University

= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

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atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

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Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

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+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

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+ypes 0f Plans

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

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+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

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teps in a +ypial )50 Program

7232019 PPM Session 2ppt

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-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

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(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

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f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

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ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

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5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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-eat res of ffeti e

7232019 PPM Session 2ppt

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Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 12: PPM Session 2.ppt

7232019 PPM Session 2ppt

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ECONOMY hile applying scientific management not only

scientific and technical aspects should be considered but ade6uate

consideration should be given to economy and profit (or this

purpose techni6ues of cost estimates and control should be adopted

The economy and profit can be achieved by maing the resourcesmore productive as well as by eliminating the wastages

lt MENTAL REOLUTION cientific management depends on

the mutual cooperation between management and worers (or this

cooperation there should be mental change in both parties fromconflict to cooperation Taylor feels that this is the most important

feature of scientific management because in its absence no principle

of scientific management can be applied

7232019 PPM Session 2ppt

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1476Copyright copy Amity University

wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

7232019 PPM Session 2ppt

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

7232019 PPM Session 2ppt

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

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Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

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httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

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L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

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u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

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Ris

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+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

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Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

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ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

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is t e +79ie8ed

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i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

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et9i7+ 8+ues

4 7utu4e

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+sed

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iiti+ted

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

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met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

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e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

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-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 13: PPM Session 2.ppt

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PRINCIPLES OF SCIENTIFIC MANAGEMENTTaylor has given certain basic principles of scientific management

The fundamental principles that Taylor saw underlying the scientific

management may be

given below

1 REPLACING RULE OF THUMB $ITH SCIENCE Taylor

has emphasized that in scientific management organized nowledge

should be applied which will replace rule of thumb hile the use of

scientific method denotes precision in determining any aspect of

wor rule of thumb emphasizes estimation ince eactness of

various aspects of wor lie day4s fair wor standardization in

7232019 PPM Session 2ppt

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

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httpslidepdfcomreaderfullppm-session-2ppt 1576Copyright copy Amity University

gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

7232019 PPM Session 2ppt

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

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atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

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+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

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+ypes 0f Plans

B4e+dt9

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O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

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+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

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=I +t t see +

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i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

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Dust 54-

$+44+ty B+tte4y i-e 2

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Cm5+

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- + Ate4+ti8e

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HP

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NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

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ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

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P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

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+d

7seue7es

+4e

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+4e 7e+4

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+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

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et9i7+ 8+ues

4 7utu4e

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+sed

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iiti+ted

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+sed de7isis

+ues 4

et9i7s(+sed

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met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

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R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

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Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 14: PPM Session 2.ppt

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wor differential piece rate for payment etc is the basic core ofscientific management it is essential that all these are measured

precisely and should not be based on mere estimates This approach

can be adopted in all aspects of managing

amp HARMONY IN GROUP ACTON Taylor has emphasized that

attempts should be made to obtain harmony in group action ratherthan discord -roup harmony suggests that there should be mutual

give and tae situation and proper understanding so that group as a

whole contributes to the maimum

= CO(OPERATION cientific management involves achievingcooperation rather than chaotic individualism cientific

management is based on mutual confidence cooperation and

goodwill $ooperation between management and worers can be

developed through mutual understanding and a change in thining

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1576Copyright copy Amity University

gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

7232019 PPM Session 2ppt

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

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Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

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Dust 54-

$+44+ty B+tte4y i-e 2

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Cm5+

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HP

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NEC

Sy

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- + Ate4+ti8e

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- De7isi

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

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sisgt

edegt

4 t4+ii

Ituiti

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iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 15: PPM Session 2.ppt

7232019 PPM Session 2ppt

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gt MA)IMUM OUTPUT cientific management involvescontinuous increase in production and productivity instead of

restricted production either by management or by worer Therefore

he advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall bedivided

MA)IMUM OUTPUT cientific management involves

continuous increase in production and productivity instead of

restricted production either by management or by worer Thereforehe advised the management and worers to 0turn their attention

towards increasing the size of the surplus until the size of the surplus

becomes so large that it is necessary to 6uarrel over how it shall be

divided

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1676Copyright copy Amity University

FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1776Copyright copy Amity University

He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1876Copyright copy Amity University

= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

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M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

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Dust 54-

$+44+ty B+tte4y i-e 2

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Cm5+

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- + Ate4+ti8e

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- De7isi

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HP

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NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

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+sed

su7s7ius

d+t+

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sisgt

edegt

4 t4+ii

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iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

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Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 16: PPM Session 2.ppt

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FAYOLS ADMINISTRATIE MANAGEMENT

Aerhaps the real father of modern operational management theory is

the (rench industrialist Henry (ayol His contributions are generally

termed as operational management or administrative management(ayol4s contributions were first published in boo form titled

2administration industrielle at generale4 in (rench language in 191

However the boo was not made available outside (rance and was

not translated until 19amp9 Its nglish version was published in 19gt9 in

the )nited tates of +merica Therefore in the early period (ayol4s

contributions could not mae much impact on the development of

management thought

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httpslidepdfcomreaderfullppm-session-2ppt 1776Copyright copy Amity University

He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1876Copyright copy Amity University

= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1976Copyright copy Amity University

amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

7232019 PPM Session 2ppt

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

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Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

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Ate4+ti8es

A7e4

Cm5+

Assemed

HP

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NEC

Sy

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- + Ate4+ti8e

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- De7isi

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Sy

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

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sisgt

edegt

4 t4+ii

Ituiti

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iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 17: PPM Session 2.ppt

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He has used the term 2administration4 instead of 2management4emphasizing that there is unity of science of administration

Therefore management is a universal phenomenon However he

has emphasized that principles of management are fleible and not

absolute and are usable regardless of changing and special

conditions

F+y de-ied m++emet +s -samp

0To manage is to forecast and to plan to organize to coordinate

and to controlrdquo He found that activities of an industrialorganization could be divided into si groups

1 Technical 7relating to production8

amp $ommercial 7buying selling and echange8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1876Copyright copy Amity University

= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1976Copyright copy Amity University

amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2076Copyright copy Amity University

GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University

= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

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Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

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Sy

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

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Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

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Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 18: PPM Session 2.ppt

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= (inancial 7search for capital and its optimum use8

gt ecurity 7protection of property and person8 +ccounting 7including statistics8 and

3anagerial 7planning organization command coordination and

control8

He has divided his approach of studying management into three parts7i8 managerial 6ualities and training 7ii8 general principles of

management and 7iii8 elements of management

MANAGERIAL 0UALITIES AND TRAINING

(ayol was the first person to identify the 6ualities re6uired in a

manager +ccording to him there are si types of 6ualities that a

manager re6uires These are as follows

1 Ahysical 7health vigour and address8

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 1976Copyright copy Amity University

amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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httpslidepdfcomreaderfullppm-session-2ppt 2076Copyright copy Amity University

GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2176Copyright copy Amity University

1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

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amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University

= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

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gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

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ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

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Dust 54-

$+44+ty B+tte4y i-e 2

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Ate4+ti8es

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Cm5+

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HP

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NEC

Sy

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Im5emet+ti

- + Ate4+ti8e

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- De7isi

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

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httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 19: PPM Session 2.ppt

7232019 PPM Session 2ppt

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amp 3ental 7ability to understand and learn 5udgment mental vigour

and capability8

= 3oral 7energy firmness initiative loyalty tact and dignity8

gt ducational 7general ac6uaintance with matters not belonging

eclusively to the function performed8 Technical 7peculiar to the function being performed8 and

perience 7arising from the wor8

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University

amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

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= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

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See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 20: PPM Session 2.ppt

7232019 PPM Session 2ppt

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GENERAL PRINCIPLES OF MANAGEMENT

(ayol has given fourteen principles of management He has made

distinction between management principles and management

elements hile management principle is a fundamental truth and

establishes causeeffect relationship management element denotes

the functions performed by a manager hile giving themanagement principles (ayol has emphasized two things

7i8The list of management principles is not ehaustive but suggestive

and has discussed only those principles which he followed on most

occasions

7ii8Arinciples of management are not rigid but fleible

Carious principles of management are as follows

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2176Copyright copy Amity University

