INFS 212 Principles of Management PDF

INFS 212 Principles of Management Session 1 – Overview of Management Lecturer: Prof. Emmanuel Adjei & Dr. Monica Mensah Danquah Department of Information Studies Contact Information: [email protected], [email protected] College of Education School of Information and C...

INFS 212 Principles of Management Session 1 – Overview of Management Lecturer: Prof. Emmanuel Adjei & Dr. Monica Mensah Danquah Department of Information Studies Contact Information: [email protected], [email protected] College of Education School of Information and Communication Department of Information Studies  Session Overview College of Education School of Information and Communication Department of Information Studies Slide 2  Session Overview We are all managers of our own lives and the practice of management is found in every facet of human activity: schools, businesses, churches, government, unions, armed forces and families. As individuals or families we manage our own affairs in one way or another. We are all involved in managing ourselves, our economic and social activities. Whenever we have a goal to achieve we have to manage within our limited resources to achieve our goal. While managing an organisation is more complex than managing our own affairs the two rely on the same basic management principles. Session One provides an overview of management and lays the foundation for the sessions which follow. Slide 3  Session Objectives Objectives After completing this Session the student should be able to: Define and explain what management is Explain the key terms that are common to definitions of management Distinguish between functional and general managers Distinguish between management and administration Summarise the framework of management Slide 4  Session Outline The key topics to be covered in the session are as follows: 1. Topic One: Defining and Explaining Management 2. Topic Two: Classifying Managers 3. Topic Three: Management and Administration 4. Topic Four: The Framework of Management Slide 5  Reading List 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 1, pages 3-20). 3. Smith, M. (2007) Fundamentals of Management, McGraw-Hill: New York. Slide 6 Topic One DEFINING AND EXPLAINING MANAGEMENT Slide 7  Defining and Explaining Management The meaning of management has been expressed in different ways. Because it is extensive, different authors have viewed management from different perspectives and a comprehensive definition of it involves some difficulties. To provide a background to the meaning of management, it is important that we consider a few definitions given by various authors. Slide 8 Defining and Explaining Management con’t Some definitions of management Parker Follet: “Management is the art of getting things done through people.” Appley (1981): “Management is the accomplishment of results through the efforts of other people.” Hill and McShane (2008) define management as “the art of getting things done through people in organisations”. Slide 9  Defining and Explaining Management con’t More definitions of management Terry (1994): “Management is a distinct process, consisting of planning, organising, directing and controlling performed to determine and accomplish objectives by the use of people and other resources.” Robbins (2003): “The term management refers to the process of getting things done effectively and efficiently, through people.” Kreitner’s (2000): “Management is the process of working with and through others to achieve organisational objectives in a changing environment.” Slide 10  Defining and Explaining Management con’t More definitions Rue & Byers (2003): Management is the process of deciding how best to use business resources to produce goods and provide services. Griffen (2000) points out that: Management is a set of activities (including planning and decision making, leading, and controlling) directed at organisational resources (human, financial, physical and information) with the aim of achieving organisational goals in an efficient and effective manner. Slide 11  Defining and Explaining Management Con’t. The last definition Daft and Marcic (1998): Management is the attainment of organisational goals in an effective and efficient manner through planning, organising, leading and controlling organisational resources. Slide 12 Defining and Explaining Management con’t. Authorities in the field agree that no definition of management is able to contain its meaning singularly. However certain features of management emerge from these definitions when examined together. These include: Management is an effort to seek organisational goals. Management involves achieving these goals through people and other resources. Slide 13 Defining and Explaining Management con’t. The job of management is performed through people. Management is the process whereby managers perform the functions of planning, organising, directing and controlling to achieve stated goals. Consideration of an objective, either specifically stated or implied is a requisite of management. Slide 14 Defining and Explaining Management con’t It seeks to maximise the use of resource in relation to the desired results. It is universal in character. Its principles are equally applicable in all fields: business, industry, education and government. Management is a unifying force. It integrates human and other resources to achieve desired objectives. Slide 15  Defining and Explaining Management con’t The features we have outlined resolve to the statement that: management concerns determining objectives and achieving them with a group of people and other resources through the process of planning, organising, directing and controlling. Examining the definitions further, it is reasonable to state that management concerns: – the achievement of something specific. – Also the success of management is considered the extent to which predetermined objectives are achieved. Slide 16 Defining and Explaining Management con’t Key terms in the definitions of management Goals Slide 17 Defining And Explaining Management con’t  Goals Goals are desired outcome for individuals, groups or entire organisations. A profit-oriented business, for example, might have a return-on investment goal; a hospital would have goals centred on patient care; an educational institution would establish goals for teaching, research and community service. Slide 18  Defining and Explaining Management con’t  Objectives These are the specific things you need to do to achieve your goal. Slide 19 Defining and Explaining Management con’t  Resources Human resources Non human resources Slide 20  Defining and Explaining Management con’t  Resources Human resources Human resources include managerial talent and labour. The human resource of an organisation consists of its employees described in terms of their training, experience, judgment, intelligence, relationships and insight. Together these are known as the organisation’s human capital resources. Slide 21 Defining and Explaining Management con’t Non-human resources Financial, Physical and Information. Slide 22 Defining and Explaining Management con’t  Effectiveness: The achievement of the organisation’s goals. Choosing appropriate goals and achieving them. Doing the “right things” to help the organisation attain its goals.  Efficiency: Doing “things right.” It is an input- output relationship. Slide 23 Defining and Explaining Management con’t Exhibit 1–3 Effectiveness and Efficiency in Management c. Gokul AP/EEE. Principles of management Slide 24 Topic Two CLASSIFYING MANAGERS Slide 25  Classifying Managers Managers are classified according to: 1. The duties they perform in the organisation 2. The level they occupy in the organisational hierarchy Slide 26  Classifying Managers  Functional Managers  General Managers Slide 27  Classifying Managers  Functional Managers Functional managers supervise the work of employees who perform specialised duties such as accounting, engineering, marketing, human resource and information systems. Slide 28  Classifying Managers  General Managers They are responsible for the work of several different groups that perform a variety of functions. They supervise the overall operations of a more complex unit such as a company or a division. Slide 29 Classifying Managers Slide 30  Classifying Managers con’t  Top level managers  Middle level managers  Lower level managers Slide 31  Classifying Managers con’t  Top-Level Managers. What they basically do in organisations: Make major decisions affecting the present and the future state of the organisation. Give the organisation its general direction. Slide 32  Classifying Managers con’t Typical titles of top managers Chief Operating Officer (COO) Chief Executive Officer (CEO) Managing Director, (MD) Chairman Executive Director Represent their organisations in community affairs Represent their organisations in business deals and government negotiations. Spend most of their time talking with other top managers in the company, people outside the company, and to a lesser extent, middle managers and other subordinates. Slide 33  Classifying Managers con’t  Middle-level managers Intermediaries between Top and Lower Management First-Level Managers These are managers who supervise people who do the organisation’s production work. Slide 34  Classifying Managers con’t  Lower level managers Also known as supervisory or operative level managers. They consists of: Supervisors Foremen Section officer Superintendent etc. Slide 35 Topic Three MANAGEMENT AND ADMINISTRATION Slide 36  Management and Administration Is there any distinction between Management and