tMG235I PRINCIPLES OF MANAGEMENT Visit : Civildatas.blogspot.in
I]NIT
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PLANNING: Nature and purpose of planning- planning pIocess-T,?es of plans- objeatives- Managing by objective(MeOj strategiis- TypJs of stmtegies - Policies - Decilion Making- Tlpes of decision b"cision frluttng p-rocess-iRational'Eecision-Making Process -necision Making under different conditions. PART-A
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What is planning?(Nov/Dec 2005)
Planning is deciding in advance what to do, how to do it, and whd is to do it lt is each selection among altemativei of future oourse of action for the enterprise as a whole and a"fu.t."n, *itf,in it. Plans involve selecting enterprise objectives and determiniog ways of achie\ing Lhem.
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2. What are the natur€ and purpose
. . . . . . . . . .
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of plantri4? (A.U Nov/Dec 2011) ,(Mayfiune 2006)
A primary function A dynamic process Based on objectives and policies A selection process Pervasiveness ofplanning An intellectual process Directed towards elficiency Focus with future activities Flexibilityof planning Based on facts
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e 2013).(Nov/Dec of pranning?(May/Ju planning/ob.iectives of 3. what are the importatrc€ 2005), (APrMaY 2005)
PrimarY ofPlanning To achieve
objectives
>
)> To coPe with
> T ., facititate control > To helo in coordination o r. in"'."ut" otg-i-tional
!
effecliveness
To euide decision-makinS 2004) innoi'"a in pr'nnine proctss?(Nov/Dec
po
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o ldentifi cation of oPPortunilies o Establishment of objectives o Developing Planning Premrses o ldentifi cation of altemahves o Evaluation of altematlves o Selecting an alrcmatives o Formulating derivative Plans
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Et*f'fitftinE t"qutnce oIactivities
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unceMinty and change
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5.whatarethedifferedttypesofplans?(A-UNov/Dec2012),(May[une2012)'
'. . .
OPerational Plan
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that occur prooedures and processes -routine specific the on t'sks or the oDerational plans are tbotsed the
th;
lowest levels ot the
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Tactical plan Slmtegic Plan ContingencY Plan Plan? operational 6. D€Ihe
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prans are those or ongoing prans Siosre-use
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Defrne tactical Plan' t:$:#;r,'il'":"1 prans bv Eansll'"1*::'J'"i3;'li: Tactical plons strppon stratesic the responsibilitv and "'i"cill'"T".1vrilfl,".11'l'""i".J;n l*o : .-,, ,'^,organtzatton the organization plan. distinct area of tle strateglc plarr. strategic .mentsl0-^." ofthe p"* ^frhe depafl lower-level of functionaliry ^^,., xo"/Dec 2011) pru"'
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and begin with an organization' in'mindl entire $e wi6 design aod execute S{rategic plaos are designed manaeers'.sulhtttE3tdtp"'g"-:rd#:;Il'of the organization' ToP-level .ganiri';.;irlion pictqre oi the 0 stitegic plans to paint a
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Essentially, strategic plans look ahead to where the organization wants to be in three, five, even ten years. Strategic plans, provided by topJevel managerc, serae as the framework for lower_
levelplanning. contingen.y plan. Cortingency plans allow a manager to be flexible and change-sawy by providing an altemative course of action, which can be implemented il and when an original plan fails to produce the anticipated result. 10. Distinguish between strategic and tactical planning. (.4"U. Nov/Dec 20ll),(Nov/Dec
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9. Define
2008)
Stratesic Dlannins l. Strategy- a plan, method, or series of maneuvers or stmtagems for obtaining a soecific soal or result. 2. Stratesic olannins is macro-oriented 3. Strategic planning includes arcas like your (i) business' market share; (ii) professional career palh; (iiil Iile and/or business vision: (iv) investment goals; (v) personal and/or prolessional opportunity costs: (vi) mission: and (v) the allocation ofresources.
Trctical DIan ns Tactics- a system
or a
detail
of
tactlcs.
a plan, procedure, or expedient for promoting a desired end or result. Tactical Dlarr trs is micro-oriented Areas tlrat are covered in tactical planning include (i) monthly or quarterly sales goals; (ii) improving customer service in specific your areas, (iii) reducing the number outside cominitrnents so that you can simplify your life-and (iv) creating action plans for vaw s]rratestc Ais picture) obiectives. 4. It is focuses on the core of Who (you This type of short term planning is all about are), What (you want to accomplish) and the IIop (i.e.. process) of gening things Why (do you \,!ant to accomplish the what) doing. of orpanizations atrd oeoDle.
