“Planning is deciding the
best alternative among others to
perform different Managerial
operations in order to achieve
the predetermined goal.”
Planning is chalking out
plan of action, i.e. the result
envisaged in the line of action to
be followed, the stages to go
NATURE OF PLANNING
Planning is goal oriented.
It is an intellectual process.
It is forward looking.
It is pervasive.
It is primary function of management.
It is selective in nature.
It enables to face the risk.
It is a continuous process.
It improves the efficiency.
POEM ON PLANNING
I keep six honest serving men,
They taught me all I know,
Their names are what, where and when,
And how and why and who.
A learning organization is the term given to a
company that facilitates the learning of its members
and continuously transforms itself.
Learning organizations develop as a result of the
pressures facing modern organizations and enables
them to remain competitive in the business
A learning organization has five main features
Learning in organization
“A successful company is one that can learn effectively”
- Arie de Geus
Learning is essential for an organization to adapt, improve
We are all conditioned to learn from the obvious
consequences of our actions.
We do not touch the hot stove again after the first try.
We are also conditioned to identify obvious problems and
apply quick solutions.
Quick solutions do not always address the root issue and
often lead to unintended consequences in other parts of the
system or organization.
TYPES OF LEARNING
There are three types of organizational learning:-
Triple- loop learning.
TYPES OF LEARNING
Single-loop learning: Occurs when errors are detected
and corrected without modifying a firm’s existing policies,
goals, or assumptions.
Double-loop learning: Occurs when errors are detected
and corrected such that a firm’s existing policies, goals,
and/or assumptions are called into question and challenged.
Triple-loop learning: Occurs when firms learn how to
effectively carry out single- and double-loop learning. This
requires identifying the various factors (both individual and
organizational) that help to facilitate organizational learning.
With triple-loop learning, firms “learn how to learn.”
STEPS IN LEARNING ORGANIZATIONS
Establishing verifiable goals.
Establishing planning premises.
Deciding the planning period.
Finding Alternative course of action.
Selecting a course of action.
Developing a derivative plan.
Measuring and controlling the progress.
MBO (MANAGEMENT BY OBJECTIVE)
Management by objective(MBO) is a systematic and
organized approach that aims to increase organizational
performance by aligning goals and subordinate
objectives throughout the organization.
It allows management to focus on achievable goals and to
attain best possible results from available resources.
One of the concepts of MBO is that all mangers should
participate in the strategic planning process for better
implementation of plans. It includes ongoing tracking
and feedback in the process to reach objectives.
Origin of the MBO concept
MBO was first outlined by Peter Druker in
1954 in his book “The Practice of
MBO has been accepted in many
Basic Principles of MBO
Unity of management action is ,more likely to occur
when there is pursuit of a common objective.
The greater the focus on results on a time scale, the
greater likelihood of achieving them.
The greater the participation in setting meaningful work
with accountable results , the greater the motivation for
completing it. These call for:
Application of MBO
The MBO concept is appropriate for knowledge-
based enterprises where staff is competent.
Appropriate in situation where one wishes to build;
Employees management and self-leadership skills
And tap their creativity, tact knowledge and
Used by chief executives of multinational
corporations for their country managers abroad.
Advantages of MBO
Better utilization of resources.
Development of personnel.
Better team work.
Concentration on Key Result Areas.
Sound Organizational Structure.
MBE (Management by Exception)
What is MBE?
• Management by Exception (MBE) is a "policy by which
management devotes its time to investigating only those
situations in which actual results differ significantly from
planned results.’’- Frederick Winslow Taylor.
• Attention and priority is given only to material deviations
requiring investigation and correction. It is a part of
motivational and control techniques.
• Its objective is to facilitate managements focus on
Process of MBE
Identifying and specifying Key Result Areas.
Setting standards and outlining permissible
Comparing actual results with the standards
Computing and analyzing deviations.
Identifying non - permissible, that is, critical
Strategizing and taking corrective actions
Significance of MBE
• Proper and timely decision making and appropriate
flow of action and employees’ activities.
• Better utilization of managers’ time by bringing to their
attention only those conditions that appear to need
• Easy identification of discrepancies.
• Benefit to customers since MBE makes it easier for the
business to grow and improve its service rather than use
valuable resources on routine tasks.
Planning premises means systemic
and logical estimate for future factors
Planning premises are the
assumptions providing a background
against which the estimated events
Affecting the planning take place-
CLASSIFICATION OF PLANNING PREMISES
Internal and External Premises.
Tangible and Intangible Premises.
Controllable and Non-controllable Premises.