Administration? The words administration and management are often confused with each other. Oliver Sheldon has summarised the distinction as follows: Slide 37  Management and Administration con’t Administration is the main function in industry concerned with: The determination of the corporate policy, The coordinating of finance, production, and distribution, The setting of the compass of the organisation, and The ultimate control of the executive. Slide 38  Management and Administration con’t Management proper is the function in an industry concerned with the execution of policy within the limits set up by the administration and the employment of the organisation for the particular objects set before it”. Slide 39  Management and Administration con’t According to this definition, the word administration is used to refer to the functions of determining the policies of corporation whereas the word management is used for the function of executing the policies so determined. Accordingly, administration would seem to be a higher level conceptual function while management is more executive in nature to implement and carry out policies evolved by administration. Slide 40 Management and Administration con’t For instance, in the corporate sector, the Board of Directors is empowered to establish the overall direction of an organisation (as administrators), while the officers of the company, (from upper to lower management) are the managers. Slide 41 Topic Four MANAGEMENT FRAMEWORK Slide 42  The Management Framework Summing up the management framework MANAGER  He performs the following  He applies the following techniques functions to monitor performance by 1. Planning 1. Setting standards 2. Organising 2. Performing appraisals 3. Staffing 3. Instituting control 4. Directing human resources by  To achieve his goals he utilizes performing functions like resources such as 1. Communications 1. Human 2. Leadership 2. Physical 3. Motivation and resolving 3. Financial 4. SliC deo43 nflicts  coordinates human and non  Summary In this session you learned that Management is the process of using organisational resources to achieve specific objectives through the functions of planning, organising, directing and controlling. Managers get things done through other people in an efficient and effective manner so as to attain organisational goals. Managers achieve their objectives by arranging for others to do things, not by performing all the tasks themselves. Managers use resources to achieve goals. Resources are categorised into four types: Human , Financial, Physical and Informational. Slide 44  Summary con’t Effectiveness is achieved when an organisation pursues appropriate goals. Efficiency is achieved by using fewer inputs to generate a given output. Managers are classified according to their area of specialized activity; functional or general, and also by their positions in their organisational hierarchy: top; middle; and lower levels. Slide 45 Sample Questions for Considerations 1. How useful is the distinction between management and administration? 2. Discuss the relationships among the ingredients which sum up the management framework. 3. Discuss the difference between efficiency and effectiveness and identify real organisations that you think are, or are not efficient. 4. In what ways can managers at each of the three levels of management contribute to organisational efficiency and effectiveness. Slide 46  References 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read chapter 1, Pages 2-15). 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 1, pages 3-23). Slide 47  INFS 212 Principles of Management Session 2 – What Managers Do? Lecturer: Prof. Emmanuel Adjei & Dr. Monica Mensah Danquah Department of Information Studies Contact Information: [email protected], [email protected] College of Education School of Information and Communication Department of Information Studies  Session Overview Management literature identify four fundamental functions of a manager which are planning organising, directing and controlling. This Session introduces you to these functions and further discusses the roles managers play in organisations. Finally we will discuss the skills managers need to perform these functions and roles. Slide 2  Session Objectives Objectives After completing this Session you should be able to: Identify and distinguish among the four function performed by managers Distinguish between functions and roles of a manager Explain the skills managers require to perform these roles and functions Slide 3  Session Outline The key topics to be covered in the session are as follows: 1. Topics One: The functions managers perform 2. Topic Two: The roles they managers perform 3. Topic Three: The skills managers require to do their job Slide 4  Reading List 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read chapter 1, pages 3 -18) 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 1, pages 3-20). 3. Smith, M. (2007) Fundamentals of Management, McGraw- Hill: New York. Chapter 1, Pages 3-30 Slide 5 Topic One THE FUNCTIONS MANAGERS PERFORM Slide 6  The Functions of Management Management literature identify four basic or fundamental functions of management which are:  Planning  Organising  Leading/ Directing  Controlling Slide 7 The Functions of Management con’t  Planning Planning is considered the central function of management because whatever a manager does involves planning. Certo (2003) defines planning as “…choosing tasks that must be performed to attain organisational goals, outlining how the tasks must be performed, and indicating when they should be performed. …plans focus on how to attain organisational goals”. Slide 8  The Functions of Management con’t In planning, the manager looks to the future. Saying: “here is what we want to achieve and this is how we want to achieve it”. Slide 9  The Functions of Management con’t The outcome of planning is strategy, a course of action specifying the resources required to achieve specific objectives. It involves deciding what to do, when to do it , and how to do it. In this sense decision making is part of the planning process and involves selecting a course of action from a set of alternatives. Planning is discussed extensively in Session Four. Slide 10  The Functions of Management con’t  Organising Organising is the process of establishing orderly uses for all resources within the management system (Certo, 2003). Organising ensures that the necessary human and physical resources are available to carry out a plan and achieve organisational goals. It also involves assigning activities, dividing work into specific jobs and tasks, and specifying who has the authority to accomplish certain tasks. Slide 11  The Functions of Management con’t Grouping activities into departments or some other logical subdivision. This process of organising produces the basic structure or framework of the organisation Slide 12  The Functions of Management con’t The outcome of organising then is the organisation structure which: Establishes authority and reporting relationships Divides work, designs jobs and establishes methods of performing a job Provides work process flow and Coordinates information and feedback systems within organisations. Slide 13  The Functions of Management con’t  Leading/Directing Directing means influencing others to achieve organisational goals. It involves: Energising, Directing, Persuading others and Creating a vision. Slide 14  The Functions of Management con’t The activity of leading also involves working directly with people. Other names are: Actuating Motivating Directing Slide 15  The Functions of Management con’t  Controlling Comparing actual performance to a predetermined standard. Involves four elements: Establishing standards of performance Measuring current performance Comparing it against the established standards Taking measures to correct performance that does not meet those standards. Slide 16  The Functions of Management con’t The controlling function may point out errors that have to be corrected, or the need for altering a plan or objectives. Thus, this function sometimes causes the manager to return to the planning function temporarily to fine-tune the original plan. Slide 17 Topic Two MANAGEMENT ROLES Slide 18  Management Roles con’t Henry Mintzberg identifies three main roles managers perform Slide 19  Management Roles con’t  Interpersonal role Interpersonal role arises directly from a manager’s formal authority. It involves interpersonal relationships. Figurehead Leadership Liaison Roles Slide 20  Management Roles con’t Figurehead role E.g. Manager represents organisation at ceremonial and symbolic functions. It is the most basic and the simplest of all managerial roles. Slide 21  Management Roles con’t Leadership role It involves responsibility for directing and coordinating the activities of subordinates in order to accomplish Organisational goals Slide 22  Management Roles con’t Objectives. Energising Directing Persuading others and Creating a vision. Slide 23  Management Roles con’t Liaison role Dealing with members of a board of directors and people outside the organisation such as clients, government officials, customers, and suppliers. In the liaison role, the manager seeks support from people who can affect the organisation’s success. Slide 24  Management Roles con’t  Informational Roles Monitor Disseminator Spokesman Slide 25  Management Roles con’t The monitor role involves looking out for information, receiving, and screening information. In the disseminator role the manager shares information with subordinates and other members of the organisation. In