Syllabus UNIT- I:

Introduction to Management: Concepts of management - Nature, Importance, and Functions of

management; Taylor’s Scientific Management Theory; Fayol’s Principles of Management;
Social Responsibilities of Management; Motivation-Definition, Theories: Maslow’s need of
Hierarchy, Herzberg two Factor, Mc Gregor Theory X and Theory Y; Leadership-Definition,
Styles; Planning-definition and types of plans; Decision making-definition and process.
MANAGEMENT:
Management is the process of getting things done to achieve specific goals and objectives
efficiently and effectively.
Several management experts have defined the term management in different ways. They are:
1. HENRY FAYOL the father of management defines the term management as “to
manage is to forecast and plan, to organize, to command, to coordinate and control.”
2. HERALD KOONTZ defines the term management as “management is the technique
of getting things done through and with the people in formally organized groups.”
3. F.W. TAYLOR defines management as “management is the art of knowing what you
want to do in the cheapest and best way.”
4. PETER.F. DRUCKER defines management as “management is concerned with the
systematic organization of economic resources and its task is to make these resources
productive.”

NATURE OF MANAGEMENT
We can analyze the nature or characteristics of management in the following manner:
1.Management is a process:
It is a process. It includes a number of aspects such as planning, organizing, directing,
controlling, coordinating, staffing, motivating... etc.
2.Management is a continuous process:
It is a continuous process. As long as universe exists it will exists. It is eternal or immortal.
3.Management is an activity:
It is an activity. It includes decision making activities, informational activities, interpersonal
activities.. Etc. which are essential for the success of an organization.
4.Management is a discipline:
It is a separate branch of study like computers, mathematics, statistics... Etc. it is one of the
important branch to carryout business very successfully.
5.Management is dynamic:
Its nature is dynamic. It formulates several new policies according to time being. It designs
new policies and methods according to changing business needs or business environment.
Today a lot of research is going on management.
6.Management is complex:
Its nature is complex. It has close relation with several subjects. It is interdependent. It depends
on mathematics, social, economics... etc. there are several theories and principles formulated
by management experts. Its functions are complex.
7.Management is a group activity:
It is a group activity. It is associated with different people in the organization. It has several
levels. Ex: - higher level, middle level, lower level.
8.Management is both science and an art:
Management combines the features of both science and art. It is a scientific art. Science is a
systematic body of knowledge relating to a specific field of study and contains journal facts
that explain a phenomenon. Art is basically concerned with understanding the way a particular
task is achieved in the best possible manner. While science provides the principles, the
application of these principles is the subject matter of art.
9.Management is an integrating process:
It is an integrating process. It integrates men, money, material for performing various
operations and accomplishing the stated goals.
10.Management is a profession:
It is a profession because some of its established principles are being applied in practice.
11.Management is goal oriented:
It has certain goals and objectives. It always try to achieve these goals. It’s a main goal is over
all development of the society.
IMPORTANCE OF MANAGEMENT
It has great significance in industrial organizations. It’s role is very prominent in production,
marketing, finance, human resources, research and development. No, industrial organization
can service without management. We can analyze its importance in the following manner:
1. Determination of objectives:
Its role is very significant in determining objectives. Every business firm has certain objectives.
It helps in determining these objectives in most efficient and effective way. Generally business
is a risky affair. It includes a number of problems and uncertainties. These problems arise on
various aspects. No, business organizations can success without over coming these problems.
2. Achieving the objectives:
Management plays a vital role in achieving the objectives of business firms. Every business
firm has certain objectives as far as production, marketing, finance, HR... Etc. is concerned.
Management guides the managerial personnel in each and every aspect. They can achieve the
