E-LESSON-2

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M.B.A 2 All right are reserved with CU-IDOL MANAGEMENT PRACTICES AND ORGANISATIONAL BEHAVIOUR Course Code: MBA603 Semester: First SLM UNIT : 2 E-LESSON : 2 www.cuidol.in Unit-2 (MBA603)

MANAGEMENT AND ITS FUNCTIONS: 33 PLANNING OBJECTIVES INTRODUCTION Student will be able to :  In this unit we are going to learn about the  Understand the concept of Management and its Importance, Process; Types, Nature of Planning. functions .  Under this unit you will also understand the  Apply the Process of Planning in practicality . Importance, Process and Principles of  Analyze the Process and Principles of Organizing. Organizing.  Evaluate the various organizational Structures.  This Unit will also make us to understand the Line, Staff and Functional organizational structure. www.cuidol.in Unit-2 (MBA603) INASlTl ITriUgThEt aOrFeDreISsTeArNveCdE AwNitDh OCNUL-IIDNOE LLEARNING

TOPICS TO BE COVERED 4 > Introduction to Functions of Management > Meaning and Importance of Planning > Nature of Planning > Types of Planning > Process of Planning > Organising : Meaning & Importance > Principle of Organising > Process of Organising > Line, Staff and Functional organisational structure. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

INTRODUCTION TO FUNCTIONS OF MANAGEMENT 5  Management is an art of getting things done through others.  Management is to plan, organize, direct and control the resources of the organization for obtaining common objectives or goals.  It is related with resources like material, money, machinery, methods, manufacturing and marketing  The major functions of management are as follows: 1) Planning 2) Organising 3) Staffing 4) Directing 5) Controlling www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

PLANNING 6 Meaning of Planning : Planning is a fundamental management which means deciding before doing, What is to be done, When it is to be done, How it is do be done and who is going to do it.Planning involves the selection of the methods and alternatives which help us to achieve desired result. Definitions: According to ‘Koontz and O'Donnell’:- “Planning is an intellectual process, the conscious determinatory of courses of action, the basing of decisions on purpose, facts and considered estimates.” www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

IMPORTANCE OF PLANNING 7 Following are the Importance of Planning function:  Planning provides direction to the organization.  It reduces the risk of uncertainties.  It reduces overlapping and unwanted activities.  It helps in Decision Making.  It establishes standard of controlling.  It help the organization to be goal oriented.  It help to manage the time. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

NATURE OF PLANNING 8 Following are the nature of Planning function:  Planning is an intellectual process.  It determines the future course of action.  Primarily concerned with looking into future.  Involves selection of suitable course of action, means there are several alternatives for achieving objectives.  All levels are concerned with the determination of future course of action.  Planning is the initial step in all management functions.  Planning is flexible as future is uncertain.  Planning is a pervasive & continuous managerial function involving complex processes of perception, analysis, conceptual thought, communication, decision,& action. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

IMPORTANCE OF PLANNING 9 1. Planning provides economy in operation. 2. Planning provides basis for control in the organization. 3. Planning have unique contribution in all functions of management. 4. Planning secure unity of purpose & direct efforts. 5. It Promote Internal Co-ordination. 6. It results in more productivity. 7. It is helpful in forecasting as future is uncertain so one has to plan with insight skills. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

TYPES OF PLANS 10 www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

TIME HORIZON OF PLANS 11 www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

TIME HORIZON OF PLANS 12 LONG RANGE PLAN :  Long-range, or strategic, planning is a way to identify that what you want in the future and how you will plan to reach that goal . When you are looking at school buildings or curriculum, the components of the planning process are the same.  Firstly, a group need to collect the accurate information with the help of which planning can be done.  What is working till now? What are the issues? What are the outside factors so that it will not effect your future? The ones are a number of the questions that group individuals might want to reply which will outline a long-range plan. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

TIME HORIZON OF PLANS 13 INTERMEDIATE RANGE PLAN :  Genuinely, a plan is setting up targets and growing how satisfactory to obtain them. ... It may be a every day plan, weekly, or month-to-month plan. An intermediate-range plan generally looks one to three years ahead, while a long-variety plan entails outlining objectives and sports three or greater years within the future. SHORT RANGE PLAN:  Short range Plans usually practice to a specific time frame in which a particular series of operations might be carried out, assessed, and measured. The usual brief-variety plan will represent annual or semiannual operations with a short-term deliverable. Those short-time period plans cowl the specifics of each day-to-day operation. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

STEPS IN PROCESS OF PLANNING 14  Identification of problems & awareness of opportunities  Establishing Objectives  Establishing Planning Premises  Determining Alternative Courses  Selecting Ideal Courses of Action  Formulation of Derivative Plans  Provision for Follow-up Unit-2 (MBA603) All right are reserved with CU-IDOL www.cuidol.in

ORGANISING 15 All right are reserved with CU-IDOL Meaning of Organising  It refers to the process of defining and grouping the activities of an enterprise and establishing authority relationship among them.  Organising deals with the structural aspects of organisations. It aims at analysing roles and relationships so that collective efforts can be explicitly organized to achieve specific goal.  According to Pearce and Robinson : Organising is a “process of defining the essential relationships among people, tasks and activities in such a way that all the organisation's resources are integrated and coordinated to accomplish its objectives efficiently and effectively”. www.cuidol.in Unit-2 (MBA603)

IMPORTANCE OF ORGANISING 16  Ensure Optimum utilization of material resources and human efforts.  Adoption of New technology.  Facilitates growth and diversification  Increases the efficiency of management  Facilitate administration  Places proportionate importance to the various activities of the enterprise  Encourages creativity and initiative  Facilitates co-ordination. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

