leadership, which is both the most daunting to fully execute and the most effective - after all, successful individual change implementation activates the next two steps. Organizational Change Individual change is extremely valuable; however, managing change on a person-by-person basis is almost impossible for a project team. Many that participate in frequent Operational Performance activities, campaigns, and initiatives are likely to consider the organisational plan as the most easily identified. Identifying the groups/individuals who will need to improve as a result of the initiative, as well as how they will need to change, is common procedure. Enterprise-Wide Change Effective change management is inherently embedded in the organization's functions, procedures, programmes, and competencies if you have effective and solid Enterprise change management capabilities. With this 'end goal' of change management in place, processes are implemented systematically and efficiently to projects, leaders are almost naturally accustomed to leading their teams through change, and workers know exactly what they need to succeed. 5.4 CHARACTERISTICS OF CHANGE MANAGEMENT Shift management has the following characteristics: Resistance We are all a little resistant to change as individuals. Also, the most meticulously prepared change management scenario poses obstacles as change spreads across an enterprise. Employees respond to change in various ways. Others need extra coaching and handholding in order to change directions. Some workers may see change as an opportunity, while others can feel a lack of control. Many people will doubt whether or not change is important. To be effective in bringing about change, you must expect opposition, recognise roadblocks, and concentrate on addressing employee problems. Consistent Communication The need to discuss the people side of transformation is a central element in change management. Although reform efforts are ongoing, it is important to communicate regularly, provide a clear message, and respond to employee questions honestly. At all times, all levels of management are responsible for providing the same consistent message. Employees cannot grasp the transition process at first, so repetition is important. Staff usually need to hear a message six or more times before they are fully engaged. Training and Goal Setting 51 CU IDOL SELF LEARNING MATERIAL (SLM)
The next step in the process is preparation, which comes after announcing and describing the change initiative. Managers are responsible for clarifying how the conveyed changes affect day-to-day work. Most significantly, workers must consider how their individual roles relate to the company's goals in order to be able to respond to change. In addition, the business can need new skill sets. Training the whole organisation on a new business process, technology, or collection of policies is one of the most common changes. Setting goals should go hand in hand with the new path. Employees can embrace learning new skills if timelines and change activities are established, and training can be incorporated into the daily routine. Recognition Recognition is one way to promote progress and help speed up the process. Celebrating success and successes not only increases consciousness of the new path, but it also enhances morale. Person and team contributions should be publicly acknowledged at meetings and other organisation events to demonstrate change success. Employee engagement is celebrated before the improvements are complete in effective organisations. Stopping to compliment yourself on your achievements is an important part of the process. 5.5 IMPORTANCE OF CHANGE MANAGEMENT Shift management is important for a variety of reasons: 1. External factors Organizational transition is strongly affected by external influences. Organizations are being forced to respond as a result of globalisation and the rapid growth of new digital solutions. Ignoring such external influences would almost definitely jeopardise the company's performance. Nokia was once the world's largest cell phone company, but it was on the verge of bankruptcy. This is due to the fact that it did not keep up with developments in mobile technology. As a result, Nokia's products failed to appeal to customers, and the company's market share plummeted. 2. Making ideas succeed To help ideas flourish, many organisations employ change management methodologies. Shift managers and change agents support project managers in ensuring that new capabilities are completely implemented by workers by working alongside project managers. 3. Enabling cross-functional changes 52 CU IDOL SELF LEARNING MATERIAL (SLM)
Almost every functional unit in a modern organisation relies on change management to do the following: Match the transition plan with the company's overall strategy. Enhance internal and external demands and services. Keep track of and fix problems. 4. Engaging people with the change process Engaging those impacted by a change plan is an important aspect of handling change in an organisation. Since workers will ultimately be involved in the transition process, communicating and talking with them about the strategy early on helps lay the foundation for its later success. 5. Preparing for organisational transition Change managers are often named to ensure the smooth transition of an organisation. To make changes, they employ change management models such as: Reorganizing work functions. Reorganization of company processes. Putting emerging technology into effect. 6. Decreasing resistance to a change initiative People also find it unsettling to be expected to act in new and different ways, so resistance is unavoidable in every change initiative. As a result, change managers should expect a rejection response from employees. Overcoming such reactions requires time. The less opposition change managers face when they are open from the start, the better. 7. Improving performance and productivity If an organisation adopts new ways of working, it appears to become more profitable. At the same time, it stimulates imagination. As a consequence, it ensures increased results and positions an organisation in a healthier, more successful atmosphere. 8. Reducing costs 53 CU IDOL SELF LEARNING MATERIAL (SLM)
If constructive change is introduced properly, it aids in the elimination of waste and, as a result, costs. An organization's ability to make smart decisions is aided by effective change management. It improves productivity, reduces costs, and aids in increasing a company's profitability. 5.6 TYPES OF CHANGE Shift can be divided into the following categories: Strategic Change When the mission is changed, strategic change is required. A single mission of defence forces participating under the UN banner can necessitate changes in weapon systems, international cooperation, serving under someone who is not of Indian heritage, and even the consideration of employing various strategic and tactical doctrines. Multinational corporations must adapt to the culture of the country in which they sell their goods and services. Various cultural factors must be taken into account in this regard. This is usually done as an 'anticipated transition.' Structural Change Employees can feel more autonomous in the workplace thanks to decentralisation of authority and the adoption of flatter organisational structures. Lower-level workers are empowered as a result of decentralisation to make appropriate decisions regarding their work parameters. It has a significant effect on the organization's social environment on the one hand, and the growth of team spirit on the other. Structural improvements encourage the acquisition of new skills and boost subordinates' capacity to make quick decisions, even in a crisis. Process-oriented Change To keep up with technological advancements, automation, information technology, a free market climate, and the availability of skilled manpower, process adjustments are needed. These procedures must be used by the company. This, however, necessitates a significant expenditure and requires a variety of organisational adjustments, but it saves time and resources. This will result in a change in the working environment, corporate culture, and employee behaviour patterns. Cultural Change Individuals are subject to societal shifts as a consequence of electrifying changes in communication. This has necessitated the establishment of a proper organisational culture. Top management is responsible for ensuring proper organisational philosophy, culture, and 54 CU IDOL SELF LEARNING MATERIAL (SLM)
value system among workers, as well as practising ethical business practises. These are critical inputs for enhanced efficiency, group cohesion, duty adherence, and the creation of a \"we\" mentality in the workplace. This can be done through close cooperation, behavioural science instruction, and the creation of a sense of belonging to the organisation. These improvements are people-centered, and as a result, they must be ongoing in order to accomplish the organization's purpose. Other types Adaptive change - This entails re-enacting a reform within the same organisational unit. Adaptive change is not seen as a threat. Innovative change - This entails a variety of new and unfamiliar changes. Organizations are filled with confusion and anxiety as a result of the innovative changes. Radically Innovative change - This is the most dreaded sort of transformation. In companies, this form of reform is the most resisted. A long-term plan is needed to implement a drastic shift in an organisation. Organizational changes can also be classified as: Reactive change - This is a transition that occurs as a result of an unexpected or unplanned occurrence. Planned change - This is a planned, systemic shift in the way a part or more of an organisation operates. The emphasis of planned change is on procedures, individuals, or technology, and it may include one person, a project team, a department, or the entire company. 5.7 CHANGE MANAGEMENT PROCESS There are many basic theories about transition, one of which is that change has always occurred and will continue to occur. \"Change begins with a purpose, also referred to as a vision, and the desired change is the difference between the goal and the status quo,\" Smith (1998) writes. Before making a transition, a comprehensive review must be undertaken into both those who will be involved in the change process as well as those who will be influenced by the change. Management of a change process involves four broad stages: Planning- The organisation identifies the need for change, forms a change management committee, and establishes a plan of action during the planning stage. 55 CU IDOL SELF LEARNING MATERIAL (SLM)
Implementation and Management - The change plan is carried out at this point, and the main emphasis is on initiating, managing, and sustaining the change process so that it proceeds smoothly and without hiccups. Development of Tracking and Monitoring Instruments - Various tracking and monitoring instruments are developed at this point to determine the progress or failure of the change and make appropriate changes. Precautionary steps may also be taken if necessary. Tracking and Monitoring - This is the final step, which \"consists solely of continuous tracking and monitoring until the change has been institutionalised within the organisation.\" Throughout all four stages of the change process, the change management team must be able to \"listen and observe continuously to ensure changes are made with the target still in mind,\" as Smith has said. 5.8 CHANGE MANAGEMENT STRATEGIES A variety of methods may be used to address a transition. To introduce a transition, the most suitable approach should be selected. There are five common change management techniques that can be used to bring about a change: Directive Strategy The use of power to enforce reform is part of this strategy. Top-level management is in charge of directive strategy, with little to no input from others. The manager uses his or her power and authority to handle the transition in this situation. This method has the benefit of being easy to implement. On the other hand, this strategy has the downside of not taking into account the views and viewpoints of others who are interested in or influenced by the transition. Changes are imposed rather than negotiated or decided upon in a directive approach, creating discontent among employees. Expert Strategy Management reform is regarded as a problem-solving mechanism in this strategy, and specialist assistance is required to address it. This strategy is likely to minimise the participation of those who would be impacted by the transition. Expert strategy includes specialists in the careful management of the transition process. The key benefit of this strategy is that reform can be introduced rapidly and efficiently with the support and guidance of experts. 56 CU IDOL SELF LEARNING MATERIAL (SLM)
