Introduction to Management and Planning

What is Management?

• Management is about getting work done through other people, regardless of the organization's type.
• "Management" also refers to the people who oversee these organizations, known as managers.

Managerial Planning

• Planning involves looking ahead to set future courses of action.
• This systematic activity determines who will do what, how, and when in a specific job.
• "Well plan is half done" is a statement highlighting the importance of planning.

Planning Definitions

• Urwick defines planning as a thinking first approach, guided by facts rather than assumptions.
• Koontz & O'Donell state that planning defines what to do, how to do it, and who will do it. Planning bridges the gap between the current state and desired future state.

Steps in the Planning Function

• Establishment of Objectives: Planning starts with defining goals and objectives for what is to be achieved. These objectives provide direction for various activities and efforts. They can be expressed in quantitative or qualitative terms.
• Establishment of Planning Premises: Planning premises are assumptions about future events that influence planning. They help identify potential deviations from plans and address causes of such deviations.
• Choice of Alternative Course of Action: After considering forecasts and establishing planning premises, multiple alternative courses of action need to be evaluated. Each alternative should be weighed in light of resources available and organizational needs.
• Formulation of Derivative Plans: Derivative plans support the main plan by outlining sub-plans or secondary plans. Their role is to assist and expedite the achievement of the primary plan. Derivative plans provide a time schedule and task sequence.
• Securing Co-operation: Once plans are finalized, gaining the cooperation and confidence of those who will implement the plans is important. This builds trust and a shared understanding of the goals.

Total Quality Management (TQM)

• Deming's 14 points define the principles of TQM
• Focus on continuous improvement of products and services, driving out fear, and breaking down barriers between departments
• TQM requires a constant pursuit of quality, breaking away from mass inspection and awarding contracts based solely on the lowest price

Theory Z

• "Japanese Management" style promoted by Dr. William Ouchi in the 1980s
• Focused on increasing employee loyalty through job security and well-being
• Derived inspiration from Deming's 14 points
• Emphasized stable employment, high productivity, and high employee morale

Pluralistic Society

• Refers to societies where diverse religious, ethnic, and cultural groups coexist
• Cultural pluralism allows smaller groups to maintain their unique identities within a larger society
• Horace Kallen is credited with originating the concept of cultural pluralism
• Cultural pluralism embraces acceptance of diverse cultures within a shared framework of laws and values

Management Ethics

• Concerned with principles of right and wrong in managerial actions
• Business ethics applies ethical principles to business relationships and activities
• Managerial ethics guide managers in their conduct and decision-making
• Three levels of ethical judgment: immoral management, amoral management, and moral management
  • Immoral management actively opposes ethical behavior
  • Moral management actively strives to follow ethical principles
  • Amoral management is indifferent to ethical considerations

International Business

• Involves cross-border trade of goods, services, technology, capital, and knowledge
• Global corporations face challenges of political risk, economic risk, cultural risk, and legal risk
• Countertrade uses goods and services as payment instead of money
  • Variants include barter, switch trading, counter purchase, buyback, and offset

Multinational Corporation

• Operates in its home country and other countries around the world
• Maintains a central office in one country
• Characterized by: high assets and turnover, network of branches, centralized control, continuous growth, sophisticated technology, skilled workforce, forceful marketing, and high-quality products
• Offers advantages such as efficiency, development, employment, and innovation

Planning

• Outlines future courses of action to achieve objectives
• Essential for managing resources and priorities in an organized way
• Types of plans: Strategic, tactical, operational, and contingency
  • Strategic plans are high-level, focusing on the overall organization's mission
  • Tactical plans translate strategic plans into specific action plans for different parts of the organization
  • Operational plans are detailed plans made by frontline managers
  • Contingency plans are activated when unexpected events happen or changes are needed

Planning Process

• Key steps: Recognizing the need for action, Objectives, Developing premises, Identifying alternatives, Examining alternatives, Selecting an alternative, Formulating supporting plans, Implementing the plan
• Objectives define the intended goal, providing direction for managerial efforts
• Missions define the purpose of an organization
• Long-range objectives extend beyond the current fiscal year
• Short-range objectives are derived from long-range objectives
• Management by Objectives (MBO) improves performance by defining clear goals agreed upon by both management and employees