objectives very easily with the help of management principles.
3. Optimum utilization of existing resources:
Management plays a vital role in utilizing the existing productive resources in optimum
manner. They can use the productive resources in a best way. Generally productive resources
are very scare management helps in minimizing wastage of productive resources. Ex: - men,
money, material, machinery etc. are valuable productive resources. Optimum utilization of
these resources is essential.
4. Social benefits:
Management play a vital role in social or societal development. It is a part and parcel of the
society. Its main aim is to develop the society. It’s helps to supply quality products to the public.
It has greater social responsibility. It must meet the needs of the society. It must satisfy the
consumer needs, shareholder’s needs, government needs... Etc. it makes the society more
dynamic and result oriented.
5. Establishers sound organization:
Management helps in establishing a sound organization. It creates good relationship between
superiors and subordinates. Sound organizations are essential to achieve greater production
without efficient management. It is not possible to achieve greater production.
6. Meeting challengers:
Management helps in meeting a number of challengers faced in industrial organizations with
efficient management they can face several problems very easily and try to overcome from
such problems. Several problems arises in the field of production, marketing, finance, HR
related aspects.
7. National economic development:
Management plays a significant role in national economic development. It helps to achieve
rapid economic development and growth. It helps to increase national output national income,
total saving, total investment, total demand, total supply.
8. Smooth running of business:
Management plays a vital role in smooth running of business organizations. Business
organizations can run very smoothly with help of management. It helps in minimizing strikes
and lockouts, retrenchments disputes. It helps to produce goods and services continuously. It
establishes good relations between management and labor force. Management promotes
industrial peace.
FUNCTIONS OF MANAGEMENT
1. Planning:
This is one of the important functions of management. Planning is a mental process requiring
foresight and sound judgment. Planning is the process of deciding in advance what to do, when
to do, where to do and how the results are to be evaluated. It is nothing but taking action in
advance and deciding today what is to be done tomorrow. Efficient planning is essential to
achieve the organizational goals in most efficient and effective manner. No, organizations can
success without planning.
2. Organizing:
It is the process of establishing relationships among the members of the organization. This
relation ship is created in the form of authority and responsibility. It is an important activity by
which management brings together the manpower and material resources for the accomplishing
of free determined goals. It also involves creating job positions at various levels and
establishing mutual relationships between them. No, organizations can success without
organizing.
3. Staffing:
It refers to placing of right persons at the right job at the right time. It involves recruitment,
selection, training..etc. it involves training managers and other employee’s to improve their
capabilities and preparing subordinates for the future as well as ensuring their personal
development and growth. While performing the staffing function managers prepare reports on
the performance of their subordinates and make recommendations regarding their promotion.
No, organizations can success without staffing.
4. Directing:
It is the process of guiding the subordinates towards achieving the organizational goals.
Generally, managers issue day to day instructions and guide lines to the subordinates. Managers
have to communicate decisions and instructions to the subordinates. It is nothing but giving
guidance to the subordinates. It is concerned with the activating of the members of the
organization for the accomplishment of the organizational goals. No, organization can
successfully run without directing.
5. Coordinating:
It is the process of integrating the activities of different units and organization to accomplish
the organizational goals efficiently. The purpose of coordination is to ensure that the goals of
units and subunits are pursued in harmony with each other keeping in view the goals of the
organization. Coordination is needed at all levels of management due to the interdependent
nature of activities assigned to various departments and units.

