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    UNIT 2 MBP Notes

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    zaynstyles2421
    Planning and decision making involve determining objectives, strategies, and actions. There are different types and levels of plans. Effective planning requires setting objectives and using management approaches like Management by Objectives (MBO) and Management by Exception (MBE). Organizing is grouping tasks, assigning roles, and coordinating people. There are various organizational structures like line, staff, functional, divisional, matrix, and hybrid. The structure depends on factors like size, resources, and departments. Organizing principles include delegation, centralization vs decentralization, and defining authority and responsibilities.

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    UNIT 2 MBP Notes

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    zaynstyles2421
    27 views26 pages
    Planning and decision making involve determining objectives, strategies, and actions. There are different types and levels of plans. Effective planning requires setting objectives and using management approaches like Management by Objectives (MBO) and Management by Exception (MBE). Organizing is grouping tasks, assigning roles, and coordinating people. There are various organizational structures like line, staff, functional, divisional, matrix, and hybrid. The structure depends on factors like size, resources, and departments. Organizing principles include delegation, centralization vs decentralization, and defining authority and responsibilities.

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    UNIT 2 MBP notes

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    Planning and decision making involve determining objectives, strategies, and actions. There are different types and levels of plans. Effective planning requires setting objectives and using management approaches like Management by Objectives (MBO) and Management by Exception (MBE). Organizing is grouping tasks, assigning roles, and coordinating people. There are various organizational structures like line, staff, functional, divisional, matrix, and hybrid. The structure depends on factors like size, resources, and departments. Organizing principles include delegation, centralization vs decentralization, and defining authority and responsibilities.

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    27 views26 pages

    UNIT 2 MBP Notes

    Uploaded by

    zaynstyles2421
    Planning and decision making involve determining objectives, strategies, and actions. There are different types and levels of plans. Effective planning requires setting objectives and using management approaches like Management by Objectives (MBO) and Management by Exception (MBE). Organizing is grouping tasks, assigning roles, and coordinating people. There are various organizational structures like line, staff, functional, divisional, matrix, and hybrid. The structure depends on factors like size, resources, and departments. Organizing principles include delegation, centralization vs decentralization, and defining authority and responsibilities.

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    of 26

    UNIT II

    PLANNING AND DECISION MAKING


    Planning
    Nature and Importance of Planning
    Types of Plans
    Levels of Planning
    Steps in planning
    Making Effective Plans
    Objectives and Management By Objective (MBO)
    Management By Exception (MBE)
    Policy and Strategy-.Organizing
    Nature and purpose
    Principles of Organization
    Types of Organization
    Organizational Structure and Design
    Line, Staff and functional authority
    responsibility and Accountability
    Principles of Delegation - Steps
    Centralization Vs Decentralization
    Factors determining the degree of Decentralization of authority.
    Planning

    ● Planning is the fundamental management function, which involves


    deciding beforehand, what is to be done, when is it to be done, how it is to
    be done and who is going to do it. It is an intellectual process which lays
    down organisation’s objectives and develops various courses of action, by
    which the organisation can achieve those objectives. It chalks out exactly,
    how to attain a specific goal.
    ● Planning can be viewed as an approach to problem solving. It provides a
    systematic way of viewing problems and developing short- and long-term
    solutions. It can also be viewed as a decision- making process used to help
    guide decisions concerning future needs.
    Nature of Planning
    Management by Objectives -
    ●MBO
    A strategic or managerial model
    that defines clear and concise
    objectives that are accepted by
    management and employees to
    improve the performance of the
    organization is called MBO or
    management by objectives.

    ● MBO is an acronym
    for Management by Objectives.
    MBO is a system of management
    wherein each member takes part in
    the organization effectively
    Management by
    Management
    Exception,
    by Exception
    shortly called MBE is a
    management style or philosophy
    that empowers the manager to
    concentrate on exceptionally
    important or critical matters and
    make important decisions while
    facilitating the front-line
    workers to complete the day-to-
    day activities.