Negotiative Strategy In this strategy, top management meets with those who will be impacted by the transition to address the different issues. The ability of top management to compromise and bargain in order to enforce the transition characterises this strategy. The policy adjustments are addressed, as well as the strategies for implementing them and the potential consequences. The drawbacks of this strategy are that it takes longer to introduce improvements and that predicting all future results is difficult. The changes made do not meet the managers' overall standards for the transition. However, the major advantage is that this strategy necessitates the participation of all individuals who are impacted by the transition. As a result, the management receives participation and cooperation from everyone. Educative Strategy The educational approach focuses on redefining and reinterpreting people's norms and principles in order to inspire them to accept the improvements that are being introduced. Individuals who are interested in the transition process are the main focus of this approach. People's behaviour and mentality are thought to be influenced by social expectations and values. As a consequence, in order to properly impact change, current principles and beliefs must first be modified and redefined. Consultants, consultants, and in-house experts participate in a range of practises, including education, training, and selection. This method has the significant drawback of taking longer to implement. The benefit is that it aids in the development of constructive commitment to the improvements that are being introduced. As a result, this strategy assists management in obtaining the confidence and involvement of individuals within the organisation in the change process. Participative Strategy Both members of the organisation are actively active in the transition phase in this approach. Though top-level management makes the major decisions, the change process is mostly guided by groups or individuals within the organisation. Before making any changes, consultations and meetings are held, and the viewpoints of all individuals are taken into account. As a result, the focus is on full participation of all parties interested in and impacted by the proposed changes. Consultants and experts' opinions are also sought to help with the transition process. The key benefit of this approach is that it encourages all people involved in the transition process to participate. The management's changes are well-received by all those who are affected. Individuals are given the chance to improve their expertise and understanding of the organisation as a whole and how it operates. The biggest drawback of this strategy is that it takes longer to determine which big changes should be made, making it slow to implement. Because of the number of meetings that take place, it can also be 57 CU IDOL SELF LEARNING MATERIAL (SLM)
expensive and time-consuming. Furthermore, it is difficult to predict future outcomes. This technique is more difficult to manage, and it necessitates more time and expenses. 5.9 STABILITY VS CHANGE The term \"stability\" refers to personality traits that persist throughout a person's life. Change theories, on the other hand, claim that relationships with families, school experiences, and acculturation form people's personalities. 5.10 SUMMARY Disappointment with the old will lead to a confidence in the new. Change management is a method for addressing the adaptation or transformation of an organization's priorities, procedures, or innovations in a structured way. Human, organisational, and enterprise-wide change can all be handled on three levels. There are four phases to managing a change process: planning, implementation, and management, as well as creation of tracking and monitoring instruments and tracking and monitoring. There are five common change management techniques that can be used to bring about a transition. 5.11 KEYWORDS Change: It's possible to think of it as extrinsic and discontinuous. Adaptive change: It means re-enacting a transition within the same organisational unit. Directive Strategy: It is carried out by top-level management with little to no participation from others. Reactive change: This is a transition that occurs as a result of an unexpected or unplanned occurrence. Planned change: This is a planned, systemic shift in how a part or more of an organisation operates. 5.12 LEARNING ACTIVITY 1. Changing places: Activity Arrange chairs in a circle and place an object in the centre. Ask students to take a seat, then observe the object. After a minute or so, ask them to get up and change seats. Call on them to 58 CU IDOL SELF LEARNING MATERIAL (SLM)
describe the object from their new point of view. Then, tell them they are allowed to get up and change seats once more. Some students will wish to stay put. However, staying in the same place limits the number of perspectives that they can have. In contrast, each time the employees observe the object from a different perspective, they have the opportunity to notice something new. Change management exercises that illustrate the importance of gaining a new perspective help mollify resistance and show how a change can be beneficial. ___________________________________________________________________________ ___________________________________________________________________________ 5.13 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is meant by change management? 2. Define change. 3. List the levels of change management. 4. List the types of change. 5. Mention the strategies of change management 6. Distinguish stability vs change. Long Questions 1. Explain the levels of change management 2. Discuss the nature and importance of change management 3. Classify the types of change 4. Enumerate the process of change management. 5. Discuss the strategies of change management. B. Multiple choice Questions 1. Change management can take place on _______ levels. a. Two b. Three c. Four d. Five 2. _______involves changes that are generally new and unfamiliar. 59 a. Innovative Change b. Adaptive Change CU IDOL SELF LEARNING MATERIAL (SLM)
c. Reactive Change d. Planned Change 3. _________strategy involves the use of authority to impose change a. Expert b. Negotiative c. Directive d. Educative 4. _________ management focuses on the close development and introduction of new styles and processes on a personal level. a. Individual Change b. Organizational Change c. Enterprise Change d. Wide Change 5. ______ is the change brought about by a sudden or unplanned event. a. Innovative Change b. Adaptive Change c. Reactive Change d. Planned Change Answers 1. (b) 2. (a) 3. (c) 4. (a) 5. (c) 5.14 REFERENCES Reference Books: R1, Engleberg, Isa N.; Wynn, Dianna R. 2007, “Working in groups”, 4th Edition, p,175-193. R2 T. S. O’Connell, B. Cuthbertson, 2009, “Group Dynamics in Recreation and Leisure”, Human Kinetics, Illinois, Textbooks: T1 Annebal Beerel, 2009 “Leadership and Change Management”, Sage Publication Pvt Ltd, New Delhi. 60 CU IDOL SELF LEARNING MATERIAL (SLM)
T2 George, J. and Jones, G.R, “Understanding and Managing Organization Behaviour”, 5th Edition, Pearson Education, India, ISBN:9788131724965. 61 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 6: PRINCIPLES OF MANAGEMENT Structure 6.0 Learning Objectives 6.1 Introduction 6.2 Meaning & Definition 6.3 Nature & Characteristics of Management 6.4 Scope of Management 6.5 Significance of Management 6.6 Process of Management 6.7 Role of A Manager 6.8 Management Principles 6.9 Functions of Management 6.10 Summary 6.11 Keywords 6.12 Learning Activity 6.13 Unit End Questions 6.14 References 6.0 LEARNING OBJECTIVES After studying this unit, students will be able to: Explain the nature and scope of management Identify the importance of management. Explain the process of management. Discuss the role of manager Explain the functions of management 6.1 INTRODUCTION Management is considered the most critical of all human endeavours. It's been defined as the process of consciously and continuously shaping organisations. Every organisation has people entrusted with the task of assisting the organisation in achieving its objectives. 62 CU IDOL SELF LEARNING MATERIAL (SLM)
Managers are the people who work in these positions. Management, which is supervised by managers, is required for every organisation to function. Managing is essential to ensure that individual activities within an organisation are coordinated. It's fun because it deals with an organization's goal-setting, pursuit, and achievement. Every single one of us is a boss, and management is practised in every aspect of human activity, including educational institutions, corporations, government and non- government organisations, unions, mosques, and families. Whatever the form of endeavour and/or organisation, the managerial challenges in setting and achieving goals are remarkably identical across the board. Management is something that everybody does. Setting priorities, making plans, managing staff, coordinating and controlling operations, achieving targets, and assessing success directed toward organisational goals are all part of every group effort. These practises are concerned with the use of four types of environmental inputs or resources: human, monetary, physical, and informational. Managerial talent, labour, and so on are examples of human capital. The financial capital that a company uses to fund both current and long-term activities is referred to as monetary resources. Raw materials, office and manufacturing facilities, and machinery are examples of physical capital. Data and other types of information are used by the organisation as information services. The manager's job is to bring these resources together and coordinate them in order to achieve the organization's objectives. 6.2 MEANING & DEFINITION Management is the practise of getting things done by a group of people using available resources efficiently. A person cannot be called a managing body in charge of a corporation. A management team must consist of at least two people. These individuals carry out tasks in order for an organization's goals to be met. “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”- Harold Koontz, “Management is the art and science of decision making and leadership.”- Donald J. Clough 6.3 NATURE & CHARACTERISTICS OF MANAGEMENT A critical analysis of the above concepts yields the following qualities or characteristics of management: 1. Art as well as science: Management is both a science and an art. It is an art in the sense that a person's ability to manage is a talent. In another way, management is a science since it 63 CU IDOL SELF LEARNING MATERIAL (SLM)