1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University

amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University

= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University

2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

7232019 PPM Session 2ppt

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

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Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

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+ypes 0f Plans

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

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+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

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Em5yees

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u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

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34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

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-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

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7232019 PPM Session 2ppt

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(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

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+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

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Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

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de-ied +

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Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

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igh

o-

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o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 21: PPM Session 2.ppt

7232019 PPM Session 2ppt

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1 DIISION OF $OR (ayol has advocated division of wor to

tae the advantage of specialization +ccording to him

specialization belongs to natural order The worers always wor on

the same part the managers concerned always with the same

matters ac6uire an ability sureness and accuracy which increasetheir output ach change of wor brings in it training and

adaptation which reduces outputDyet division of wor has its limits

which eperience and a sense of proportion teach us may not be

eceeded This division of wor can be applied at all levels of theorganization

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University

amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University

= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

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2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

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Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

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Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

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Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

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Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

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Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

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Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

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Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

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httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

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de-ied +

is t e +79ie8ed

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+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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+sed

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

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o-

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o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 22: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2276Copyright copy Amity University

amp AUTHORITY AND RESPONSIBILITY The authority and

responsibility are related with the latter the corollary of the former

and arising from it (ayol finds authority as a continuation of official

and personal factors fficial authority is derived from the manager4s position and personal authority is derived from personal 6ualities

such as intelligence eperience moral worth past services etc

esponsibility arises out of assignment of activity In order to

discharge the responsibility properly there should be parity of

authority and responsibility

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University

= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University

2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

7232019 PPM Session 2ppt

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Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2876

Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2976

Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

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Copyright copy Amity University

7232019 PPM Session 2ppt

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

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M++e4s

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=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

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5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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o-

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Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 23: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2376Copyright copy Amity University

= DISCIPLINE +ll the personnel serving in an organization should

be disciplined Eiscipline is obedience application energy behavior

and outward mar of respect shown by employees Eiscipline may be

of two types selfimposed discipline and command discipline elf

imposed discipline springs from within the individual and is in thenature of spontaneous response to a sillful leader $ommand

discipline stems from a recognized authority and utilizes deterrents to

secure compliance with a desired action which is epressed by

established customs rules and regulations The ultimate strength ofcommand discipline lies in its certainty of application uch a

discipline can be obtained by sanctions in the forms of remuneration

warnings suspension demotion dismissal etc

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University

2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2776

Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2876

Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2976

Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3176

Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

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L te4m

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

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I(st4u7tu4ed

Ty5e -

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

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M+i

P4em is

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de-ied +

is t e +79ie8ed

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5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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e)ay of hining

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o-

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o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 24: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2476Copyright copy Amity University

gt UNITY OF COMMAND )nity of command means that a person should get orders and instructions from only one superior

The more completely an individual has a reporting relationship to a

single superior the less is the problem of conflict in instructions and

the greater is the feeling of personal responsibility for results This iscontrary to Taylor4s functional foremanship (ayol has considered

unity of command as an important aspect in managing an

organization

UNITY OF DIRECTION +ccording to this principle each

group of activities with the same ob5ective must have one head andone plan )nity of direction is different from unity of command in

the sense that the former is concerned with functioning of the or

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2576Copyright copy Amity University

organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University

2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2776

Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2876

Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2976

Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

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M++e4s

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=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

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Ris

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( S+tis-i7i

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

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Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

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Cm5+

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Sy

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- + Ate4+ti8e

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- De7isi

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

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+4e

P4e-e4e7es

+4e 7e+4

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+4e 7st+t

+d st+e

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Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

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A--e7t(

iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 25: PPM Session 2.ppt

7232019 PPM Session 2ppt

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organization in respect of its grouping of activities or planning while

the latter is concerned with the personnel at all levels in theorganization in terms of reporting relationship )nity of direction

provides better coordination among various activities to be

undertaen by an organization

1 SUBORDINATION OF INDIIDUAL TO GENERAL

INTERESTamp $ommon interest is above the individual interest

Individual interest must be subordinate to general interest when

there is conflict between the two However factors lie ambition

laziness weaness etc tend to reduce the importance of general

interest Therefore superiors should set an eample in fairness and

goodness The agreement between the employers and the employees

should be fair and there should be constant vigilance and

supervision

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University

2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2776

Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2876

Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2976

Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3176

Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

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Copyright copy Amity University