the spokesperson role, managers transmit information to others, especially those outside the organisation, as the official position of the company. Slide 26  Management Roles con’t  Decisional Roles Entrepreneurial Disturbance handler Spokesman Resource allocator Slide 27  Management Roles con’t The entrepreneurial role involves designing and initiating planned change in order to improve the organisation’s position. Managers play this role when they initiate new projects, launch a survey, test a new market, or enter a new business. Slide 28  Management Roles con’t Managers play the disturbance-handler role when dealing with problems and changes beyond their immediate control. Typical problems include strikes by labour, bankruptcy of major suppliers, or breaking of contracts by customers. Slide 29  Management Roles con’t The resource-allocator role involves choosing among competing demands for money, equipment, personnel, and other demands on a manager’s time. For instance the manager decides what portion of the budget should he earmark for advertising and what portion for improving an existing product line. Slide 30 Topic Three MANAGERIAL SKILLS Slide 31  Managerial Skills  Technical skills  Interpersonal skills  Conceptual Skills Slide 32  Managerial Skills con’t  Technical skills Requires specialised knowledge and abilities that can be applied to specific tasks. Technical skills involve the ability to apply specific methods, procedures, and techniques in a specialised field. Technical skills are important at lower levels of management because supervisors must train their subordinates in the proper use of work-related tools machines and equipment Slide 33  Managerial Skills con’t  Interpersonal skills Include the ability to lead motivate, manage conflict and work with others. The skills which manager need include the ability to communicate effectively. Slide 34  Managerial Skills con’t  Conceptual Skills Involve the ability to view the organisation from a broad perspective and to see the interrelationships among its components. Slide 35  Managerial Skills con’t The manager uses conceptual skills to diagnose and assess different types of management problems. Conceptual skills are the most important in strategic / long term planning and, therefore, they are more important to top level managers than to middle level managers and supervisors. Slide 36  Summary In this session we discussed the functions and roles of management and managerial skills. You learned that: Manager at whatever level perform four fundamental functions, namely planning, organising, directing and controlling. Managers perform ten roles categorised into interpersonal, informational, and decisional roles. Functions and roles are not mutually exclusive. Managers perform their functions while performing one or more roles in the organisation. The three basic types of managerial skills are technical, interpersonal and conceptual. Slide 37  Summary con’t. Technical skills are the most important at the lower level management. Interpersonal skills are important at all levels of management because managing is the process of getting things done through other people. Conceptual skills are important at upper level management because they have to think in more abstract terms. Slide 38  Sample Questions for Consideration 1. Smmarise the essential roles performed by managers 2. Discuss the skills necessary for becoming a successful manager 3. Is the managers job generic? Slide 39  References 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 1, pages 2-15). 1. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 1, pages 3-20). Slide 40  INFS 212 Principles of Management Session 3– The Environment of an Organisation Lecturer: Prof. Emmanuel Adjei & Dr. Monica Mensah Danquah Department of Information Studies Contact Information: [email protected], [email protected] College of Education School of Information and Communication Department of Information Studies  Session Overview Kreitner observes that “ organisations are ever present feature of society”. As we go about our normal business of living we are surrounded by organisations, look to organisations for food, clothing, shelter, education, employment, entertainment, healthcare, transportation and the protection of our human rights. In short, for the satisfaction of every one of our individual needs, we rely on organisations, large or small. Slide 2  Session Overview In Session One we learned that the purpose of management is to achieve organisational goals in an efficient and effective manner. In the performance of their functions, organisations become accountable to a number of different groups in society including customers, suppliers, creditors, government agencies and the wider public. While serving the needs of the different constituents of society, organisations do not have the luxury to do whatever they choose. Slide 3  Session Overview They provide goods and services (or operate) within the framework of internal and external forces. That framework defines the environment of organisations. This Session focuses on organisations, paying attention to the internal and external forces that impact on their operations. Slide 4  Session Objectives Objectives At the end of this Session, you should be able to: Explain the concept organisation Understand the characteristics of organisations Identify the different types of organisation Identify and explain what constitute the Internal and External environment of an organisation Distinguish between the Task and the General Environment Slide 5  Session Outline The key topics to be covered in this Session are as follows: Topic One: Defining and Explaining Organisations Topic Two: Classifying Organisations Topic Three: The Internal Environment & The External Environment of Organisations Slide 6  Reading List 1. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 3, pages 53-69) Slide 7 Topic One DEFINING AND EXPLAINING ORGANISATION Slide 8  The Environment of an Organisation Defining organisation Collection of people working together to achieve a common purpose. In doing so the people are able to accomplish tasks that are far beyond the reach of anyone acting alone. Edgar Schein: an organisation is the planned coordination of the activities of a number of people for the achievement of some explicit purpose or goal, through the division of labour and function, and through a hierarchy of authority and responsibility. Slide 9 Topic Two CLASSIFYING ORGANISATIONS Slide 10  Classifying Organisations The term organisation covers a multitude of industrial, commercial, service industry and public service activities Slide 11  Classifying Organisations 1. Private and Public Sector organisations Organisations can traditionally be classified as: Private enterprise organisations, and Public sector organisations The distinction is made on the basis of ownership and finance, and the profit motive. Slide 12  Classifying Organisations i. Private enterprise organisations are owned and financed by individuals, partners, or shareholders. The main aim is of a commercial nature such as profit, return on capital employed, market standing or sales level. ii. Public sector organisations include central government departments such as the Ministry of Health, which do not have profit as their goal. Slide 13  Classifying Organisations 2. Prime Beneficiary of an organisation organisations may be classified on the basis of who benefits, namely the prime beneficiary of its operations. Four types of organisations are identified on this basis: Business organisations Uniliver Ghana Telecom Ghana Post Financial Institutions Slide 14  Classifying Organisations 3. Mutual Benefit organisations Individuals may join together strictly to pursue their own self interest. Examples are labour unions political parties manufacturer’s associations etc. Slide 15  Classifying Organisations 4. Commonweal organisations Like non profit service organisations. Exist to offer services without attempting to make profits. Example: The Ghana Army The Police Fire Service Slide 16  Classifying Organisations 5. Non Profit Service organisations Some organisations do not exist to make a profit. Examples are public schools and public universities, District Assemblies, institutions falling under the Ghana Civil Service and Government owned hospitals. Slide 17 Topic Three THE INTERNAL ENVIRONMENT & THE EXTERNAL ENVIRONMENT Slide 18 The Internal Environment & the External Environment  Internal Environment of an organisation Defining the Internal Environment Durnham (1990) describes the internal environment of an organisation as consisting of a “wide variety of factors within its formal boundaries” which includes the following: Slide 19 The Internal Environment & the External Environment i. Peoples and their beliefs Human resource (managers and non-managers) organisational culture Other internal environmental factors of an organisation are Group attitudes Board of Directors Slide 20 The Internal Environment & the External Environment II. The structural features of an organisation Design of jobs organisational design ( the structural arrangement of an organisation’s work units such as departments, units etc.) III. Organisational processes Coordinating Decision making Communicating Slide 21 The Internal Environment & the External Environment  External Environment of an organisation I. Task environment Task environment include consumers or customers, government / regulatory agencies, competitors and suppliers II. General environment The general environment includes such element as political and legal forces, economic, social and technological