requires the implementation of certain concepts or rules that can be used in an environment where a community of activities is organised. 2. Management is an activity: Management is a collection of activities aimed at making the best use of available resources for development. The word \"capital\" refers to the organization's men, money, materials, and machinery. 3. Management is a continuous process: The planning, coordinating, directing, and monitoring of resources are all part of the management process. An organization's resources (men and money) should be used to the best benefit of the organisation and the goals to be accomplished. In the absence of all other essential management functions, no one's management role can achieve any results. As a result, management is a never-ending operation. 4. Management achieving pre-determined objectives: An organization's objectives are explicitly stated. Any managerial behaviour leads to the accomplishment of pre-determined goals. 5. Organised activities: Management is a set of well-organized tasks. A community may be organised in both a public limited company and a regular club. Each company has its own set of goals. Only a small number of people would be able to accomplish these targets. To achieve the goals, these individuals' actions should be organised in a structured manner. Without scheduled operations, the goals would not be reached. 6. Management is a factor of production: Property, labour, money, and entrepreneurs are all factors of production. The word \"land\" refers to a location where development takes place. Labour refers to the organization's paying workers who work at various levels such as skilled, unskilled, semi-skilled, manager, supervisor, and so on. Working capital, such as cash, raw materials, and finished products, and fixed capital, such as plant and production facilities, are also referred to as capital. Land, labour, and money were insufficient to achieve the organization's objectives. Only when the entrepreneur successfully coordinates the organization's priorities will it be accomplished. As in the case of small businesses, an employee may do such a job. In the case of large business units, management is in charge of coordination. As a result, management is considered one of the output factors. “Whatever rapid economic and social growth occurred after World War II, it occurred as a result of systematic and purposeful work of emerging managers and management,” says Peter F. Drucker. Development is a matter of human energy, not economic resources, and the duty of management is to generate human energies. Management is the catalyst for change, and growth is the result.” 7. Management as a system of activity: A system can be described as a series of interconnected parts that work together to form a whole. The ability to direct others in order to complete a certain course of organisational work can be described as authority. 64 CU IDOL SELF LEARNING MATERIAL (SLM)
Individuals serve as the cornerstones of management. As a member of the organisation, a person has some objectives. There may be a discrepancy between his personal ambitions and what management expects of him. Management resolves such contradictions by ensuring that individual priorities and organisational objectives are aligned. Many people have power to make decisions and control the actions of their subordinates. The object of exercising authority is to track and regulate the actions of subordinates. According to the organisation map and societal standards, bosses are the sources of authority. The use of authority is dependent on the user's personality characteristics and the actions of the individual over whom it is exercised. 8. Management is a discipline: Management's limits are not as precise as those of other physical sciences. The continuous discovery of many more aspects of business enterprise can help to increase it. As a result, the status of management as a discipline is elevated in the same way. 9. Management is a purposeful activity: Management is concerned with achieving an organization's goals. The roles of planning, organising, staffing, directing, guiding, and decision-making are used to accomplish these goals. Every employee is given a clear understanding of the organization's goals. 10. Management is a distinct entity: Management is a separate entity from its functional activities. The essence of the tasks is “to do,” while the nature of management is “how to get it done.” To get work done, a manager must have some level of ability and experience. 11. Management aims at maximising profit: Available resources are efficiently used to achieve the desired results. The aim of a manager's economic role should be to maximise profit or increase profit. 12. Decision-making: Management makes several decisions on a daily basis. Only when there are alternatives to a course of action is it necessary to make a decision. There is no need for decision-making if there is only one course of action. The success of a company is measured by the consistency of the manager's decisions. The success or failure of an organisation is measured by the manager's ability to make sound decisions. 13. Management is a profession: Management is a profession because it exhibits the characteristics of one. In this profession, a wealth of expertise is imparted and transferred, and management follows suit. The developed management principles are put into practise. 14. Universal application: Management standards and procedures are applicable to all forms of businesses, not just one. According to their nature, management methods vary from one company to the next. “Management is the practise of having things done by and with people in formally organised groups,” according to Knootz and O'Donnel. 16. Management as a class or a team: A class can be described as a group of people with similar characteristics who work together to achieve a common goal. In a society, engineers 65 CU IDOL SELF LEARNING MATERIAL (SLM)
and doctors are classified as a class. Each and every doctor shares the same life goals. Management personnel, like engineers and doctors, have similar aspirations to achieve corporate goals. 17. Management as a career: Management is now being established as a career with unique specialisation. Management specialisations include financial management, cash management, portfolio management, marketing management, staff management, industrial management, and company management. In top management positions, specialists are selected. 18. Direction and control: A manager should direct and control his subordinates in the performance of their duties. In the absence of guidance and power, he would struggle to achieve the organisational goals if the available resources are not adequately utilised. In general, guidance and control are concerned with human effort activities. 19. Dynamic: management isn't a one-size-fits-all strategy. New strategies are developed and embraced by management in the fast-changing business world. Management shifts in response to social shifts. The changing business climate has resulted in social change. 20. Management is needed at all levels: Management roles are required at all levels of an organisation. Top executives are in charge of planning, organising, directing, overseeing, and making decisions. The lower-level supervisor often performs the same tasks. 21. Leadership quality: Leadership quality is built in people who work at the top of the corporate ladder. “Management is the role of executive leadership everywhere,” says R.C. Davis.” 6.4 SCOPE OF MANAGEMENT Since management is necessary in all types of organised endeavours, it is an all- encompassing function. As a result, it has a very wide scope. Despite the difficulty of specifically defining the scope of management, it encompasses the following areas: Subject matter of Management The tasks involved in the subject matter of management are planning, arranging, directing, coordinating, and regulating. Functional Areas of Management These include: Financial Management : Accounting, budgetary control, quality control, strategic planning, and controlling an organization's overall finances are all part of financial management. 66 CU IDOL SELF LEARNING MATERIAL (SLM)
Personnel Management : Recruitment, promotion, demotion, resignation, termination, labour-welfare, and social security industrial relations are all part of Personal management. Purchasing management : Tendering for raw materials, placing orders, entering into contracts, and material control are all part of purchasing management. Production Management : Production preparation, production control methods, quality control and inspection, and time and motion studies are all part of production management. Maintenance Management: The proper care and repair of structures, plants, and equipment is the responsibility of maintenance management. Transport Management : Packing, warehousing, and rail, road, and air transportation are all part of transport management. Distribution Management : Marketing, market analysis, price determination, market risk, and advertisement, publicity, and sales promotion are all part of distribution management. Office Management : Office management entails tasks that ensure the office's configuration, personnel, and equipment are properly managed. Development Management : Experimentation and research of manufacturing processes, markets, and other aspects of growth management are also part of the process. Management is an Inter-Disciplinary Approach It is necessary to have knowledge of commerce, economics, sociology, psychology, and mathematics in order to properly enforce management. Universal Application Management concepts may be generalised to any sort of organisation, regardless of the nature of the tasks they perform. Essentials of Management The following are three management fundamentals: • Scientific procedure • Interpersonal relationships • Quantitative method 67 CU IDOL SELF LEARNING MATERIAL (SLM)
Modern Management is an Agent of Change To enhance an organization's efficiency, management strategies can be modified by proper research and development. 6.5 SIGNIFICANCE OF MANAGEMENT Every business requires management. A company's proper functioning and operation is ensured by the participation of management. Management should plan activities to achieve the objectives while making the best use of available resources at the lowest possible cost. A strategy is essential for any company. This is a directive from management. The term \"development services\" refers to the process of turning ideas into reality. The resources will remain as resources in the absence of management. The conversion is accomplished with the support of a management team. The following is a brief overview of management's meaning or value: 1. Management meet the challenge of change: In today's business world, change is inevitable. The changes placed the organisation in a precarious position. Only good management will save the organisation from the dangers it faces as a result of the challenges. 2. Accomplishment of group goals: There are three factors that decide whether or not a company's objectives are accomplished. Careful scheduling of available resources, adapting the business unit's capabilities to the current business environment, and the continuity of the business unit's decisions and controls are all factors in achieving goals. 3. Effective utilisation of business: There are eight \"“M” s\" in business. They are said to include man, money, resources, machines, methods, inspiration, markets, and management. Management is the most significant of all the other \"M's.\" The remaining 'Ms' is supervised by management. 4. Effective functioning of business: Ability, expertise, mutual knowledge, teamwork, motivation, and supervision are all factors that contribute to business efficiency. Management ensures that employees' abilities are properly used and that cohesion is accomplished by mutual understanding. Furthermore, management will think about employee desires, which are then met by motivational techniques. 68 CU IDOL SELF LEARNING MATERIAL (SLM)