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What are the advantages ofplatrning?
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Planning frcilitates management by objectives. Planning minimizes uncertainlies. Planning facilitates co-ordination. Planning improves employee's moral. o Planninghelps in achieving economies. Planoing facilitates controlling. Planning provides competitive edge. Planning effourages innoYations. I 1. What are the disadvatrtages of platrnilg?
> Rigidity
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Misdirected Planning > Time consuming F Probability in planning False sense ofsecurity > Expensive
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What is ar obiective?
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step within a short-tenn' measurable An obiective is a sub goal' It identifies goal'
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#iri?ii"ii. to'ing io*utd utl'it'ine a long-term
What is the importance of objectives'
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Market share is high.
Consumersatisfaction'
.:. Novel ideas. .:. Coopemtion eveDrwhere' .:. More output.
* * {'
contiol. LoyaltY ofemPloyees' Different kinds of Products'
Cost
What are the rdvaBtages of obj€ctives?
.
/ Prcper Plarming / Single motivation / Dircct coordination / C^ntol Process is standard
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a designated
r' htesration
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Detintralizat ion ofauthoritY
16. Define MBO. (MaY/June 2012)
of sefling objectives in the by objectives (MBO) is that lhe processis called as M-anagement by or ai-",iJ,] ; il "*i,"; orsanizarion lo give a sense gJik'i;;;:;;i;'t"" t" that thev know whal thev obiectives.lr refers ro tt'" p'o"o' o't"n"l"g
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Manasement
are"supposed to do at the workplaoe'
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and helps and responsibilities for the employees Manasement by Objectives defines rcles course of action in the orgnizalion'
J;iffi;;;i;tui,re '""*wtaiare rte tenelits
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i'1.
ofMBo?(Nov/Dec2004)
/ lmprovement of managlng / Clarification of orgatrization y' Personnel satisfaction / Team work / Development ofeffective control / Fast decision-making
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18. What are the limitations ofMBO?{May/June 2007) Failure lo leach rhe philosophy of MBO failure to give guidelines !o goals seners Difliculty of setting goals
tmphasis on shon_term goals Dangerof inflexibiliry Time consuming Increased paper wo*
19. Defitre Strategy.
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S&ategy
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. . . . . . .
Nov/Dee 20t2) (Nov/Dec 2006)
of an
organization
resouaces to attain its objectives.
is the progremmed of action and development of
20. What are the features ofstr.tegi€s?
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it is desisned
to meet ihe demands of ^ ; dtiiei;i;";&d[$;
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-n""pt a particutar siluarion. Every siruation requires have 1o be revised Fequently because
o[;nanges tn the srtuation. nralegres are a complex plan encompassing other plans in order to achieve organizational objectives.
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-tj:l,:r.I actron rs required
looking: ir has ro do orienrarion rowards the tuturc- Srralegic
in a re\x situarion. Nothing new requiring
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the past. So strategy is i€levant
onlv- to hfture. It may take advantag€s of the past
StraLegl. provides the direction
in which humar and ph)sical
analvsis
resources-
will
be
deployed. for achieving organizationur ' goul, in ,h" enuronment pressure andconstraintsShategy is the right combination of factors both extemal and intenul. [n relating can organization to its environmenr .management mus{ also consider the intemal lactors too. parlicularly in terms of its stren$hs und weakness, is do and what it cannordn
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involve even contradictory action. Since, srrategic aclion depends on enlrronmenlal variables: a manager may take an action foa'ay am mav ;erir" or revese his sleps lomonow dependling on the siruation.
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of strategy? 21. What is the importatrce
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ess StiategY formulation and lo orsanization' o[ environmental opPortunilies advanEge take lo eflterprise lt e;ables lhe usetul framework for suidins' combat envircomental thinking and action
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22. What is Policy?
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are ..policy' KoonE and o oonnerr as--l9lic'ies by defined is The lerm decision mal(Ing ' guide managers rhinking in
*r"..,1i,'"r*Jii*.1*ii'ngswhich
ofPolicies? 23. What are the types
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o Originated PolicY' o APPealed PolicY' o tmolied PolicY' o ExiemaltY imPosed PolicY' o Basic Policies' o General Policitx' o DePanment Policies'
determitritrg the 24. What are the factors
poliry making?
policy making: Factors determitring the
oftle top management' ':' Foresightatlitrdes' Publio ':' .:. tom workers' Technolog/
Response from workers
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of competitors '3' Posiibleresctions aitd control'
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* Co'"rn'*t t"gutution * Financial inPlicalion' {' Business and general environment'
(Nov/Dec 25. Deline decision makilg?
