BBA Functions of Management Notes

BBA Functions of Management Notes:-

The management process involves the performance of certain fundamental functions. One useful classification of managerial function has been given by Luther Gulick, who abbreviates them using the word POSDCORB – Planning, Organizing, Staffing, Directing, Co-Ordinating, Reporting, and Budgeting. George R Terry has mentioned four fundamental functions of management, Planning, Organizing, Actuating, and Controlling. In short, different scholars in the field of management have their own classification of functions of management. Some scholars add few functions and delete some other functions. The Important functions of management are discussed below: –

PLANNING Meaning Planning is the most crucial and foremost function of management. It is defined as the process of setting goals and choosing the means to achieve those goals. Sound planning is imperative for the successful achievement of the goals in the desired direction. It is rightly said ―well the plan is half done‖. It involves the setting of objectives and goals, designing appropriate strategy and course of action, framing plans and procedures, etc for the execution of the proposed activities under the project. Definitions

According to George R Terry, “Planning is the selecting and relating of facts and making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results.” 

According to Henry Fayol, “Planning is deciding the best alternatives among others to perform different managerial operations in order to achieve the predetermined goals.”

Generally speaking, planning is deciding in advance what is to be done, that is, a plan is a projected course of action.

Features of Planning 

1. Planning is looking in to the future
2. It involves predetermined lines of action
3. Planning is a continuous process
4. Planning integrates various activities of an organization
5. Planning is done for a specific period
6. It discovers the best alternatives out of available alternatives
7. Planning is a mental activity
8. Planning is required at all levels of Management
9. It is the primary function of Management
10. Growth and prosperity of any organization is depending upon planning Objectives of Planning

Planning in an organization serve to realize the following objectives:

1. To reduces uncertainty
2. To bring co-operation and co-ordination in the organization
3. To bring economy in operations
4. Helps to anticipate unpredictable contingencies
5. To achieve the predetermined goals
6. To reduce competition.

Advantages of Planning

Planning helps the organization to achieve its objectives easily. Some of the advantages of planning are given below:

1. It helps the better utilization of resources
2. It helps in achieving the objectives
3. It helps in achieving economy in operations
4. It minimizes future uncertainties
5. It improves competitive strength
6. It helps effective control
7. It helps to give motivation to the employees
8. It develops rationality among management executives
9. It reduces red-tapism
10. It encourages innovative thought
11. It improves the ability to cope with changes.
12. It creates a forward-looking attitude in Management
13. It helps in the delegation of authority
14. It provides the basis for control Planning Process

It is not necessary that a particular planning process is applicable for all organizations and for all types of plans because the various factors that go into the planning process may differ from plan to plan or from one organization to another. This can be prevented by using the following diagram.

Perception of Opportunities:- It is the beginning of the planning process. This provides an opportunity to set the objectives in a real sense. It helps to take the advantage of opportunities and avoid threats. Once the opportunities are perceived, the other steps of planning are undertaken.

1. Establishing the objectives:- This stage deals with the setting of major organizational and unit objectives. The organizational objectives should be specified in all key areas. Once organizational objectives are identified, objectives of lower units can be identified in that context.
2. Establishing planning premises:- It means deciding the condition under which planning activities will be undertaken. Planning premises may be external or internal. The nature of planning premises differs at different levels of planning.
3. Identification of alternatives:- This point says that particular objectives can be achieved through various actions. Since all alternatives cannot be considered for further analysis, it is necessary for the planner to reduce the number of alternatives.
4. Evaluation of alternatives:- Various alternatives which are considered feasible may be taken for detailed evaluation. It is evaluated on the basis of the contribution of each alternative towards the organizational objectives in the light of its resources and constraints.
5. Selection of alternatives:- After the evaluation, the fittest one is selected. At the same time, a planner must be ready with alternatives, normally known as contingency plans, which can be implemented in a changed situation.
6. Developing supporting plans:- After formulating the basic plan, various plans are devised to support the main plan. These plans are known as derivative plans.
7. Establishing sequence of activities:- After formulating basic and derivative plans, the sequence of activities is determined, so that plans are put into action.
8. Devising a mechanism of Project Monitoring and Evaluation.

Types of Plans 

A manager is required to develop a number of plans to achieve the organizational objectives. Three major types of plans can help managers to achieve their organizational goals.

1. Operational Plans
2. Tactical Plans
3. Strategic Plans

1.Operational Plans:- It is one that a manager uses to accomplish his or her job responsibilities. In other words, it is the plan used to achieve operational goals. Operational goals are the specific result expected from the departments, workgroups, and individuals. Operational plans may be single-use plans or ongoing plans.

1. Single-use plans:- It is applied to those activities which do not recur or repeat. A special sales program is an example of single-use plan, because, it deals with the who, what, where, how and how much of an activity. It includes:

(i)Budget: It is a statement of expected results expressed in quantitative terms for a definite period of time. It is prepared to keep in view the objectives, resources, and of the enterprise. It is a useful control device and helpful in co-coordinating the activities. It predicts sources and amounts of income and how much they are used for a specific project.

(ii)Programme: It is a sequence of activities to be undertaken for implementing the policies and achieving the objectives of an organization. It tells what is to be done to achieve the goals.

1. Continuing or ongoing plans: These are usually made once and retain their value over a period of years while undergoing periodic revision and updates. The following plans are included in this category.

(i)Policy: It provides broad guidelines for managers to follow when dealing with important areas of decision-making. It is basically a general statement that explains how a manager should attempt to handle routine management responsibilities. They are standing answers to recurring questions.

(ii)Procedures: A procedure is a set of step-by-step directions that explains how activities or task are to be carried out. An established procedure ensures uniformity of action. Most organization has procedures for purchasing supplies and equipments. By defining steps to be taken and the order in which they are to be done, procedures provide a standardized way of responding to a repetitive problem.

(iii) Rules: It is an explicit statement that tells an employee, what he or she can and cannot do. Rules are definite and rigid. Rules are ―do‖ and ―don‘t‖ statements put into place to promote the safety of employees and the uniform treatment and behavior of employees. For eg. Rules about absenteeism permit supervisors to make discipline decision rapidly and with a high degree of fairness.

2. Tactical Plans: These are plans which usually span one year or less. It is concerned with what the lower level units within each division must do, how they must do it, and who is in charge at each level. Tactics are the means needed to activate a strategy and make it work.
3. Strategic Plan: It is an outline of steps designed with the goals of the entire organization in mind, rather than with the goals of specific divisions. It look ahead over the four, five or even more years to move the organization from where it is currently to where it wants to be. Top management strategic plan for the entire organization becomes the framework and sets dimension for the lower level planning. Contingency Plan: These plans are used when the original plan proves inadequate because of changing circumstances.

Limitations of Planning 

Following are the limitations of Planning

1. Time consuming: The management cannot prepare any plan without taking much time. A number of steps are required to complete planning process.
2. Costly: It is considered as an expensive process. A lot of money is to be spent for collection, analysis and editing of data.
3. False sense of security: The management people think that there is security, if planning is properly adhered. But this is not true in practice.
4. Technological changes: The management is not in a position to change its policies according to technological changes. It will affect the planning process.
5. Political climate: A change in the political climate leads to a change in the policy and attitude towards different financial aspects. It will affect the planning process.
6. Lack of reliable data: The success of all the plans are based on the availability of reliable data. It is very difficult to procure reliable data.
7. Initiative: Planning compels everyone to work as per plan. It reduces the scope for initiation from the part of employees and they will become more mechanical.
8. Limitations of forecasts: Planning is fully based on forecasts. If there is any defect in forecasts, the planning will lose its value.

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