management functions, planning
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What is Management?
The planning, organizing, leading, and
controlling of human and other resources toachieve organizational goals effectively and
efficiently
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Managers
Managers
The people responsible for supervising the use of
an organizations resources to meet its goals
Resourcesinclude people, skills, knowledge,
machinery,
computers and IT,
and financial capital
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Four Functions of Management
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Organizational Structure
A formal system of task and reporting
relationships that coordinates and motivates
organizational members
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Levels of Management
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Types of Managers
First line managers - Responsible for day-to-day operations. Supervise people performing
activities required to make the good or service
Middle managers - Supervise first-linemanagers. Are responsible to find the best way touse departmental resources to achieve goals
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Cont..
Top managers
Responsible for the performance of all
departments and have cross-departmental
responsibility. Establish organizational goals and
monitor middle managers
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Areas of Managers
Department
A group of people who work together and possess
similar skills
or use the sameknowledge, tools,
or techniques
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Managerial Roles and Skills
Managerial role - The set of specific tasks
that a person is expected to perform because
of the position he or she holds in the
organization
Mintzberg identified three categories of roles
Decisional, Informational, Interpersonal.
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Managerial Skills
Conceptual skills (Decision Making Skills)
The ability to analyze and diagnose a situation and
distinguish between cause and effect.
Human skills (Interpersonal & Informational Role)
The ability to understand, alter, lead, and control the
behavior of other individuals and groups.
Technical skillsThe specific knowledge and techniques required to
perform an organizational role.
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Challenges for Management in
a Global Environment
Rise of Global Organizations.
Building a Competitive Advantage
Maintaining Ethical and Socially Responsible
Standards
Managing a Diverse Workforce
Utilizing Information Technology and E-
commerce
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Building Blocks of Competitive Advantage
Figure 1.6
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Efficiency and Effectiveness
Efficiency refers to Doing Things Right
Effectiveness refers to Doing the Right
Thing
- Peter Drucker Efficiency is concerned with getting most
output out of scarce resources (Capital,
Human Resource, Raw Material etc.)
Effectiveness is achieved by setting right
organizational goals. No amount of
efficiency can make up for lack of
effectiveness.
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MANAGEMENT" Variously
Understood
Specif ic OrganOf an Organization that hasthe responsibility to deliver results
consistently
Processthat drives an Organizationtowards its Performance
Peoplewho have authority to Plan,
Organize, Lead and Control different
Organizational activities App l ied Disc ip l ine
Profess ion or a career
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Generic Functions of Management Managerial Jobs are characterized by
Variety, Fragmentation, Brevity and Oralcommunication with several people.
First written about by Henri Fayol and later
elaborated by Lyndall Urwick, ClassicalManagement functions are:-
PLANNING
ORGANIZING LEADING
CONTROLLING
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Steps Involved in Planning
Situational Analysis
Desired Goals, Objectives and Result from System
Goal and Plan Evaluation
Establish Goals and Plans
Chalk out Strategies to Reach Goals and
Implementation
Acknowledge Completion and Celebrate Success
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Management Functions
Harold Koontz defends Fayols
approach
As managerial work is largely cerebraland not directly observable.
Further it allows us to look at universal
aspects of management across different
contexts.
Managerial functions approach also
helps in classification of management
knowledge
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PLANNING
Setting Objectives
Formulating Strategies
Policies
Procedures Methods
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ORGANIZING
An Intentional Structure of Roles
Organizational Structure
Responsibility & Authority for achieving objectives
Departmentation Span of Control
Line & Staff Relationships
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LEADING
Leadership Skills
Motivation
Team Work
Communication
Negotiation
Conflict Resolution
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CONTROLLING
Anticipate, Monitor & Respond tochanging Environment.
Measurement of Actual Performance
Comparison against the Standard Managerial Action to correct Deviation
Traditional Financial Controls are basedon
LIQUIDITYACTIVITY PROFITABILITY LEVERAGE BALANCE SCORECARD
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Managerial Roles INTERPERSONAL
Figurehead Leader Liaison
INFORMATIONAL Monitor Disseminator Spokesperson
DECISION
Entrepreneur Disturbance Handler Resource Allocator Negotiator
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Management Skills
TECHNICAL SKILLS
CONCEPTUAL SKILLS
HUMAN SKILLS
Managers at Top Level need
Conceptual Skills the most and First-
Line Managers Technical Skills the most
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PLANNINGA TOOL FOREFFECTIVE MANAGEMENT
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Planning : Meaning
Planning refers to a systematic
approach towards making decisions
about goals and objectives and the
associated activities that need to be
carried out along with various
resource requirements
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Planning : Definition
Planning is the selection and
relating of facts and making and
using of assumptions regarding the
future in the visualization and
formalization of proposed activities
believed necessary to achieve
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What is Planning?
Planning
Systematic approach of making
decision about goals and objectives
and associated activities
A
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T
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V
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T
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S
Goals & Objectives
Plans
Policies
Procedures
Rules
StrategyTask
Resources
Program
Budget
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Importance of Planning
Primary Function of Management
Offset Uncertainty and Change
Focus attention on Objectives
Help in Coordination
Help in Control Increase Organisational
Effectiveness
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Hierarchy of Organizational
Plans
Mission or Purpose
Objectives
Strategies
Policies
Procedures and Rules
Programmes and Projects
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Mission
A mission statement is a statement of the
long-term purpose of the organisation. Itdescribes what the retailer wishes to
accomplish in the markets in which it
chooses to compete. A mission statementmay highlight the following:
a. The products and services that will be
offered
b. The customers who will be served
c. The geographic areas that the
organisation chooses to operate in
d. The manner in which the firm intends to
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Mission Statements: Examples
Wal-Mart: To give ordinary folk the chance tobuy the same thing as rich people
McDonalds: (QSCV) Quality, Service,Convenience, and Value
Pantaloon: To be a global retailer in India, and
to maintain the No. 1 position in the Indian
market in the department store category.