6. Controlling:
It is the process of seeing whether the activities have been performed in conformity with the
plains. It helps the management to get its policies implemented and to take corrective actions
if performance is not in accordance with the planned objectives. No, organization can
successfully run without controlling.

TAYLOR’S SCIENTIFIC THEORY OF MANAGEMENT

SCIENTIFIC MANAGEMENT:
Application of scientific principles and theories to management is called scientific
management. According to Taylor scientific management means knowing exactly what you
want men to do and seeing that they do it in the best way and the cheapest way. The scientific
methods consist of research and experiments, collection of data, analysis of data and
formulation of certain new principles.
PRINCIPLES OF SCIENTIFIC MANAGEMENT:
Taylor’s scientific theory is based on the following principles:
1. Replacement of old rule of thumb method
2. Scientific selection and training method.
3. Labor management cooperation
4. Maximum output with minimum cost.
5. Equal division of responsibility.
ELEMENTS OF SCIENTIFIC MANAGEMENT:
To bring scientific management into practice, Taylor suggested the following techniques or
elements. They are:
1. Scientific task setting:
Setting the standard task of every worker through scientific investigation
2. Work study:
Work study means a systematic objective and critical determination of operational efficiency
in an organization. It includes method study, motion study, time study, fatigue study.. Etc.
3. Rate setting:
It means determination of wages and salaries. Taylor suggested differential piece rate system.
If the wages are fixed on the basis of the quantity or volume of the work done by the workers,
it is called piece rate system.
4. Planning the task:
It refers to determination of the quantity of o/p to be produced by each and every worker in
advance.
5. Standardization:
It refers to determination of certain standards in production. In other words maintaining
quantity at various levels.
6. Scientific selection & training:
It refers to using scientific methods & techniques in selection & training. According to him
every organization must follow scientific techniques & methods in selection & training. They
have to recruit qualified efficient & experienced persons.
7. Differential piece wage plan:
It refers to payment of wages & salaries on the basis of quantity of work done by the workers
& employees. This plan encourages workers to produce more output.
8.Specialization:
It refers to division of labor Taylors suggested functional foremanship even at the shop or floor
level under this system an operator or worker works under the control of eight foremen, four
at the shop level & four at the office level.
HENRY FAYOL’S 14 PRINCIPLES:
1. Division of work:
Dividing the work among different personal. So as to achieve specialization. This concept
promotes efficiency and specialization at various levels. This is essential to achieve optimum
results in production, marketing, finance, HR, R & D activities. The success of an organization
is also based on this principle.
2. Authority and responsibility:
It means giving orders for superiors to subordinates generally. The authority wasted in the
hands of superiors or top management in the organization. Top management means chairman,
board of directors, MD & CEO. They have the decision making powers. Responsibility means
obligation to accomplish by assigned as in most efficient and effective manner. Lack of
responsibility leads to so many problems in the organization.
3.Discipline:
It means obedience towards rules and retardations. It is nothing but showing respect to each
other. It promotes dignity and honesty among the employee’s and employers. It stabilizes
superior subordinate relationship, no organization can successfully run without following this
principles.
4.Unity of command:
It means an employee must receive orders from our superior only for any action or activity. It
avoid the confusion and conflict. Unity of command is essential for the success of an
organization.
5.Unity of direction:
It refers to, there should be one head and one plan. It minimizes the risk and uncertainty at
various levels. Unity of direction is essential for the successful running of an organization.
6.Scalar chain:
It refers to the process of flow of information from top to bottom and from bottom to top level
management. Effective communication is essential for the successful running of an
organization. There should not be any interruption in the flow of communication.
7.Remuneration of personnel:
It refers to the process of payment of wages and salaries to workers and employee’s. There
should be fair and equitable wage and salary system in every industrial organization. Every
organization must pay fair wages and salaries to workers and employees. Good remuneration
system encourages workers and employee’s to put more effort on production. Good
remuneration system is essential for the success of an organization.
8.Centralization:
It refers to concentration of authority at one place in the organization. In other words
centralization means concentration of authority in the hands of a few top management
personnel. These persons must take decisions. Decentralization means delegation of authority
from top management to middle and lower levels. According to fayol there should be balance
between centralization and decentralization. However he gave much importance to
centralization.
9.Subordination of individual interest to general interest:
This principle is based on the assumption that organization is superior individuals. If there is
any conflict between individual interest and general interest, the latter must prevail. It means
the organization must be superior to individuals because organization is the basis for
management.
10. Order:
It refers to placing right things at the right place. In other words is the process of maintaining
men, money, and machinery in a systematic way or proper way. It role is also very prominent
in the organization. Efficient order mechanism is essential for the success of an organization.
11. Equity:
It refers to equal treatment without any discrimination. There is should not be any
discrimination against cast, gender, religion, area... Etc. the organization must give equal
importance to all cadres. They have to pay equal pay for equal work. There should not be any
exploitation of labor force.
12. Stability of tenure:
It refers to stability in employment. Every organization must protect the existing employment
and workers. They should provide job security to the employee’s and workers. If they have job
security they may pay more effort on production and ultimately the organization name and
fame increases.
13. Initiative:
It refers to taking actions and decisions independently. Every worker and employee must work
with initiative.
14. Esprit de corps:
It refers to team spirit and team work. It is based on the principle of union is strength. It is
nothing but devotion and loyalty towards the organizational goals.

