Planning Definition Essay Example for Free

Planning Definition EssayPlanning means looking ahead and chalking out sequence to come courses of biteion to be followed. It is a propaedeutic step. It is a musical arrangementatic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is rightly said wellhead plan is half done. Therefore planning takes into consideration available prospective valet and physical resources of the organization so as to get rough-and-ready co-ordination, persona perfect adjustment. It is the basic vigilance function which includes formulation of one or to a greater extent detailed plans to achieve optimum balance of needs or demands with the available resources.According to Urwick, Planning is a mental predisposition to do things in modulately way, to think before acting and to act in the light of facts rather than guesses.Planning is decision fashioning best alternative among others to perform different managerial functions in order to achieve predetermined goals. 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 atomic number 18 to, where we want to go. It makes possible things to draw which would not otherwise occur. Steps in Planning FunctionEstablishment of objectivesEstablishment of Planning PremisesChoice of alternative course of actionFormulation of derivative plansSecuring Co-operation embrace up/Appraisal of plansPlanning Importance in attentionPlanning may be broadly defined as a concept of administrator action that embodies the skill of anticipating, influencing, and controlling the nature and direction of change. McFarland Importance of PlanningPlanning increases the organizations ability to adapt to future eventualitiesPlanning helps crystallize objectivesPlanning ensures a relatedness among decisionsPlanning helps the company to remain more competitiv e in its industryAdequate planning reduces unnecessary pressures of immediacyPlanningreduces mistakes and oversightsPlanning ensures a more productive use of the organizations resources Planning makes control easierPlanning enables the identification of future problems and makes it possible to deliver the goods for such contingencies Planning enables the identification of future problems and makes it possible to provide for such contingencies Planning increases the effectiveness of a manager2.Evolution of Classical Approach to ManagementTraditional process of learning is either through obsevation and experiment. Nature or environment is considered uniform and when we observe certain phenomenon or events uniformly leading to the same result or results, we conclude a cause and effect kind between the two. This is learning by observation or in other words by experience. Earlier thinkers on management followed this come out in growing theories of management. Learning principally is through emphirical process and through analysis of the data collected through observation. Draw the principles of managment by looking at and anyalysing the jobs that all managers unremarkably do.This onward motion served as a starting point for pioneers on management science to verify the validity and improve the applicability of the principles and practices of management. Analysis of observd data is what conciliate a case study. The observational method of case study helps arriving at logical conclusions about past experience and to test the same as standards for future events. The German sociolists, Max Weber followed the absolute approach and developed his theory of Bureaucracy, which portrays the structure anddesign of organisation charqacterised by a hierarchy of authority, formalised rules and regulations that serve to take to the woods the coordinated functioning of an organization.Basic Postulates of the Classical Approach by Max Weber1. Management of an organization i s considered as a chain of inter-related functions. The study of the range of mountains and features of these functions, the sequence through which these be performed and their inter-relationship leads one to draw principles of management suitable for universal diligence 2. Learning principles of management is done through the past experiences of factual practicing managers 3. As business environment consists of uniform cycles exhibiting an underlying unity of realities, functions and principles of management derived through process of empirical reasoning are suitable for universal application 4. Emerging new managers through formal education and case study can develop skill and competency in management concepts and practices 5. The clasasical approach besides recognised the importance of frugal efficiency and formal organizational structure as guiding pillars of management effectigveness. 6. Business activity is based on economic gather. Organizations should therefore contro l economic incentives Neoclassical theory of managementThere are 3 neoclassical theoriesHuman Relations theory Explains the modern overture of Human Relations Management theory which takes into account world factors like the employer-employee relationship. Human relations theory is largely seen to have been born as a result of the Hawthorne experiments which Elton Mayo conducted at the Western Electrical Company. The serious strand in the development of modern management was the increase in attention to the tender factors, which has become known as the human relations school of management.The core aspect of Human Relations Theory is that, when workers were being observed and included in the research, they felt more important and valued by the company. As a result, their productivity levels went up significantly. This represented a significant departure from many of the classical theories, particularly Fordism, as it went against the notion that management needed to control worke rs, and remove their autonomy at every step. Instead, it showed that by engaging with workers and considering their requirements and needs, companys could benefit from increased productivity.Behavioral theory The behavioral management theory is often called the human relations movement because it addresses the human dimension of work. Behavioral theorists believed that a bump understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity. The theorists who contributed to this school viewed employees as individuals, resources, and assets to be developed and worked with not as machines, as in the past. Several individuals and experiments contributed to this theory.Social systems theory.Developed by Niklas Luhmann is an option for the theoretical foundation of Human Resource Management (HRM). After clarifying the advantages of using a grand (social) theory as the basic theoretical perspective, the roots of this social sy stems theory the deterministic view of systems as machines, the open systems approach and non-linear systems theory are addressed. Based on the view of social systems as autopoietically closed systems, five major contributions to a theoretical foundation of HRM are identified (1) the conceptualisation of organising and managing human resources as social processes, thus overcoming an individualistic angle (2) the new importance of individuals as essential element in the systems environment (3) the abstention form furthest stretchability or highly unrealistic assumptions about the nature