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Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

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What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 26: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2676Copyright copy Amity University

2 REMUNERATION OF PERSONNEL emuneration of

employees should be fair and provide maimum possible

satisfaction to employees and employers (ayol did not favor profit

sharing plan for worers but advocated it for managers He was also

in favor of nonfinancial benefits though these were possible only in

the case of largescale organizations CENTRALISATION verything which goes to increase the

importance of subordinate4s role is decentralization everything

which goes to reduce it is centralization In small firms

centralization is the natural order but in large firms a series ofintermediaries is re6uired ince both absolute and relative values of

the managers and employees are constantly changing it is desirable

that the degree of centralization or decentralization may itself vary

constantly

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2776

Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2876

Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2976

Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

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Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 27: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2776

Copyright copy Amity University

9 SCALAR CHAIN There should be a scalar chain of authorityand of communication ranging from the highest to the lowest It

suggests that each communication going up or coming down must

flow through each position in the line of authority It can be short

circuited only in special circumstances when its rigid following

would be detrimental to the organization (or this purpose (ayol has

suggested 2gang plan4 which is used to prevent the scalar chain

from bogging down action His scalar plan and gang plan can be

presented as follows

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2876

Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2976

Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3176

Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

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Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

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O4+i+ti

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

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+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

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d+t+

De7isis +sed

sisgt

edegt

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iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 28: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2876

Copyright copy Amity University

A

B

C

D

E

F

G

H

I

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2976

Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3176

Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

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Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

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Cm5+

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HP

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Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 29: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 2976

Copyright copy Amity University

In the above figure + is the top man having immediate subordinates

B and in turn B and are having immediate subordinates $ and3 This continues to the level of - and F rdinarily the

communication must flow from + to B to $ to E and so on while

coming from the top to down imilarly it must flow from - to ( to

and so on while going up It means if any communication is going

from ( to A it will flow from ( to + via E$ and B and coming

down to A via 3G and (ayol suggests that this scalar chain

system taes time and therefore can be substituted by gang plan

without weaening the chain of command In order to maintain

authority it is desirable that superiors of ( and A authorize them todeal directly provided each informs his superiors of any action

taen

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3176

Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 30: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3076

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3176

Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

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De7isi M+e4 Stye

Di4e7ti8e

A+yti7

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

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P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

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Cm5+

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- + Ate4+ti8e

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 31: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3176

Copyright copy Amity University

11 E0UITY 6uity is the combination of 5ustice and indness6uity in treatment and behavior is lied by everyone and it

brings loyalty in the organization The application of e6uity

re6uires good sense eperience and good nature for soliciting

loyalty and devotion from subordinates

1amp STABILITY OF TENURE Go employee should be removed

within short time There should be reasonable security of 5obs

tability of tenure is essential to get an employee customed to

new wor and succeeding in doing it well )nnecessary turnover

is both cause and effect of bad management

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

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Siegt e(

de-ied +

is t e +79ie8ed

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N time 4 7st

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Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

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+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 32: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3276

Copyright copy Amity University

1= INITIATIE ithin the limits of authority and disciplinemanagers should encourage their employees for taing initiative

Initiative is concerned with thining out and eecution of a plan

Initiative increases zeal and energy on the part of human beings

1gt ESPIRIT DE CORPS This is the principle of 2union is strength4

and etension of unity of command for establishing team wor The

manager should encourage spirit de corps among his employees The

erring employees should be set right by oral directions and not by

demanding written eplanations ritten eplanations complicate thematters

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

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=$e eed t im548e

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=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

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De7isi M+e4 Stye

Di4e7ti8e

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Be9+8i4+

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R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

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Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

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HP

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Sy

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Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

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Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 33: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3376

Copyright copy Amity University

ELEMENTS OF MANAGEMENT

(ayol holds that management should be viewed as a process

consisting of five elements He has regarded these elements as

functions of management These are planning organization

commanding coordination and controlling He has regarded

planning as the most important managerial function and failure to plan properly leads to hesitation false steps and untimely changes

in directions which cause weaness in the organization $reation of

organization structure and commanding function is necessary to

eecute plans $oordination is necessary to mae sure that everyone is woring together and control loos whether everything is

proceeding according to plan (ayol holds the view that these

functions are re6uired at all levels of management and in all types

of organizations

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 34: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3476