SOCIAL RESPONSIBILITIES OF MANAGEMENT

The concept of social responsibility in management refers to the obligation of a business to
contribute positively to the society in which it operates. This idea extends beyond merely
following legal requirements and focuses on the ethical obligations of a company to various
stakeholders, including employees, customers, communities, and the environment.
1. Ethical Conduct
Honesty and Integrity: Managers must act with honesty and integrity in all dealings with
employees, customers, suppliers, and other stakeholders.
Fair Treatment: Ensuring that all individuals are treated fairly and without discrimination
based on race, gender, religion, or other characteristics.
2. Environmental Sustainability
Resource Management: Using natural resources efficiently and responsibly to minimize
environmental impact.
Waste Reduction: Implementing strategies to reduce waste and pollution, such as recycling
programs and sustainable product designs.
Green Initiatives: Supporting and investing in renewable energy sources and eco-friendly
technologies.
3. Community Engagement
Charitable Contributions: Supporting local communities through donations, sponsorships,
and volunteer efforts.
Economic Development: Creating jobs and fostering economic growth within the community.
Education and Training: Investing in education and skills development programs to empower
local populations.
4. Employee Welfare
Safe Working Conditions: Ensuring that the workplace is safe and healthy for all employees.
Fair Compensation: Providing fair wages, benefits, and opportunities for career advancement.
Work-Life Balance: Promoting policies that help employees balance their work and personal
lives, such as flexible working hours and remote work options.
5. Customer Satisfaction
Quality Products and Services: Delivering products and services that meet or exceed
customer expectations.
Transparency: Being transparent about business practices, pricing, and product information.
Responsible Marketing: Avoiding deceptive advertising and ensuring that marketing
practices are ethical.
6. Corporate Governance
Accountability: Ensuring that management is accountable to shareholders and other
stakeholders for the company’s performance.
Compliance: Adhering to laws, regulations, and ethical standards in all aspects of business
operations.
Stakeholder Engagement: Involving stakeholders in decision-making processes and
considering their interests in strategic planning.
7. Innovation and Development
Sustainable Innovation: Encouraging innovation that not only drives business growth but also
benefits society and the environment.
Corporate Social Responsibility (CSR) Initiatives: Developing programs and projects that
directly contribute to social and environmental causes.

MOTIVATION
Motivation refers to the internal and external factors that stimulate people to take actions that
lead to achieving a goal. In the context of management and organizational behavior, motivation
plays a critical role in driving employee performance, productivity, and job satisfaction. Here
are some key aspects of motivation:

THEORIES OF MOTIVATION
1. Maslow’s need of Hierarchy

According to Maslow (1943, 1954), human needs were arranged in a hierarchy, with
physiological (survival) needs at the bottom, and the more creative and intellectually oriented
‘self-actualization’ needs at the top.
Maslow argued that survival needs must be satisfied before the individual can satisfy the higher
needs. The higher up the hierarchy, the more difficult it is to satisfy the needs associated with
that stage, because of the interpersonal and environmental barriers that inevitably frustrate us.
Higher needs become increasingly psychological and long-term rather than physiological and
short-term, as in the lower survival-related needs.
1. Physiological needs are biological requirements for human survival, e.g., air, food, drink,
shelter, clothing, warmth, sex, and sleep. Our most basic need is for physical survival, and this
will be the first thing that motivates our behaviour. Once that level is fulfilled, the next level
up is what motivates us, and so on. The human body cannot function optimally if physiological
needs are not satisfied. Maslow considered physiological needs the most important as all the
other needs become secondary until these needs are met. Once an individual’s physiological
needs are satisfied, the need for security and safety becomes salient.
2. Safety needs – people want to experience order, predictability, and control in their lives.
Safety needs can be fulfilled by the family and society (e.g., police, schools, business, and
medical care). For example, emotional security, financial security (e.g., employment, social
welfare), law and order, freedom from fear, social stability, property, health, and well-being
(e.g., safety against accidents and injury). After physiological and safety needs have been
fulfilled, the third level of human needs is social and involves feelings of belongingness.
3. Love and belongingness needs refers to a human emotional need for interpersonal
relationships, affiliating, connectedness, and being part of a group.
Examples of belongingness needs include friendship, intimacy, trust, acceptance, receiving and
giving affection, and love.
This need is especially strong in childhood and can override the need for safety, as witnessed
in children who cling to abusive parents.
4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth,
accomplishment, and respect. Maslow classified esteem needs into two categories: (i) esteem
for oneself (dignity, achievement, mastery, independence) and (ii) the desire for reputation or
respect from others (e.g., status, prestige). Esteem is the typical human desire to be accepted
and valued by others. People often engage in a profession or hobby to gain recognition, which
gives them a sense of contribution or value. Low self-esteem or an inferiority complex may
result from imbalances during this level in the hierarchy. Maslow indicated that the need for
respect or reputation is most important for children and adolescents and precedes real self-
esteem or dignity.
5. Self-actualization needs are the highest level in Maslow’s hierarchy, and refer to the
realization of a person’s potential, self-fulfilment, seeking personal growth, and peak
experiences. This level of need refers to what a person’s full potential is and the realization of
that potential. Maslow describes this level as the desire to accomplish everything that one can,
and “to become everything one is capable of becoming”.Individuals may perceive or focus on
this need very specifically. For example, one individual may have a strong desire to become an
ideal parent.
In another, the desire may be expressed athletically. For others, it may be expressed in
paintings, pictures, or inventions. Although Maslow did not believe that many of us could
achieve true self-actualization, he did believe that all of us experience transitory moments
(known as ‘peak experiences’) of self-actualization. Such moments, associated with personally
significant events such as childbirth, sporting achievement and examination success), are
difficult to achieve and maintain consistently.
2. Herzberg’s Two-Factor Theory

