The document discusses the four main managerial functions of planning, organizing, leading, and controlling. It focuses on planning and controlling. Planning involves setting goals and developing plans to achieve those goals at different levels from mission down to operational. Controlling monitors performance against goals and standards and makes corrections when needed. Key elements of controlling discussed are feedback control models, balanced scorecards, and performance dashboards.

1. Managerial Functions
Planning and Controlling
Dr. Amali Wijekoon
Dept. of MOT

3. The four managerial functions
• Planning
• Defining goals for future organisational performance and deciding on the
tasks and resource use needed to attain them
• Organising
• Assigning tasks, grouping tasks into departments and allocating resources to
departments
• Leading
• The use of influence to motivate employees to achieve organisational goals
• Controlling
• Monitoring employees’ activities, keeping organisation on track towards its
goals and making corrections as needed

4. 1. Planning function
• Planning is setting goals for future organisational performance and
determining a course of action for achieving those goals
• Setting goals (what we want to achieve)
• Developing plans (how we achieve it)

5. Goals and goal setting
• A goal is a desired future state (condition or circumstance) that the
organisation attempts to realise
• Goals define and state the purpose of existence
• Goals specify future ends and plans specify today’s means

6. Plan
• A plan is a blueprint specifying the
resource allocations, schedules,
tasks, and other actions necessary for
attaining goals

11. Levels / types of goals and plans

13. Example

14. Cont’d
• Mission – organisation’s reason for existence
• Mission statement – a broadly stated definition of the organisation’s
basic business scope and operations that distinguishes it from similar
types of organisations
• Strategic goals – broad statements of where the organisation wants to
be in future, they pertain to the whole organisation, rather than to
specific divisions or departments
• Strategic plans – the action steps by which an organisation intends to
attain its strategic goals

15. Cont’d
• Tactical goals – goals that define the outcomes that major divisions
and departments must achieve in order for the organisation to reach
its overall goals
• Tactical plans – plans designed to help execute major strategic plans
and to accomplish a specific part of the organisation’s strategy
• Operational goals – specific, measurable results expected from
departments, work groups, and individuals with the organisation
• Operational plans – plans developed at the organisation’s lower levels
that specify action steps towards achieving operational goals and that
support tactical planning activities

16. Hypothetical example (Unilever)
• Strategic goal
• Double organisation’s revenue by the year 2030
• Tactical goals
• Introduce two new personal care brands by next year
• Increase sales in each division by 10% next year
• Reduce cost in each division by 5% next year
• Operational goals
• Process 150 sales applications each week
• Achieve 90% deliveries on time
• Reduce overtime by 10% next month

17. Operational planning and KPIs
• Characteristics of effective goals
• Specific and measurable
• Defined time period
• Cover key result area
• Challenging but realistic
• Linked to rewards
• Key Performance Indicators (KPIs)
• Focused set of important metrics
that describe the organisation’s
performance in delivering its
strategy

18. Planning in turbulent environment
• Contingency planning
• Scenario planning
• Crisis planning

19. Role of planning in BPM
• Any BPM project starts with a goal
• Reduce customer waiting time by 10%
• Identify non value adding activities in the manufacturing process
• Reduce loan processing time from 10 days to 5 days
• Strategic alignment of BPM project goals is important
• Developing metrics / KPIs

20. 4. Controlling function
• Organisational control refers to the systematic process through which
managers regulate organisational activities to make them consistent
with expectations established in plans, targets, and standards of
performance
• Controlling requires information about standards and actual
performance, as well as actions taken to correct any deviations from
the standards
• Managers must decide what information is essential, how they will
obtain that information, and how they can and should respond to it.
• Having the correct data is essential

21. Feedback control model

22. The balance scorecard
• The balanced scorecard is a comprehensive management control
system that balances traditional financial measures with operational
measures relating to a company’s critical success factors
• A balanced scorecard contains four major perspectives
• financial performance
• customer service
• internal business processes
• organisation’s capacity for learning and growth
• Within these four areas, managers identify the key performance
metrics the organisation will track

24. Performance dashboards
• People need a way to see how plans are progressing and gauge their
progress towards achieving goals
• Companies began using business performance dashboards as a way
for executives to keep track of key performance metrics / KPIs (such
as sales in relation to targets, or percentage of customer service calls
resolved within specified time periods)
• Dashboards have evolved into organisation-wide systems that help
align and track goals across the enterprise