5. Resource development: Efficient management is the lifeboat of any developing company. The capital of the business can be established and grown by management. All resources are considered to be men, money, material, and machines. 6. Sound organisation structure: Management lays the foundation for an effective organisational structure. A strong organisational structure clearly establishes who is accountable to whom, who can command whom, and who is responsible for what. The management takes great care in appointing qualified individuals to critical positions. 7. Management directs the organisation: The human mind directs and controls the operation of the human body. Similarly, management directs and oversees the activities of an organisation. 8. Integrates various interests: Everyone has a particular collection of interests. The essence of these passions is diverse. Management takes steps to merge diverse interests in order to accomplish an organization's objectives. 9. Stability: It is up to management to hold the business's uncertainty in check. Market fluctuations are influenced by changes in government policy, economic demands, and changing consumer preferences. Efficient management can run the business in line with government policy, compete in the market, and offer goods that are customised to the needs of customers. 10. Innovation: Management produces and introduces innovative ideas inside the organisation. You will improve the performance by coming up with new ideas. 11. Co-ordination and team-spirit: The company's activities are divided into divisions. In order to achieve the objectives, management combines the efforts of different departments and fosters a sense of cooperation. 12. Tackling problems: Management acts as a friend or guide for workers while dealing with problems. Employees who are overconfident in their abilities to solve problems and perform their work efficiently fail to do so. 13. A tool for personality development: Management provides workers with direction so that they can perform their jobs efficiently. New methods or strategies are also taught to staff. The educational facilities are organised by the management. Management may be used in this 69 CU IDOL SELF LEARNING MATERIAL (SLM)
way to assist workers in improving their personalities in order to improve their efficiency and productivity. 6.6 PROCESS OF MANAGEMENT Management entails preparing, finalising plans, creating rules, and making managerial decisions for various circumstances and choices in order to achieve the organization's goals. Management action is taken to effectively, economically, and efficiently use the organization's resources of men, equipment, capital, and materials. Main elements of the management process are: 1. Planning 2. Organizing 3. Staffing 4. Directing 5. Coordination 6. Controlling Planning The most fundamental and all-encompassing step in the management process is planning. If people working in groups are expected to perform well, they should know ahead of time what needs to be done, what tasks they must perform in order to accomplish the mission, and when it needs to be completed. The ‘what, how, and when' of success are all addressed in planning. It entails making decisions in the present regarding possible goals and strategies for achieving them. It thus involves (a) Establishing long- and short-term goals. (b) The development of strategies and action plans for achieving these goals; and c) Formulation of policies, procedures, and laws, among other things, for putting strategies and plans into action. The organisational goals are set by top management in the sense of the organization's core function and mission, environmental conditions, market forecasts, and available and potential capital. These targets are both long-term and short-term in nature. Divisional, departmental, sectional, and individual priorities or goals are also included. 70 CU IDOL SELF LEARNING MATERIAL (SLM)
Following that, objectives and plans of action are formulated to be implemented at different levels of management and in various segments of the company. Policies, processes, and guidelines define the basis for decision-making, as well as the structure and order in which decisions are made and implemented. All of these planning roles are performed or contributed to by any manager. Planning is often not done deliberately and scientifically in some organisations, especially those that are historically run and small, but it is done in new, larger, and professional organisations. The plans may be nebulous rather than concrete, and they may be in the minds of their administrators rather than clearly and specifically spelled out, but they are still there. As a consequence, the most fundamental role of management is planning. It is carried out by all administrators at all levels of the hierarchy in all types of organisations. Organizing Organizing entails identifying the activities needed to achieve enterprise goals and strategies, grouping those activities into roles, assigning these jobs and activities to departments and individuals, delegating accountability and authority for success, and providing for vertical and horizontal coordination of activities. Every manager must determine what tasks must be carried out in his or her department or section in order to achieve the objectives entrusted to him. After identifying the activities, he must organise them into jobs, assign these jobs or groups of activities to his subordinates, delegate authority to them so that they can make decisions and take action to carry out these activities, and provide for coordination between himself and his subordinates, as well as among his subordinates. Organizing thus involves the following sub-functions (a) Defining tasks appropriate for achieving goals and bringing plans into effect. (b) Grouping tasks to build jobs that are self-contained. c) Work assignments to staff. (d) Delegation of authority to allow them to carry out their duties and command the resources necessary to do so. e) The formation of a network of coordinating relationships. The organising mechanism produces the organization's structure. It consists of a network of roles and authority-responsibility relationships, as well as organisational positions, duties, and responsibilities. Organizing is therefore the fundamental process of bringing together and incorporating human, physical, and financial capital in effective interrelationships in order to 71 CU IDOL SELF LEARNING MATERIAL (SLM)
achieve business goals. Its mission is to organise staff and interrelated tasks in such a way that organisational work is organised and all actions and activities contribute to the achievement of organisational objectives. Staffing Staffing is a continuous and essential part of the management process. Following the determination of the goals, the development of strategies, policies, programmes, procedures, and rules to achieve them, and the selection and grouping of tasks for the execution of strategies, policies, programmes, and so on, the next logical step in the management process is to find appropriate staff to fill the positions. Staffing has been recognised as a distinct feature of management because the performance and efficacy of a company are heavily dependent on the quality of its employees, and because it is one of the primary functions of management to find skilled and trained people to fill different roles. It comprises several sub-functions (a) Manpower preparation, which involves deciding the number and form of staff required. (b) Recruitment to encourage a sufficient number of potential employees to apply for jobs in the company. c) Selection of the most qualified candidates for the open positions. (d) Orientation, induction, and placement. e) Transfers, promotions, layoffs, and terminations. f) Employee training and growth. Staffing is being accepted as a distinct function of management as the role of the human element in organisational effectiveness is increasingly recognised. It is hardly necessary to stress that no company can ever be better than its employees, and managers must treat staffing as seriously as any other role. Directing The role of directing is to inspire employees to perform well and contribute their full capacity to the achievement of organisational goals. Subordinates' roles must be explained and 72 CU IDOL SELF LEARNING MATERIAL (SLM)
clarified, they must be guided in their job performance, and they must be encouraged to contribute their best efforts with zeal and enthusiasm. The function of directing thus involves the following sub-functions (a) Communication (b) Motivation (c) Leadership Coordination The step of establishing such relationships among different parts of the organisation that they all pull in the same direction is known as coordination. As a result, it is the process of tying together all organisational decisions, operations, events, and actions in order to promote unity of action for the achievement of organisational goals. The importance of the coordinating phase has been appropriately illustrated by Mary Parker Follet. According to her, the manager should ensure that his organisation is “coordinated, so moving together in their tightly knit and adjusting operations, so connecting, interlocking, and interrelation, that they make a functioning unit, which is not a congeries of separate parts, but what I have called a functional whole or integrative unity.” Coordination, as a management function, involves the following sub-functions (a) Clear definition of authority-responsibility relationships (b) Unity of direction (c) Unity of command (d) Effective communication (e) Effective leadership Controlling Controlling is the process of ensuring that divisional, departmental, sectional, and individual results are in line with predetermined objectives and goals. Deviations from goals and strategies must be detected, investigated, and action taken to correct them. Managers receive input on deviations from plans and goals, and all other management processes, such as preparing, scheduling, hiring, directing, and managing, are reviewed and updated as appropriate. 73 CU IDOL SELF LEARNING MATERIAL (SLM)
Thus, controlling itself involves the following process (a) Evaluation of results in relation to predetermined objectives. (b) Identifying deviations from these objectives. c) Corrective action is taken to correct deviations. 6.7 ROLE OF A MANAGER Henry Mintzberg listed ten distinct positions, which he divided into three groups. The following are the categories that have been identified: Figure: 6.1 Role of a Manager a) Interpersonal Roles The ones that include people and other ceremonial duties, as the name implies. It can be further divided into the following categories: Leader – in charge of hiring, instruction, and other responsibilities. Figurehead – The organization's symbolic leader. Liaison – Ensures that all contacts and informers in the organization's network are kept in touch. 74 CU IDOL SELF LEARNING MATERIAL (SLM)
b) Informational Roles It has to do with gathering, receiving, and disseminating data. Track – Search and collect information individually in order to have a deeper understanding of the company. Disseminator – Disseminates any new knowledge obtained from outside sources to the organization's members. Spokesperson – Unlike the previous role, the manager in this role expresses the organization's strategies, policies, and actions to outsiders. b) Decisional Roles Roles that include making decisions. Entrepreneur – an individual who seeks out new opportunities. They basically look for improvement, respond to it, and profit from it. Negotiator – Attends big talks on behalf of the business. Resource Allocator – Makes or approves all major decisions on resource allocation. Disruption Handler – In charge of taking corrective measures when the company is interrupted. 6.8 MANAGEMENT PRINCIPLES Henry Fayol, also known as the \"Father of Modern Management Theory,\" revolutionised management theory. He presented a broad theory that can be applied at all levels of management and in any department. The Fayol theory is used by managers to coordinate and control an organization's internal activities. He centred on increasing managerial effectiveness. The fourteen management principles devised by Henri Fayol are outlined below. 1. Division of Work Henri believed that separating work in the workplace among workers would improve the product's quality. Similarly, he came to the conclusion that job division increases worker productivity, reliability, precision, and pace. This theory is applicable at both the administrative and technological levels of work. 2. Authority and Responsibility These are the two most important elements of leadership. The management's authority makes 75 CU IDOL SELF LEARNING MATERIAL (SLM)
