Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
5/17/2024 1
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations
Management), PhD(Power Electronics)
Email: vineethkumar.pk_eee@svcengg.edu.in
Mobile: 9746738675
2.
Syllabus
• Management: Natureand Functions of Management –
Importance, Definition, Management Functions, Levels
of Management, Roles of Manager, Managerial Skills,
Management & Administration, Management as a
Science, Art & Profession (Selected topics of Chapter 1,
Text 1).
• Planning: Planning-Nature, Importance, Types, Steps and
Limitations of Planning; Decision Making – Meaning,
Types and Steps in Decision Making (Selected topics
from Chapters 4 & 5, Text 1).
5/17/2024 2
3.
Definition of management
•Definition 1: F.W. Taylor
Management is an art of knowing what to do, when to do, and
see that it is done in the best and cheapest way.
• Definition 2: Harold Koontz
The process of designing and maintaining an environment in
which the individuals working in groups efficiently employ
resources and accomplish the selected goals of self and the
organisation.
“Management is an art of getting things done through and
with people in formally organised groups”
5/17/2024 3
4.
• Management isthe process of planning, organizing, directing,
and controlling resources (such as human, financial,
technological, and physical) to achieve organizational goals
effectively and efficiently.
• It involves coordinating and overseeing the activities of
individuals or groups within an organization to ensure that they
are working towards common objectives in a coordinated and
coherent manner.
• Management encompasses various functions, including
decision-making, problem-solving, delegation, communication,
and leadership, aimed at optimizing resources and achieving
desired outcomes.
5/17/2024 4
Definition of management
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Importance of Management
5/17/2024 6
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 2
7.
Importance of Management
Ithelps in achieving group goals : Team work,
future expansion etc.
Optimum utilisation of resources : Trade-off
between maintaining the brand name and the
service quality and hiring in advance and bearing
the cost.
Reduces the cost: maximum results by using
minimum input through proper planning.
5/17/2024 7
8.
Establishes soundorganisation: smooth and
coordinated functions.
Establishes equilibrium : It enables the organisation to
survive in a changing environment.
Essentials for prosperity of society : Efficient
management leads to better economical production
and also increases the economic, social, avoids wastage
of scarce resources ,and general welfare of the people.
5/17/2024 8
Importance of Management
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Management Functions
5/17/2024 10
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 3
11.
Management Functions
• Managementfunctions refer to the
fundamental activities that managers perform
in organizations to achieve organizational
goals effectively and efficiently.
• Management functions: planning,
organizing,staffing, leading, and controlling.
5/17/2024 11
12.
Planning:
• Planning involvessetting goals and objectives for the
organization and determining the most appropriate course of
action to achieve them.
• This function involves analyzing the current situation,
forecasting future trends, and developing strategies to guide
the organization towards its desired outcomes.
• Planning helps managers anticipate potential challenges and
opportunities, allocate resources effectively, and establish a
framework for decision-making.
5/17/2024 12
Management Functions
13.
Organizing
• Organizing involvesarranging resources, such as
people, materials, and equipment, in a structured
manner to achieve the organization's objectives.
• Organizing ensures that resources are allocated
efficiently, tasks are divided appropriately, and
workflows are streamlined to facilitate goal
attainment.
5/17/2024 13
Management Functions
14.
Staffing
• This involvesrecruiting, selecting, training, and
developing qualified employees.
• Managers need to assess staffing needs,
identify potential candidates, and create a
positive work environment to retain top talent.
5/17/2024 14
Management Functions
15.
Leading
• Leading, alsoknown as directing, involves influencing
and motivating people to work towards the
organization's goals.
• This function requires managers to provide guidance,
support, and encouragement to employees, foster a
positive work environment, and facilitate collaboration
and teamwork.
• Leading also involves making decisions, resolving
conflicts, and communicating effectively.
5/17/2024 15
Management Functions
16.
controlling
• Controlling involvesmonitoring performance,
comparing actual results against planned
objectives, and taking corrective action when
necessary to ensure that goals are achieved.
• Controlling helps managers maintain
accountability, improve efficiency, and enhance
overall organizational effectiveness.
5/17/2024 16
Management Functions
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Levels of Management
5/17/2024 18
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 4
19.