Copyright copy Amity University

Both have emphasized that management actions can be effective if

these are based on sound principlesgt Both of them have emphasized that managerial 6ualities are

ac6uirable and can be ac6uired through training Therefore

organizations should mae attempts to develop these

Both have emphasized harmonious relationships betweenmanagement and worers for to achievement of organizational

ob5ectives

Dissimi+4ityamp

There is more dissimilarity between the approaches of Taylor and

(ayol as compared to similarity This is because of the fact that

Taylor has concentrated on the shop floor efficiency while (ayol

has concentrated on higher managerial levels The dissimilarity

between the two is presented below

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

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P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

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Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

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E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 35: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3576

Copyright copy Amity University

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 36: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3676

Copyright copy Amity University

Alanning

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

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Sie use

St+di

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L te4m

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

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Reies est+is9ed74ite4i+

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Ust4u7tu4edgt 8e

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+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

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Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

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+d

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+4e 7st+t

+d st+e

N time 4 7st

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i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

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d+t+

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sisgt

edegt

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iiti+ted

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

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met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 37: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3776

What Is Planningbull Planning ndash involves defining the organizationrsquos goals estalishing

an overall strategy and developing a omprehensive

set of plans to integrate and oordinate organizational

or$ ndash informal planning nothing is ritten don

bull little or no sharing of goals

bull general and la$ing in ontinampity

ndash formal planning ritten

bull defines speifi goals

bull speifi ation programs eist to ahieve goals

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

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Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

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Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

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Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

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+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

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iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

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met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 38: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3876

Why (o )anagers Plan ndash Planning is the primary management fampntion that

estalishes the asis for all other management

fampntions

ndash Planning estalishes oordinated effort

ndash Planning redampes ampnertainty

ndash Planning redampes overlapping and astefampl

ativities ndash Planning estalishes goals and standards ampsed in

ontrolling

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

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Be9+8i4+

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R+ti+ity

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De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

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Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

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Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

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Cm5+

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 39: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 3976

atampre of Planningbull Involves rational approach

bull It is a process

bull It is an open System Approachbull Planning is future oriented

bull Involves choice from among alternatives

bull Planning occurs at all levels of Mgtbull It is flexible

bull Pervasive amp Continuous

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 40: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4076

+he Planning Proess

bull Pereive the prolem at hand

bull stalish hat do yoamp ant to ahieve aoampt it

bull stalish the planning premises

bull -ind oampt hat all an e done to ahieve yoampr aimbull valampate the varioamps hoies yoamp have

bull Choose one appropriate plan and $eep alternative plansready

bull Wor$ oampt the finer points of the seleted planbull stalish hih ativities need to e done and arrange

them in a proper seampene

bull Implement the plan

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 41: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4176

Types of PlansStrategic plans apply to the entireorganization

estalish organizationrsquos overall goalssee$ to position the organization interms of its environment

Operational plans speify the detailsof ho the overall goals are to eahievedtend to over short time periods

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

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httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

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Le8e i

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

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+4e 7st+t

+d st+e

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5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

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et9i7+ 8+ues

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et9i7s(+sed

de7isis

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met+

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Citi8e(

+sed

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

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C7e5tu+

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o-

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Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 42: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4276

Planning In +he ierarhy 0f 0rganizations

Strategic

Planning

Operational

Planning

T5

E6e7uti8es

Midde(Le8e

M++e4s

Fi4st(Le8e

M++e4s

+ypes of Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

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Cm5+

Assemed

HP

A55e

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Sy

Ts9i+

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- + Ate4+ti8e

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E8+u+ti -

Ate4+ti8es

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Assemed

HP

Sy

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See7ti - +

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A7e4Cm5+

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

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iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 43: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4376

