Friday, 23 December 2016

CHARACTERISTICS OF PLANNING

CHARACTERISTICS OF PLANNING

  1. Planning is goal-oriented.

    • Planning is made to achieve desired objective.
    • The goals established should general acceptance otherwise individual efforts & energies will go misguided and misdirected.
    • Planning identifies the action that would lead to desired goals quickly & economically.
    • It provides sense of direction to various activities.

  1. Planning is looking ahead.

    • Planning is done for future.
    • It requires glancing in future, analyzing it and predicting it.
    • Planning is based on forecasting and also synthesis forecasts.
    • It is a mental preparation for things to happen in future.

  1. Planning is an intellectual process.

    • Planning is a mental exercise involving creative thinking, sound judgement and imagination.
    • It is not a mere guesswork but a rotational thinking.
    • Planning is always based on goals, facts and considered estimates.

  1. Planning involves choice & decision making.

    • Planning essentially involves choice among various alternatives.
    • Therefore, if there is only one possible course of action, there is no need planning because there is no choice.
    • Thus, decision making is an integral part of planning.
    • An administrator is surrounded by no. of alternatives. He has to pick the best depending upon requirements & resources of the enterprises.

  1. Planning is the primary function of organization

    • Planning lays foundation for other functions of organization.
    • It serves as a guide for organizing, staffing, directing and controlling.
    • All the functions of management are performed within the framework of plans laid out.
    • Therefore planning is the basic or fundamental function of management.

  1. Planning is a Continuous Process.

    • Planning is a never ending function due to the dynamic environment.
    • Plans are also prepared for specific period of time and at the end of that period, plans are subjected to revaluation and review in the light of new requirements and changing conditions.
    • Planning never comes into end till the organization exists, issues and problems may keep cropping up and they have to be tackled by planning effectively.

  1. Planning is General.

    • It is required at all levels of management and in all departments of enterprise.
    • Of course, the scope of planning may differ from one level to another.
    • The top level may be more concerned about planning the organization as a whole whereas the middle level may be more specific in departmental plans and the lower level plans implementation of the same.

  1. Planning is designed for efficiency.

    • Planning leads to accomplishment of objectives at the minimum possible cost.
    • It avoids wastage of resources and ensures adequate and optimum utilization of resources.
    • Planning must lead to saving of time, effort and money.
    • Planning leads to proper utilization of men, money, materials, methods and machines.

  1. Planning is Flexible.


    • Planning is done for the future.
    • Since future is unpredictable, planning must provide enough room to cope with the changes in customer’s demand, competition, and govt. policies etc.
    • Under changed circumstances, the original plan of action must be revised and updated to make it more practical.
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PLANNING

PLANNING

Meaning and Concept of Planning

In simple words, planning is deciding in advance what is to be done, when where, how and by whom it is to be done. Planning bridges the gap from where we are to where we want to go. It includes the selection of objectives, policies, procedures and programmes from among alternatives. A plan is a predetermined course of action to achieve a specified goal. It is an intellectual process characterized by thinking before doing. It is an attempt on the part of administrator to anticipate the future in order to achieve better performance. Planning is the primary function of management.

Definition

Planning is the French word `prevoyance', which means to look ahead.  According to Pfiffner and Presthus planning is a rational process characterized of all human behavior."
According to Dimock and Dimock "Planning is an organized attempt to anticipate and to make rational arrangement for dealing with future problems by projecting trends."
According to SimonSmithburg and Victor A. Thomson: "Planning is that activity that concern itself with proposal for future, evaluation of alternative proposals and with method by which these proposals may be achieved”.
According to Allen, “A plan is a trap laid to capture the future.”

STEPS IN PLANNING / PLANNING PROCESS

Planning involves following steps:

1.  Recognizing the Need for Planning
This precedes planning and starts with intention of either solving problem or to attain some objectives. Organizations have need for planning to use scarce resources efficiently, and make best use of opportunities and prepare for threats. This is because plans are considered as future course of action. The organizations have to look ahead to solve their problems.

22. Establishment of objectives

    • Planning starts with the setting of goals and objectives to be achieved.
    • Objectives provide a foundation for undertaking various activities as well as indicate direction of efforts.
    • Moreover objectives focus the attention of administrators on the end results to be achieved.
    • As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective.
    • As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, etc. But such an objective cannot be stated in quantitative terms like performance, effectiveness of personnel manager. Such goals should be specified in qualitative terms.
    • Hence objectives should be practical, acceptable, workable and achievable.

  1. Establishment of Planning Premises

    • Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations.
    • It is to find out what obstacles are there in the way of business during the course of operations.
    • Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent.
    • Planning premises may be internal or external. Internal includes financial matters, management of labor relations, philosophy of management, etc. Whereas external includes socio- political and economic changes. Internal premises are controllable whereas external are non- controllable.