    MBE is a model of strategic


    management wherein the
    managers can focus only on
    exceptionally important matters
    and take important decisions.
    Difference Between MBO and
    MBE
    ● MBO and MBE are the two models of management. The aim of these
    two models is to help the management focus on the attainable and
    ultimate goal, as well as to channelise their efforts into the
    achievement of the best possible results with the help of available
    resources at that point in time.
    https://ke
    ydifferenc
    es.com/di
    fference-
    between-
    mbo-and-
    mbe.html
    Components of Management
    By Exception:
    1. Measurement: Assignment of values to the past and present performances, so as to
    easily recognize an exception.
    2. Projection: Forecasts that measurement which is relevant to the organizational
    objectives and extends the same, to future expectations.
    3. Selection: Determines the parameters used by the management to pursue
    organizational objectives.
    4. Observation: Measurement of existing performance so that the managers are having
    the knowledge of the existing state of affairs of the organization.
    5. Comparison: Compare the actual and planned performance and indicating the
    exception which needs managerial action and reports the variances.
    6. Decision Making: Prescription of the course of action which needs to be taken so as to
    ensure that the performance is back in control or to adjust expectations, which represents
    the changing conditions.
    https://www.ques10.com/p/67301/what-is-
    management-by-exception-process-and-impo-
    1/
    Organising
    According to Allen,
    ● “Organizing “ is the process of identifying and grouping the work to be
    performed defining and delegating resposibility and authority and
    establishing relationship for the purpose of enabling people to work most
    effectively together in accomplishing objectives”

    According to Theo Haimann,


    ● “Organising is the process of defining and grouping the activities of the
    entire process and establishing the authority and relationship among them”
    https://www.geeksforgeeks.org/organising-meaning-importance-and-
    process/
    Nature and Purpose of Organising
    2. Staff or Functional Authority Organisational
    Structure
    The jobs or positions in an organisation can
    be categorized as:
    ● Most large organisations belong to this
    type of organizational structure. These
    organisations have direct, vertical
    relationships between different levels
    and also specialists responsible for
    advising and assisting line managers.
    Such organisations have both line and
    staff departments. Staff departments
    provide line people with advice and
    assistance in specialized areas (for
    example, quality control advising
    production department).
    4. Committee Organisational Structure :

    ● A committee organization is an association of people set up to arrive at


    solutions to common problems. The line people are given opportunities to
    discuss their problems in the committee. The committee organizational
    structure is not like line or functional organization, but is similar to staff
    organization.
    5. Divisional Organisational
    Structure:
    ● In this type of structure, the
    organisation can have different
    basis on which departments are
    formed. They are:

    (i) Function,
    (ii) Product,
    (iii) Geographic territory,
    (iv) Project and
    (iv) Combination approach.
    6. Project Organisational Structure:
    ● A project organisation is a temporary organisation designed to
    achieve specific results by using teams of specialists from
    different functional areas in the organisation. The project team
    focuses all its energies, resources and results on the assigned
    project. Once the project has been completed, the team
    members from various cross functional departments may go
    back to their previous positions or may be assigned to a new
    project.
    7. Matrix Organisational Structure:
    ● It is a permanent
    organisation designed
    to achieve specific
    results by using teams
    of specialists from
    different functional
    areas in the
    organisation.
    8. Hybrid Organisational Structure:

    ● Since the way a business is structured depends on a number of factors, including


    size, geography, resources, departments and lines of business. Companies create
    their structure by combining two or more structures, creating a hybrid or matrix
    structure known as Hybrid Organisational Structure.

    ● A customized organisational structure can help the business to run more efficiently
    and increase your productivity. Regardless of how the senior managers structure the
    organization, it’s important to ensure that the employees understand how the
    organizational structure works, to whom they report and who reports to them.
    Types of Plans
    Excellence and
    Service

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