principles of management chapter 3 gtu mba
TRANSCRIPT
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Essentials of Planning andManaging by Objectives
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Definition of Planning
Planning involves selecting missions and objectives andthe actions to achieve them; it requires decision making,that is, choosing from among alternative future courses ofaction.
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Close Relationship of Planning and
Controlling
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Types of Plans
Plans can be classified as:
1. Missions or purposes
2. Objectives or goals
3. Strategies
4. Policies5. Procedures
6. Rules
7. Programs
8. Budgets
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Types of Plans
The mission, or purpose, identifies the basic purpose orfunction or tasks of an enterprise or agency or any part ofit.
Objectives, or goals, are the ends toward which activity isaimed.
Strategy is the determination of the basic long-termobjectives of an enterprise and the adoption of courses ofaction and allocation of resources necessary to achievethese goals.
Policies are general statements or understandings that
guide or channel thinking in decision making.
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Types of Planscont.
Procedures are plans that establish a required method ofhandling future activities.
Rules spell out specific required actions or nonactions,allowing no discretion.
Programs are a complex of goals, policies, procedures,rules, task assignments, steps to be taken, resources to beemployed, and other elements necessary to carry out agiven course of action.
A budget is a statement of expected results expressed in
numerical terms.
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Steps in Planning
1. Being aware of opportunities
2. Establishing objectives or goals
3. Developing premises
4: Determining alternative courses
5. Evaluating alternative courses
6. Selecting a course
7. Formulating derivative plans
8. Quantifying plans by budgeting
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Steps in Planning
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Verifiable Objectives
Objectives are the important ends toward whichorganizational and individual activities are directed.
An objective is verifiable when at the end of the periodone can determine whether or not the objective has been
achieved.
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The Nature of Objectives
Hierarchy of objectives
Key Results Areas: Areas in which performance is essentialfor success
Setting objectives and the organizational hierarchy
Multiplicity of objectives
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Relationship of Objectives and the
Organizational Hierarchy
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How to Set Objectives
Compare nonverifiable with verifiable objectives
Guidelines for setting objectives
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Evolving Concepts in MBO
MBO as used in this book
Management by objectives is a comprehensivemanagerial system that integrates many key managerialactivities in a systematic manner and is consciouslydirected toward the effective and efficient achievement oforganizational and individual objectives.
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Systems Approach to MBO
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Benefits of Management by Objectives
Clear Goals:
Motivate.
Improve managing through results-oriented planning.
Clarify organizational roles, structures, and the
delegation of authority. Encourage commitment to their personal and
organizational goals.
Facilitate effective controlling, measuring of results, andimplementation of corrective actions.
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Failures of Management by Objectives
List some failures and limitations of MBO.
What would you do to overcome the failures?