+ypes of Plans

Long-term plans time frame eyond three yearsdefinition of long term has hanged ith inreasingly

ampnertain organizational environments

Short-term plans over one year or less

Specific plans learly defined ith little room forinterpretation

reampired larity and preditaility often do not eist

Directional plans fleile plans that set oampt general

gampidelines

provide foamps ithoampt limiting oamprses of ation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

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Di4e7ti8e

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De7isi

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( S+tis-i7i

Im5emeti

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

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Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 44: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4476

+ypes 0f Plans

B4e+dt9

St4+tei7

O5e4+ti+

S5e7i-i7ity

Di4e7ti+

S5e7i-i7

F4eue7y - Use

Sie use

St+di

Time F4+me

L te4m

S94t te4m

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

Ris

U7e4t+ity

De7isi M+e4 Stye

Di4e7ti8e

A+yti7

C7e5tu+

Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

$i54 A7e4E8+u+ti

- De7isi

E--e7ti8eess

E8+u+ti -

Ate4+ti8es

A7e4Cm5+

Assemed

HP

Sy

Ts9i+

A55e

NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

Assemed

HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 45: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4576

peifi 2ersamps (iretional Plans

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

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Le8e i

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

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+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

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met+

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Citi8e(

+sed

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 46: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4676

+ypes of Plans

bull Single-use plans onetime plans speifially designed

to meet the needs of a ampniampe sitampation

bull Standing plans ongoing plans that provide gampidane forativities performed repeatedly

ndash inlampde poliies proedampres and ramples

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

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Ris

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De7isi M+e4 Stye

Di4e7ti8e

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Be9+8i4+

De7isi(M+i A554+79

R+ti+ity

Buded R+ti+ity Ituiti

De7isi

C9se est

+te4+ti8e

( m+6imii

( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

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Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

P4i7e

B+tte4y i-e

$+44+ty

S74ee ty5e

Rei+iityDust P4-

Se48i7e+iity

A7+ti - $ei9ts t

C4ite4i+

Rei+iity

Se48i7e+iity

P4i7e

Dust 54-

$+44+ty B+tte4y i-e 2

S74ee ty5e 3

De8e5met -

Ate4+ti8es

A7e4

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Assemed

HP

A55e

NEC

Sy

Ts9i+

Im5emet+ti

- + Ate4+ti8e

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Ate4+ti8es

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HP

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NEC

See7ti - +

Ate4+ti8e

A7e4Cm5+

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HP

A55e

NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 47: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4776

What do )anagers Plan -or

Idi8idu+

Em5yees

Olte7ti8e

T5

M++emets

Olte7ti8e

De5+4tmetM++e4s

Olte7ti8e

Di8isi

M++e4s

Olte7ti8e

=I74e+se 54-itsgt 4e+4dess- t9e me+s

=I +t t see +

sii-i7+t im548emet

i t9is di8isis 54-its

=$e eed t im548e

t9e 7m5+ys 5e4-4m+7e

=Dt 44y +ut

u+ityamp ltust 4 -+st

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

De7isi(M+i Cditis Ce4t+ity

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httpslidepdfcomreaderfullppm-session-2ppt 5676

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

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Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

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Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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De7isis +sed

-eeis +demtis

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(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 48: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4876

34

0+ comprehensive managerial system that integrates

many ey managerial activities in a systematic manner

and is consciously directed towards the effective and

efficient achievement of organizational and individual

ob5ectives Koontz

M++emet By Olte7ti8es MBO

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

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+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

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Le8e i

O4+i+ti

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Ty5e -

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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eed e 7m5ute4s

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

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P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 49: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 4976

teps in a +ypial )50 Program

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

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A55ied t St4u7tu4ed

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Reies est+is9ed74ite4i+

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Ust4u7tu4edgt 8e

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+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

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Le8e i

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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NEC

Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

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5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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7232019 PPM Session 2ppt

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Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 50: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5076

-eatampres of )50

bull A philosophy not a tehniampe

bull hort term 6 long term o7etives

bull Performane appraisal

bull Planning is an Integral part

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

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+ypes of (eisions

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ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

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Le8e i

O4+i+ti

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I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

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+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

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met+

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Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 51: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5176