  1. Choice of alternative course of action

    • When forecast are available and premises are established, a number of alternative course of actions have to be considered.
    • For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization.
    • The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made.
    • After objective and scientific evaluation, the best alternative is chosen.

  1. Formulation of derivative plans

    • Derivative plans are the sub plans or secondary plans which help in the achievement of main plan.
    • Secondary plans will flow from the basic plan. These are meant to support and expedite the achievement of basic plans.
    • These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization.
    • Derivative plans indicate time schedule and sequence of accomplishing various tasks.

  1. Securing Co-operation

    • After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence.
    • The purposes behind taking them into confidence are:
      • Subordinates may feel motivated since they are involved in decision making process.
      • The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans.
      • Also the employees will be more interested in the execution of these plans.

  1. Follow up/Evaluation of plans


    • After choosing a particular course of action, it is put into action.
    • After the selected plan is implemented, it is important to evaluate its effectiveness. This is done on the basis of feedback or information received from departments or persons concerned.
    • This enables the administration to correct or modify the plan.
    • This step establishes a link between planning and controlling function.
    • The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can be made more realistic.
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Thursday, 22 December 2016

HURDLES FACED DURING EFFECTIVE DECISION MAKING

HURDLES FACED DURING EFFECTIVE DECISION MAKING


Effective decision making is an art which obviously cannot be earned overnight, hence, needs to be nurtured in time. However, even an efficient leader cannot remain unaware to certain hurdles which show his decision making capacity. An effective decision has positive effects on all the departments, and equal damage is caused by an ineffective decision. Hence, he has to remain vigilant about the repercussions caused by his decisions.
As a professional as well as an individual, we face many situations in our professional as well as personal lives, wherein it is quite tough to take a decision. A careful study of various hurdles faced will lead you to take effective and better decisions in future.
Following are typical barriers faced by an administrator while developing strategies.

1.      Level of Decision Making Not Clear

Sometimes, there is ambiguity in the level of power an administrator holds, whether he holds the right to make modifications in the existing system. This often leads into confusion in the minds of the administrator, especially at a middle level.

2.      Less Know-how

One of the most common barriers in decision making is not knowing how to make a decision in the first place. It may seem strange, but many people do not know how specifically they actually make decisions, or they use different decision making strategies in different circumstances without realizing it.

3.      Taking Help

Life numbing barriers in decision making is the idea of allowing someone else to make the decision for you. This occurs in a more subtle form when people wait for things to happen as opposed to making them happen. It allows people not to have to take responsibility for themselves and for what occurs.

4.      Faulty models

Some of the available decision making models are themselves decision making barriers. The models may seem rational and sensible but they may not necessarily reflect how humans actually make decisions. With the result that after a few poor decisions, the decision-maker loses confidence and makes decisions reluctantly, if at all.

5.      Lack of Time

Quick decisions often lead to terrible effects. However, institutions are subject to emergencies and often, as a decision making authority, you need to take a call in the limited time available. This can pose as a most difficult hurdle to most leaders, however an efficient leader has to go through these testing times.

6.      Lack of reliable data

Lack of reliable data can be a major hindrance in making apt decisions. Unclear and incomplete data often makes it difficult for them to make appropriate decision, which may not be best suited for any organization.

7.      Risk-Taking Ability

Any decision attracts a fair deal of risk of resulting into negative outcome. However, it is necessary to take calculated risks for an effective decision. Also, at the same time, casual attitude and completely ignoring risks will not result into taking appropriate decisions.

8.      Too Many Options

A leader can be in a problem if there are too many options to an effective solution. Finding the appropriate one can be very difficult, especially if a particular decision favors a department over the other.

9.      Inadequate Support

A leader, however good he may be, cannot work without an adequate support level from his subordinates. Lack of adequate support either from top level or grass root level employees may result into a great jeopardy for the leader.

10.  Lack of Resources

An administrator may find it difficult to implement his decisions due to lack of resources- time, staff, and equipment. In these cases, he should look out for alternative approaches which fit in the available resources. However, appropriate steps must be taken in case he feels that lack of resources may stop the growth of the organization.

11.  Inability to Change

Every organization has its own unique culture which describes its working policies. However, some policies are not conducive for leaders who are looking out for a change. Rigid mentality of top level management and the subordinates are the biggest hurdle, wherein a leader cannot make positive amendments even if he wishes to do so.