Herzberg’s Two-Factor Theory, also known as the Motivation-Hygiene Theory, is a well-

known concept in organizational behavior and psychology. Developed by Frederick Herzberg
in the 1950s, the theory suggests that job satisfaction and dissatisfaction arise from two
different sets of factors: motivators and hygiene factors.

1. Motivators (Satisfiers)
Motivators are factors that lead to job satisfaction and are related to the content of the work
itself. These factors inspire employees to perform better and contribute to personal and
organizational growth. They include:
Achievement: Recognition of accomplishments and the fulfilment that comes from completing
challenging tasks.
Recognition: Receiving acknowledgment and appreciation for one's efforts and contributions.
Work Itself: The intrinsic interest and enjoyment derived from the work itself.
Responsibility: Having autonomy and control over one's work and decisions.
Advancement: Opportunities for career growth and promotions within the organization.
Growth: Personal development opportunities, such as training and learning new skills.
These factors are intrinsic to the job and can lead to higher levels of job satisfaction when
present.
2. Hygiene Factors (Dissatisfiers)
Hygiene factors are elements of the work environment that can cause job dissatisfaction if they
are inadequate or absent. However, their presence does not necessarily lead to higher job
satisfaction; they simply prevent dissatisfaction. These factors include:
Salary: The compensation and benefits received for the work performed.
Company Policies: The rules, regulations, and administrative practices that govern the
workplace.
Supervision: The quality of supervision and the relationship between employees and their
supervisors.
Working Conditions: The physical environment, including safety, comfort, and the tools and
resources available.
Job Security: The stability and security of one's position within the organization.
Interpersonal Relationships: The quality of relationships with colleagues, supervisors, and
subordinates.
Work-Life Balance: The ability to balance work demands with personal life.
Hygiene factors are extrinsic to the job itself and are more about the context in which the work
is performed. While they do not directly motivate employees, their absence can lead to
dissatisfaction.

Implications of Herzberg’s Theory

Focus on Motivators for Job Satisfaction: Organizations should concentrate on enhancing
motivators to increase job satisfaction and drive higher performance.
Address Hygiene Factors to Prevent Dissatisfaction: Ensuring that hygiene factors are
adequately managed is crucial to prevent job dissatisfaction.
Separate Treatment of Satisfaction and Dissatisfaction: Herzberg’s theory highlights that
satisfaction and dissatisfaction are not on the same continuum. Addressing dissatisfaction
(hygiene factors) does not automatically lead to satisfaction; organizations must actively work
on motivators to achieve that.