PROCESS OF ORGANISING 17 The following steps are involved in the process of organizing:  Determination of activities  Grouping of activities  Allotment of duties to specific person  Delegation of authority  Defining relationship  Coordination of various activities www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

LINE & STAFF ORGANISING 18  Line & staff organisation is combination of line organisation & staff organisation.  In which the term line refers to „doors‟.  Staff refers to „thinkers‟ these are parallel authorities.  The line authority is required to carry day to day functions.  The staff authority has advisory capacity as they are specialist in doing research & suggest the best ways & means of improving the performance of line executive.  It is necessary to have co-operation & co-ordination between these personnel.  Line personnel are related to production & staff carries on research planning, establishment of standards, recording of performance, legal advisor, etc. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

LINE & STAFF ORGANISING  It not only make daily work smooth but it also improves the action of working due to which 19 it become expensive which involves the higher administrative cost.  It reduces the burden of higher executives. The personal assistance relieve their superior & save valuable time. This helps them to concentrate on most important function.  It help to get the expert knowledge from various concerns.  It provides opportunity for training of employees to become specialist. A person, who is allowed to perform a particular task under the guidance of an expert in the field, will himself become an expert after adequate experience.  It makes possible unity of control. Line officers are responsible for end results and staff activities are connected with their department. Unity of control and responsibility is maintained at all levels.  It provides solutions to line problems. The staff specialist can undertake a problem arising in the line organisation. They devote full skill and knowledge for analysis.  Staff managers are more important. They have current knowledge of market situation. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

FUNCTIONAL ORGANISATION STRUCTURE  It is an organisation design that performs similar and related jobs together. 20 In functional structure, activities are grouped and departments are created on the basis of special functions to be performed .  For example : all the jobs related to production are grouped under Production department , regarding sales under sales department and so on.  Each major function of business is organized as a separate department.  All departmental head report to the coordinating heads.  The department may further divided into sections.  Grouping can also be done within the department on basis of specialization.  For example: the production department can be further divided into store department, quality control department etc. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

21 FLOW OF FUNCTIONAL ORGANISATION STRUCTURE www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

FUNCTIONAL ORGANISATION STRUCTURE 22  ADVANTAGES :  DISADVANTAGES :  Increase the Specialization of work  Less emphasis on overall organisation objectives.  Improve the efficiency of work  Problem in coordination  Helps in minimizing the cost  Conflict of interest  Better control and coordination  Inflexibility  Proper attention  Ease in Training Employees www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS 1) In a line Organisation which among the following will not work directly under the general manager? 23 A) Sales Manager C) Works manager B) Foreman D) Personnel manager 2) Which among the following is not a feature of accountability ? A) can be delegated C) unitary B) always upward D) should be specific standards 3) Organising is ................... C) None of these A) A remedy for all types of problems D) All of these B) ensure accurate forecasting 4) Which of the following does not follow the scalar chain A) Functional structure C) Formal organisation B) Divisional structure D) Informal organisation 5) Policies are ------ A) Short-range plan C) Long –range plan B) Medium –term plan D) All Answers : 1. (b) , 2. (a) , 3.(c) , 4.(d) , 5. (d) www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

SUMMARY  Planning is thinking before doing anything. 24 All right are reserved with CU-IDOL  Steps involved in the process of Planning are:  Identification of problems & awareness of opportunities  Establishing Objectives  Establishing Planning Premises  Determining Alternative Courses  Selecting Ideal Courses of Action  Formulation of Derivative Plans  Provision for Follow-up  There are three types of Plan i.e. Strategic, Tactical and operational plan.  Organising is the process of systematic grouping of activities , delegation of authority and responsibility which establish working relationship between the organisation and the employees to realize their mutual objectives. www.cuidol.in Unit-2 (MBA603)

SUMMARY 25  The steps involved in the process of organising function are :  Determination of activities  Grouping of activities  Allotment of duties to specific person  Delegation of authority  Defining relationship  Coordination of various activities  Line & staff organising : Line personnel are related to production & staff carries on research planning, establishment of standards, recording of performance, legal advisor, etc.  Functional organisation structure: Activities are grouped and departments are created on basis of specified functions to be performed. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTIONS 26 Q 1. Enumerate the various steps involved in the process of Organizational function. Ans:The steps involved in the process of organising function are :  Determination of activities  Grouping of activities  Allotment of duties to specific person  Delegation of authority  Defining relationship  Coordination of various activities For further details Refer to SLM. Q 2. Critically analyze the steps of planning process. Ans:The steps involved in the process of Planning are :  Identification of problems & awareness of opportunities  Establishing Objectives  Establishing Planning Premises  Determining Alternative Courses  Selecting Ideal Courses of Action  Formulation of Derivative Plans  Provision for Follow-up For further details Refer to SLM. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

REFERENCES 27  Robbins P Stephen, Organizational Behaviour, 15thedition, Prentice Hall, New Delhi.  Koontz – Principles of Management (Tata McGrew Hill, 1st Edition2008)  Robbins & Caulter – Management (Prentice Hall of India, 8thEdition)  Aswathappa K, Organizational Behavior, Himalaya Publishing House, Mumbai  Luthans Fred, Organizational Behaviour, McGraw Hill Book Co, New Delhi.  Prasad L M, OrganisationalBehaviour, Sultan Chand Publications. www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL

28 THANK YOU For queries Email: [email protected] www.cuidol.in Unit-2 (MBA603) All right are reserved with CU-IDOL