Read the pdf titled “Porter five forces frmaework”
Types of Business organisation
Principles andPrinciples and
practices ofpractices of
Dr. Anugamini PriyaDr. Anugamini Priya
Symbiosis Institute of BusinessSymbiosis Institute of Business
Management, PuneManagement, Pune
“It is a systematic arrangement of people brought
together to accomplish some specific purpose.”
- Robbins and De Cenzo
What is organization???
And many more…!!
Decision making and implementation
Developing rules regulations and structure
An organization is an entity that has a
distinct purpose, has people or members,
and has a systematic structure
Getting the work done through and by others in order to
accomplish the common goals.
• Human beings are indeed inherently ‘unmanageable
• People not intending to get managed; resist being managed.
• Managers duty is to give instructions to employees in
tightly prescribed and limited areas of activity
• .managing people- means handling diverse human
behavior- grounded on social, economical and cultural
• Emphasis in managerial thinking and organisation
• Once a sensible and coherent system of operating has
been devised by systems designers- the people will
operate those systems unquestioningly fulfil their roles
in the systems.
• Issues of human self-expression and the universal
tendency of people to resist the power of others arises.
“Management of work”
• Willingness to ‘go along’ with the requirements of others or fit
into the demands of systems is tightly bounded.
• The most helpful starting point for any consideration of
organisational and managerial behaviour is the work tasks that
are to be carried out and the working relationships associated
with those tasks that are managed.
• It is tasks and relationships which are organised and ‘managed’,
not the people who carry out the tasks & have to be shaped, in a
relatively predictable and therefore relatively systematic way,
not systems as such.
Plan the event
1.Identify the unique idea to attract more people
2.Identify the budget and the sources
3.Assign duty to your team members
4.Prepare the plan and the advertisement.
• Management is defined as the creation and
maintenance of an internal environment in an
enterprise where individuals working together in
groups can perform efficiently and effectively towards
the attainment of group goals.
How to manage work in
• Deciding in advance what to do and how to do
• Connected with creativity and innovation
• Bridges the gap from we are and where we want to go.
• Involves making choices from the available alternative.
“ involves setting objectives and developing appropriate
courses of action to achieve these objectives.”
• ““Planning Is An Intellectual Process, The Conscious Determination OfPlanning Is An Intellectual Process, The Conscious Determination Of
Future Courses Of Action, The Base Of Decisions On Purpose, ActsFuture Courses Of Action, The Base Of Decisions On Purpose, Acts
And Considered Estimates”—And Considered Estimates”—
Koontz & O’DonnellKoontz & O’Donnell
• Management planning involves the development of forecasts,Management planning involves the development of forecasts,
objectives, policies, programmes, procedures, schedules desiredobjectives, policies, programmes, procedures, schedules desired
results”—results”— Louis A. AllenLouis A. Allen
• Planning is deciding in the present what to do in future. It is thePlanning is deciding in the present what to do in future. It is the
process whereby companies reconcile their resources with theirprocess whereby companies reconcile their resources with their
objectives and opportunities”—objectives and opportunities”—
`` `` Philip KotlerPhilip Kotler
Nature of the company
“Artificial person, existing only in the eyes of the law with
perpetual succession, having a separate legal identity and a
• Its birth life and death is regulated by the government.
• It can buy property
• It can take a loan
• It can do business in its own name
• It cannot marry or die
• It cannot be imprisoned but can be fined.
• Continues to exist regardless of the changes in the
• No effect on the death or retirement or insolvency of the
• Until deregistered, wound up and displayed.
Separate legal entity
• Separate from its members
• Its names different from that of its members
• Can be sued or can sue
• Cannot work as a natural person
• Common seal indicate the signature of the artificial
person i.e. the company
• No two seal are same.
Planning and the nature of business
Profit motive Reporting
• Restricts the right of members to transfer its shares;
• Has a minimum of 2 and a maximum of 200 members,
excluding the present and past employees;
• Does not invite public to subscribe to its share capital; and
• Must have a minimum paid up capital of Rs.1 lakh or such
higher amount which may be prescribed from time-to-
• Has a minimum paid-up capital of Rs. 5 lakhs or a higher
amount which may be prescribed from time-to-time;
• Is not a private company;
• Has a minimum of 7 members and no limit on maximum
• Has no restriction on transfer of shares; and
• Is not prohibited from inviting the public to subscribe to its
share capital or public deposits.
Types of public sector companies
• Departmental undertaking
Established as departments of the ministry
A part or an extension of the ministry itself.
An integral part of the functioning of the government.
Not been constituted as autonomous or independent institutions
Not an independent legal entities.
• Brought into existence by a Special Act of the Parliament.
• The Act defines its powers and functions, rules and
regulations governing its employees and its relationship
with government departments.
• Financially independent with a clear control over a
specified area or a particular type of commercial activity.
• Separate legal entity.