of human beings (4) the interaction between various levels and units of analysis built into the theory which is essential for statewide and in-depth analyses of HR phenomena and (5) the openness for additional theories for which social systems theory provides the overall framework.Modern Management TheoryManagement is one or the other form has existed in every nook and corner of the world since t he dawn of civilization. Modern Management has grown with the growth of social-economics and scientific institution. Modern view consists that a worker does not work for altogether money. They work for their satisfaction and happiness with good living style. Here Non- financial award is most important factor.Modern management theories started after 1950s. Modern management theory focuses the development of each factor of workers and organization. Modern management theory refers to emphasizing the use of systematic mathematical techniques in the system with analyzing and understanding the inter-relationship of management and workers in all aspect. It has following three Streams- numerical ApproachSystem ApproachContingency ApproachQuantitative ApproachQuantitative approach also called Operation Research. Quantitative approach is a scientific method. It emphasizes the use of statistical model and systematic mathematical techniques to solving complex management problems. Its helps the management to making decisions in operations. It can only suggest the alternatives based on statistical data. It cannot take final decision.It helps the management for improving their decision making by increasing the number of alternatives and giving faster decisions on any problem. Management can easily calculate the risk and benefit of various actions.major(ip) contributors in Quantitative Approach are-Johan MacDonaldGeorge R. TerryAndrew SzilagyiSystem approachSystem approach was developed inlate1960s. Herbert A. Simon is the father of system theory. A System is defined as a set of regularly interacting or inter dependent components that create as a whole unit. The system concept enables us to see the comminuted variables and constraints and their interactions with one another.According to Cleland and King A system is composed of related and dependent elements which when in interaction from a unity whole.Characteristics of system approachA system must have some specific comp onents, units or sub units. A Change in one system affects the other subsystems. all system is influenced by super system.All systems along their subsystem must have some common objectives. A system is a goal-oriented.A system cannot exit in isolation.Major contributors in system theories are-Daniel Katz,Robert L. Khan,Richard A. Johnson.Contingency ApproachContingency Approach also knows as situational approach. In 1980s, it is recognized as a key to effective management. This approach accepts the dynamics and complexities of the organization structure. An organization is affected by its environment and environment is composed by physical resources, climate, persons, culture, economic and market conditions and their laws. This approach argues that there is no one universally applicable set of rules by which to manage organization.Major contributors in the contingency theories are-G.M. Stalker,Joan Woodward,Tom Burns,Paul R. Lawrence,L.W. Lorsch.Management by objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them. The term management by objectives was first popularized by Peter Drucker in his 1954 book The Practice of Management.1 The essence of MBO is participative goal setting, choosing course of actions and decision making.An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities. According to George S. Odiorne, the system of management by objectives can be described as a process whereby the superior and underling jointly identify its common goals, define each individuals major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.Features and advantagesSome of the important features and advantages of MBO areMotivation Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and lading. Better conference and coordination Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the organization and also to solve many problems.Clarity of goalsSubordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person. Managers can ensure that objectives of the subordinates are linked to the organizations objectives.Domains and levelsObjectives can be set in all domains of activities (production, marketing, services, sales, RD, human resources, finance, information systems etc.). Some objectives are collective, fo r a whole department or the whole company, others can be individualized.PracticeObjectives need quantifying and monitoring. Reliable management information systems are needed to establish relevant objectives and monitor their reach ratio in an objective way. Pay incentives (bonuses) are often linked to results in reaching the objectives.LimitationsThere are several limitations to the assumptive base underlying the impact of managing by objectives,citation needed including It over-emphasizes the setting of goals over the working of a plan as a driver of outcomes. It underemphasizes the importance of the environment or context in which thegoals are set. That context includes everything from the availability and quality of resources, to relative buy-in by leadership and stake-holders. As an eccentric of the influence of management buy-in as a contextual influencer, in a 1991 comprehensive review of thirty years of research on the impact of Management by Objectives, Robert Rodgers and John Hunter concluded that companies whose CEOs demonstrated high commitment to MBO showed, on average, a 56% gain in productivity. Companies with CEOs who showed low commitment only saw a 6% gain in productivity.citation neededStage 1. Collectively fixing objectivesThe superior and subordinate managers collectively fix the objectives. The objectives are fixed for the identify Result Areas (KRAs). KRAs are those areas which are very important for the long-term success of the organisation. For e.g. R D, Production, Finance, Marketing, etc. Definite and measurable objectives should be fixed for each KRA. The time limit for achieving the objectives should also be fixed. The objectives should be achieved by the subordinate manager. For e.g. The objective for the marketing managers may be to increase the sales of product XYZ by 50% for the year 2010-2011.Stage 2. Collectively making a planAfter fixing the objective, the superior and subordinate managers make an action plan. This plan w ill be used by the subordinate manager to achieve the objective.Stage 3. Subordinates implements the planThe subordinate manager implements the plan. That is, he puts the plan to action. He makes optimum use of the resources. If required, he takes guidance from the superior managers. Stage 4. Collectively monitoring performanceThis is the final stage in the MBO process. Here, the subordinate monitors (evaluates or measures) his own performance. He compares his performance with the think targets (objectives). If there are any deviations, then the superior and subordinates managers fix new objectives. In this stage, the superior acts like a coach and guide. He does not act like a judge.