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2.6. Types of Planning (Hierarchy of Planning)

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PLANNING

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to those taken by upper-level managers-selecting realistic goals, assessing their sub-units’ particular strengths and weaknesses and analyzing those parts of the environment that can affect them.

7. Measuring and Controlling the Progress. Obviously, it is foolish to let a plan run its course without monitoring its progress. Hence the process of controlling is a critical part of any plan. Managers need to check the progress of their plans so that they can (a) take whatever remedial action is necessary to make the plan work, or (b) change the original plan if it is unrealistic.

2.6. TYPES OF PLANNING (HIERARCHY OF PLANNING)

From the viewpoint of scope and span of time, planning can be classified as under:

Types of Planning

Scope

Corporate planning

Span of time

Divisional/Departmental planning

Long-term planning

Sectional/Group planning

Mid-term planning

Short-term planning

(i) Corporate Planning. Planning for the company as a whole is known as corporate planning. It lays down objectives, strategies and policies for the entire organization. The purpose of corporate planning is to determine the long-term goals of an enterprise and generate plans to achieve these goals keeping in view the probable changes in its environment. It is proactive planning as it provides for future contingencies. It is less detailed and specific than sectional and divisional planning. It is designed to steer successfully the enterprise through various contingencies. It is done at the top-level management. It is very broad and general. For example, increasing the company’s market share by ten per cent in next five years, becoming a technological leader in industry, earning a 25% rate of return on investment and so on.

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5.1. Introduction

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CONTR

OLLING

ONTROLLING

INTRODUCTION

The managerial function of controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans desired to attain them are accomplished.

Planning and controlling are closely related. In fact, some writers on management think that these functions cannot be separated. Planning and controlling may be viewed as the blades of a pair of scissors; the scissors cannot work unless there are two blades. Without objectives and planes, control is not possible, because performance has to be compared against some established criteria.

Controlling is the function of every manager from the president to supervisor. Some managers particularly at lower levels forget that the primary responsibility for the exercise of control rests in every manager charged with the execution of plans. Occasionally, because of the authority of upper level managers and their resultant responsibility, top and upper level control is so emphasized that people assume that little controlling is needed at lower levels. Although the scope of control varies among managers, those at all levels have responsibility for the execution of plans and control is therefore an essential managerial function at every level.

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5.10. Management by Objectives (MBO)

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for regarding only where a previously established minimum level for the inventory is being approached. Requiring inventory information on a calendar basis–such as away week. When inventory levels for most items are well a bore their record point would usually not be worth the added cost, since action would not be implied by the information.

(c) Information Quantity and Relevance. A report that provides too little information cash be ineffective, because it may lead managers to make wrong at late decisions that worsen problems instead of solving them conversely a report that provides managers too much information can also provide ineffective because that may not isolate what they need from a flood of irrelevant facts and figures. A good report should fill as evaluate information so that only the most relevant information is supplied to the appropriate manager. In addition, a good report should condense information, so that what is relevant may be absorbed in a short period of time.

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1.13. Difference between Managers and Entrepreneurs

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BASICS

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Systematic means the recorded and analyzed data or being ordered and unbiased. All scientific information collected as raw data and finally ordered and analysed with the help of statistical tools. It thus becomes communicable and intellectual. Communication of results also permits repetition of the study, if need, by the investigator or others. When the study is repeated and the second try provides results similar to the first one, which derives much more confidence in those results.

On the basis of the above definition of science we may perceive the management is also a science. The word ‘science’ is used to denote two types of systematic knowledge: natural or exact and behavioural or inexact. Some more explanation of the scientific nature of management is needed.

Management is not like the exact or natural sciences such as physics, chemistry, etc. Management is a behavioural/social science. It is possible for us to study the effects of any one of the factors affecting a phenomenon individually by making the other factors in operative for the time being.

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2.5. Steps in Planning/Planning Process

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helps the manager to cope with and prepare for the changing environment. Planning does not deal with future decisions, but with the futurity of present decisions. The manager has a feeling of being in control if he has anticipated some of the possible changes and has planned for them. It is like going out with an umbrella in cloudy weather. It is through planning that the manager relates the uncertainties and possibilities of tomorrow to the facts of today and yesterday.

(b) Leads to Success. Planning does not guarantee success, but studies have shown that, often things being equal, companies which plan not only outperform the non planners but also outperform their own past results. This may be because when a businessman’s actions are not random or ad hoc, arising as mere reaction to the market place, i.e., when his actions are planned, be definitely does better. Military historians attribute much of the success of the world’s greatest generals to effective battle plans.

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