Levels of Management
•Management is typically divided into three main
levels within an organization: Top-Level
Management (Strategic Management), Middle-
Level Management (Tactical Management), and
Front-Line Management (Operational
Management)
5/17/2024 19
20.
Top-Level Management (StrategicManagement)
• Top-level management consists of executives, such as
CEOs, presidents, and vice presidents, who are
responsible for setting the overall direction and
vision of the organization.
• They are responsible for the organization's survival
and growth in the larger market environment.
5/17/2024 20
Levels of Management
21.
Middle-Level Management (TacticalManagement)
• Middle managers act as a bridge between top management
and lower-level management.
• They include department heads (marketing, finance, HR,
etc.), regional managers, and branch managers.
• Their key responsibilities involve translating top-level
strategies into actionable plans for their specific departments.
• They oversee day-to-day operations, manage budgets,
allocate resources, and motivate their teams to achieve
departmental goals.
5/17/2024 21
Levels of Management
22.
Lower Level Management(Operational Management)
• Front-line management comprises supervisors, team leaders, and
forepersons who are directly responsible for overseeing the day-
to-day operations and activities of frontline employees.
• Their primary focus is on executing the plans and strategies
established by top and middle-level management, ensuring that
tasks are completed on time, and quality standards are met.
• Front-line managers are involved in assigning tasks, scheduling
work, monitoring performance, and providing feedback and
coaching to employees.
• They play a crucial role in maintaining productivity, managing resources
efficiently, and resolving operational issues at the operational level.
5/17/2024 22
Levels of Management
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Roles of Managers
5/17/2024 24
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 5
25.
Roles of manager
Managersplay several crucial roles within organizations, helping to
ensure that goals are achieved, resources are effectively utilized, and
teams are motivated and productive.
• Planning: Managers are responsible for setting goals and developing
strategies, analyzing the current situation, forecasting future trends, and
creating plans to guide the organization towards its objectives.
• Organizing:Managers organize resources, including people, materials, and
finances, to effectively execute plans. to ensure that resources are
allocated efficiently and tasks are carried out effectively.
5/17/2024 25
26.
• Leading: Managersprovide leadership to their teams, motivating
and guiding employees towards common goals. setting a vision,
communicating expectations, and inspiring team members.
• Staffing:Managers are involved in staffing activities, such as
recruiting, selecting, and training employees . To ensure right
people are in the right roles.
• Coordinating: Managers coordinate the activities of different
individuals and departments within the organization to ensure
that everyone is working towards the same objectives. facilitating
communication, resolving conflicts, and integrating efforts across
teams.
5/17/2024 26
Roles of manager
27.
• Controlling: Managersmonitor progress towards goals and take
corrective actions when necessary. To measure performance,
analyzing variances, and implementing changes to keep the
organization on track.
• Decision-making:They gather information, evaluate options, and
choose the best course of action to achieve desired outcomes.
• Problem-solving: Analyzing issues, generating solutions, and
implementing effective problem-solving strategies.
• Communication: Managers serve as communication channels
between different levels of the organization, conveying information,
goals, and expectations to employees and stakeholders.
5/17/2024 27
Roles of manager
28.
• Development: Managersfocus on the development of their
employees, providing feedback, coaching, and opportunities for
learning and growth. They help employees develop their skills and
capabilities to perform their current roles and prepare for future
responsibilities.
• Coaches and Mentors: Managers play a crucial role in helping
their team members develop their skills and grow in their careers.
This involves providing coaching, mentorship, and opportunities for
professional development.
• Representatives: Sometimes, managers represent their team or
department in meetings or other interactions with other parts of the
organization or with external stakeholders.
5/17/2024 28
Roles of manager
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Managerial Skills
5/17/2024 30
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 5
31.
Managerial Skills
• Threeimportant skills: Conceptual skills,
human relation skills, and technical skills.
• Conceptual skills and technical skills are
needed for decision making.
• Human relation skills are needed for
leadership.
5/17/2024 31
32.
(1)Conceptual skills: Abilityto think, analyse the
working condition, and the ability to
conceptualise.
(2)Human relation skills: recognise feeling and
sentiments, & judge possible reactions.
(3)Technical skills: Understand the nature of job
Eg. Production techniques
5/17/2024 32
Managerial Skills
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Management and
Administration
5/17/2024 35
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 6
36.
Management & Administration
•Administration focuses on the implementation
and coordination of activities within an
organization.