HOW TO OVERCOME THESE HURDLES

Problems often compel administrators to act in rush before the facts are known and often before the actual primary problem is recognized or understood. A knowledge of these barriers will assist you in your attempts to analyses problem situations and make reasoned decisions. 
In case you are a member or leader of any decision making group, you would like to overcome these hurdles. Here are several strategies to overcome these barriers: 
·         Leaders can encourage each member to be a critical elevator or various proposals. 
·         When individuals are given a problem to solve, leaders can refrain from starting their own position and instead encourage open enquiry and impartial searching of a wide range of alternatives. 
·         The organization can give the same problem to two different independent groups and compare the resulting solutions. 
·         Before they reaches a final decision, members can be required to take a respite at intervals and seek advice from other wings of the organization before returning to make a decision. 
·         Outside experts can be invited to group meetings and encouraged to challenge the views of group members. 
·         At every meeting, one member could be appointed as a devil's advocate to challenge the testimony of those advocating the majority position. 
·         When considering the feasibility and effectiveness of various alternatives, divide the employees into two sections for independent discussions and compare results. 

·         After deciding on a preliminary consensus on the first choice for a course of action, schedule a second meeting during which members of the group express their remaining doubts and rethink the entire issue prior to finalizing the decision and initiating action. 
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Monday, 19 December 2016

STEPS IN DECISION MAKING PROCESS

STEPS IN DECISION MAKING PROCESS

Decision making process is like a school exam. Those who take good decisions will pass the exam and the rest who does not take right decisions will have to bear the consequences. Being able to take good decision is important for everyone, whether he/she is a student, teacher, administrator, principal, president, leader of any institution etc. A student has to take decisions about his career, a president has to take decisions regarding his country’s benefit, and an administrator has to take decisions regarding his organization and likewise the leader of any institution. So every single person has to pass this step in order to progress in their field.
In our view decision making power is the key to progress in life. You might have seen many people who do not take proper decisions and then they have to suffer. On the other hand people who have this decision making power, continues to progress in their life. Not all of us have this decision making power. We try to make right decisions but sometimes we make mistakes because we don’t know the steps that we should follow during the decision making process. So in order to take right decisions, it is important that we should know all the steps of decision making process and follow them.

The decision making process involves the following steps:



1.      Identify a problem or opportunity

The first step in the process is to recognize that there is a decision to be made. Decisions are not made arbitrarily; they result from an attempt to address a specific problem, need or opportunity. An administrator may realize that he has too many employees on the floor compared with the day's current sales volume, for example, requiring him to make a decision to keep costs under control.
Steps:
  • The first step is to recognize a problem or to see opportunities
  • Will it really make a difference to our clients?
  • How meaningful will it be to solve this problem or realize this opportunity?

2.      Gather information

Administrators seek out a range of information to clarify their options once they have identified an issue that requires a decision. Managers may seek to determine potential causes of a problem, the people and procedures involved in the issue and any constraints placed on the decision-making process.
Steps:
  • What is relevant and what is not relevant to the decision?
  • What do you need to know before you can make a decision, or that will help you make the right one?
  • Who knows, who can help, who has the power and influence to make this happen?

3.      Analyze the situation

Having a more complete understanding of the issue at hand, administrator’s move on to make a list of potential solutions. This step can involve anything from a few seconds of thought to a few months or more of formal collaborative planning, depending on the nature of the decision.
Steps:
  • What alternative courses of action may be available to you?
  • What different interpretations of the data may be possible?

4.      Develop options

Administrators evaluate the pros and cons of each potential solution, seek additional information if needed and select the option they feel has the best chance of success at the least cost. Consider seeking outside advice if they have gone through all the previous steps on their own; asking for a second opinion which can provide a new perspective on the problem and your potential solutions.
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  • Generate several possible options.
  • Be creative and positive.
  • Ask “what if” questions.

5.      Select a preferred alternative

Administrators evaluate the possible choices and select the best potential solution for the problems from amongst the several alternatives he/she has.
Steps:
  • Explore the provisional preferred alternative for future possible adverse consequences.
  • What problems might it create?
  • What are the risks of making this decision?

6.      Act on the decision

There is no time to second guess yourself when you put your decision into action. Once you have committed to putting a specific solution in place, get all of your employees on board and put the decision into action with conviction. That is not to say that a managerial decision cannot change after it has been enacted; intelligent administrators put monitoring systems in place to evaluate the outcomes of their decisions.
  • Put a plan in place to implement the decision.
  • Have you allocated resources to implement?
  • Is the decision accepted and supported by colleagues?
  • Are they committed to making the decision work?

7.      Evaluate Outcomes


Even the most experienced professional can learn from their mistakes. Always monitor the results of intentional decisions you make as a decision maker; be ready to adapt your plan as necessary, or to switch to another potential solution if your chosen solution does not work out the way you expected.
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Sunday, 18 December 2016

DECISION MAKING

DECISION MAKING

Decision making is part of everyone’s life and all of us have to make decisions every moment. Right from choosing what to wear to what to eat to where we live and work and extending to whom we marry, decisions are an integral part of our lives. In an organizational context, it is worthwhile to note that decision making needs:
  • ·         The right kind of information,
  • ·         The complete information and
  • ·         The ability to synthesize and make sense of the information.

