20-09-2012, 04:04 PM
Planning
PLANNING.ppt (Size: 47 KB / Downloads: 22)
Planning - Nature
Contributes towards objective
Basic func. Of Mgmt
Directed towards efficiency
Flexible and dynamic
Precise
Looking ahead
Integrated process
Continuous and never-ending responsibility of a manager
Consistency
Specialized mental activity.
Planning Process
Identification of the Problem
Establishment of Objectives
Establishment of Premises
Searching alternative course of action
Selection of an ideal course of action from the alternatives
Constructing Plans
MBO
Founded by Peter Drucker in1954
The manager and his subordinates define their respective major areas of responsibility in terms of results expected of them.
These areas are popularly known as KRA’s(Key Result Areas)
These measures are used as guides for operating the unit and assessing the contribution of each of its own members are to be evaluated in terms of objectives .
Steps in MBO
Defining the objectives of the enterprise
Setting the short term goals for each unit
Fixing performance targets for individual managers
The need to validate the objectives
Implementing the objective and reviewing the performances
Evaluation of the results and reappraisal of objectives.
Merits of MBO
Promotion of the coordinated behavior
Assist the mgmt in coping with the changes in the environment
Assists in fixing objectives at all levels
Promotion of sense of involvement improves performance
Commitment
Minimization of wastage of efforts and guidance to executives
Promotion of higher performance goals and broader vision.
Demerits of MBO
Negligence towards qualitative aspect of performance
The participative process may not be feasible
Pressure oriented and time consuming
Need to check the tendency of the managers
In flexibility in objections
Importance of planning
Future uncertainty makes a planning a necessity
It provides economy in operations
MBO
It provides the basis for control in organization
It has unique contributions towards the efficiency of other managerial functions
It leads to more effective and faster achievements in any organizations