• Management involves the broader aspects of
planning, organizing, leading, and controlling
to achieve organizational objectives.
5/17/2024 36
37.
• Management involvesguiding, directing, and
leading employees toward achieving
organizational goals.
• Administration involves establishing policies,
rules, and regulations that guide the actions of
employees and ensure organisational
efficiency.
5/17/2024 37
Management & Administration
38.
• Manager isthe key person in the case of management.
• Administrator is the key person in the case of
administration.
• Management is more dynamic, action-oriented, and
focused on achieving objectives through efficient
resource utilization.
• Administration is more concerned with establishing a
stable framework, ensuring adherence to rules, and
maintaining order within the organisation.
5/17/2024 38
Management & Administration
39.
• Administration istop management function where
management is lower level and middle level function.
• The role of management is executive in nature. The
role of administration is decisive in nature.
• Managers make strategic and tactical decisions, setting
goals and formulating plans to achieve them.
• Administrators implement policies, procedures, and
rules established by management.
5/17/2024 39
Management & Administration
40.
• Management takesinto account the directing
and controlling functions of the organization.
• Administration is related to planning and
organizing function.
5/17/2024 40
Management & Administration
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Management as a Science
5/17/2024 44
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 7
45.
Why Management asa Science?
The following point suggested that management is a
science
i. Methods of inquiry are systematic and empirical-
Unbiased
ii. Information can be ordered & analysed- Statistical
tools
iii. Results are cumulative and communicable-Learn
mistakes from past
Management is like natural and behavioural science
5/17/2024 45
46.
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Are Management principles are
culture bound?
5/17/2024 46
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 8
47.
Are Management principlesare
culture bound?
• Management principles can be influenced by culture,
but they're not inherently culture-bound.
• The effectiveness of various management principles
can vary across different cultures due to differences in
values, norms, and societal expectations.
• This might involve adjusting communication styles,
decision-making processes, or leadership approaches
to align with cultural norms and preferences.
Eg. Automobile design varies w.r.t countries
5/17/2024 47
48.
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Management as an art
5/17/2024 48
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 8
49.
Management as anart
• Management exhibits many characteristics of an art
form, requiring creativity, intuition (Decision making
and judgement), adaptability (Flexibility w.r.t situation),
interpersonal skills, vision, and craftsmanship (Practice
and skill development).
• Just as artists create meaningful and impactful works of
art, managers create value and drive success in their
organizations through their management practices.
5/17/2024 49
50.
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Management as a Profession
5/17/2024 50
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 9
51.
Management as aProfession-
Justification
• Management can be considered a profession.
• A profession typically involves specialized knowledge, skills, and
ethical standards, which are often acquired through formal
education, training, and experience.
- Specialized knowledge: Leadership, Organizational behaviour,
finance, operations, HR etc.
- Skills: Decision making, problem solving, delegation, and team
building
- Ethical standard: Integrity, fairness, transparency etc
- Formal education and training: Eg. MBA degree
- Continuous professional development: Best practices and emerging
technologies
5/17/2024 51
52.
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
What is Planning?
5/17/2024 52
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 9
53.
What is Planning?
•Planning is the beginning process of management.
• Planning in management is the process of setting goals,
defining strategies, outlining tasks, and allocating
resources to achieve those goals effectively and
efficiently.
• It involves establishing a roadmap for the organization
or a specific project to guide decision-making and
action.
5/17/2024 53
54.
Key components ofplanning
• Setting Goals/Objectives: goals should be Specific, Measurable,
Attainable, Relevant, and Time-bound (SMART).
• Defining Strategies:Strategies are the broad approaches or plans of
action to accomplish the objectives. They may involve market
expansion, product diversification, cost reduction, etc.
• Identifying Actions and Tasks:determining what needs to be done,
who will do it, when it will be done, and how it will be done.
• Resource Allocation:allocating resources such as finances, personnel,
time, and equipment to support the execution of the plan.
• Risk Assessment and Mitigation: risks and uncertainties
• Monitoring and Review: Regularly monitor progress against goals,
track performance metrics, and review the effectiveness of the plan.
5/17/2024 54
55.
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Nature & Importance of
Planning
5/17/2024 55
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 10
56.