it easier for them to function effectively, and their accountability makes them accountable for the work performed under their oversight or leadership. 3. Discipline Nothing can be done without discipline. It is the most important aspect of any project or management. The management role is made simpler and more thorough by good results and sensible interrelationships. Employees' good behaviour also aids in the smooth development and advancement of their professional careers. 4. Unity of Command This means that an employee can report to only one supervisor and obey his orders. When an employee is required to report to several bosses, a conflict of interest arises, which may lead to misunderstanding. 5. Unity of Direction All who is interested in the same activity should have a common purpose. This ensures that everyone in an organisation should have the same aim and motivation, making work simpler and achieving the set goal more quickly. 6. Subordination of Individual Interest This implies that an organisation should work together for the common good rather than for personal gain. To be subordinate to an organization's goals. This applies to a company's entire chain of command. 7. Remuneration This is crucial in terms of inspiring a company's employees. There are two types of remuneration: monetary and non-monetary. However, it should be in accordance with an individual's efforts. 8. Centralization The management or any authority in charge of the decision-making process of any organisation should be unbiased. This, however, is dependent on the organization's size. Henri Fayol emphasised the importance of maintaining a balance between hierarchy and power separation. 9. Scalar Chain 76 CU IDOL SELF LEARNING MATERIAL (SLM)
On this theory, Fayol emphasises that the hierarchy steps should be from top to bottom. This is necessary so that any employee knows who their immediate supervisor is and can contact them if necessary. 10. Order To have a positive work culture, an organisation should have a well-defined work order. More positive efficiency can be boosted by the positive environment in the workplace. 11. Equity All workers should be handled with dignity and on an equal footing. It is the manager's duty to ensure that no workers are discriminated against. 12. Stability If an employee feels safe in their work, they will give their best. It is the management's obligation to provide job protection to their workers. 13. Initiative Employees should be supported and encouraged to take action in the workplace by management. It will assist them in increasing their interest and increasing their value. 14. Esprit de Corps It is the duty of management to inspire and assist their workers on a regular basis. A good result and work climate can be accomplished by building trust and shared understanding. These 14 management concepts are useful for prediction, planning, decision-making, organisation and process management, control, and teamwork in an organisation. 6.9 FUNCTIONS OF MANAGEMENT The following are some of the most relevant management functions: 1. Planning: The primary role of management is planning. Nothing can be accomplished without forethought. Planning is the first step in writing a novel. In a nutshell, preparation means determining ahead of time what will be achieved in the near future. In the corporate world, the organisation must meet its goals. The organisation plans what will be achieved, 77 CU IDOL SELF LEARNING MATERIAL (SLM)
when it will be done, how it will be done, and by whom it will be done in order to achieve its goals. George R. Terry has rightly said “Planning is a constructive reviewing of future needs so that present actions can be adjusted in view of the established goal. It is deliberate conscious research used to formulate the design and orderly sequence of actions through which it is expected to reach objectives. Planning should take place before doing; most individual or group efforts are made by determining before any operative action takes place, what shall be done, where, how and who shall do it”. 2. Organising: Organizing is the method of separating work into groups or parts for optimal results. The organisation includes all of the resources required to complete the task. The company grew, and the organisation took on the task of establishing new divisions under various managers. As a result, the company splits the overall workload and coordinates all operations based on authority relationships. Furthermore, organising dictates each person's role within the organisation and the channels through which communication should flow. The manager will decide who should report to whom and how they should report. According to Henry Fayol, “Organisation is of two kinds, i.e., organisation of the human factor and organisation of the material factor. Organisation of the human factor covers the distribution of work to those who are best suitable along with authority and responsibility. Organisation of the material factor covers utilisation of raw materials, plant and machinery etc.” According to Knootz and O’Donnell, “Organising consists of conscious co-ordination of people towards a desired goal”. 3. Staffing: The selection and placement of skilled employees is part of the staffing function. In other words, staffing is the process of putting the right people in the right positions. Selection of suitable personnel, recruitment of those in need, retention of the brightest, retirement of the aged, performance assessment of all personnel, and fair remuneration of personnel are all facets of staffing. The good performance of the staffing role is critical to the success of any company. According to Harold Knootz and Cyril O’Donnell, “the managerial function of staffing involves manning the organisational structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure”. 4. Directing: The role of Direction begins the actual output of a job. The planning, organising, and staffing roles are all concerned with laying the groundwork for achieving organisational goals. The path, on the other hand, is concerned with teaching the staff how to 78 CU IDOL SELF LEARNING MATERIAL (SLM)
execute the tasks that have been assigned to them. Employee direction provides employee instruction, supervision, and encouragement. According to Joseph Massie, “Directing concerns the total manner in which a manager influences the action of his sub-ordinates. It is the final action of a manager in getting others to act after all preparations have been completed”. 5. Co-ordinating: The organising mechanism divides all events into groups or parts. Today, such a set of events is organised in order to achieve an organization's goals. Coordination complexity is proportional to the scale of the organisation. When the size of the organisation grows, the complexity of coordination grows as well. According to Knootz and O’Donnell, “the last co-ordination occurs when individuals see how their jobs contribute to the dominant goals of the enterprise. This implies knowledge and understanding of enterprise objectives”. 6. Motivating or actuating: Motivation is used to accomplish objectives. Inspiration includes increasing the pace at which a job is performed and improving worker willingness. An astute leader accomplishes this. Staff expect a comfortable working atmosphere, equal care, monetary or non-monetary rewards, direct contact, and a gentlemanly attitude. According to Earl P. Strong, “Motivating is the process of indoctrinating personnel with unity of purpose and the need to maintain a continuous, harmonious relationship”. 7. Controlling: The controlling role ensures that the goals accomplished are in line with the goals set out in advance. If there is a deviation, necessary corrective action will be taken. When an entity has a certain norm, regulation is very easy. Economy, versatility, comprehension, and adequacy of organisational requirements are all characteristics of a successful control system. Prof. Theo Haimann defines, “Control is the process of checking to determine whether or not, proper progress is being made towards the objectives and goals and acting, if necessary, to correct any deviation.” According to Henry Fayol, “control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and principles issued”. 8. Innovation: Innovation is the process of preparing people and organisations to adapt to changes in the business world. In the sector, adjustments are made on a regular basis. Consumers are pleased as a result of creativity. New material, new technologies, new manufacturing processes, new packaging, new product design, and cost reduction are all examples of innovation. 79 CU IDOL SELF LEARNING MATERIAL (SLM)
9. Representation: A manager must serve as a business delegate. Customers, manufacturers, government officials, banks, financial institutions, labour unions, and others are among the people he interacts with. Every manager has an obligation to maintain healthy relationships with others. 10. Decision-making: Every day, every employee of a company must make a number of decisions. Decision-making is essential for an organization's smooth operation. 11. Communication: The transfer of human thoughts, beliefs, or opinions from one person to another is known as communication. Workers are told what needs to be done, where it should be done, how it should be done, and when it should be done. Contact assists in work regulation and task planning. Planning, organising, staffing, directing, co-ordinating, motivating or actuating and controlling are the main functions of management. Innovation, representation, decision- making and communication are the subsidiary functions of management. 6.10 SUMMARY Management is both an art and a science; it is the art of getting things done by a group of people while effectively using available resources. In the market, there are eight ‘Ms.' Man, money, materials, machines, methods, inspiration, markets, and management are said to be among them. Management action is taken to effectively, economically, and efficiently use the organization's resources of men, equipment, capital, and materials. Henry Mintzberg defined ten distinct positions, which he divided into three classes. Interpersonal, informational, and decisional are the three forms. Planning, scheduling, staffing, directing, arranging, encouraging, controlling, innovation, representation, decision-making, and communication are all functions of management. 6.11 KEYWORDS Management: is the art and science of decision making and leadership. Factors of production: include land, labour, capital and entrepreneurs. 80 CU IDOL SELF LEARNING MATERIAL (SLM)
Innovation: New ideas are developed by the management and implemented in the organisation. Directing: is the function of leading the employees to perform efficiently. Leader: Responsible for staffing, training, and associated duties. Communication: helps the regulation of job and coordinate the activities. 6.12 LEARNING ACTIVITY 1. Ask two managers you know of how they learned about managing. Ask what kinds of books they might have read on management. Probe to what extent these books have helped them to manage. Also ask them how their job differs from that of public administrators. ___________________________________________________________________________ ___________________________________________________________________________ 6.13 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define the term, “Management”. 2. What is meant by Management? 3. Explain the functional areas of Management. 4. List the fourteen principles of management 5. Explain about interpersonal role of a manager. Long Questions 1. Enumerate the important functions of Management. 2. State the different Process of Management. 3. Discuss in brief the nature of Management. 4. Explain the Henry Fayol’s fourteen principles of management. 5. Explain the importance of management. 6. Discuss role of a Manager in detail. B. Multiple choice Questions 81 1. ________ is the art and science of decision making and leadership. a. Management b. Change management c. Total Quality Management CU IDOL SELF LEARNING MATERIAL (SLM)