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Goals
Goals denote what an organisation hopes
to accomplish in a future period of time.
They represent a future state or an
outcome of the effort put in now. A broadcategory of financial and non-financial
issues are addressed by the goals that a
firm sets for itself.
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Objectives
Objectives are goals, aims, or purposethat organisations wish over varying
periods of time.
Dalton E. McFarland
A managerial objective is the intended
goal that prescribes definite scope andsuggests direction to the planning efforts
of a manager.
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Cont.
Objectives are clear and verifiable yardsticksagainst which performance can be measured.
The accomplishment of various functional and
departmental objectives lead to the
achievement of goals.
Objectives are the intended end results that
an organisation desires to achieve overvarying periods of time. Because of time
variation, objectives may be specified in
different ways in which long-term objectives
are supporting by short term objectives.
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Features of Objectives
1. Objectives should be Understandable
2. Concrete and Specific
3. Measurable and Controllable
4. Related to a time frame
5. Objectives should be challenging (Not too
high Not too Low)
6. Different objectives should correlate witheach other
7. Objectives should be set within the
constraints
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Plans and Policies
Plans are the actions or means that amanager proposes to use for achieving pre-determined goals. A plan indicates what themanagement wants to achieve. It specifies the
steps that are to be taken towards theachievement of goals.
Policies refer to a broad statement and/or a
set of guidelines that direct decision-making. Itis a plan of action adopted by an individual oran organization. They define the frameworkwithin which managers are expected to make
decisions leading to the achievement of
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Goals and Objectives Setting
at Canara Bank
Mission:
Our Mission is to be the most competitive and
progressive institution in our (i.e. banking)industry.
Goals:
The banksstated goals were:
Growth, innovativeness, high profits as a
barometer of efieciency, highly involved
employees distinctively charged with pride
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Objectives of Canara Bank:
To achieve growth with large customer base
To provide new and innovative schemes like
mutual funds
To earn highest profit among all publicsector banks.
To involve employees through delegation of
authority and devolution of power to
grassroots levels through a change inadministrative structure.
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Resources Programmes and
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Resources, Programmes , and
Budget
Resources include the people, materials,machines, technologies, money, etc. requiredto implement the strategies or processes
A program is a combination of goals, policies,
procedures, rules, and set of activities to beundertaken, resources to be deployed andother interrelated actions required to beundertaken for accomplishment of a purpose.
Budget is a statement of expected provisionsor results expressed in numerical terms. It canbe for inputs as well as outputs
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STEPS IN PLANNING
Recognition of Opportunities Environmental Scanning
Establishing Objectives
Identification of Alternatives
Evaluation of Alternatives
Choice of Alternatives
Formulation of Supporting Plans
Establishing Sequence of Activities
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Types of Planning
Types of Planning
Short-term
Planning
Medium-term
Planning
Long-term
Planning
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Levels of Planning
Levels of Planning
Strategic Tactical Operational
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What is SWOT Analysis?
SWOT Analysis
External Internal
Opportunities Threats Strengths Weaknesses
Develop Business Strategies
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Developing Business Strategy
SWOT analysis helps in identification of possiblestrategies based on the following criteria:
Build and develop on strengths
Resolve and overcome weaknesses Exploit and avail opportunitiesAvoid or minimize the effect of threats
BCG (Boston Consulting Group) has developed atool that enables the mapping of all theorganizationsbusinesses based on the criteria ofmarket growth and relative competitive positionvis--vis competitors.
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BCG MatrixA Tool for Mapping
Businesses of Organization
STARS QUESTION
MARKS
CASH COWS DOGS
Starsare the businesses having high growth as well as a strong competitive position.
Dogs have low growth and weak-competitive position businesses.
Cash Cowbusinesses have low growth but are having strong competitive position .
Question Marksare the businesses that have high growth but weak competitive position
MarketG
rowth
Relative Competitive Position
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Benefits of MBO
Ensuring personal commitment toorganizational goals Provides goal and role clarity in the
organization and in turn helps in devisingorganizational structure conducive forimproving efficiency and effectiveness
Ensures result oriented planning Development of effective control mechanism
leading to timely corrective actions Less supervision of subordinates and
increased motivational level as a result ofeach employees clear definition ofresponsibilities
Employees accountability increases
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Disadvantages of MBO
Failure to teach the philosophy of MBO across theorganization
Lack of guidelines to goal setters
Difficulty in setting verifiable objectives
Over emphasis on short term achievements at the
cost of long term growth and development Lack of flexibility to attune changes with changing
environmental forces
Over emphasis on quantitative goals, even where itmay not be applicable
It turns out to be paper passing buck, especially inorganizations where in well set mechanism to monitorand evaluate the performance does get laid down
It is a time consuming process to imbibe thephilosophy of MBO in the organization
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Decision Making
A decision represents a judgments, a final
resolution of a conflict of needs, means or goals,
and a commitment to action made in face of
uncertainty, complexity, and even irrationality.
Decision making is a conscious human process
involving both individual and social phenomenon
based upon factual and value premises which
concludes with a choice of one behavioral activity
from among one or more alternatives with the
intention of moving towards some desires state of
affairs.
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Features of Decision Making
Decision making implies that there are variousalternatives.
Existence of alternatives suggests that the
decision maker has freedom to choose an
alternative.
Decision making may not be completely rational.
Decision making, like any other management
process, is goal directed.
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Decision Making Process
Specific objective Identification of Problems
Search for alternatives
Evaluation of alternatives
Choice of alternative
Action
Results
Feedback
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Thank You