MCOB UNIT II.pptx

KGiSL Institute of Technology
(Approved by AICTE, New Delhi; Affiliated to Anna University, Chennai)
Recognized by UGC, Accredited by NBA (IT)
365, KGiSL Campus, Thudiyalur Road, Saravanampatti, Coimbatore – 641035.
Department of Management Studies
Name of the Faculty : Ms.D.Alamelu
Subject Name & Code : BA4102 / MANAGEMENT CONCEPTS AND ORGANIZATIONAL BEHAVIOR
Branch & Department : MBA
Year & Semester : 2022 / I
Academic Year :2022-23
BA4102/PEC/I MBA/I SEM/KG-KiTE

SYLLABUS
UNIT II PLANNING AND ORGANISING
Planning - Steps in Planning Process - Scope and Limitations -
Forecasting and types of Planning - Characteristics of a sound Plan -
Management by Objectives (MBO) - Policies and Strategies - Scope
and Formulation - Decision Making - Types, Techniques and
Processes.
Organisation Structure and Design - Authority and Responsibility
Relationships - Delegation of Authority and Decentralisation -
Interdepartmental Coordination - - Impact of Technology on
Organisational design - Mechanistic vs Adoptive Structures - Formal
and Informal Organisation.Control: meaning, function, Process and
types of Control.

Course Outcomes
CO 2 Summarize the various functions of management in a real time management context..
K3 Level

WHAT IS PLANNING?
 Managerial function that involves:
 Defining the organization’s goals
 Establishing an overall strategy for achieving those goals
 Developing plans for organizational work activities.
 Concerned with both ends (what’s to be done) and means( how it’s to
be done)

Definitions
• According to Alford and Beatt, “Planning is the thinking process, the organized
foresight, the vision based on fact and experience that is required for intelligent
action.”
• According to Billy E. Goetz, “Planning is fundamentally choosing and a planning
problem arises when an alternative course of action is discovered.”
• According to Allen, “A plan is a trap laid to capture the future.”

Nature and Purpose of Planning
• Planning is an Intellectual Process
• Planning contributes to the objectives
• Planning is a Primary Function of Management
• Planning is a Continuous Process
• Planning Pervades Managerial Activities

VIDEO
• Will you give up if
your plan fails like
this again and
again ?

Why Do Managers Plan?
• Purposes of Planning
Provides direction
Reduces uncertainty
Minimizes waste and redundancy
Sets the standards for controlling

ELEMENTS /STAGES OF PLANNING
• Strategic planning
• Tactical planning
• Operational planning

TYPES/ELEMENTS /STAGES OF PLANNING
• Strategic planning
Establishes master plans that shape the destiny of the
firm.

Tactical planning
Translates strategic plans into specific goals and
plans that are most relevant to a particular organizational
unit.

Operational planning
Identifies the specific procedures and actions required at
lower levels in the organization.

Make Contingency Plans
A contingency plan is an alternative plan to be used if the
original plan cannot be implemented or a crisis develops.

Types of Plans

Types of Plans
• Strategic Plans
Apply to the entire organization.
Establish the organization’s overall goals.
Seek to position the organization in terms of its environment.
Cover long time period.
• Operational Plans
Specify the details of how the overall goals are to be achieved.
Cover short time period.

Types of Plans
• Long-Term Plans
-Plans with time frames extending beyond three years
• Short-Term Plans
-Plans with time frames on one year or less
• Specific Plans
-Plans that are clearly defined and leave no room for interpretation
• Directional Plans
-Flexible plans that set out general guidelines, provide focus, yet
allow discretion in implementation.

Types of Plans
• Single-Use Plan
-A one-time plan specifically designed to meet the need of a unique
situation.
• Standing Plans
-Ongoing plans that provide guidance for activities performed
repeatedly.

IMPORTANCE & ADVANTAGES
• Planning minimizes uncertainties
• Planning facilitates management by objective
• Planning facilitates co-ordination
• Planning improves employee’s moral
• Planning helps in achieving economies
• Planning facilitates controlling
• Planning provides competitive edge
• Planning encourages innovations
• Makes control effective
• Delegation is facilitated

Limitations
• Rigidity
• Costly Process
• Limited Scope
• Influence of external factors
• Non-availability of data
• People's resistance

Forecasting
• All planning involves making forecasts, or predicting future events.
• Forecasting is important because if a manager fails to spot trends and react to them
before the competition does, the competition can gain an invaluable edge.

FORECASTING
• Forecasting is analysis and clarification of a state of future
regarding the operations.
• In the process of forecasting, information from both past and
present and also facts are taken into consideration to foresee
future events.
• Forecast helps us to look forward to predetermining trends and
events of the future

Characteristics of a sound plan
• It should be based on clearly defined objectives
• It must be simple and easily understandable
• It should be flexible or adaptable to changing conditions
• It should provide standards for the evaluation of performance and actions
• It should be economical i.e., permit optimum use of available resources before
creating new authorities and new resources.
• It should be practicable or feasible and unambiguous. Apian should be precise as to
its nature and scope.
• It should provide for proper analysis and classification of actions

Planning Process

STEP 1 :Define the Present Situation
Defining the present situation includes measuring success
and examining internal capabilities and external threats.

STEP 2 : Establish Goals and Objectives
To establish goals and identify objectives that
contribute to the attainment of goals.

STEP 3 : Analyze the Environment to Forecast Aids and
Barriers to Goals and Objectives
As an extension of defining the present situation, the
manager or other planner attempts to predict which
internal and external factors will foster or hinder
attainment of the desired ends.

STEP 4 : Develop Action Plans to Reach Goals and Objectives
An action plan consists of the specific steps necessary
to achieve a goal or objective.

STEP 5 : Develop Budgets
Planning usually results in action plans that require
money to implement. Among the expenses would be
larger advertising and promotion budgets geared to
younger people and women.

STEP 6 : Implement the Plans
If the plans developed in the previous five steps are to
benefit the firm, they must be put to use. A frequent
criticism of planners is that they develop elaborate
plans and then abandon them in favor of conducting
business as usual.

STEP 7 : Control the Plans
Planning does not end with implementation, because
plans may not always proceed as conceived. The
control process measures progress toward goal
attainment and indicates corrective action if too much
deviation is detected.

VIDEO
• East Village 2016 Master Plan Animation

MCOB UNIT II.pptx

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