Planning, Decision making & Organising

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To get completely into the syllabus of this subject Principles of Management lovably called as POM just come here 👉💌

So as the heading contains three main contents that are planning & decision making and organising.

So, we are going to read all of them with many many many sub-headings😂within them and we are going to cover 2 most important topics of unit - 2 of this subject.

Let's move to the first heading👇

Planning

Planning is the first and primary function of management which facilitates utilization of all the resources optimally.

Before knowing what planning is ? Let's know what a plan is?🤷‍♂️

"A plan means deciding a particular path or way to achieve a desired goal."

So, "Planning is a process of drawing the road map or making the plan to achieve any particular goal."

Nature of planning

Planning draws a road map to achieve goals

Planning gives you a path by following which you can achieve your goal within the set deadlines .

Planning is a basic function

Planning is the primary and the first function of the management process.

Planning is all pervasive

Planning is required at all level of management and is adopted universally.

Planning is flexible

Plans can be changed according to the changing business environment and unexpected situations.

Planning is a never ending process

Planning is a continuous process has it has circular path which never ends. After achieving one goal organisation moves ahead to plan for the steps to achieve another goal.

Planning is future oriented

Plans are made for a future course of action and hence are futuristic.

Planning involves choice

While making plan, the planners need to choose among best possible alternatives from the available options.

Planning is an intellectual exercise

Planning requires lot of intellect and analytical skills to frame and effective and productive pathway for achieving any goal.

Importance/Significance of planning

Planning provides direction

Planning gives you a road map on how to work for your goal.

Planning gives a purpose

Planning gives you a reason to work in a pre - determined way.

Planning helps in selecting feasible (most appropriate) alternative

Planners choose the best suitable alternative among the available options.

Planning encourages rational and logical decision making

Planning emphasizes on taking decisions rationally and logically which is best suitable to any on - going situation.

Planning is a king-pin function

Planning is the primary and the most important function of the management process.

Planning ensures optimal allocation and utilisation of resources

Planning gives you an idea of where, when and how much to use the available resources.

Planning enhances efficiency

Planning increases the efficiency of work by rational decision making.

Planning increases adaptability

Planning makes an organisation ready to adopt predictable business changes easily.

Planning increases ability to anticipate

Planning helps in taking the necessary preventive measures in case of any unwanted situation.

Planning helps in integration of efforts

Planning forces on unifying all the efforts made by putting all the resources together to achieve one particular goal.

Objectives / Purpose of planning

Mitigation of uncertainty

A planned working procedure is far better than an unplanned and unorganised start.

Better cooperation and coordination

Optimum resource utilisation

Get prepared for contingencies or predictable situations

Giving a pathway for achieving goals

For preventing and reducing market competition

Process of planning / Steps of planning

Perception of opportunities

Seeing and perceiving the opportunities available in the market.

Establishing objectives

Establishing the objective or target according to the opportunities choosed to be worked on.

Planning premises

Assuming the resources needed.

INTERNAL premises includes skills, strengths, structure, policies, rules, etc.

EXTERNAL premises includes employment figure, price levels, government policies, etc .

Identification of alternatives

Looking for other options or ways available for achieving the same goal.

Evaluation of alternatives

Evaluating or analysing all the available options.

Selection of alternatives

Selecting the best and most the suitable alternative from the available options

Formation of supporting or supplementary plan

Framing the sub plans or derivative plans to support the main objective as whole.

Establishing sequence of activities

Deciding the implementation of the plans made. Budgeting is also a part of this step.

Types of plans

1. Standing or repeated-use plans

These plans are made to solve the issues related to day to day functioning of an organisation. Such as the:

Mission of purpose - of the organisation which goes on for year and years.
Objectives or goals - which maybe the targets set by manager for their subordinates.
Strategies - the ways adopted by the employees of an organisation to complete the target.
Rules and policies - general guidelines for managing all the employees of an organisation.
Procedures and methods - the steps which define the sequence of activities to be performed.

2. Single use or operating plans

These are the common recurring plans which which are not applicable in every situation or aspect.

Like specific programs, budgeting or project wise plans, etc.

3. Contingency plans

These plans are made to cope with unpredictable situation or to face an anticipated future risk.

These are made to reduce the chances of loss occurring in an unwanted situation.

Decision - making

All of the human activities whether minor or major, rely and take place by making decisions or choices.