2000'
moie altematives' The deoision of a course of action ftom two'or selc'lbn a d..ision is the " otsteps leading to that selection"tt
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26. What are the characteriJtics ofdecision making?
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[t is a process ofmakiDg a choice from altemative course of action. Decision is the end process preceded by deliberation and reasoningDecision making is a focal point at which plans, policies, and objectives are translated into conqete action. Rationality is another characteristic of decision-making.the human brain with its ability to leam to r€member and to relate many complex factors makes this rationality possible. Decision-making involves commihnent. The mzrnagement is committed to decision for two reasons.Iirslly it leads to the stability ofthe concem and secondly, every decision taken becomes part oftlrc expectations of the people involved in the organization. The purpose ofdecisioo-making is to select the best altemative, which can significantly contribute towards organizational aims.
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27. Write down the steps involved decision makitrg?
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Decision making pmcess Investigate the situation Develop altematives
28. What are types of decision?
{Programmed and non-programmed decisions
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\4ajor and supplemenhry decisions &Routine and strategic decisions *Policy and operating decisions {Personal and organizational decisions group decisions
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*llndividual and
29. What are the factors infllrenciog decision making?
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. Time pressures . manager's values . Organizational policy . Other facto.s
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30. State any two decision makirg strategies.(Apr/May2006). (a) Decision tree medrod (b) oporations research (c) Break even analysis (d) simulation or stochas{ic techniques.
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3l- What do you t€rm ,bounded rationality' in decisior rnaking?(ApriUMay
2{105)
Ifpeople are having time and cogdtive ability for rn:tking decisions, it is said to .bounded rationality. be
32. What are theyarious fypes ofdecision making models? (ApriyMay 2005)
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(a) Econologic Model or Economic Man Model. (b) Administrative man model or Boulded Rationalitv model. (c) Implicit favourite Model orGamesman Model. 33.Deline the term .Planning premises'?(Apr/May 2007)
Planning premises are defined as lhe anticipated envitonment in which plans are expected to operate. Premises are the assumptions on which plans are formulated.
Policies
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34. Dislinguish between policies and st atcgies.(Apr/May 2007)
l.Policies are the guidelines ro
Stratesi
decision
making. 2.Policies are formulated by top and middle levei management.
3.Policies are the means organizational goals.
for
Strategy is the long-temr view ard to see the big picture.
Strategic planning is made by top level maoageme only. achieving Strategy is colcemed with positioriing the business in the market and establishirrg a reputation with customeN,employers and
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other stake holders.
J5. tl|e fore@stiog techniques used for decision making.(May/June 2007), (Apr/Mry -List 2008),(AprVMay 2010),O{ay[une 2013) Consumer Survey method. Expert opinion (Delphi) Method. Sales force opinion Method. Test mfiket method
Controlled experiments methd Trend Eojection method Leading irdicators method. Regression method.
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1. 2. 3. 4. 5. 6. 7. 8.
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36. What is DSS? (Noy/Dec 2007) Decision support systems are aDoliedb-roadly to systems that aid decision making by providing rhe answers ro a series oflwhat if"
q.i""iri"- ij."irl", .rro"i'.r.i"il. arra"
systems.
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"yrt".'r'*aL.*fig"
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expert systems, natural language systems, artifiiiut
J7. What h the.importatrce ofseltitrg orgrtri"rtional objectivel io a modern compler organ iza
tion?(Nov/Dec 2009)
objeclives provide the basic for plaruring. objectives facilitate c_oordination of work
objectives motivate emplo) eds.
provide the yardstick to measure the performanc€ ofthe employees and hence
og
,betterobjectives control-
2009)
Programmed decisions
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38. Mention the chamcterislics of.programmed, and .Non_programmed, decisioIs. (Nov/Dec
Non-programmed decisions
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repe&.lve oeclsloN arc called
programmed decisioas.
z.l\urcs
or
guloelmes are used
programmed decisions.
to
They are maile ,nder unusual situaions that have not been often addressed. make No rules to be followed to make this decision
since the decision is new. qecrctons are made by lower lwel This decisions a.e made-by top level management and it does not involve risk and management and involves risk and uncertain Iy. uncertainly.
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39.What you meao by policy?(AprMay20l0) Policy is a staremenr. and prederermined guiderine that provides directions for decision ma(rng and taktng afiion. Policies may be based upon a thorough analysis ofobiectives and it should be consislent with the company.s mission ana phitosoph'v.
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