Principles of Management and planning, scientific selection and training of personnel, suitable methods of
Organisational Behaviour
remuneration and performance appraisal.
4. Directing: Direction involves managing managers, managing workers and the work
through the means of motivation, proper leadership, effective communication as
well as co-ordination. A manager must develop the ability to command and direct
others.
5. Motivating: Motivation is a managerial function to inspire and encourage people
to take required action. Motivation is the key to successful management of any
enterprise. Motivation can set into motion a person to carry out certain activity.
6. Controlling: Control is the process of measuring actual results with some standard
of performance, finding the reason for deviations of actual from desired result and
taking corrective action when necessary. Thus, controlling enables the realisation
of plans. A manager must adopt the following steps in controlling:
l Identify potential problems.
l Select mode of control.
l Evaluate performance in terms of planning.
l Spot significant deviations.
l Ascertain causes of deviations.
l Take remedial measures.
7. Co-ordination: Co-ordination is concerned with harmonious and unified action
directed toward a common objective. It ensures that all groups and persons work
efficiently, economically and in harmony. Co-ordination requires effective channels
of communication. Person-to-person communication is most effective for co-
ordination.
8. Communication: It means transfer of information and under-standing from person
to person. Communication also leads to sharing of information, ideas and knowledge.
It enables group to think together and act together.
Check Your Progress 1
1. Explain the process of management.
2. What are the functions of a manager?
3.3 PLANNING
Planning means looking ahead. It is deciding in advance what is to be done. Planning
includes forecasting. According to Henry Fayol - "purveyance, which is an essential
element of planning, covers not merely looking into the future but making provisions for
it. A plan is then a projected course of action". All planning involves anticipation of the
future course of events and therefore bears an element of uncertainty in respect of its
success. Planning is concerned with the determination of the objectives to be achieved
and course of action to be followed to achieve them. Before any operative action takes
place it is necessary to decide what, where, when and who shall do the things. Decision-
making is also an important element of planning. Planning determines both long-term and
short-term objectives and also of the individual departments as well as the entire
organisation. According to Fayol - "The plan of action is, at one and the same time, the
result envisaged, the line of action to be followed, the stages to go through, and the
methods to use. It is a kind of future picture wherein proximate events are outlined with
some distinctness...." Planning is a mental process requiring the use of intellectual faculties'
46 imagination, foresight, sound judgement etc.
, Planning is deciding in advance what is to be done. It involves the selection of objectives, Functions of Management
policies, procedures and programmes from among alternatives. A plan is a predetermined
course of action to achieve a specified goal. It is a statement of objectives to be achieved
by certain means in the future. In short, it is a blueprint for action.
According to Louis A Allen - "Management planning involves the development of forecasts,
objectives, policies, programmes, procedures, schedules and budgets".
According to Theo Haimann - "Planning is deciding in advance what is to be done.
When a manager plans, he projects a course of action, for the future, attempting to
achieve a consistent, co-ordinated structure of operations aimed at the desired results".
According to Koontz O'Donnel - "Planning is an intellectual process, the conscious determination
of courses of action, the basing of decisions on purpose, acts and considered estimates".
3.3.1 Nature of Planning
1. Planning is goal-oriented: Every plan must contribute in some positive way towards
the accomplishment of group objectives. Planning has no meaning without being
related to goals.
2. Primacy of Planning: Planning is the first of the managerial functions. It precedes
all other management functions.
3. Pervasiveness of Planning: Planning is found at all levels of management. Top
management looks after strategic planning. Middle management is in charge of
administrative planning. Lower management has to concentrate on operational
planning.
4. Efficiency, Economy and Accuracy: Efficiency of plan is measured by its
contribution to the objectives as economically as possible. Planning also focuses on
accurate forecasts.
5. Co-ordination: Planning co-ordinates the what, who, how, where and why of
planning. Without co-ordination of all activities, we cannot have united efforts.
6. Limiting Factors: A planner must recognise the limiting factors (money, manpower
etc) and formulate plans in the light of these critical factors.
7. Flexibility: The process of planning should be adaptable to changing environmental
conditions.
8. Planning is an intellectual process: The quality of planning will vary according
to the quality of the mind of the manager.
3.3.2 Importance of Planning
As a managerial function planning is important due to the following reasons:-
1. To manage by objectives: All the activities of an organisation are designed to
achieve certain specified objectives. However, planning makes the objectives more
concrete by focusing attention on them.
2. To offset uncertainty and change: Future is always full of uncertainties and
changes. Planning foresees the future and makes the necessary provisions for it.
3. To secure economy in operation: Planning involves, the selection of most profitable
course of action that would lead to the best result at the minimum costs.
4. To help in co-ordination: Co-ordination is, indeed, the essence of management,
the planning is the base of it. Without planning it is not possible to co-ordinate the
different activities of an organisation.
5. To make control effective: The controlling function of management relates to the
comparison of the planned performance with the actual performance. In the absence
of plans, a management will have no standards for controlling other's performance.