Nature of Planning
•Beginning process of management
• Intellectual process: Think before act
• Continuous process
• Plan must be flexible
• All pervasive function-regardless of designation and level
• Goal oriented: goals provide direction and purpose for the
planning process.
• Integrated: Planning is integrated across different levels and
functions of an organization.
5/17/2024 56
57.
• Systematic-Goal setting,analysis, strategy
development, implementation, and
monitoring.
• Efficiency and Effectiveness: Planning aims to
improve both efficiency (doing things right)
and effectiveness (doing the right things).
5/17/2024 57
Nature of Planning
58.
Importance of Planning
•Minimize the risks and uncertainty: Rational,
& fact based procedure for making decisions
• Leads to success: Proactive action and shaping
the environment.
• Focus the attention on the organizational goal:
Apply and coordinate the resources
5/17/2024 58
59.
• Facilitate control:Goals and plans become
benchmark against which the performance
can be measured.
• Trains executives: Excellent yield of training
executives.
5/17/2024 59
Importance of Planning
1. Vision:
• Adream that an entrepreneur creates about the
direction that his business should pursue in future.
• Vision, in its broadest sense, refers to the ability to see,
perceive, or imagine something as a goal or desired
outcome, often in the context of long-term planning or
personal aspiration.
• It's like a mental picture of what you want to achieve
or create in the future.
5/17/2024 63
Types of planning
64.
2. Mission
• Amission is a statement that defines the purpose
and primary objectives of an organization or
individual.
• It outlines what they do, who they serve, and
how they achieve their goals.
• Mission includes purpose, value, and objectives.
5/17/2024 64
Types of planning
65.
3. Objectives
• Objectivesin management are specific,
measurable goals that an organization sets to
achieve its broader mission and strategic goals.
• These objectives serve as the targets or
milestones that guide the organization's actions
and measure its progress.
5/17/2024 65
Types of planning
66.
3. Objectives
Characteristics ofobjectives:
-Objectives are multiple in numbers
-Tangible or intangible
-Priority
-Arranged in hierarchy
-sometimes clash with each other
5/17/2024 66
Types of planning
67.
3. Objectives
Requirements ofobjectives
-Must be clear and acceptable
-Must support one another
-Precise and measurable
-Must be valid
5/17/2024 67
Types of planning
68.
3. Objectives
Advantages
-Basis forplanning
-Act as a motivator
-Coordinated behavior
-Managerial control
-Better management
5/17/2024 68
Types of planning
69.
4. Strategies
• Responseto a competitive environment
• Use SWOT (Strength, Weakness, Opportunities
, and Threat) analysis.
• Two types of activities: Environmental
appraisal, and corporate appraisal.
5/17/2024 69
Types of planning
70.
4. Strategies
Environmental appraisal
-Relevantenvironmental results
-Identification of threat and opportunities
• Political and legal factors: Taxation, fiscal policies, stability of
government
• Economic factors: GDP, exchange rate, labour supply, raw material.
• Competitive factors: Principle competitor, product mix, credit and
delivery, pricing and branding, financial strength etc.
• Social & cultural factors: Literacy, culture, rate of urbanisation etc.
5/17/2024 70
Types of planning
71.
4. Strategies
Corporate appraisal
•Analysis of company’s strength and weakness
• Strength: outstanding leadership, excellent
product design, efficient customer service,
logistic and supply chain management, etc.
• Core competency: company’s competitive edge
5/17/2024 71
Types of planning
72.
4. Strategies
Modes ofstrategy formulation
i. Planning mode- systematic and rational, unique
product mix, etc. Eg. Promotional offers
ii. Entrepreneurial mode: Proactive and noval
approach
iii. Adaptive mode: Reactive and timed. Solving
issues.
5/17/2024 72
Types of planning
73.
5. Operational plans
-Providesthe details of how the plans will be
implemented.
-2 types: Standing plan and single use plans
5/17/2024 73
Types of planning
74.
5. Operational plans
•(a) Standing plan
-It is for repetitive activities
-Eg. Banking policies
-Types of standing plans: Policies, procedures,
methods, and rules.
5/17/2024 74
Types of planning
75.
5. Operational plans
(a)Standing plan
Policies: General guidelines for decision making
Deals with ‘how to do?’
Helps in uniformity action
Easy to delegate power
Types: originated policies, appealed policies, implied
policies (not a written policies) , and externally imposed
policies
5/17/2024 75
Types of planning
76.
