PRINCIPLES OF MANAGEMENT

MGT1313

WINDFIELD INTERNATIONAL COLLEGE

COURSE: DIPLOMA IN BUSINESS MANAGEMENT

SUBJECT NAME: PRINCIPLE OF MANAGEMENT

NO ID: 05-0813-00014

NAME: MATHURI A/P KALAI SELVAM

LECTURER NAME: MS. MYUREE SUKUMAR

DIPLOMA IN BUSINESS MANAGEMENT

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INDEX
TOPIC
FRONT PAGE
INDEX
INTRODUCTION OF MANAGEMENT
STRATEGIC PLAN
GOALS SETTINGS
TACTICAL PLAN
OPERATIONAL PLAN
REFERENCES
CONCLUSION

DIPLOMA IN BUSINESS MANAGEMENT

PAGE
1
2
3
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7-8
9
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1.0 INTRODUCTION OF MANAGEMENT

Management in business and organizations means to coordinate the efforts of people
to accomplish goals and objectives using available resources efficiently and
effectively. Management comprises planning, organizing, staffing, leading or
directing, and controlling an organization or initiative to accomplish a goal.
Resourcing encompasses the deployment and manipulation ofhuman resources,
financial

resources,

technological

resources,

and

natural

resources.

Since

organizations can be viewed as systems, management can also be defined as human

action, including design, to facilitate the production of useful outcomes from a
system. This view opens the opportunity to 'manage' oneself, a prerequisite to
attempting to manage others.

DIPLOMA IN BUSINESS MANAGEMENT

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1.1 STRATEGIC PLAN

Strategic planning is deciding what a company will do. Strategic planning is an
organization's process of defining its strategy, or direction, and making decisions on
allocating its resources to pursue this strategy. In order to determine the future
direction of the organization, it is necessary to understand its current position and the
possible avenues through which it can pursue particular courses of action. Generally,
strategic planning deals with at least one of three key questions:
1

"What do we do?"

"For whom do we do it?"

"How do we excel?"

Many organizations view strategic planning as a process for determining where an

organization is going over the next year ormore typically3 to 5 years (long term),
although some extend their vision to 20 years.

2.0 GOALS SETTINGS

DIPLOMA IN BUSINESS MANAGEMENT

Goals settings involves establishing specific, measurable, achievable, realistic and

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time-targeted (S.M.A.R.T ) goals. Work on the theory of goal-setting suggests that

and effective tool for making progress is to ensure that participants in a group with a
common goal are clearly aware of what is expected from them. On a personal level,
setting goals helps people work towards their own objectives. Goal setting features as
a major component of personal development literature. It is considered an open
theory, so as new discoveries are made it is modified. Studies have shown that
specific and ambitious goals lead to a higher level of performance than easy or
general goals. As long as the individual accepts the goal, has the ability to attain it,
and does not have conflicting goals, there is a positive linear relationship between
goal difficulty and task performance. Goals are a form of motivation that sets the
standard for self-satisfaction with performance. Achieving the goal one has set for
oneself is a measure of success, and being able to meet job challenges is a way one
measures success in the workplace.

DIPLOMA IN BUSINESS MANAGEMENT

3.0 TACTICAL PLAN

Strategy involves the future vision of the business and tactics involve the actual steps
needed to achieve that vision. For example, a marketing strategy for a motel might be
to target travel agents, and develop a business package for them, which includes an ecommerce solution. Tactics are the practical steps needed to implement the strategy.
The tactics for the travel agents strategy might be to:

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Build a list of local travel agents

Prepare a business incentive scheme
Outline how they can use the motel website to make reservations and keep up
to date.
Personally visit the agents and follow up
Monitor the response to determine if the sales target is met.

One can see from this that the strategy always comes first, then come the tactics. For
example, a value-based commitment to environmentally responsible hospitality could
be reflected strategically by working toward Green Globe certification, and tactically,
incorporating energy efficient appliances in the motel retrofit.Tactical plans are
beneficial to companies because the steps developed in the plan help management
find inefficiencies in its operations. Once operational short comings are discovered,
management can take the necessary steps to make corrections. Tactical plans also
allow companies to benefit from the input of its employees. Effective tactical plans
must include the input of individuals involved in the day-to-day operations of a firm.

DIPLOMA IN BUSINESS MANAGEMENT

3.1 OPERATIONAL PLAN

Operational planning is the process of linking strategic goals and objectives to tactical
goals and objectives.Operational planning is deciding how that will be done.It
describes milestones, conditions for success and explains how, or what portion of, a
strategic plan will be put into operation during a given operational period, in the case
of commercial application, a fiscal year or another given budgetary term. An

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operational plan is the basis for, and justification of an annual operating budget
request. Therefore, a five-year strategic plan would typically require five operational
plans funded by five operating budgets. Operational plans should establish the
activities and budgets for each part of the organization for the next 1 3 years. They
link the strategic plan with the activities the organization will deliver and the
resources required to deliver them. Operational planning focuses on a firm's products
and services and develops plans to maximize market share and develop financial
projections.Operational planning focuses on the production, equipment, personnel,
inventory and processes of a business. An operational plan uses an organization's
financial ratios to analyze profitability. For example, the plan may include
contribution ratio analysis to determine what processes are required to increase
profits. This could include focusing on selling its premium products or reducing
variable costs. An operational plan draws directly from agency and program strategic
plans to describe agency and program missions and goals, program objectives, and
program activities.A benefit of operational planning is that a company is able to
analyze the effect of its operations on profit. Operational planning dissects a
company's financial position, identifies weaknesses and develops ways to increase
profits. A disadvantage of tactical and operational planning is that the developmental
process is time consuming. Some managers are lost in the process because they spend
an excessive amount of time planning and little to no time implementing the plan.

Like a strategic plan, an operational plan addresses four questions:

DIPLOMA IN BUSINESS MANAGEMENT

Where are we now?

Where do we want to be?
How do we get there?
How do we measure our progress?

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The operations plan is both the first and the last step in preparing an operating budget
request. As the first step, the operations plan provides a plan for resource allocation;
as the last step, the OP may be modified to reflect policy decisions or financial
changes made during the budget development process. Operational plans should be
prepared by the people who will be involved in implementation. There is often a need
for significant cross-departmental dialogue as plans created by one part of the
organisation inevitably have implications for other parts.

DIPLOMA IN BUSINESS MANAGEMENT

REFERENCES
http://en.wikipedia.org/wiki/Operational_planning
http://en.wikipedia.org/wiki/Strategic_planning
http://en.wikipedia.org/wiki/Goal_setting
http://wafataft.tumblr.com/post/5478833269/on-levels-of-war
http://smallbusiness.chron.com/tactical-operational-planning-18336.html

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CONCLUSION
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The first level is the strategic level. It is often characterized as level in which the
decisions of most political and civilian leaders take place. It is the level of war in
which a country determines the objectives of the war, opportunities and challenges
from and within the war, relevant national resources available to the country as means
to achieve these goals, opportunities, challenges, and how to deal with them. Here,
states develop plans, translate values into objectives, make alliances, assess risks and
costs, as well as outlaying the prospect of the war and visions stemmed from it.
Actors in this level include, but not limited to: government officials, strategic

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planners, politicians, legislators, as well the president and his/her advisors.

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