influences. Slide 22 The Internal Environment & the External Environment I. Task Environment Suppliers Customers Competitors Regulatory agencies Slide 23 The Internal Environment & the External Environment II. The General Environment a) Economic factors Inflation Interest rates, unemployment, Disposable income The current state of an organisation’s market, and the purchasing power of the population, The state of trade in the world and availability of foreign exchange. Slide 24 The Internal Environment & the External Environment b) Technological factors: Technology is the means by which an organisation converts its inputs (such as raw materials, unfinished goods and energy) into output (products or services). Technological elements include the knowledge, means, processes, systems, hardware and software available to an organisation for this transformation process. Technology affects the way organisations operate or the products and services they provide. Slide 25 The Internal Environment & the External Environment c) Political – Legal: Government regulation of business and the relationship between business and government. Example Policies on tax trade regulations, minimum wage legislation, and pollutions standards Slide 26  Summary An organisation is a cooperative social system involving the coordinated efforts of two or more people pursuing a shared purpose. Organisations can traditionally be classified as private or public. We can also classify organisations according to who benefits from its operations. Organisations which fall under this classification include business enterprises, non profit service organisations and commonweal organisations. Whatever their purpose all organisations have four characteristics, namely, coordination of effort. Common goal and purpose, division of labour and hierarchy of authority. Slide 27  Summary con’t In performing their functions, organisations are influenced by internal and external environmental forces. The internal environment consist of a number of different factors including organisational processes, the board of directors, human resource, group attitude and so on. A critical component of an organisation’s internal environment is its social system, which includes organisation members and the values and beliefs they share. Slide 28  Summary con’t The external forces include everything beyond the boundaries of an organisation and comprises what we call the task and general environments. Elements in the task environment include competitors, customers, suppliers and regulatory agencies. The general factors include the political and legal, economic, social and technological environment. Slide 29  Sample Questions for Consideration 1. List five regulatory agencies in Ghana and discuss in brief their functions. 2. Mention and discuss the various factors that define the general environment of an organisation. Slide 30  References 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter , pages 38-68). 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 3, pages 53-69). Google ConfideS ntliiadend3P1roprietary la  INFS 212 Principles of Management Session 4 – The Planning Function Lecturer: Prof. Emmanuel Adjei & Dr. Monica Mensah Danquah Department of Information Studies Contact Information: [email protected], [email protected] College of Education School of Information and Communication Department of Information Studies  Session Overview This Session takes a look at the first fundamental function of management, Planning. This basic activity is essential to good management. You will agree with me that planning is an ever- present feature of modern life. Everyone plans in one way or another, at least in the general sense. We may plan leisure activities after school or work. We make career plans. Personal and informal plans give purpose to our lives. In a similar way more formalised plans enable managers to organise themselves better to accomplish organisational goals. This Session defines and explains planning and touches on the need for planning. Other issues discussed include the types of plans, the planning process, and the benefits of planning. Slide 2  Session Objectives Objectives At the end of the session, the student should be able to Define and explain planning Explain why it is important to plan Identify and explain the different types of plans Describe the planning process Discuss the concept MBO Discuss how information helps in planning Slide 3  Session Outline The key topics to be covered in the session are as follows: Topic One: Meaning and Nature of Planning Topic Two: Classifying Plans Topic Three: Planning Process Topic Four: Benefits of Planning Topic Five: Management by Objectives Topic six: Information and planning Slide 4  Reading List 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 3, pages 70-77) 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 6, pages 125-145). Slide 5 Topic One MEANING AND NATURE OF PLANNING Slide 6  Meaning and Nature of Planning Planning Defined Planning is the process of setting goals and choosing the means to achieve those goals. Planning is an activity we perform before taking action. “It is anticipatory decision-making … a process of deciding what to do and how to do it before action is required.” (Kinard, 1982) Slide 7 Meaning and Nature of Planning con’t Planning Defined Planning is the process whereby managers select goals, choose actions (strategies) to attain those goals, allocate responsibility for implementing actions to specific individuals and units, measure the success of actions by comparing actual results against goals and revise plans accordingly. Slide 8  Meaning and Nature of Planning con’t Planning, therefore, entails: Defining the organisation’s objectives or goals. Establishing an overall strategy for achieving those goals. Developing a comprehensive hierarchy of activities required to achieve those goals. Slide 9  Meaning and Nature of Planning con’t In simple terms planning involves finding answers to the following questions: Where are we now? Where do we want to go? How much will it cost us to get there? How will we know when we have arrived? Slide 10 Meaning and Nature of Planning con’t Planning Defined Hill and McShane (2000) declare: Planning is a process of marshalling resources and deciding who should do what with respect to allocating roles and responsibilities and resources. It is a control mechanism: by comparing actual results against the plan, managers determine whether the organisation is attaining its goals and make adjustments if required. Slide 11 Meaning and Nature of Planning con’t Slide 12 Meaning and Nature of Planning con’t Formal Planning: Goals are written and shared with organisational members. Specific action programmes exist for achieving goals Informal planning: Nothing is written down and there is little or no sharing of goals with other members of the organisation Slide 13 Topic Two CLASSIFY PLANS / TYPES OF PLANS Slide 14 Classify Plans / Types Of Plans TYPES OF PLANS Breath Time Frame Specificity Frequency of use Strategic Long Term Directional Single use Operational Short Term Specific Standing Slide 15  Classifying Plans / Types Of Plans (Cont.)  Breath  Time Frame  Specificity  Frequency of Use Slide 16  Classifying Plans / Types of Plans con’t  Breath Strategic Plans Apply to the entire organisation Establish the organisation’s overall goals Seek to position the organisation in terms of its environment Operational Plans Specify the details of how the overall goals are to be achieved Cover short time period Slide 17  Classifying Plans / Types of Plans con’t.  Time Frame Long term and short term plans These plans cover relatively short or long periods of time. Slide 18  Classifying Plans / Types of Plans con’t.  Specificity Specific plans – Established to achieve a specific objective and are terminated after objectives have been achieved Directional plans – Established with guidelines. Provide focus but do not tie managers to specific objectives or courses of action. Slide 19  Classifying Plans / Types of Plans con’t.  Frequency of Use Single-use plans Standing plans Standing plans They are designed to deal with organisational problems which managers face frequently. Slide 20  Classifying Plans / Types of Plans con’t Types of Standing Plans 1. Policies General statements that guide decision making. An organisations may have Policies for Training and development Recruitment Employee conduct Attendance and Time off Substance abuse Slide 21  Classifying Plans / Types of Plans con’t Examples of policy statement When recruiting employees, consider those who are technically competent or show promise of becoming technically competent. No employee at the procurement office shall accept gifts that are substantial enough in value to cause undue influence over one’s decision on behalf of the organisation Slide 22  Classifying Plans / Types of Plans con’t. Examples of policy statement “This company is committed to a fair and equitable recruitment process based on Equal Employment Opportunities and merit based appointment” “Recruitment procedure must ensure that the most suitable applicant is appointed to vacant position by using ethical standards in the recruitment, selection and induction of employees consistent with business requirements” Slide 23  Classifying Plans / Types of Plans con’t. 2. Rules Specific statements about what may or may not be done Slide 24  Classifying Plans / Types of Plans con’t. Examples All candidates are expected to present valid university ID cards for inspection during the course of examinations Candidates should be seated 30 clear minutes before the start of