• Less govt interference.
• Airport Authority of India
• National Highways Authority of India
• LIC of India
• Reserve Bank of India.
• Established registered and governed under the Indian
Companies Act, 1956
• Established for purely business purposes and in true spirit
to compete with companies in the private sector.
• Company in which not less than 51 percent of the paid up
capital is held by the central/ state government.
• Shares purchased in the name of the president.
• Separate legal entity.
• Can raise money from the money market.
Characteristics of planning
1. Focus on realizing the objectives set
2. Intellectual process involving mental exercise
3. Selective as it selects the best course of action
4. Pervasive- at all the levels of management plan
5. Lays foundation of the successful actions of
6. It is flexible
7. It is Continuous
8. Efficiency is measured by what it contributes to the
6 P’s in planning
PURPOSE—Goals should be verifiable so that we can
PLANS—manager has to ascertain the goals, actions to
achieve goals, requirement of resources, sources of
POLICY—general guidelines on which management can
STEP 1 Determine situation
Determination of objectives is the first step in
The objectives so determined decide the future
course of action.
STEP 2 Establishment Of Planning Premises
Planning premises are the assumptions for future which
provide a framework for the planning process.
They form the very basis for action.
Business environments are uncertain.
• Controllable premises: factors like materials, money
and machine are controllable factors.
• Semi controllable: these are under partial control of a
business like labour relations and marketing strategy.
• Non controllable: which are beyond the control of any
organization like govt. policy, wars and natural
Planning Premises give a prediction about future
uncertainties of business environments.
On the basis of these forecasts are made and future
trends are indicated.
STEP 3 Selection of the Best Plan from the
All alternatives are found out, studied and evaluated.
After careful consideration of all the points one alternative
is selected and decision is taken according to the choice
STEP 4 Timing and Sequence of Operation
Timing is an essential consideration in any planning.
Sequence of operation is also arranged carefully. Priorities
STEP 5 Estimation of Future Events
Some estimation is made for future events.
There are trend studies which indicate possible future
Keeping some provision for margin of error, these trend
studies can be relied upon.
Experience, judgment and discretion also help in
estimating future events.
STEP 6 Follow Up Action
The plans so prepared are to be carried out.
Follow up action is also needed for seeing through the plan
during the course of implementation.
A regular follow-up action is both desirable and needed for
effective implementation and accomplishment of tasks
A written declaration of an organization's core purpose and
focus that normally remains unchanged over time.
Serve as filters to separate what is important from what is not,
Clearly state which markets will be served and how,
Communicate a sense of intended direction to the entire
• Conveys the unique purpose of the company
• Delimits the scope of activities that the company is or
will be, undertaking.
• Mission indicates the formal commitment to the vision
Apple’s mission statement
• Apple designs Macs, the best personal computers in the
world, along with OS X, iLife, iWork and professional
software. Apple leads the digital music revolution with
its iPods and iTunes online store. Apple has reinvented
the mobile phone with its revolutionary iPhone and App
store, and is defining the future of mobile media and
computing devices with iPad.”
Apple’s vision statement
We believe that we are on the face of the earth to make great
products and that’s not changing. We are constantly focusing on
innovating. We believe in the simple not the complex. We believe that
we need to own and control the primary technologies behind the
products that we make, and participate only in markets where we
can make a significant contribution. We believe in saying no to
thousands of projects, so that we can really focus on the few that are
truly important and meaningful to us. We believe in deep
collaboration and cross-pollination of our groups, which allow us to
innovate in a way that others cannot. And frankly, we don’t settle for
anything less than excellence in every group in the company, and we
have the self- honesty to admit when we’re wrong and the courage
to change. And I think regardless of who is in what job those values
are so embedded in this company that Apple will do extremely well.”
Difference- mission and vision
• A mission is different from a vision in that the former
is the cause and the latter is the effect;
• A mission is something to be accomplished whereas a
vision is something to be pursued for that
• Mission statement gives the basis for objectives.
• Quantified form of the goals i.e. the general statement of the
aim or the purpose.
• Represents the end point of the planning
• Directs management activities and the resources
• Helps in measuring the outcomes
• ‘The art of war’- Planning of movement of troops or ships
• A plan of action - Mediating force to match the organization and
• More concerned with external problems rather than internal
• To furnish a framework for more detailed tactical planning and
•Sub national or local
•Central bank lending rates
•Currency exchange rates
•Fiscal policy etc.
•Attitudes values beliefs
•Demography –age ,
•Social structure- income
•Hardware & Software
•IT and computing etc.
• Human resource –the people
• Organizational structure- flat/ hierarchy/ complexity
• Physical assets – funds, assets
• Financial health
• Management body
Winners recognize their limitations but focus on
their strengths; losers recognize their strengths
but focus on their limitations”
• S- Strength
• W – Weakness
• O- opportunities
• T- threat