As95i+i

Advantages of )50bull elf steem 6 elf Atampalization

bull mphasis on resamplts

bull 0rg8 roles 6 stramptampres larified

bull Inreased ommitment

bull Improved ontrols

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

Ty5es - P4ems +d De7isis

$e(st4u7tu4ed

( 544+mmed P4y st4u7tu4ed

( N544+mmed

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Ris

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De7isi M+e4 Stye

Di4e7ti8e

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Be9+8i4+

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Buded R+ti+ity Ituiti

De7isi

C9se est

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( S+tis-i7i

Im5emeti

E8+u+ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

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Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

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Sy

Ts9i+

Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

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+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

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-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

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Page 52: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5276

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

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valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

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P4em is

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de-ied +

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Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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De7isis +sed

-eeis +demtis

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(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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e)ay of hining

C7e5tu+

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o-

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o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 53: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5376

(eision )a$ing

bull +he seletion of a oamprse of ation from

among alternatives

bull It is a omprehensive proess not simply

hoosing alternatives

bull (eision ma$ing is the ore of planning

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

De7isi(M+i

P47ess

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Buded R+ti+ity Ituiti

De7isi

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httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

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Reies est+is9ed74ite4i+

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Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

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Le4$e(st4u7tu4ed

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Ty5e -

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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eed e 7m5ute4s

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

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+4e 7st+t

+d st+e

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5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 54: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5476

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

0vervie 0f )anagerial (eision )a$ing

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httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

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ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

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Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

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+4e 7st+t

+d st+e

N time 4 7st

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Fi+ 79i7e

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5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 55: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5576

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httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

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+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

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eed e 7m5ute4s

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

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547essi

Citi8e(

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 56: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5676

+ypes of (eisions

rogrammed

A55ied t St4u7tu4ed

4utie 54ems

Reies est+is9ed74ite4i+

It is de7isi m+i

y 54e7edet

Non- rogrammed

Ust4u7tu4edgt 8e

i de-ied situ+tis -

+ (4e7u44i +tu4eReui4e sulte7ti8e

ltudmets

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

=My m++e4s

eed e 7m5ute4s

Ideti-i7+ti -

De7isi C4ite4i+

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Sy

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

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et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 57: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5776

(eision )a$ing Conditions

ndashCertainty 0nly one state of natampre eists I8e8

omplete ertainty aoampt the famptampre

ndashUncertainty )ore than one states of natampre

eists ampt sampffiient info is not present soproailities of states are ampn$non

ndashRisk )ore than one states eists sampffiient info

is there to assign proailities to eah state8$ncertainty Certaintyis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

9evels

P44+mmed

De7isis

N544+mmed

De7isis

Le8e i

O4+i+ti

T5

Le4$e(st4u7tu4ed

I(st4u7tu4ed

Ty5e -

P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

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Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

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(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 58: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5876

+ypes of (eisions at 2arioamps

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P4em

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

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Fi+ 79i7e

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Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 59: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 5976

(eision )a$ing ProessIdentification of a

problem

valuation of

Alternatives

(ev of

Alternatives

Allo )eights to

Criteria

Id Of (ecision

Criteria

Selection of

Alternative

IMPM+AIO+

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

Ideti-i7+ti

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eed e 7m5ute4s

Ideti-i7+ti -

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HP

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Sy

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

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+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

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o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 60: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6076

P4em

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NEC

Sy

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Decision Making

Ashpillai IM

f

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

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Ituiti

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 61: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6176

eletion of Alternatives

bull periene

bull perimentation

bull ltesearh 6 Analysis

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 62: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6276

eletion of Alternative

o- to Select anAlternative

COIC

MA(

xperimentation

esearch amp

Analysis

eliance on Past

Ashpillai IM

l ti f Alt ti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 63: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6376

valampation of Alternatives

bull =ampantitative 6 =ampalitative -ators

bull )arginal Analysis

bull Cost ffetiveness Analysis

Ashpillai IM

( i i ) $i U d

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 64: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6476

(eision )a$ing Under

Unertainty

bull ltis$ Analysis

bull (eision +rees

bull Preferene theory

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

su7s7ius

d+t+

De7isis +sed

sisgt

edegt

4 t4+ii

Ituiti

A--e7t(

iiti+ted

de7isis

E65e4ie7ed(

+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 65: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6576