examinations No mobile phones are allowed in examination halls Slide 25  Classifying Plans / Types of Plans con’t 3. Procedures A series of tasks that make up the chronological sequence and the established way of performing the task to be accomplished. Slide 26  Classifying Plans / Types of Plans con’t Examples of Procedures Company recruitments procedure Identify vacancy Prepare employment request Advertise Review Applications Constitute interview panel Assessment tests (if need be) Conduct interviews Appoint suitable candidates Organise orientation for appointees Slide 27  Classifying Plans / Types of Plans con’t. Single-Use plans Single-use plans are used to meet the needs of particular or unique situation. Slide 28  Classifying Plans / Types of Plans con’t Types of Single-use plans 1. Budgets Describe resources required to implement a plan A financial plan covering a specified period of time Determine how funds can be raised and applied for procuring resources Slide 29  Classifying Plans / Types of Plans con’t 2. Projects A single-use plan designed to carry out a specific activity Once the projects goals have been achieved, it is discontinued Slide 30 Topic Three PLANNING PROCESS OR STEPS IN PLANNING Slide 31  Planning Process Being Aware of opportunities Market, competition, Customers, Strengths Weakness Establishing objectives Where we want to be, what to achieve and when Developing premises In what environment ( I & E), scenarios Determining alternative courses How many and which are most promising Evaluating alternative courses In the light of objectives Selecting a course Formulating derivative plans Quantifying plans by budgeting Slide 32  Planning Process  Being aware of opportunities All managers should take a look at future opportunities and see them clearly and completely. They should know their strengths and weakness, understand what problems they wish to solve and why, and know what they expect to gain. Setting realistic objectives depends on: (i) Market (ii) Expected competition (iii) What customers wants Slide 33  Planning Process or Steps in Planning  Establishing Goals The second step in planning is to establish goals and identify objectives that contribute to the attainment of goals. Objectives specify the expected results and indicate the end points of (i) What is to be done (ii) Where the primary emphasis is to be placed (iii) What is to be accomplished by the strategies, policies, procedures, rules, budgets and programs. Slide 34  Planning Process or Steps in Planning  Developing Premises Managers establish the premises or assumptions on which their action statement are built. Managers need to rely on forecasting when establishing premises. Forecasting predicts or projects what will happen under a given set of circumstances in the future. E.g. What kind of markets will be there? What volume of sales? What prices? What products? What technical developments? What cost? Etc. Slide 35 Planning Process or Steps in Planning  Identifying Alternative Courses of Action Managers decide how to move from their current position towards their goal. Choosing a course of action involves determining alternatives by drawing on research, experimentation and experience; evaluating alternatives; and selecting a course of action after carefully considering the merits if each alternative. Slide 36  Planning Process or Steps in Planning  Evaluating Alternative Courses After determining alternative courses and examining their strong and weak points, the next step is to evaluate the alternatives. Slide 37  Planning Process or Steps in Planning  Selecting a Course Selecting an alternative is the real point of decision making. This is the point at which the plan is adopted. The manager has to decide one best alternative or several alternative courses of action. Slide 38  Planning Process or Steps in Planning  Develop Budgets Money must be budgeted for every element included in the action plan The budget will indicate how much money a manager can afford to spend on each action plan. Slide 39 Topic Five MANAGEMENT BY OBJECTIVES Slide 40  Management by Objectives (MBO) Is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. 4 major activities: 1. Set goals 2. Develop action plans 3. Review progress 4. Appraise overall performance Slide 41  Major Activities in MBO Step 1: Set Goals Step 2: Develop Action Plans Corporate Strategic Action Plans Goals Departmental Goals Individual Goals Review Progress Step 3: Review Take Corrective Progress Action Appraise Performance Step 4: Appraise Overall Performance C. GOKUL AP/EEE, Principles Of Management Slide 42  Benefits and Problems of MBO Benefits of MBO Problems with MBO 1. Improvement of management 1.Danger of inflexibility 2. Performance can be improved at all 2. An environment of poor employer- company levels. employee relations reduces MBO effectiveness. 3. Employees are motivated. 3. Strategic goals may be displaced by operational goals. 4. Departmental and individual goals are 4. Mechanistic organisations and values that aligned with company goals. discourage participation can harm the MBO process. 5. Too much paperwork saps MBO energy. Slide 43 Topic Six INFORMATION AND PLANNING Slide 44  Information and Planning Attitudes/expectations of owners customers and To establish objectives, or other stakeholders Purpose Source end goals towards which all Information from the plans must contribute environment on foreseeable opportunities and threats, Planning To establish strategies for past events indicating achieving objectives and trends and future policies, procedures, rules, Information from within the budgets etc. to guide day to organisation on identifiable day decision-making strengths and weaknesses towards fulfilment of Creative thinking within the strategies organisation, on opportunities and solutions to problems Slide 45  Summary Planning involves defining the organisation’s goals and objectives and establishing an overall strategy for achieving those goals. It is concerned with ends (what is to be achieved) and means (how it can be achieved). Planning is necessary for many reasons. It helps managers to organise people and resources effectively. It provides managers with a clear idea of what they want to do. Without a plan managers and their followers have little chance of achieving their goals or knowing when and where they stray from their path. Slide 46  Summary con’t Plans are the outcome of the planning process. There are different types of plans categorized according to their breadth or where they a formulated in an organisation, (strategic, tactical, operational), Specificity (specific and directional), time frame (short and long term) and frequency of use (single-use and standing) plans. The planning process assists managers and other employees to look into the future and anticipate problems and plan feasible solutions. Slide 47  Summary con’t The planning process includes: defining the present situation; establishing goals and objectives; determining aids and barriers; developing budgets; implementing the plan; and controlling the plan While planning has many benefits to organisations it is also true that a plan is no guarantee of success because of its limitations. Slide 48  Sample Questions for consideration 1. What is planning? Why is it necessary to plan? Discuss the relationship between planning and decision-making 2. Discuss steps in the planning process? 3.What are short range and long range plans? How do their purposes differ? How are they related? 4. What do you understand by Management by Objectives? Is it a myth or a fact that MBO contributes towards success of an organisation? Slide 49  References 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 3, pages 70-77). 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 6, pages 125-145). Slide 50  INFS 212 Principles of Management Session 5 – Strategic Planning Lecturer: Prof. Emmanuel Adjei & Dr. Monica Mensah Danquah Department of Information Studies Contact Information: [email protected], [email protected] College of Education School of Information and Communication Department of Information Studies  Session Overview Managers have the duty to plan and coordinate the work of their subordinates and other staff so that an organisation can achieve its purpose. When managers plan they identify and organise the resources they need so that employees can accomplish assigned tasks and meet set objectives. You have already learned in Session Three that organisations engage in short term, medium term and long term planning. Long term planning or strategic planning generally address long range goals and objectives of an organisation Slide 2  Session Overview In effect the plan states the corporate mission, sets direction and provides momentum for activities at functional levels. This Session builds up on Session Three. We discusses the essence of strategic planning, focusing on the format of the strategic planning process. Slide 3  Session Objectives At the end of the session, the you should be able to Explain strategic planning Distinguish strategic management from operational management Discuss the major components of a strategic plan Describe the strategic planning process Explain the SWOT analysis Describe how to implement and evaluate a strategic plan Slide 4  Session Outline The key topics to be covered in the session are as follows: Topic One: Defining Strategic Planning Topic Two: Distinguish Strategic Management from Operational Management Topic Three: The SWOT Analysis Topic Four: Components of a Strategic Plan Topic Five: Evaluating a Strategic Plan Slide 5  Reading List 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 