MODULE 1 - UNIT 2 Flashcards
first proposed that management process was a continuum of functions that the manager must perform to ensure the smooth operations of an organization
HENRI FAYOL
ACC. TO PETER DRUCKER, THERE ARE 5 BASIC OPERATIONS IN WORK
- setting objectives
- organizing
- motivating and communicating
- establishing standards or measurements of performance
- developing people, including the managers themselves.
HIERARCHY OF PLANNING
MISSIONS
GOALS & OBJECTIVES
STRATEGIES
POLICIES
PROCEDURES
RULES
PROGRAMS
BUDGETS
WHAT LEVEL WHERE MISSION IS DEVELOPED
TOP LEVEL
broad, long-term & philosophical marker
GOALS
specific, short-term & specific benchmark
OBJECTIVES
comprehensive master plan stating how an org will achieve its mission & goals
Strategies
comprehensive guideline for decision making
Policies
sequential steps that describe in detail how task is to be performed
Procedures
detailed guides to action
Rules
statement of activities essential to accomplish a single-use plan
Programs
short-term financial plan
Budgets
PLANNING PROCESS STEP: be aware of the business opportunities in the firm’s external environment as well as within the firm
Recognizing need for action
PLANNING PROCESS STEP: establish the objectives for whole org and indiv departments. ; indicate the end result the company wishes to achieve
Setting Objectives
PLANNING PROCESS STEP: the future is always uncertain so, certain assumptions will have to be made. These assumptions are the premises
Developing Premises
PLANNING PROCESS STEP: there is a multitude of choices. all of alternative courses should be identified.
Identifying Alternatives
PLANNING PROCESS STEP: every option will go thru an exam where all their pros & cons will be weighed
Examining Alternate Course of Action
PLANNING PROCESS STEP: best & most feasible plan will be chosen to be implemented
Selecting the Alternative
IN SELECTING ALTERNATIVE, CHOICE IS BASED ON:
scientific analysis
mathematical equations
PLANNING PROCESS STEP: once you have chosen plan to implement, managers have to come up w/ one or more supporting plans
Formulating Supporting Plan
PLANNING PROCESS STEP: this is when all other fxns of management come into play & the plan is put into action to achieve the objectives of the organization.
Implementation Of the Plan
TYPES OF PLANNING IN PRINCIPLE OF MANAGEMENT
ON THE BASIS OF HIERARCHY
ON THE BASIS OF USE
ON THE BASIS OF FLEXIBILITY
ON THE BASIS OF HIERARCHY INCLUDES:
CORPORATE PLAN
TACTICAL PLAN
OPERATIONAL PLAN
- defines the objectives of org & strategy to achieve
defined objectives
CORPORATE PLAN
sub-division of corporate plans to be
implemented in practical field.
TACTICAL PLAN
specific action plan for each & every activity of unit.
OPERATIONAL PLAN
ON THE BASIS OF USE INCLUDES
SINGLE USE PLAN
STANDING USE PLAN
prepared for specific purpose in non-programmed situation & prepared for non-repetitive activities
SINGLE USE PLAN
- prepared for programmed decision-making
- gives broad guidelines for repetitive activities
STANDING USE PLAN
ON THE BASIS OF FLEXIBILITY INCLUDES:
SPECIFIC PLAN
FLEXIBLE PLAN
developed for a particular dept./ unit about the
activities to be performed.
SPECIFIC PLAN
- changeable on the basis of time and situation.
- not specific in terms of procedures and
allocation of resources
FLEXIBILE PLAN
first to use term “MANAGEMENT BY OBJECTIVE
PETER DRUCKER
process/ system designed for supervisory managers in which manager & his/her subordinate sit down and jointly set specific objectives to be accomplished within a set time frame and for which the subordinate is then held directly responsible
Management By Objective
in orgs that are not using MBO approach, most planning & objective setting to achieve these common organizational goals is directed
downward
three phases in implementing MBO program
- managers must set goals & objectives
- these objectives should be shared
- manager & each employee must meet & come to a mutual agreement on goals & objectives