d. None of these 2. A minimum of _______persons are essential to form a management. a. Two b. Four c. Six d. Seven 3. Management is both an ______. a. Art b. Science c. Art and science d. None of these 4. The fluctuations of business are ______ by the management a. Directs b. Stabilised c. Integrates d. All of these 5._______ is the most elemental and the most all-encompassing step of management process. a. Planning b. Organizing c. Controlling d. Directing 6.________transmits all import information received from outsiders to the members of the organization. a. Monitor b. Spokesperson c. Leader d. Disseminator 7.______ consists of conscious co-ordination of people towards a desired goal. a. Planning b. Organising c. Directing d. Staffing 82 CU IDOL SELF LEARNING MATERIAL (SLM)
Answers 1. (a) 2. (a) 3. (c) 4. (b) 5. (a) 6. (d) 7. (b) 6.14 REFERENCES Reference Books: R1, L M Prasad, “Principles and Practice of Management”, Sultan Chand & Sons, 20th Edition, New Delhi. R2 Vijaykumar Kaul, “Principles and Practice of Management”, Vikas Publishing House Pvt Ltd, New Delhi. Textbooks: T1, Harold Koontz, Heinz Weihrich, A Ramachandra Aryasri, 2004, “Principles of Management”, The McGraw-Hill publishers, T2, RSN Pillai & S Kala, 2013, “Principles and Practice of Management”, S. Chand Publication, New Delhi. 83 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 7: PLANNING Structure 7.0 Learning Objectives 7.1 Introduction 7.2 Meaning & Definition 7.3 Importance of Planning 7.4 Nature of Planning 7.5 Process of Planning 7.6 Purpose of Planning 7.7 Types of Planning 7.8 Summary 7.9 Keywords 7.10 Learning Activity 7.11 Unit End Questions 7.12 References 7.0 LEARNING OBJECTIVES After studying this unit, students will be able to: State the importance of planning Describe the nature of planning Identify the process of planning Explain the purpose of planning Classify the types of planning 7.1 INTRODUCTION The five basic managerial roles of planning, organising, staffing, leading, and controlling have already been introduced to readers. This is also the commonly recognised management philosophical structure. The most fundamental managerial role is planning. It is the mechanism by which managers identify their priorities and the strategies by which they will be accomplished. 84 CU IDOL SELF LEARNING MATERIAL (SLM)
By looking ahead into the future, estimating and analysing the future behaviour of the relevant environment, and assessing the enterprise's own desired position, management must prepare for long- and short-term future direction. Planning entails deciding the various types and quantities of physical and other resources to be obtained from outside sources, allocating these resources among competing claims in an efficient manner, and arranging for the systematic conversion of these resources into useful outputs. Goals and action statements are the two basic components of plans, as seen in the preceding discussion. Managers hope to reach a certain end state, such as deadlines and outcomes, by setting goals. Action statements are the measures that an entity takes to accomplish its objectives. Managers decide a course of action for achieving a particular target by planning, which is a deliberate and intentional act. To a planner, planning entails worrying about what needs to be done, who will do it, and how and when he will do it. It also entails reflecting on past events (retrospectively) as well as potential opportunities and challenges (prospectively). Planning includes assessing organisational strengths and limitations, as well as making choices on how to accomplish them. However, there are distinctions between decision-making and preparation. It is possible to make decisions without planning, but it is impossible to plan without making decisions. 7.2 MEANING & DEFINITION The process of planning involves bridging the difference between where we are now and where we want to be in the future. To put it another way, preparation entails looking ahead and comparing today's activities to future possibilities. “Planning involves selecting missions and objectives and the actions to achieve them; it requires decision making that is, choosing from among alternatives future courses of action.” It is, therefore, a rational approach to achieving pre-selected objectives. - Weihrich and Koontz \"Management planning involves the development of forecasts, objectives, policies, programmes, procedures, schedules and budgets\"- Louis A Allen Planning is deciding in advance what is to be done. When a manager plans, he projects a course of action, for the future, attempting to achieve a consistent, co-ordinated structure of operations aimed at the desired results\"- Theo Haimann. 7.3 IMPORTANCE OF PLANNING It is difficult to overstate the importance of planning in management. It is a crucial project management tool. The feasibility of the strategy is critical to the success of every business venture. 85 CU IDOL SELF LEARNING MATERIAL (SLM)
Let's take a look at five key points about the value of planning in management: 1. Resource Optimization Regardless of whether a corporation is a multibillion-dollar conglomerate or a bootstrapped start-up, it will still have limited capital. An organisation can't invest more than a certain amount of money. Also, the most powerful corporations strive to use their money wisely. As a result, most organisations' management stresses the importance of preparation. 2. Goal Setting Setting SMART targets is important for a company's success. The objectives should force everyone to move outside of their comfort zones and empower them to work hard. They must not, however, be difficult to achieve, or else they will fail. Organizations evolve by setting higher goals and strategizing how to achieve them. A well-crafted strategy will significantly boost a team's productivity. 3. Risk Management One of the most critical functions of planning is that it assists in risk control. Any company's ability to predict, deter, or handle threats and contingencies is critical. For example, to minimise the effects of the current pandemic, the government might make legislative changes. Alternatively, disturbances caused by the pandemic may render financial markets volatile. Businesses will solve such unexpected obstacles with the help of planning. While it is impossible to predict when the next major disruption will occur, you can schedule how the company will operate under each scenario and what processes, technologies, or investments will be required. 4. Fostering Corporate Culture and Team Spirit Organizations that recognise the value of planning often work to strengthen their human resource management and work culture. Employee performance is strongly influenced by an organization's work culture. Managers will create well-knit and self-sufficient teams with the skills and expertise to carry out their duties by preparing work effectively and thoughtfully. Such staff planning contributes to the team's and organization's overall performance. 5. Gaining an Edge Over Competitors Companies should use strategic planning to define their core competencies as well as areas that they need to improve in order to maintain their market place. Organizations may use 86 CU IDOL SELF LEARNING MATERIAL (SLM)
research-based planning to identify competitor vulnerabilities and transform them into growth opportunities. 7.4 NATURE OF PLANNING The following are some of the characteristics of planning: Planning focuses on achieving objectives Organizations are created with a particular objective in mind. The plans contain concrete targets as well as the tasks that must be done to meet the goals. As a result, preparation serves a function. Planning is ineffective unless it helps in the accomplishment of predetermined organisational objectives. Planning sets the groundwork for all other management roles. All other managerial duties are carried out in conjunction with the plans that have been drawn up. As a result, preparation takes precedence over other tasks. The primacy of preparation is another term for this. The numerous management functions are interconnected and equally significant. Planning, on the other hand, is the foundation for all other functions. Planning is pervasive All levels of management, as well as all divisions within the company, must prepare. It is not solely the responsibility of top management or any one agency. However, the complexity of preparation varies at various levels and across agencies. Top management, for example, is in charge of overall strategy for the company. Departmental preparation is done by middle management. Supervisors are in charge of day-to-day organisational preparation at the lowest level. Planning is continuous Plans are made for a particular time span, which may be a month, a quarter, or a year. At the end of the time frame, a new proposal must be created based on new criteria and future circumstances. As a consequence, preparation is a never-ending process. The planning period is linked to planning continuity. It implies that a strategy is formulated, introduced, and then followed by another strategy, and so on. Planning is futuristic Looking ahead and preparing for the future is the core of preparation. The aim of preparation is to efficiently meet future events to an organization's benefit. It entails looking into the future, analysing it, and making predictions about it. As a result, planning is viewed as a forward-looking function dependent on forecasting. Future events and conditions are predicted using forecasting, and preparations are made accordingly. Sales forecasting, for example, is the foundation upon which a company prepares its annual production and sales plan. 87 CU IDOL SELF LEARNING MATERIAL (SLM)
Planning involves decision making Choosing from a variety of options and events is the essence of planning. There is no need to prepare if there is only one potential target or course of action then there is no other choice. Only when there are no other choices does preparation become necessary. Planning, in fact, assumes the presence of alternatives. As a result, planning entails thoroughly examining and evaluating each choice before selecting the best one. Planning is a mental exercise Planning necessitates the use of the mind, which includes foresight, intelligent imagination, and good judgement. Since preparation decides the action to be taken, it is essentially an abstract practise of thought rather than doing. Planning, on the other hand, necessitates rational and organised thought rather than imagination or wishful thinking. To put it another way, planning thinking must be systematic and focused on the study of facts and predictions. 7.5 PROCESS OF PLANNING Figure: 7.1 Planning Process a) Perception of Opportunities While knowledge of an opportunity comes before actual planning and therefore isn't purely a part of the planning process, it is the true starting point for planning. It entails a tentative look at potential future possibilities and the opportunity to see them clearly and fully, as well as knowledge of where we stand in terms of our strengths and limitations, an awareness of why we want to overcome uncertainties, and a vision of what we hope to achieve. This 88 CU IDOL SELF LEARNING MATERIAL (SLM)