3. Douglas Mc Gregor Theory- X & Theory- Y

Douglas McGregor presented two sets of assumptions in the form of theory -X & theory- Y. To
explain the nature of employees & to understand human behavior. These two sets of
assumptions are popularly called theory- X & theory -Y.
THEORY -X:
This theory is based on the following assumptions. They are
1. Employees are inherently lazy

2. They require constant guidance & support.

3. Sometimes they require even coercion & control

4. Given an opportunity they would like to avoid responsibility.

5. They do not show up any ambition but always seek security.

He explained all the negative features of employees in theory -X.

Theory Y:
This theory is entirely different from theory- x. it is based on the following assumptions. They
are:
1. Some employees consider work as natural as play or rest.

2. These employees are capable of directing and controlling performance as their own.
They are much committed to the objectives of the organization. They show much
interest towards the objectives of the organization.

3. Higher wages and salaries makes these employee’s more dynamic, committed to
organization.

4. Given an opportunity they not only accept responsibility but also look for opportunities
to outperform.

5. Most of them are highly imaginative creative and discipline in handling organizational
issues.

He explained all the positive features of employees in theory -Y

LEADERSHIP
Leadership is an ability by which one can direct, guide and influence the behaviour, work of
others towards accomplishment of specific goals in a given situation. There are many different
ways to lead a team. And different leaders have different traits that make their specific brand
of leadership work. The various leadership styles are

 Autocratic leadership style:

 This is a leadership style in which the leader has complete command and hold
over their employees/team.
 The team cannot put forward their views even if they are best for the team’s or
organizational interests.
 The team cannot criticize or question the leader’s way of getting things done.
 The advantage of this style is that it leads to speedy decision-making and greater
productivity under leader’s supervision.
 This leadership style works only when the leader is the best in performing.
 One of the best examples of Autocratic leadership style can be derived from
Adolf Hiter. Adolf Hitler's leadership style when considering the style approach
is "authority-compliance".
 Essentially, Hitler wanted supreme power among his peers and the rest of the
world and once his country submitted to him and granted him this supreme
power, Hitler took full advantage of his positional power and at that point it was
too late for anyone to oppose him.
 An article that talked about Hitler's leadership style said Hitler was, first and
foremost, determined to command personally. According to his so-called Leader
 Principle, ultimate authority rested with him and extended downward. At each
level, the superior was to give the orders, the subordinates to follow them to the
letter.
 In practice the command relationships were more subtle and complex,
especially at the lower levels, but Hitler did have the final say on any subject in
which he took a direct interest, including the details of military operations, that
is, the actual direction of the armies in the field. Not only did Hitler give these
orders, but if they were not followed exactly as they were given, the
subordinates were severely punished. There is a clear emphasis on the task at
hand, with little regard for the soldiers involved.
 Democratic/Participative leadership style:
 The leaders invite and encourage the team members to play an important role in
decision-making process, though the ultimate decision-making power rests with
the leader.
 The leader guides the employees while the employees communicate to the
leader their experience and the suggestions.
 It leads to satisfied, motivated and more skilled employees.
 This leadership style has the only drawback that it is time-consuming.
 One of the best examples of Democratic leadership style can be derived from
Sourav Ganguly, the ex. Indian Team skipper. Sourav used to follow a
democratic leadership style.
 He made certain that his team members could express their views on any
problem. Because Sourav was approachable to his team members, they did not
hesitate to reach out to him to express their concerns.
 He always followed very basic but effective communication strategies like
“Always appreciate publicly but pointing out faults privately”.
 His captaincy demonstrates that he was an ace decision-maker with proper
analysis, learning from problems on a daily basis.
 A leader should always have a long-term vision, and Sourav had one as well.
He structured the team in such a way that it can win not just at home, but also
on the road. He coached many young players who went on to become future
stars of Indian cricket.
 Sourav believed in concentrating on what he could control. For example, when
he was dropped from the team due to his lack of form, he focused on developing
himself rather than worrying about when selectors will pick him back into the
team. You have the ability to improve your skill sets. His strategic thinking
enabled India to perform well in the World Cup-2003. He was a result-oriented
player on his own.

 The Laissez Faire Leadership Style:

 The leader totally trusts their employees/team to perform the job themselves.
 He just concentrates on the intellectual/rational aspect of his work and does not
focus on the management aspect of his work.
  The team are welcomed to share their views and provide suggestions which are
best for organizational interests.
 This leadership style works only when the employees are skilled, loyal,
experienced and intellectual.

