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Basic Managerial Functions


Leading Planning


Well plan is half done.

Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals. Urwick

According to Koontz & ODonell, Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur.

Steps in Planning Function

Establishment of objectives Establishment of Planning Premises Choice of alternative course of action Formulation of derivative plans Securing Co-operation Follow up/Appraisal of plans

Proper planning accomplishes the following

Managing Uncertainty

Better Focus
Improves Coordination Basis for Control

Improves Effectiveness

Types Of Plans
Long term & Short term Formal & Informal Plans Proactive & Reactive Plans Strategic & Operational Plans

The Planning Process

GOAL SETTING Identification and formulation of objectives

Reactive Planning Revision of goals and plans

DEVELOPING PLANS Choices between alternative plans

IMPLEMENTATION Execution of the plan

Successful Planning Process

Everyone participates

Board and staff educated about planning

Board and staff explore new ideas

Board takes advantages of opportunities

Necessary resources available

Making Planning Effective

Linked to Long term objectives

Everyone participates

Flexible Simple Top Management Support

Barriers to Effective Planning

What Is an Objective?

objective are goals, aims or purposes that organisation wish over varying periods of time

Management By Objectives (MBO)

A method whereby managers and employees define objectives for every department, project, and person and use them to monitor subsequent performance.

The Five-Step MBO Process


MBO is concerned with goal setting and planning for individual managers and their units. The essence of MBO is a process of joint goal setting between a supervisor and a subordinate. Managers work with their subordinates to establish performance goals that are consistent with higher organizational objectives. MBO helps clarify the hierarchy of objectives as a series of well-defined means-ends chains.

Essential Steps for MBO

Set Goals
The most difficult step.

Develop Action Plan

For both workgroups and individuals.

Review Progress/ Take corrective action

Periodic during the year.

Appraise Overall Performance.

Review Annual Goals.

Better communication and Coordination Frequent reviews and interactions between superiors and subordinates. Motivation Involving employees in the whole process of goal setting and increasing employee empowerment. Clarity of goals. Subordinates tend to have a higher commitment to objectives.

The development of objectives can be time consuming, leaving both managers and employees less time in which to do their actual work. The elaborate written goals, careful communication of goals, and detailed performance evaluation required in an MBO program increase the volume of paperwork in an organization.