3, pages 70-89) 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 7, pages 149-170). Slide 6 Topic One DEFINING STRATEGIC PLANNING Slide 7  Strategic Planning What is Strategic Planning? Strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organisation is, what it does, how it does it, and why it does it, with a focus on the future. Slide 8  Strategic Planning con’t Explaining Strategy In a war situation the senior military commanders must define exactly what their objectives are (to capture a parcel of land, to defeat an enemy etc. To achieve these objectives they must decide on A) The resources such as troops and materials that will be needed ( resource requirement) B) The strength of the enemy forces (strength of the competition) C) The actions the enemy are likely to take (competitor’s moves.) Slide 9  Strategic Planning con’t D) How best to achieve the objective (strategy) E) When to attack (time table for action) F) What to do if plans do not go as expected (contingency plans). Slide 10  Strategic Planning con’t Strategic planning seeks answers to the questions… Where are we now? (Assessment) Where do we need to be? (Gap / Future End State) How will we get there (Close Gap / Strategic Plan) How do we know if we have reached our destination? Slide 11  Strategic Planning con’t A Good Strategic Plan Should... Address critical performance issues Create the right balance between what the organisation is capable of doing vs. what the organisation would like to do Cover a sufficient time period to close the performance gap Slide 12  Strategic Planning con’t Visionary – convey a desired future end state Flexible – allow and accommodate change Guide decision making at lower levels – operational, tactical, individual Slide 13  Strategic Planning con’t Pre-requisites To Planning Senior leadership commitment Who will do what? What will each group do? How will we do it? When is the best time? Slide 14 Topic Two STRATEGIC MANAGEMENT Slide 15  Strategic Management What is Strategic Management? “Strategic management’ is concerned with making fundamental decisions affecting the organisation’s mandate, mission, aims and objectives and the policies adopted for their attainment” (IRMT). It may be easier to understand strategic management by distinguishing it from operational management. Slide 16  Strategic Management At its simplest, the distinction is as follows. Management carried out at top of an organisational structure is strategic management. All else is operational management. Slide 17  Strategic Management Strategic management is not the sole preserve of senior officers within the organisation. In practice, most managers will be involved in a mix of strategic and operational management, with strategic planning predominating at higher management levels. Slide 18  Strategic Management Strategic management is important because – it provides direction to the organisation – it matches its key aims and objectives with future plans – it ensures efficient and effective use of resources in the short, medium and longer terms. Slide 19  Strategic Management Strategic management establishes the strategy, tactics, policy and planning context that provides operational management with – guidance – direction – boundaries. Slide 20 Topic Three THE SWOT ANALYSIS Slide 21  SWOT Analysis  Strength  Weaknesses  Opportunities  Threats Slide 22  SWOT Analysis One important thing to do when preparing a strategic planning to identify the internal strengths and weaknesses of the organisation and the external opportunities and threats it faces. This process is known as a SWOT analysis, from the initial letters of the four elements. SWOT analysis: “Is the systematic assessment of an organisation’s internal strengths (S) and weaknesses (W) and external opportunities (O) and threats (T)”. Slide 23  SWOT Analysis  Strength Strength’s – Those things that you do well, the high value or performance points. These should be considered from the point of view of the organisation and its customers. What are the organisation’s Advantages? What does it do well? Strengths can be tangible: Loyal customers, Efficient distribution channels, Very high quality products, Excellent financial condition Slide 24  SWOT Analysis Strengths can be intangible: Good leadership, Strategic insights, Customer intelligence, Solid reputation, High skilled workforce These are examples of what we call “Core Competencies” – Best leverage points for growth without draining your resources Slide 25  SWOT Analysis  Weaknesses Weaknesses – Those things that prevent you from doing what you really need to do Since weaknesses are internal, they are within your control Slide 26  SWOT Analysis Weaknesses include: Bad leadership unskilled workforce insufficient resources poor product quality slow distribution and delivery channels outdated technologies lack of planning Slide 27  SWOT Analysis  Opportunities Opportunities – Potential areas for growth and higher performance External in nature – marketplace, unhappy customers with competitor’s, better economic conditions, more open trading policies Slide 28  SWOT Analysis  Threats Threats – Challenges confronting the organisation, external in nature Threats can take a wide range – bad press coverage, shifts in consumer behavior, substitute products, new regulations,... The more accurate you are in identifying threats, the better position you are for dealing with the “sudden ripples” of change. Slide 29 Topic Three COMPONENTS OF A STRATEGIC PLAN Slide 30  Components of a Strategic Plan https://www.google.com.gh/search?q=Components+of+a+Strategic++Plan&biw=1366&bih=667&sourc e=lnms&tbm=isch&sa=X&ved=0ahUKEwjfho-M7NnNAhVE1RQKHdbkCdMQ_AUIBigB Slide 31  Components of a Strategic Plan  Mission  Vision  Goals  Objectives  Initiatives  Measures  Targets Slide 32  Components of a Strategic Plan  Mission Statement Captures the essence of why the organisation exists – Who we are, what we do Explains the basic needs that you fulfill Expresses the core values of the organisation Should be brief and to the point Easy to understand If possible, try to convey the unique nature of your organisation and the role it plays that differentiates it from others Slide 33  Components of a Strategic Plan  VISION How the organisation wants to be perceived in the future – what success looks like An expression of the desired end state Challenges everyone to reach for something significant – inspires a compelling future Provides a long-term focus for the entire organisation Slide 34  Components of a Strategic Plan Guiding Principles And Values Every organisation should be guided by a set of values and beliefs Provides an underlying framework for making decisions – part of the organisation’s culture Values are often rooted in ethical themes, such as honesty, trust, integrity, respect, fairness,.... Slide 35  Components of a Strategic Plan Values should be applicable across the entire organisation Values may be appropriate for certain best management practices – best in terms of quality, exceptional customer service, etc. Slide 36  Components of the Strategic Plan Examples of Guiding Principles and Values We obey the law and do not compromise moral or ethical principles – ever! We expect to be measured by what we do, as well as what we say. We treat everyone with respect and appreciate individual differences. We carefully consider the impact of business decisions on our people and we recognize exceptional contributions. We are strategically entrepreneurial in the pursuit of excellence, encouraging original thought and its application, and willing to take risks based on sound business judgment. We are committed to forging public and private partnerships that combine diverse strengths, skills and resources. Slide 37  Components of a Strategic Plan  GOALS Describes a future end-state – desired outcome that is supportive of the mission and vision. Shapes the way ahead in actionable terms. Best applied where there are clear choices about the future. Slide 38  Components of a Strategic Plan Puts strategic focus into the organisation – specific ownership of the goal should be assigned to someone within the organisation. May not work well where things are changing fast – goals tend to be long-term for environments that have limited choices about the future. Slide 39  Components of a Strategic plan Examples of Goals Reorganize the entire organisation for better responsiveness to customers We will partner with other businesses, industry leaders, and government agencies in order to better meet the needs of stakeholders across the entire value stream. Manage our resources with fiscal responsibility and efficiency through a single comprehensive process that is aligned to our strategic plan. Improve the quality and accuracy of service support information provided to our internal customers. Establish a means by which our decision making process is market and customer focus. Maintain and enhance the physical conditions of our public facilities. Slide 40  Components of the Strategic Plan  Objectives Relevant - directly supports the goal Compels the organisation into action Specific enough so we can quantify and measure the results Simple and easy to understand Realistic and attainable Conveys responsibility and ownership Acceptable to those who must execute May need several objectives to meet a goal Slide 41  Components of a Strategic Plan Examples Of Objectives Develop a customer intelligence database system to capture and analyze patterns in purchasing behavior across our product line. Launch at least three value stream pilot projects to kick-off our transformation to a leaner