5. Operational plans
Procedures:
-Policiesare carried out by detailed guidelines
-Doing a certain work
-Procedures ensure standard way of doing work
-Ensure uniformity
-Improve efficiency
-The drawbacks are duplication, conflicts, and overlapping.
5/17/2024 76
Types of planning
77.
5. Operational plans
Methods:
-Methodspecifies one step of procedure is to be
followed.
-Eg. Way of conducting interviews
5/17/2024 77
Types of planning
78.
5. Operational plans
Rules:
-Detailedand recorded instructions that a specific
action must or must not be performed in a given
situation.
Eg. As per VTU rules, student must maintain 85% to
write university examination.
5/17/2024 78
Types of planning
79.
Single Use Plan
-Developedto achieve specific end
-2 types of single use plan: programmes & budgets
-Programmes: precise plan or a project
-Budgets: Plans for future period of time containing
statements of expected results in numerical terms.
5/17/2024 79
Types of planning
80.
Technological Innovations in
Management& Entrepreneurship
Module 1
Management and Planning
Steps in Planning
5/17/2024 80
Prepared by
Dr. Vineeth Kumar P.K
B Tech (EEE), M Tech (Power & Energy), MBA( operations Management),
PhD(Power Electronics)
Lecture 9
81.
Steps in Planning
1.Set goals to be achieved
-Determine enterprise objectives
-Top management-setting of vision
-Eg of setting of goal: growth rate, new product
development
-Goal selection depends on mission, potential of
organisation , and managers hold.
5/17/2024 81
82.
2. Establishing planningpremises:
-Second step
-Certain assumptions about future
-Factors such as economic condition, production
cost, level of competency, capital, material
availability, government control etc.
5/17/2024 82
Steps in Planning
83.
2. Establishing planningpremises:
-Planning premises: Internal and external premises, tangible
and intangible premises, controllable and non-controllable
premises.
-Internal and external premises: Premises within and outside
the company. Important internal premises are sales forecast,
policies, capital investment, labour force, machines, material
etc.
-External premises: Technological changes, government
policies, population growth, political stability, sociological
factors, industry product demand etc.
5/17/2024 83
Steps in Planning
84.
2. Establishing planningpremises:
Tangible premises-Quantitatively measured. Eg.
population growth, industry demand, capital
and resource invested.
Intangible premises-Qualitatively measured. Eg.
Political stability, sociological factors, business
and economic environment, philosophies etc.
5/17/2024 84
Steps in Planning
85.
2. Establishing planningpremises:
Controllable premises: Factors can be controlled.
Eg. Company’s advertisement policies, capital,
labour availability.
Non-controllable premises: Uncontrollable
factors like strikes, war, natural calamities,
emergency, and legislation.
5/17/2024 85
Steps in Planning
86.
3. Deciding planningperiod
-Depends on the project
-Factors: Lead time in development &
commercialisation of new product, Time
required to recover capital investment ( pay
back period), and length of commitments
already made
5/17/2024 86
Steps in Planning
87.
4. Finding alternatecourse of action
-Search for alternative course of action.
5. Evaluating and selecting course of action
-Using quantitative techniques and operational research
6. Developing derivative plans
-Middle and lower level management takes up planning
of sub units
5/17/2024 87
Steps in Planning
88.
7. Establishing anddeploying action plan
-Draft version of action plan
-How the organisation operate with plan?
8. Measure and Controlling the process
-Managers need to check the progress
-Change remedial action and delete unrealistic plan
5/17/2024 88
Steps in Planning
89.
Strategic planning process
•Implemented by top management
• Proactive response of risk and opportunities
• Updating of information through customer
surveys, industry professional, and competitor
actions.
5/17/2024 89
90.
Steps
1.Evaluate and improvelast year strategic plan
2. Reframe organisation’s vision, mission, values and objectives
3.Review organisation’s last year operational performance
4. Evaluate organisational external environment
5. Conduct SWOT analysis (Strength, Weakness, Opportunities &
Threat)
6. Identify and evaluate alternative approaches
7. Deploy modified plan
8. Updates and tracking through out year
5/17/2024 90
Strategic planning process
Limitations of planning
•Expensive and time consuming process. Involves more money and risks
• Planning controls the initiative of managers
• Restricts organisation to the most rational and risk free opportunities
• Delay in decision making
• Limited scope of planning in the rapidly changing situations
• Inflexible administration
• Lose of original plan during unforeseen circumstances
• Resistance to change for New plan by the managers
However , planning is desirable for an enterprise. Using coordination,
communication, participation, and proper climate, planning can be made
more effective.