47
Organisational Behaviour
remuneration and performance appraisal.
4. Directing: Direction involves managing managers, managing workers and the work
through the means of motivation, proper leadership, effective communication as
well as co-ordination. A manager must develop the ability to command and direct
others.
5. Motivating: Motivation is a managerial function to inspire and encourage people
to take required action. Motivation is the key to successful management of any
enterprise. Motivation can set into motion a person to carry out certain activity.
6. Controlling: Control is the process of measuring actual results with some standard
of performance, finding the reason for deviations of actual from desired result and
taking corrective action when necessary. Thus, controlling enables the realisation
of plans. A manager must adopt the following steps in controlling:
l Identify potential problems.
l Select mode of control.
l Evaluate performance in terms of planning.
l Spot significant deviations.
l Ascertain causes of deviations.
l Take remedial measures.
7. Co-ordination: Co-ordination is concerned with harmonious and unified action
directed toward a common objective. It ensures that all groups and persons work
efficiently, economically and in harmony. Co-ordination requires effective channels
of communication. Person-to-person communication is most effective for co-
ordination.
8. Communication: It means transfer of information and under-standing from person
to person. Communication also leads to sharing of information, ideas and knowledge.
It enables group to think together and act together.
Check Your Progress 1
1. Explain the process of management.
2. What are the functions of a manager?
3.3 PLANNING
Planning means looking ahead. It is deciding in advance what is to be done. Planning
includes forecasting. According to Henry Fayol - "purveyance, which is an essential
element of planning, covers not merely looking into the future but making provisions for
it. A plan is then a projected course of action". All planning involves anticipation of the
future course of events and therefore bears an element of uncertainty in respect of its
success. Planning is concerned with the determination of the objectives to be achieved
and course of action to be followed to achieve them. Before any operative action takes
place it is necessary to decide what, where, when and who shall do the things. Decision-
making is also an important element of planning. Planning determines both long-term and
short-term objectives and also of the individual departments as well as the entire
organisation. According to Fayol - "The plan of action is, at one and the same time, the
result envisaged, the line of action to be followed, the stages to go through, and the
methods to use. It is a kind of future picture wherein proximate events are outlined with
some distinctness...." Planning is a mental process requiring the use of intellectual faculties'
46 imagination, foresight, sound judgement etc.
, Planning is deciding in advance what is to be done. It involves the selection of objectives, Functions of Management
policies, procedures and programmes from among alternatives. A plan is a predetermined
course of action to achieve a specified goal. It is a statement of objectives to be achieved
by certain means in the future. In short, it is a blueprint for action.
According to Louis A Allen - "Management planning involves the development of forecasts,
objectives, policies, programmes, procedures, schedules and budgets".
According to Theo Haimann - "Planning is deciding in advance what is to be done.
When a manager plans, he projects a course of action, for the future, attempting to
achieve a consistent, co-ordinated structure of operations aimed at the desired results".
According to Koontz O'Donnel - "Planning is an intellectual process, the conscious determination
of courses of action, the basing of decisions on purpose, acts and considered estimates".
3.3.1 Nature of Planning
1. Planning is goal-oriented: Every plan must contribute in some positive way towards
the accomplishment of group objectives. Planning has no meaning without being
related to goals.
2. Primacy of Planning: Planning is the first of the managerial functions. It precedes
all other management functions.
3. Pervasiveness of Planning: Planning is found at all levels of management. Top
management looks after strategic planning. Middle management is in charge of
administrative planning. Lower management has to concentrate on operational
planning.
4. Efficiency, Economy and Accuracy: Efficiency of plan is measured by its
contribution to the objectives as economically as possible. Planning also focuses on
accurate forecasts.
5. Co-ordination: Planning co-ordinates the what, who, how, where and why of
planning. Without co-ordination of all activities, we cannot have united efforts.
6. Limiting Factors: A planner must recognise the limiting factors (money, manpower
etc) and formulate plans in the light of these critical factors.
7. Flexibility: The process of planning should be adaptable to changing environmental
conditions.
8. Planning is an intellectual process: The quality of planning will vary according
to the quality of the mind of the manager.
3.3.2 Importance of Planning
As a managerial function planning is important due to the following reasons:-
1. To manage by objectives: All the activities of an organisation are designed to
achieve certain specified objectives. However, planning makes the objectives more
concrete by focusing attention on them.
2. To offset uncertainty and change: Future is always full of uncertainties and
changes. Planning foresees the future and makes the necessary provisions for it.
3. To secure economy in operation: Planning involves, the selection of most profitable
course of action that would lead to the best result at the minimum costs.
4. To help in co-ordination: Co-ordination is, indeed, the essence of management,
the planning is the base of it. Without planning it is not possible to co-ordinate the
different activities of an organisation.
5. To make control effective: The controlling function of management relates to the
comparison of the planned performance with the actual performance. In the absence
of plans, a management will have no standards for controlling other's performance.
47
