PLANNING
🔹 Concept of Planning
Planning means deciding in advance what to do, how to do, when to do and who will do it.
It bridges the gap between present position and future goals.
⭐ Importance of Planning
Provides Direction – It guides employees by clearly stating what work has to be done and how.
Reduces Uncertainty – It helps managers anticipate future changes and prepare responses.
Reduces Wasteful Activities – It avoids duplication and unnecessary work through coordination.
Promotes Innovation – It encourages new ideas and converts them into concrete plans.
Facilitates Decision Making – It helps choose the best alternative after evaluating options.
Establishes Standards for Control – It sets performance standards to measure actual results.
🔹 Features of Planning
Focuses on Objectives – Planning starts with setting goals and deciding steps to achieve them.
Primary Function – It is the first function of management and basis for other functions.
Pervasive – It is required at all levels and in all departments of an organisation.
Continuous – It is an ongoing process as plans are revised regularly.
Futuristic – It is done today to achieve future results.
Mental Exercise – It requires thinking, imagination and logical reasoning.
⚠ Limitations of Planning
Leads to Rigidity – Fixed plans may reduce flexibility in changing situations.
Not Effective in Dynamic Environment – Rapid changes may make plans outdated.
Reduces Creativity – Lower-level managers may not get freedom to innovate.
Costly Process – Planning involves research, data collection and expert advice.
Time Consuming – It requires a lot of time to prepare detailed plans.
No Guarantee of Success – Good planning does not always ensure desired results.
🔹 Planning Process
Setting Objectives – Decide what the organisation wants to achieve.
Developing Premises – Make assumptions about future conditions.
Identifying Alternatives – Find different possible courses of action.
Evaluating Alternatives – Compare pros and cons of each option.
Selecting the Best Alternative – Choose the most suitable plan.
Implementing the Plan – Put the chosen plan into action.
Follow-up Action – Monitor whether the plan is working properly.
📘 Types of Plans
Objective – The desired future position to be achieved.
Strategy – Long-term plan to achieve organisational goals.
Policy – General guidelines for decision-making.
Procedure – Step-by-step method of doing routine work.
Rule – Specific instruction that must be followed.
Programmes – Combination of goals, policies and rules.
Single Use Plan – Plan made for one-time or special purpose.
Standing Plan – Plan used repeatedly for routine situations.
Budget – Financial plan expressed in numerical terms.
Method – Standardised way of performing a task.
Organising
📖 Meaning :Organising is the process of identifying and grouping activities of the enterprise.
It involves assigning duties and delegating authority to employees.
It establishes relationships between different positions in the organization.
It ensures coordination and efficient achievement of objectives.
🔹 2. Steps Involved in Process of Organising
📖 Explanation :Organising begins after planning and defines how work will be done.
It includes division of work and grouping of activities.
Authority is assigned and responsibility is fixed.
Finally, relationships are established to ensure coordination.
🪜 Steps
1. Identification & Division of Work
2. Departmentalisation
3. Assignment of Duties
4. Establishing Reporting Relationships
🔹 3. Importance of Organising
Organising ensures systematic work allocation.
It clarifies authority and responsibility.
It avoids duplication of work.
It improves coordination and efficiency.
✅ Advantages
Promotes specialization.
Avoids confusion.
Ensures optimum use of resources.
Facilitates coordination.
Helps in expansion and growth.
❌ Disadvantages
May create rigidity.
Communication gap may arise.
Delay in decision making.
Resistance to change.
Conflict between departments.
🔹 4. Functional Structure
📖 Explanation : Functional structure divides organisation on the basis of functions.
Each department performs a specific activity like production, marketing etc.
It is headed by a functional specialist.
It is suitable for large organisations producing limited products.
✅ Advantages
Promotes specialization.
Better supervision by experts.
Efficient use of resources.
Easy training of employees.
Clear career growth.
❌ Disadvantages
Lack of coordination.
Delay in decision making.
Departmental conflicts.
Limited flexibility.
Overburden on top management.
🎯 Suitability
Suitable for large organisations.
Suitable where products are few.
Suitable where activities are repetitive.
🔹 5. Divisional Structure
📖 Explanation : Divisional structure divides organisation on product or area basis.
Each division works as a profit center.
Every division has its own functional departments.
It is suitable for multi-product companies.
✅ Advantages
Quick decision making.
Better accountability.
Flexibility.
Focus on product performance.
Develops managerial talent.
❌ Disadvantages
Duplication of resources.
Higher cost.
Lack of coordination between divisions.
Conflict among divisions.
Requires skilled managers.
🎯 Suitability
Suitable for large companies.
Suitable for multi-product firms.
Suitable for expanding organisations.
🔹 6. Formal Organisation
📖 Explanation : Formal organisation is officially designed structure of roles.
It is created by top management.
Authority flows from top to bottom.
It follows rules and procedures strictly.
⭐ Features
Clearly defined authority.
Written rules and policies.
Official communication channel.
Fixed duties and responsibilities.
Deliberately created structure.
✅ Advantages
Clear responsibilities.
Avoids confusion.
Stable system.
Easy control.
Efficient performance.
❌ Disadvantages
Lack of flexibility.
Delay in communication.
Ignores human relations.
Slow decision making.
May reduce creativity.
🔹 7. Informal Organisation
📖 Explanation : Informal organisation arises naturally among employees.
It is based on personal relations.
It is not officially created.
It supports formal organisation.
⭐ Features
Based on friendship.
No written rules.
Flexible structure.
Quick communication.
Unofficial leadership.
✅ Advantages
Fast communication.
Improves morale.
Reduces stress.
Better teamwork.
Supports formal structure.
❌ Disadvantages
Spread of rumours.
Resistance to change.
Groupism.
Conflict with formal system.
Miscommunication.
🔹 8. Delegation of Authority
📖 Explanation : Delegation means transfer of authority to subordinates.
It includes assignment of responsibility.
Authority is given to perform tasks.
However, accountability remains with superior.
🔹 Elements of Delegation
Authority
Responsibility
Accountability
🔹 Importance of Delegation
Reduces workload of managers.
Develops subordinates.
Quick decision making.
Increases motivation.
Ensures effective supervision.
🔹 9. Decentralisation
📖 Explanation : Decentralisation means systematic delegation at all levels.
Decision-making power is shared with lower levels.
It reduces burden on top management.
It promotes participation.
✅ Importance
Develops managerial talent.
Quick decisions.
Motivation of employees.
Reduces work burden.
Better control at lower levels.
🔹 10. Centralisation
📖 Explanation : Centralisation means concentration of authority at top level.
Major decisions are taken by top management.
Lower level managers have limited authority.
It ensures uniformity in decisions.
✅ Importance
Uniform policies.
Strong control.
Better coordination.
Quick crisis decision.
Avoids duplication.