5/17/2024 92
93.
Decision making
What isdecision making?
• Decision-making is the process of arriving at a
choice between different options.
• Decision is a choice between two or more
alternatives.
• There will be a purpose while making a decision.
5/17/2024 93
94.
Types of decisions
1.Programmed and Non-programmed decisions
2. Major and minor decisions
3. Routine and strategic decisions
4. Individual and group decision
5. Simple and complex decisions
5/17/2024 94
Decision making
95.
Programmed and Non-programmeddecisions
• Programmed decisions are made accordance with some policy,
rule or procedure.
• Programmed decisions are repetitive in nature. Eg. Pricing of
ordinary customers order, salary payment during illness etc
• Non-programmed decisions are non-repetitive in nature.
Problems are arised first time.
• Not cut and dry rule to take up decision for non-programmed
type of decisions.
• An effective managers can handle non-programmed decisions
5/17/2024 95
Decision making
96.
Major and minordecisions
• Degree of futurity of decision: Long range impact
• Impact of decision on other functional area: Decision affects
only one functional area called minor decision whereas
decision affects more than one functional unit is known as
major decision.
• Qualitative factors that enter the decision: Subjective factors
such as conduct, ethical values, social and political belief.
• Recurrence of decision: Rare decisions are major decisions
whereas recurring decisions are minor decisions.
5/17/2024 96
Decision making
97.
Routine and strategicdecisions:
• Routine decisions are supportive to company’s
functions. Eg. Installation of AC, Parking,
cafeteria, deputing employees to attend
conference etc.
• Lowering the price of product, installation of
automatic plant etc. are strategic decision which
require more investment.
5/17/2024 97
Decision making
98.
Individual and groupdecision
• Individual decision is routine nature, definite procedure, &
problems are already existing.
• Important strategic decisions are taken by the group is known as
group decisions.
• Advantages of group decisions: Increased acceptance, easy
coordination, better communication, and more information is
processed.
• The drawbacks of group decisions are taking longer time,
compromise, dominated and dragging in nature.
• One of the group decision technique is known as Delphi technique.
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99.
Simple and complexdecisions
• When the variables of solving the problems are few, the decision is
simple, when they are many decisions are complex.
• Simple problems high degree of certainty-routine decisions.
• Simple problems, but outcome has low degree of certainty-
Judgemental decisions.
• Complex problems with high degree of certainty-Analytical
decisions.
• Complex problems with low degree of certainty- Adaptive
decisions.
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1. Recognising theproblems
-Search for existing problem
-When there is a deviation from past experience
-Deviation from the plan
-When other people bring problem to the manager
-When competitor outperform the manager’s
organisation
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2. Deciding prioritiesamong problems
-Identify the problems which can be resolved by the
subordinates, and higher authorities.
3. Diagnosing the problems
-Identify the symptoms of the problems
Eg. Declining sales
Poor admission in the schools
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104.
4. Developing alternativesolutions or course of
action
-Framing the feasible solution
-Considering limiting factors
-Eg. In order to meet the demand (i) increase
production (ii) By new equipment (iii) Add extra
shift , (iv) overtime etc. Among this manager finds
the better alternatives.
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105.
5. Creativity andinnovation
-Consider past experience
-Innovation successfully bring the invention
-Divergent thinking
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6. Measuring andcomparing the consequence of alternative solutions
-Check the quality and acceptability of alternative solutions
-Quality of solution must be determined by considering tangible and
intangible consequences.
-Use judgement and intuition to solve problems
-Conduct pilot testing: Small scale testing
-Check several possible outcome
-External conditions to be considered
-Forecasting and probability
-Take a formal decision
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7. Converting decisioninto effective action
• Translate the decision into action
• Assign someone to carry out responsibility
• Proper communication among the department is
needed
Eg. Marketing dept. has to inform production
department for incorporating the changes in
product.
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8. Follow upaction
• Final step
• Check decision serve purpose
• Change decision if needed
• Follow up actions involve: Intelligence (searching),
design (develop) , choice and review (assessment).
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