understanding is important for setting realistic goals. Planning necessitates a rational assessment of the situation. b) Establishing Objectives Establishing targets for the whole company and then for each subordinate unit is the first step in planning. The end points of what is to be achieved, where the primary focus is to be put, and what is to be accomplished by the network of tactics, regulations, procedures, laws, budgets, and programmes are defined by goals that determine the intended results. Enterprise priorities should guide the nature of all major plans, which, in turn, determine the goals of major departments by reflecting these goals. The priorities of major departments, in turn, govern the objectives of subordinate departments, and so on. However, if subdivision managers grasp the overall organisation objectives and the implied derivative targets, and if they are given the opportunity to contribute their ideas to them and to the setting of their own goals, the objectives of smaller divisions can be better framed. c) Considering the Planning Premises Establishing, obtaining agreement to use, and disseminating essential planning premises is another logical step in planning. These are factual forecast data, applicable basic policies, and existing business plans. Premises, then, are planning expectations – or, to put it another way, the planned operating environment of plans. This move leads to one of the most significant planning concepts. The more people who are responsible for planning understand and consent to use consistent planning premises, the more organised business planning can be. More than just basic population, price, cost, demand, industry, and other estimates are included in the planning premises. Since the future environment of plans is so complex, making assumptions about any aspect of the future environment of a plan would not be profitable or practical. Since agreement to use a specific set of premises is critical to coordinating preparation, it falls to managers, beginning at the top, to ensure that subordinate managers are aware of the premises on which they are supposed to prepare. It is not uncommon for chief executives of well-managed businesses to compel top managers with opposing opinions to settle on a collection of major premises that everyone will embrace through community deliberation. d) Identification of alternatives After the organisational goals have been clearly stated and the planning premises have been identified, the manager should make a list of as many potential options for achieving those 89 CU IDOL SELF LEARNING MATERIAL (SLM)
objectives as possible. This phase focuses on looking for and evaluating alternative courses of action, especially those that aren't immediately obvious. There is rarely a plan for which there are no logical alternatives, and most often the least apparent choice appears to be the best. The more common issue is not finding alternatives, but narrowing down the number of choices so that the most promising can be evaluated. Also, with the aid of mathematical techniques and computers, the number of alternatives that can be considered is restricted. As a consequence, the planner must typically minimise the number of alternatives through preliminary inspection to those that promise the most fruitful possibilities or by mathematically removing the least promising ones through a method of approximation. e) Evaluation of alternatives After locating alternative courses and evaluating their strengths and weaknesses, the next step is to assess them by weighing the different factors in light of the premises and objectives. One path may seem to be the most lucrative, but it will cost a lot of money and take a long time to pay off; another may be less profitable, but it will be less risky; and yet another may better suit the company's long–term goals. This assessment could be reasonably simple if the only target was to examine income in a particular sector immediately, if the future was not unpredictable, if cash position and capital availability were not troubling, and if most variables could be reduced to definite data. However, traditional preparation is fraught with complexities, capital shortage concerns, and intangible considerations, making assessment challenging even for relatively simple problems. A business may choose to enter a new product line solely for prestige reasons; the projected results forecast may indicate a clear financial loss, but the issue of whether the loss is worth the gain remains open. f) Choice of alternative plans The premises on which the alternatives are based must be tested as part of the alternative evaluation. Any premises are normally found to be irrational by a manager and are hence disqualified from further consideration. This reduction process aids the manager in determining which alternative is most likely to achieve organisational goals. g) Formulating of Supporting Plans Following the completion of decisions and plans, the final step in giving them significance is to numbered them by translating them to budgets. The sum total of an enterprise's revenue and expenses, as well as budgets for significant balance– sheet things like cash and capital expenditures, are represented in the overall budgets. Each department or programme of a company or other organisation may have its own budget, which is typically comprised of 90 CU IDOL SELF LEARNING MATERIAL (SLM)
expenses and capital expenditures and is linked to the overall budget. Budgets become a way of combining the different proposals, as well as critical benchmarks by which planning success can be calculated, if this step is performed correctly. h) Establishing sequence of activities Plans that provide the company with both long- and short-term guidance must be enforced once they have been established. Clearly, the company cannot benefit directly from the planning process until this phase is completed. 7.6 PURPOSE OF PLANNING Planning is important as a management function for the following reasons: 1. To manage by objectives: All of an organization's operations are planned to accomplish particular goals. Planning, on the other hand, makes the targets more concrete by concentrating attention on them. 2. To offset uncertainty and change: The future is full of unknowns and improvements. Planning anticipates the future and makes the requisite preparations. 3. To secure economy in operation: Planning entails determining the most profitable course of action that will yield the best outcome at the lowest expense. 4. To help in co-ordination: Coordination is the essence of management, and planning is the basis of it. It is impossible to coordinate an organization's various activities without planning. 5. To make control effective: The controlling role of management is concerned with comparing expected and real performance. In the absence of plans, a management would be unable to monitor the success of others. 6. To increase organizational effectiveness: Organizational performance alone isn't enough; it must also contribute to productivity and effectiveness. Planning allows the manager to assess the organization's success in relation to the specified goals and take further steps in that direction. 7.7 TYPES OF PLANNING Single-use and standing plans Before making any strategic decision or initiating any project, an organisation must first create a strategy. Depending on the use and duration of the planning period, plans can be 91 CU IDOL SELF LEARNING MATERIAL (SLM)
divided into many forms. Certain programmes have a limited time span and assist in the achievement of operational objectives. Single-use plans and standing plans are the two forms of plans available. Single-use Plan For a one-time event or project, a single-use plan is developed. Such a course of action is unlikely to be replicated in the future, i.e., it is intended for one-time use. The length of this plan may be determined by the project's nature. It could last a week or even a month. A project, such as planning an exhibition, a seminar, or a conference, may often be completed in a single day. Budgets, programmes, and initiatives are all part of these plans. They provide information such as the names of workers who are in charge of doing the work and contributing to the single-use plan. For example, a programme may involve defining the steps and procedures needed to open a new department to handle minor tasks. Projects and programmes are similar in nature and difficulty, but they are not the same. A budget is a declaration of expenditures, sales, and profits over a given period of time. Standing Plan A standing schedule is used for events that happen on a daily basis over time. Its aim is to ensure that an organization's internal operations run smoothly. This type of strategy significantly improves the efficiency of routine decision-making. It is normally created once and then updated as required to meet business requirements. Policies, processes, practises, and regulations are all part of a standing plan. Policies are broad categories of standing plans that define an organization's response to a specific situation, such as an educational institution's admission policy. Protocols specify the measures to be taken in specific cases, such as the protocol for documenting production progress. Methods describe how a job should be completed. Rules are very specific on what must be done, such as reporting for work at a specific time. Single-use and standing plans are part of the operational planning process. Other types of plans that aren't typically known as single-use or standing plans exist. For example, a strategy is a component of strategic planning or management. It is a strategic plan prepared by top management that identifies resource allocation, goals, and takes the market climate and competition into account. Top management typically sets the objectives, which act as a reference for overall planning. After that, each unit develops its own goals while keeping the overall organization's goals in mind. 92 CU IDOL SELF LEARNING MATERIAL (SLM)
Based on what the plans seek to achieve, plans can be classified as Objectives, Strategy, Policy, Procedure, Method, Rule, Programme, Budget. Objectives Setting goals is the first step in planning. As a result, objectives can be described as the desired future role that management aspires to achieve. The organization's objectives are described as the ends that the management seeks to achieve through its operations. As a consequence, a simple specified goal is what you want to accomplish, i.e., the end result of activities. For example, an organization's goal may be to increase revenue by 10% or gain a fair rate of return on investment, or make a 20% profit from business. They are the culmination of the planning process. All other managerial practises are aimed at achieving these targets as well. They are typically decided by the organization's top management and concentrate on large, general issues. They specify the desired future state of affairs for the organisation. They act as a roadmap for long-term business planning. Different divisions or units within a company may have their own goals. In the form of a written declaration of desired outcomes to be accomplished within a given time span, objectives must be articulated in concrete terms, i.e., they must be observable in quantitative terms. Features of Objectives 93 • The goals must be set in advance. • A well-defined goal gives managers a specific path on which to focus their efforts. • Ambitious goals must be set. • Observable goals are required. • Goals must be socially sanctioned. • All of the priorities are intertwined and mutually beneficial. • Short-term, medium-term, and long-term goals are all possible. CU IDOL SELF LEARNING MATERIAL (SLM)
• A hierarchy of priorities can be established. Advantages of Objectives Unified strategy is aided by a clear definition of priorities. People in the company are motivated by objectives. Unproductive tasks can be avoided when the job is goal-oriented. Goals create criteria that help in the management of human efforts in a business. Objectives help to define the entity and link it to the people and organisations that make it possible for it to exist. Priorities provide a solid base for creating administrative controls. Objectives are important in the management process because they affect the organization's mission, strategies, staff, leadership, and managerial control. Process of Setting Objectives The foundation of management planning is objectives. It is the most critical managerial job. Goals must be set in any sector that has a direct and significant impact on the company's sustainability and success. The following considerations should be made when setting goals. Management must set goals in any sector that has a direct and important effect on the company's sustainability and prosperity. The goals that must be set in different areas must be defined. Prior success must be measured when setting goals, as past performance predicts what the company will be able to achieve in the future. The targets should be set in practical terms, that is, they should be rational and achievable. The goals must be in sync with one another. Specific objectives must be defined. Effective communication is required for the successful achievement of the objectives. Management by Objectives (MBO) Peter Drucker popularised MBO in his book 'The Art of Management' in 1954. It is the method of reaching an agreement within an organisation so that management and staff 94 CU IDOL SELF LEARNING MATERIAL (SLM)