organisation. Centralize the procurement process for improvements in enterprise-wide purchasing power. Consolidate payable processing through a P-Card System over the next two years. Monitor and address employee morale issues through an annual employee satisfaction survey across all business functions. Slide 42  Components of a Strategic Plan What are Action Plans? The Action Plan identifies the specific steps that will be taken to achieve the initiatives and strategic objectives – where the rubber meets the road Each Initiative has a supporting Action Plan(s) attached to it Action Plans are geared toward operations, procedures, and processes Slide 43 Components of a Strategic Plan Slide 44  Components of a Strategic Plan They describe who does what, when it will be completed, and how the organisation knows when steps are completed Like Initiatives, Action Plans require the monitoring of progress on Objectives, for which measures are needed Slide 45  Components of a Strategic Plan What Are Action Plans? Action Plans Outline what needs to be done to meet each objective: Who are the key people? When will the activity start? When will it finish? What resources will be needed? Who will be involved in doing the work? How will it be evaluated? Slide 46  Components of a Strategic Plan Characteristics of Action Plans Assign responsibility for the successful completion of the Action Plan. Who is responsible? What are the roles and responsibilities? Detail all required steps to achieve the Initiative that the Action Plan is supporting. Where will the actions be taken? Establish a time frame for the completion each steps. When will we need to take these actions? Establish the resources required to complete the steps. How much will it take to execute these actions? Slide 47  Components of a Strategic Plan Define the specific actions (steps) that must be taken to implement the initiative. Determine the deliverables (in measurable terms) that should result from completion of individual steps. Identify in-process measures to ensure the processes used to carry out the action are working as intended. Define the expected results and milestones of the action plan. Slide 48  Components of a Strategic Plan Provide a brief status report on each step, whether completed or not. What communication process will we follow? How well are we doing in executing our action plan? Based on the above criteria, you should be able to clearly define your action plan. If you have several action plans, you may have to prioritize. Slide 49  Components of a Strategic Plan Action Plan Execution Requires that you have answered the Who, What, How, Where, and When questions related to the project or initiative that drives strategic execution Coordinate with lower level sections, administrative and operating personnel since they will execute the Action Plan in the form of specific work plans Assign action responsibility and set timelines – Develop working plans and schedules that have specific action steps Slide 50  Components of a Strategic Plan Resource the project or initiative and document in the form of detail budgets (may require reallocation prior to execution) Monitor progress against milestones and measurements Correct and revise action plans per comparison of actual results against original action plan Slide 51  Components of a Strategic Plan Characteristics of Action Plans Provide a brief status report on each step, whether completed or not. What communication process will we follow? How well are we doing in executing our action plan? Based on the above criteria, you should be able to clearly define your action plan. If you have several action plans, you may have to prioritize. Slide 52  Topic Four EVALUATING A STRATEGIC PLAN Slide 53 Evaluation Slide 54  Evaluation What Is Evaluation? Evaluation helps the strategic planner find out how well he has met his Goals and Objectives and plan for The future. Outcome, Indicator, and Measure are important when evaluating. Slide 55  Evaluation con’t An indicator is the specific activity or sign that will tell you the changes that are taking place. How will you know if you are successful? Slide 56  Evaluation con’t A measure is the actual data or information you need to gather to document that change has occurred. Measures show that you have counted or assessed something. Slide 57  Evaluation con’t Some methods of evaluation: Reporting: reading and/or preparing reports Pre- and-post testing Focus groups Community interviews Journals Observations Slide 58  Evaluation con’t Surveys: Telephone, e-mail, mail Standardized tests Staff notes Audio and video tapes Minutes from meeting Slide 59  Summary Strategic planning is a systematic, on-going process that attempts to answer two important questions: “who are we”? And “where do we want to go”? The sequential steps in strategic planning are to formulate corporate mission, establish objectives, analyse the environment, identify opportunities and problems based on environmental analysis, evaluate alternatives, implement the stategy, and evaluate the success of the strategy. It is important that the strategy chosen by an organisation should complement the organisation’s culture and skills of the people. The total commitment of top management is also essential. Slide 60  Sample Questions 1. Distinguish between strategic and operational management. Identify the level of the management hierarchy where these take place 2. Why is strategic management important? 3. Define a strategic plan. 4. Describe the four elements that are important to a strategic plan. 5. Describe the processes involved with strategic planning. 6. Define a mandate and a mission statement. Slide 61  References 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 3, pages 70-89). 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 7, pages 149-169). Slide 62  INFS 212 Principles of Management Session 6 – Decision making Lecturer: Prof. Emmanuel Adjei & Dr. Monica Mensah Danquah Department of Information Studies Contact Information: [email protected], [email protected] College of Education School of Information and Communication Department of Information Studies  Session Overview As individuals we are constantly faced by situations which require us to make decisions many times during the course of the day. We have to answer questions such as when to get up in the morning, what to wear, what to eat, what profession to pursue, when to go on leave, how many children to have, ect. Probably we are not conscious of these questions although we answer them and pass day-to-day schedule. When you raise such questions and answer them you are engaged in decision-making. Everyday a number of major, minor and all sorts of decisions are being made in organisations. We must recognise the fact that the effectiveness and the efficiency of the decision-making process of the individual supervisor has a great impact on the organisation. Slide 2  Session Objectives Objectives At the end of this Session, you should be to Define and explain decision-making Discuss the type of decisions Explain the steps in the decision-making process Identify some of the errors in decision making Slide 3  Session Outline The key topics to be covered in the session are as follows: Topic One: Explaining Decision Making Topic Two: Types of Decisions Topic Three: Rational Decision Making Topic Four: Decision Making Conditions Topic Five: Errors in Decision Making Topic Six: Information and Decision Making Slide 4  Reading List 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 3, pages 70-77) 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 6, pages 125-145). Slide 5 Topic One EXPLAINING DECISION MAKING Slide 6  Explaining Decision Making Decisions and Decision Making Decision = choice made from available alternatives Decision Making = process of identifying problems and opportunities and resolving them Slide 7 Explaining Decision Making Slide 8 Topic Two TYPES OF DECISIONS Slide 9  Types of Decisions  Programmed decision: A decision that is fairly structured or recurs (occurs again) with some frequency (or both).  Non-programmed decision: A decision that is relatively unstructured and occurs much less often than a PROGRAMMED DECISION. Slide 10 Topic Three RATIONAL DECISION MAKING Slide 11  Rational Decision Making Rational Decision Making (Logical) C. GOKUL AP / EEE. Principles of management Slide 12  Rational Decision Making Rational Decision Making 1. Recognise the need for a decision Managers recognise the need for a decision in the form of a problem or opportunity. 2. Definition of the problem A problem is the gap between present and the desired state of affairs on the subject matter of the decision. The problem, once isolated must be defined and formulated. Slide 13  Rational Decision Making 2. Definition of the problem Collect data Diagnose and analyse the problem Find the root cause of the problem Identify resources and constrants Develop criteria for successful solution Slide 14  Rational Decision Making 3. Search and develop alternatives The alternative course of action can be developed by collecting more information, thinking creatively, consulting experts and undertaking research. 4. Evaluate Alternatives After identifying alternative courses of action, they must be compared and evaluated. This step determines the relative cost of each alternative. Slide 15  Rational Decision Making 5. Implement chosen alternative The decision taken by the management will not serve the purpose if it is not executed properly. 