While the first two attributes depend on external sources, the ability to make informed decisions is a personality trait. Hence, successful administrators are those who can take into account the different viewpoints and divergent perspectives and arrive at the right decision.
The other aspect that relates to decision making in an organizational context is that there must be complete and accurate information made available to the decision maker. In Economics, there is a term called “asymmetries of information” that indicates how incomplete and insufficient information leads to poor decisions and wrong choices. What this concept means is that having partial information or faulty information often leads to “analysis paralysis” which is another term for poor decision making abilities. Finally, even with reliable and accurate information, the decision maker ought to have good problem solving skills and sharp decision making abilities to arrive at sound judgments regarding the everyday problems and issues.
The overriding rule in decision making is that the decision maker ought to have legitimacy and authority over the people who he or she is deciding upon. In other words, decision makers succeed only when their decisions are honored and followed by the people or groups that the decision impacts.
Decision-making is an integral part of modern administration. Essentially, Rational or sound decision making is taken as primary function of administration. Every administrator takes hundreds and hundreds of decisions subconsciously or consciously making it as the key component in the role of an administrator. Decisions play important roles as they determine organizational activities. A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational objectives or goals. Decision making process is continuous and indispensable component of managing any organization or business activities.

Definition of Decision Making

The meaning of decision in Latin is to ‘cut off’. This means that from all the available alternatives you choose one thing and then cut off from all the other alternatives. Due to this, the decision making process sometimes becomes very difficult. Choosing the right option from all the available alternatives is very hard to do.
Decision making process requires thinking process, time, efforts, resources, knowledge and past experiences. Thinking process plays an important role in decision making process because it allows you to judge each and every thing. Timing is also important.
According to the Oxford Advanced Learner’s Dictionary the term decision making means - the process of deciding about something important, especially in a group of people or in an organization.
Trewatha & Newport defines decision making process as, “Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem”.
As evidenced by the foregone definitions, decision making process is a consultative affair done by a comity of professionals to drive better functioning of any organization. Thereby, it is a continuous and dynamic activity that saturates all other activities affecting the organization.
Further, decision making process can be regarded as check and balance system that keeps the organization growing both in vertical and linear directions. It means that decision making process seeks a goal. The goals are pre-set objectives, establishment missions and its vision. To achieve these goals, company may face lot of obstacles in administrative, operational, marketing wings and operational domains. Such problems are sorted out through comprehensive decision making process. No decision comes as end in itself, since in may evolve new problems to solve. When one problem is solved another arises and so on, such that decision making process, as said earlier, is a continuous and dynamic.

Theories on Decision Making

There are many theories of decision making but we will discuss the following:
1. Organizational Process Model
2. Rationality in Decision Making

Organizational Process Model
All organization follows rules, procedures & system. Decisions in organizations are made according to the procedures and systems that organizations have for example a centralized organization decisions will come from top done. In organization where authority is dispersed participative decisions will be made. So the processes and standard operating procedure (SOP) will determine the quality of decisions made.
Rationality in Decision Making
It is said that effective decision making must be rational. But what is rationality. When is a thinking person deciding rationally? People deciding rationally are attempting to reach goals in a systematic way.
They collect all:
                     Relevant information,
                     Analyze information,
                     Evaluate and
                     Make Choice
So these are 4 basic steps in making a rational decision. If we follow these steps we can make "best decision. When deciding about one alternative, administrators can use three basic approaches:
                     Experience
                     Experimentation
                     Research and Analysis
Usually administrators use their experience and judgment to select an alternative. Experience and judgment is really reliance on the past.
The other method by which managers select alternatives is experimentation, i.e., managers would try an alternative and see its results.
The 3rd method is arriving at alternatives through researching and analysis.

Individual vs Administrative Organizational Decision Making

  • An individual generally makes prompt decisions. While an organization is dominated by various people, making decision-making very time consuming. Moreover assembling group members consumes lot of time.
  • Individuals do not escape responsibilities. They are accountable for their acts and performance. While in an organization it is not easy to hold any one person accountable for a wrong decision.
  • Individual decision making saves time, money and energy as individuals make prompt and logical decisions generally. While organizational decision making involves lot of time, money and energy.

  • An organization has potential of collecting more and full information compared to an individual while making decisions.
  • An individual while making any decision uses his own intuition and views. While organization has many members, so many views and many approaches and hence better decision making.
  • An organization discovers hidden talent and core competency of employees.
  • An individual will not take into consideration every members interest. While an organization will take into account interest of all members of an organization.
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