 Bureaucratic leadership style:

 Here the leaders strictly adhere to the organizational rules and policies. Also,
they make sure that the employees also strictly follow the rules and procedures.
 This leadership style gradually develops over time.
 This leadership style is more suitable when safe work conditions and quality are
required.
This leadership style discourages creativity and does not make employees self-contented.

PLANNING

Planning is the process of thinking about and organizing the activities required to achieve a
desired goal or objective. It involves setting goals, defining actions to achieve those goals,
establishing strategies, and developing plans to coordinate activities. Planning is an essential
function of management that helps in setting objectives and determining a course of action
for achieving those objectives efficiently and effectively. It includes:
1. Setting Objectives: Defining what you want to achieve.
2. Identifying Resources: Determining the resources needed, such as time, money, and
manpower.
3. Developing Strategies: Creating a series of actions or steps to reach the objectives.
4. Coordinating Activities: Ensuring that tasks are aligned and that all stakeholders are
working towards the same goals.
5. Monitoring Progress: Tracking the implementation of the plan and making
adjustments as necessary.
Effective planning helps in minimizing risks, optimizing resource utilization, and ensuring
the success of the organization or project.

Types of Plans
Strategic
A strategic plan is the company’s big picture. It defines the company’s goals for a set period of
time, whether that’s one year or ten, and ensures that those goals align with the company’s
mission, vision, and values. Strategic planning usually involves top managers, although some
smaller companies choose to bring all of their employees along when defining their mission,
vision, and values.
Tactical
The tactical strategy describes how a company will implement its strategic plan. A tactical plan
is composed of several short-term goals, typically carried out within one year, that support the
strategic plan. Generally, it’s the responsibility of middle managers to set and oversee tactical
strategies, like planning and executing a marketing campaign.
Operational
Operational plans encompass what needs to happen continually, on a day-to-day basis, in order
to execute tactical plans. Operational plans could include work schedules, policies, rules, or
regulations that set standards for employees, as well as specific task assignments that relate to
goals within the tactical strategy, such as a protocol for documenting and addressing work
absences.
Contingency
Contingency plans wait in the wings in case of a crisis or unforeseen event. Contingency plans
cover a range of possible scenarios and appropriate responses for issues varying from personnel
planning to advanced preparation for outside occurrences that could negatively impact the
business. Companies may have contingency plans for things like how to respond to a natural
disaster, malfunctioning software, or the sudden departure of a C-level executive.

DECISION MAKING PROCESS

Decision Making refers to the cognitive process of selecting a course of action from multiple
alternatives. It involves evaluating different options, considering the possible outcomes, and
choosing the best option based on specific criteria or goals. Decision making is a fundamental
aspect of both personal and professional life, impacting the success and effectiveness of
individuals and organizations.
Key Components of Decision Making
1. Identifying the Problem or Opportunity
o Clearly defining the issue that requires a decision is the first step in the decision-
making process. This involves recognizing the need for a decision and
understanding the problem's nature and scope.
2. Gathering Information
o Collecting relevant information, data, and insights is essential to understand the
context and constraints of the decision. This might involve internal data,
external research, or consulting with experts.
3. Generating Alternatives
o Developing a list of possible courses of action is crucial. This involves
brainstorming and considering various options that could solve the problem or
seize the opportunity.
4. Evaluating Alternatives
o Each alternative is assessed based on its feasibility, potential outcomes, risks,
and alignment with goals or objectives. Tools like cost-benefit analysis, pros
and cons lists, and decision matrices can be used.
5. Selecting the Best Alternative
 o After evaluating the options, the best one is chosen based on criteria such as
effectiveness, efficiency, and alignment with objectives. This choice should
offer the most favorable balance of benefits over risks.
6. Implementing the Decision
o Putting the chosen alternative into action involves planning and allocating
resources, defining responsibilities, and ensuring that everyone involved is
aligned with the decision.
7. Monitoring and Reviewing
o After implementation, it is important to monitor the outcomes to ensure the
decision is achieving the desired results. Feedback and adjustments may be
needed if things aren't going as planned.