(eisions in the )anagement -ampntions

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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De7isis +sed

-eeis +demtis

De7isis +sed

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

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o-

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o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 66: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6676

ltationality in (eision )a$ing

bull Analysis reampiring a lear goal a lear

ampnderstanding of alternatives y hih a goal

an e ahieved

bull An analysis and evalampation of alternatives interms of goals soampght needed information

and a desire to optimize

Ashpillai IM

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

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+4e

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+4e 7e+4

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+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

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4 7utu4e

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+sed

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Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

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R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 67: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6776

+he )anager As ltational

(eision )a$er

ndash Assumptions of Rationality deision

ma$er oampldgt ndash e o7etive and logial

ndash arefamplly define a prolem

ndash have a lear and speifi goal

ndash selet the alternative that maimizes the li$elihood ofahieving the goal

ndash ma$e deision in the firmrsquos est economic interests

Assampmptions 0f ltationality

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

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de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 68: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6876

p y

R+ti+De7isi

M+i

P4em is

7e+4 +d

u+miuus

Siegt e(

de-ied +

is t e +79ie8ed

A +te4+ti8es

+d

7seue7es

+4e

P4e-e4e7es

+4e 7e+4

P4e-e4e7es

+4e 7st+t

+d st+e

N time 4 7st

7st4+its e6ist

Fi+ 79i7e

i m+6imie

5+y--

Ashpillai IM

5 d d lt ti lit

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

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+sed

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d+t+

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4 t4+ii

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et9i7s(+sed

de7isis

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met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 69: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 6976

5oampnded ltationality

bull ltational ation limited dampe to la$ of

information time or aility to analyze

alternatives in light of a goal soampght ampnlear

goals or a la$ of aility to ta$e a ris$

Ashpillai IM

ti fi i

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

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d+t+

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edegt

4 t4+ii

Ituiti

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de7isis

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+sed de7isis

+ues 4

et9i7s(+sed

de7isis

Su7s7ius

met+

547essi

Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 70: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7076

atisfiing

bull +endeny of managers to ma$e deisions

hile faing a sitampation of oampnded

rationality

bull Usampally the oamprse of ation good

enoampgh is hosen

Ashpillai IM

+h ) A I t iti

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

e65e4ie7e

De7isis +sed

-eeis +demtis

De7isis +sed

et9i7+ 8+ues

4 7utu4e

De7isis

+sed

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4 t4+ii

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et9i7s(+sed

de7isis

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met+

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Citi8e(

+sed

de7isis

Ashpillai IM

(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

Di4e7ti8e Be9+8i4+

R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

bull Adeampate Information

bull Considering 0thersrsquo 2ies

bull +imeliness

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7676

+han$ Boamp

Pe+se -4+4d yu4 ue4y

Tampdsoniamityedu

CCamp m+lt+mity5++-et7m

Page 71: PPM Session 2.ppt

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7176

+he )anager As Intampitive

(eision )a$er ndash ntuitie decision making

amponsioamps proess of ma$ing deisions

on the asis of eperiene and

aampmamplated 7ampdgment

bull does not rely on a systemati or thoroampgh

analysis of the prolem

bull generally omplements a rational analysis

Ashpillai IM

What Is Intampition

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7276

De7isis +sed

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De7isis +sed

-eeis +demtis

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4 7utu4e

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et9i7s(+sed

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Citi8e(

+sed

de7isis

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(eision)a$ing tyles

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7376

A+yti7

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R+ti+ Ituiti8

e)ay of hining

C7e5tu+

igh

o-

o l e r a n c e f

o r A m b i g u i t y

Ashpillai IM

-eat res of ffeti e

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7476

Copyright copy Amity University

-eatampres of ffetive

(eisionsbull Ation 0riented

bull oal (iretion

bull ffiieny in Implementation

7232019 PPM Session 2ppt

httpslidepdfcomreaderfullppm-session-2ppt 7576

Copyright copy Amity University

+o )a$e ffetive

(eisions 8 8 8bull Categorial Interpretation

bull Appliation of 9imiting -ator

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