6. Learn from feedback Feedback is important because decision making is a continuous and never ending process Feedback information is very much useful in taking the corrective measures and in taking right decisions in the future Slide 16 Topic Four DECISION MAKING CONDITIONS Slide 17  Decision Making Conditions Decision-Making Conditions The decision maker faces conditions of: Certainty Risk Uncertainty Level of ambiguity and chances of making a bad decision Lower Moderate Higher C. GOKUL AP / EEE. Principles of management Slide 18  Decision Making Conditions 1. Certainty: A condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative. 2. Risk: A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates. Slide 19  Decision Making Conditions 3. Uncertainty A condition in which the decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative. Slide 20  Errors in Decision Making Some researchers have pointed out some areas where some common mistakes are made that affect the decision making process as well as the efficiency of decisions. Some of these limitations and drawbacks are: – Indecisiveness – Postponing the decision until the last minute – Failure to identify the root cause of the problem – Failure to assess the reliability of information sources – Inappropriate method of analyzing the information collected – Fear of implementing the decision and follow-up Slide 21 Topic Six INFORMATION AND DECISION-MAKING Slide 22  Information and Decision-making Internal and external information of a wide To identify and analyse a problem or opportunity variety, relevant to Purpose Source situation Decision-Making To appraise available Investigation of resources internal resources and potential external sources To compare alternative solutions and select Information on likely optimum solution outcomes of a number of different solutions Slide 23  Summary Decision making is at the core of everything managers do. Consequently their success depends on their decision-making skills. The decisions that managers make vary greatly. Programmed decisions are repetitive and based solely on objective data, whereas non-programmed decisions involve new situations where there are no “hard” data. Slide 24  Summary Decision making is s systematic process with six steps: Formulating goals, evaluating the decision situation, analyzing alternatives, selecting one alternative from those available, implementing the decision, evaluating the results and following up. The responsibility for making decisions usually rests with one person, nevertheless most managers consult other people before making a decision. Poor decisions primarily result from unforeseen changes. In some instances, though, ineffective decisions result from unreliable information, failure to analyze alternatives fully, total reliance on intuition, and fear of disastrous results. Slide 25  Sample Question for Consideration 1. Discuss briefly the steps in the process of rational decision making process. 2. What are some of the common errors committed in decision making and how these errors can be avoided. 3. Identify and explain the three conditions under which decisions are made. Slide 26  References 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 4, pages 98-117) 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 8, pages 171-197). Slide 27  INFS 212 Principles of Management Session 7 – Organising Lecturer: Prof. Emmanuel Adjei & Dr. Monica Mensah Danquah Department of Information Studies Contact Information: [email protected], [email protected] College of Education School of Information and Communication Department of Information Studies  Session Overview Organising is the second fundamental management function to be discussed. Basically organising involves dividing the work to be done, assigning qualified management personnel to the organisational units, providing the physical factors of work environment, and determining the dimensions of authority believed to be necessary to carry out the respective assignments. While planning determines what tasks need to be done and in what sequence, organising is concerned with determining who completes the task and what resources are required. Usually, planning and organising are inter-related. Slide 2  Session Overview For example, many action plans involve a certain amount of organising. Session 6 is devoted to discussions on organising as a management function. The areas covered are: Defining and explaining organising and organisational structures; job design; type of organisational structures and Departmentalisation. Slide 3  Session Objectives Objectives At the end of the session, you should be able to Define and explain organising Distinguish between the main types of organisational structure Discuss the types of Departmentalisation Understand the usefulness of organisational charts Slide 4  Session Outline The key topics to be covered in the session are as follows: Topic One: Defining and explaining organising Topic Two: Purpose / importance of organising Topic Three: Formal and informal organisation Topic Four: Organisational structure Topic Five: Departmentalisation Topic Six: Information and Organisation Slide 5  Reading List 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 5, pages 130-151) 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapters 9 & 10: Pages 201-210 & 224-247). 3. https://www.vidyarthiplus.com/vp/user- 20363.html C. GOKUL AP/ EEE. Principles of management Slide 6 Topic One DEFINING AND EXPLAINING ORGANISING Slide 7 Defining and Explaining Organising What is Organising? Organising is the process of defining the tasks and activities to be carried out by a number of people to achieve particular objectives The manager decides how best to group organisational activities and resources Slide 8 Defining and Explaining Organising Nature of Organisation C. GOKUL identifies the following characteristics of an organisation; 1. Group of Persons 5. Communication 2. Common objectives 6. Central Authority 3. Division of Work 7. Rules and Regulations 4. Co-ordination 8. Environment Slide 9 Defining and Explaining Organising Group of Persons: An organisation is a group of people working together for the achievement of common objectives. Common Objectives: Every organisation has common objectives. The common goal is the basis of cooperation among the members. Slide 10  Defining and Explaining Organising Division of Work: Also known as job specialization. Organisational task is divided and assigned to individuals or members of a group. Division of work is necessary because it enhances efficiency and effectiveness. Slide 11 Defining and Explaining Organising Co-ordination: The process of linking activities of various departments of the organisation. Departments in an organisation are willing to help each other for the achievement of desired goals. Slide 12 Defining and Explaining Organising Communication: The basic nature of organisations is the human processes, behaviour or activities. People integrate and coordinate their efforts through communication with each other in order to integrate or coordinate there efforts, and by so doing, can perform together efficiently. Authority: The activities of individuals and groups in an organisation is regulated and controlled by established authority relationships. Authority gives management the power to enforce obedience and give guidance and direction to the efforts of individuals and groups. Slide 13 Defining and Explaining Organising Rules and Regulations Rules and regulations are laid down and enforced by organisations to guide the conduct of members. Rules and regulations specify what actions will be taken or not and what behavior is allowed or prohibited. Environment Organisatons are affected by environmental forces which include: Economic, Social, Political and Legal factors. Slide 14 Topic Two PURPOSE / IMPORTANCE OF ORGANISING Slide 15 Purpose / Importance of Organising 1. Facilitates 7. Administration 2. Encourages Coordination Growth & Diversification IMPORTANCE OF 3. Optimum 6. Ensures Organising Use of Continuity of Technology Enterprise 4. Stimulates 5. Encourages Innovation & Good Human Technology Relations C. GOKUL AP/ EEE. Principles of management Slide 16  Purpose / Importance of Organising Facilitates Administration: Achievement of the objectives of an enterprise by providing a framework of coordination and control. Individual goals can be coordinated towards group goals. A properly balanced organisation facilitated both management and operation of the enterprise. Encourages Growth & Diversification: It has enabled organisations to grow and expand to giant sizes. It provides flexibility for growth without losing control over various activities. Slide 17  Purpose / Importance of Organising Optimum Use of New Technology: Optimum use of technology permits optimum utilisation of human resources. Sound organisation ensures that every individual is placed on the job for which one is best suited. Stimulates Innovation & Creativity: It stimulates creative thinking and initiative on the part of employees. It provides recognition for the professional and the specialist in terms of their achievement. Slide 18  Purpose / Importance of Organising Encourages Good Human Relations: The assignment of right jobs to right person improves job satisfaction and inter- personal relations. Well-defined jobs and clear lines of authority and responsibility ensure good human relations. Ensures Continuity of Enterprise: It provides scope for the training and development of future management. Coordination: Division of labor, better utility of technology and human talent helps to improve the efficiency and quality of work. Slide 19  Setting up an organisation / Process of Organising Organisation identifies its objective