believe in and recognise the goals. It contains a detailed and written outline of the tasks ahead, as well as timelines for their motoring and completion. Employees and managers negotiate on what the employee can want to do in the coming months, and the employee accepts and buys into the goals. Definition “MBO is a process whereby the superior and the mangers of an organization jointly identify its common goals, define each individual’s major area of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.” Features of MBO 1. MBO is concerned with individual managers' and units' goal-setting and preparation. 2. MBO is a collaborative goal-setting mechanism between a supervisor and a subordinate. 3. Managers collaborate with their subordinates to set performance targets that are aligned with the organization's overall goals. 4. MBO focuses emphasis on relevant priorities and tactics. 5. MBO promotes control by allowing for the implementation and review of individual goals and plans on a regular basis. Steps in MBO 1) Setting objectives: Individual managers must consider their job's particular objectives and how they fit in with the overall company goals set by the board of directors for Management by Objectives (MBO) to be successful. Managers of different divisions, sub-units, or parts of an organisation should be aware of not only their unit's goals, but also actively engage in setting and taking responsibility for them. Individuals are given basic goals and priorities in Management by Goal (MBO) structures, and objectives are written down for each level of the company. Both for themselves, their units, and their organisations, managers must define and set goals. 2) Developing action plans Action plans detail the steps required to resolve each of the top organisational challenges and achieve each of the related goals, as well as who will complete each step and when they will be completed. Top-level management produces an overarching, top-level action plan that 95 CU IDOL SELF LEARNING MATERIAL (SLM)
demonstrates how each strategic target can be accomplished. The format of the action plan is dictated by the organization's goal. 3) Reviewing Progress Results are used to evaluate performance. The net effect of an employee's effort, as modified by skill, position perceptions, and results obtained, is referred to as job efficiency. The amount of energy spent by an employee when doing a job is referred to as effort. Personal attributes that are used in the performance of a job typically do not change significantly over short periods of time. Role perception refers to how workers feel they should focus their efforts on the job, and it is characterised by the actions and behaviours that they believe are needed. 4) Performance appraisal Employees receive feedback about how they are doing their work, and a plan for change is developed. Both the employee and the employer value performance appraisals since they are often used to provide predictive information about potential promotions. Person and organisational training and growth requirements can be determined with the help of appraisals. Performance appraisals inspire employees to develop their work. Employees receive feedback on their behaviour, attitude, ability, or knowledge, which clarifies the job expectations their supervisors have for them. Performance appraisals must be backed up by documentation and management commitment to be successful. Advantages Employee engagement – Engaging workers in the goal-setting process and growing employee empowerment. Employee work satisfaction and dedication grow as a result of this. Better communication and teamwork – Regular reviews and interactions between supervisors and subordinates assist in the maintaining of harmonious partnerships within the company as well as the resolution of a number of issues. Targets that are simple Subordinates are more committed to goals they set for themselves than to goals put on them by others. Managers should ensure that subordinates' goals are aligned with the organization's goals. Limitations 96 CU IDOL SELF LEARNING MATERIAL (SLM)
The assumptive foundation underlying the effect of managing by goals has many limitations, including: It stresses goal-setting over the execution of a strategy as a driver of results. It downplays the significance of the context or setting in which the targets are set. This background encompasses everything from resource availability and efficiency to leadership and stakeholder buy-in. Employers rated their workers by comparing them to the \"ideal\" worker. Employees should only be what they should be, not what they should do, according to trait assessment. Self-centered workers can be likely to distort outcomes when this strategy is not adequately set, decided upon, and handled by organizations, wrongly portraying achievement of goals that were set in a short-term, narrow manner. Managing by targets would be ineffective in this situation. Strategy A strategy outlines the general contours of a company's operations. It will also apply to long- term decisions that define the organization's course and reach. As a consequence, we can describe a strategy as a systematic plan for achieving an organization's target. Three dimensions will be included in this detailed plan: 1. Identifying long-term goals, 2. Choosing a clear course of action, and 3. Allocating the resources required to achieve the goal. The market environment must be taken into account whenever a strategy is developed. The strategy of an organisation will be affected by changes in the economic, political, social, legal, and technical environments. Typically, strategies are developed in the process of establishing an organization's identity in the business world. Significant strategic decisions will include whether the company will remain in the same line of business, merge new lines of operation with existing lines of business, or aim to gain a dominant position in the same market. A company's marketing policy, for example, must resolve some problems. • Who are the clients? 97 • Is there a need for the product? • Which distribution channel do you use? CU IDOL SELF LEARNING MATERIAL (SLM)
• Can you tell me about the pricing policy? Furthermore, • How will we market the product? These and other concerns must be addressed when developing a marketing plan for any company. Characteristics of Strategy • It's the correct balance of various variables. • It establishes a connection between the company and the community. • It is an action taken to meet a specific challenge, solve a specific problem, or achieve specific goals. • Strategy is a tool for achieving a goal, not a goal in and of itself. • It is produced at the highest levels of management. • It entails the acceptance of such measured risks. Strategic Planning Process 1. Input to the Organization: Various inputs (people, money, management and technical skills, among others) must be elaborated, as well as claimants' goals (employees, customers, vendors, stockholders, government, society, and others). 2. Industry Analysis: Developing a plan necessitates assessing an industry's attractiveness by examining the external climate. The form of compaction within a sector, the likelihood of new companies entering the market, the availability of alternative goods or services, the negotiating positions of suppliers and buyers or consumers, and the availability of substitute products or services should all be considered. 3. Enterprise Profile: Assessing where the business is and where it can go is normally started with an enterprise profile. The enterprise's basic objective is determined by top management, as is the firm's regional orientation. 4. Orientation, Values, and Vision of Executives: People, especially executives, shape the company profile, and their orientation and values are critical for strategy formulation. They establish the organisational environment and, through their vision, decide the firm's course. As a result, their beliefs, interests, and attitudes toward risk must all be carefully considered since they influence the strategy. 5. Mission (Purpose), Major Objectives, and Strategic Intent: The response to the question, \"What is our business?\" is the mission or intent. The main Objectives are the end goals at which the enterprise's activities are aimed. The determination (obsession) 98 CU IDOL SELF LEARNING MATERIAL (SLM)
to succeed in a competitive world, not only at the top but also across the organisation, is known as strategic aim. 6. Present and Future External Environment: Threats and opportunities in the present and future external environment must be evaluated. 7. Internal Environment: Research and development, manufacturing, administration, procurement, marketing, and goods and services should all be audited and assessed in terms of capital, weaknesses, and strengths. Human resources and financial resources, as well as the company's image, organisational structure and environment, planning and control system, and customer relations, are all internal factors. 8. Development of Alternative Strategies: Strategic alternatives are created based on an assessment of the external and internal environments. Specialize or focus are two techniques that can be used. Alternatively, a company can diversify by expanding into new and lucrative markets. Joint ventures and strategic partnerships are two other potential methods that could be suitable for certain businesses. 9. Evaluation and Choice of Strategies: Strategic decisions must be made in light of the risk involved in each decision. Some lucrative opportunities can be passed up because a risky venture's failure may lead to the company's bankruptcy. Timing is another important consideration when deciding on a plan. Even the best product will fail if it is released at the wrong time. 10. Medium/Short Range Planning, Implementation through Reengineering the Organization Structure, Leadership and Control: Reengineering the organisation, staffing the organisation structure, and providing leadership are also necessary for strategy execution. Controls that track results against plans must also be mounted. 11. Consistency Testing and Contingency Planning: The final step in the strategic planning process is to test for consistency and prepare contingency plans. TYPES OF STRATEGIES According to Michel Porter, the strategies can be classified into three types. They are a) Cost leadership strategy b) Differentiation strategy c) Focus strategy The following table illustrates Porter's generic strategies: 99 CU IDOL SELF LEARNING MATERIAL (SLM)
Figure: 7.2 Porters Generic Strategies a) Cost Leadership Strategy This general strategy involves becoming the industry's lowest-cost manufacturer for a given standard of quality. The business sells its goods at either above-average industry prices to outperform competitors or below-average industry prices to gain market share. In the event of a price war, the company will always make a profit as the competitor loses money. Even if there isn't a price war, as the market matures and prices fall, the businesses that can manufacture more cheaply will stay profitable for longer. A wide market is typically the goal of a cost leadership strategy. Firms can achieve cost advantages by improving process efficiencies, having exclusive access to a broad supply of lower-cost products, making optimal outsourcing and vertical integration decisions, or fully eliminating any costs. If competitors are unable to reduce their costs by the same amount, the company will be able to maintain a competitive edge by cost leadership. 100 CU IDOL SELF LEARNING MATERIAL (SLM)
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