Thus, we can say that

"the process of choosing a particular course of action among different available options for achieving a goal is defined as decision - making."

Decision making is the key step in planning

Planning and decision making are to intertwined factors that rely on each other as well as impact each other.

Planning involves decision making so planning is a wider term. But every step of planning involves decision making which proves that decision making is the key step in planning.

So let's read some importance of decision making😌

Importance of effective decision making

Efficient resource utilisation

A right & logical decision helps to optimally utilise the 6 Ms of business [men, machines, materials, methods, money and market].

Helps in facing problems and challenges

A logical decision can help you cope with the situation you are facing.

Results in business growth

Every good decision counts to one step ahead of business growth.

Helps in achieving organisational goals

Increases work efficiency

Right decision taken by the manager facilitates efficient working.

Facilitates innovation

A manager with good decision making skills will always welcome new ideas and innovations for doing the same task.

Motivates employees in a right direction

Results in effective management

As decision making is the key step in planning hence it is the reason behind an effective management.

Process of rational approach to decision-making

Rational approach is concerned with logical and calculated decision-making under this approach there are two assumptions:

1. Organised and systematic process is being followed.

2. Organisation is economically managed.

Step 1 State the situational goal

Step 2 Identify the problem

Step 3 Determine the type of decision

Step 4 Generate alternatives

Step 5 Evaluate alternatives

Step 6 Choose alternative

Step 7 Implement the plan

Step 8 Control : Measure and adjust

All these steps are particularly same as steps of planning. Just the basic difference is that you need to implement in the plan after deciding all the factors involved.

And the other thing which you need to know is the types of decision mentioned in step number 3.

Types of decision

Programmed and non-programmed decisions

Major and minor decisions

Routine and strategic decisions

Policy and operative decisions

Organisational and personal decisions

Individual and group decisions

Long-term decisions

Departmental decisions

Non economic decisions

Crisis and Research decisions

Problem and opportunity decisions

These were some types of decision on the basis of matter they involve.

Techniques of decision making

Marginal analysis

Financial analysis

Break even analysis

Ratio analysis

Operation research

Pareto analysis

Grid analysis/Decision Matrix analysis / Pugh Matrix analysis

Paired comparison analysis

Forced field analysis

Brainstorming

Nominal group technique

》》 To understand the types and techniques of decision making thoroughly, you can come here 👉💌💌 .

Okay now let's move to the third topic of unit-2 which is organisation😌😌🤷‍♂️🤷‍♂️

Organisation

"Organising means the process of forming a framework or a structure which helps the group of employees to work effectively for achieving a particular goal."

The framework or structure in which this organising of employees takes place is known as organisation. According to Gary Johns :

"Organisations are social inventions for accomplishing goals through group efforts."

Nature of organisation

It is a group of people.

Organising involves dividing the work.

Organisation needs coordination.

It fulfills mutual goals.

It represents authority and responsibility.

Organisation represents hierarchy of relationship.

Organising is the "Machine of Management"

As a machine has all its parts on the place where they are required to be, same as in management, organising is the only process through which we can put all the resources of a business onto the place where they have to be for the business to run and attain desired profits.

It is a universally required/ pervasive activity.

Organising is a dynamic/ Complex procedure.

Significance or importance of organisation

It increases the management efficiency.

Leads to optimum resource utilisation.

Helps in smoother organisational growth.

Provides legitimate importance to every department in the organisation.

Improves the coordination among departments.

Allows to judge and examine accurately the abilities of employees.

Helps in avoiding corruption and maneuverings.

Generates a sense of creativity and responsibility among the employees.

Process of organisation

1. "Determining the objective" which means identifying the reason or purpose for establishing the organisation.

2. "Division of work" after step-1, next step is dividing the work according to their type & categories.

3. "Grouping of activities" which means accumulating the divided work into similar job categories and allocating them to different different departments.

4. "Assigning the responsibility" to the employees of every stage.

5. "Delegation of authority" as per the assigned responsibilities.

6. "Coordination" is the last and the most important step in organisation.

To read more about the topics of unit 4 which are controlling, coordinating and managerial effectiveness you must see this one 👻

The better the learnings the better the earnings😎

To get in depth knowledge of these topics you can also look into it 👉👻

Thank you for reading🙏😊

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Principles of management UNIT-2 BBAnotes