Contemporary Management

Q1. Evaluate the various types of plans for managers

Planning is the first managerial function to be performed. It is concerned with deciding in advance what is to be done in future, when, where and by whom it is to be done. It is a process of thinking before doing. managers have several practical reasons for formulating plans for themselves, their employees, and various organisational units, (1) to offset uncertainty and change; (2) to focus organisational activity on a set of consciously created objectives; (3) to provide a co-ordinated, systematic road map for future activities; (4) to increase economic efficiency via efficient operation; and (5) to facilitate control by establishing a standard for subsequent activities. Limitations of Planning leads to rigidity; reduces creativity; involves huge costs; It is a time consuming process; Planning does not work in a dynamic environment; and does not guarantee success

Plan-A statement of action steps to be taken in order to accomplish the objectives Many different types of plans are adopted by managers to conduct operations, and monitor and control organisational activities.

Plans can be categorized in terms of

a) By their time frame

Time horizon refers to how far in the future the plan applies. They include: -

(i) Long term plans: They have a time horizon of 5 years and above. They are mainly associated with top managers.

(ii) Intermediate term plans: They have a time horizon of 1 to 5 years. They are the building blocks towards attainment of long-term plans. Because of the uncertainties associated with long range plans, intermediate plans are the primary concern for both middle and top managers.

(iii) Short term plans: They have, a time horizon of 1 year or less. They are mainly associated with first line managers.

b) Scope or nature

The strategic plan generally involves planning at the top institutional level of an organization. Strategic plans define the organization’s long-term vision and how the organization intends to make its vision a reality. In short, strategic planning is the determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals. The crucial components of a strategic plan are:

• Vision: Where does the organization want to be five years from now? How does it want to influence the world? These are some of the questions you must ask when you delineate your organization’s vision.

• Mission The mission statement is a more realistic overview of the company’s aim and ambitions. Why does the company exist? What does it aim to achieve through its existence?

• Values

Tactical plans: They have a moderate scope and are concerned with how to implement the strategic plans.. Tactical plan is the plan which is concerned with the integration of various organizational units and ensures implementation of strategic plans on day to day basis. It involves how the resources of an organization should be used in order to achieve the strategic goals. The tactical plan is also known as coordinative or functional plan. They are mainly associated with middle level managers

Operational plans

• Standing plans are plans designed to be used again and again. Examples include policies, procedures, and regulations. The advantage of standing plans is that they foster unity and fairness within an organization and help to support stated organizational values. Managers don’t have to make unique decisions already addressed by various organizational policies. Standing plans also save time because managers know in advance how to address common situations. Finally, standing plans aid in the delegation of work, because employees are already familiar with the procedures and regulations followed by the organization.

Policies are standing plans the communicate guidelines for decisions

Procedures are rules that describe actions to be taken in specific situations

Rules are specific statement that inform what is to be done

• Single-use plans refer to plans that address a one-time project or event. The length of the plans varies, but the most common types are budgets and project schedules. The obvious advantage of a single-use plan is that it can be very specific in how it addresses the needs of a particular situation.

o Projects it is a plan that organizes a set of limited –scope activities that do not need to be divided into several major parts to reach its goal

o Budgets it is a statement of expected results expressed in numerical terms

o Program are detailed statements about a project which outline objectives, policies

c) On the basis of managerial level:

Top level Plans:Plans which are formulated by general managers and directors are called top-level plans. Under these plans, the objectives, budget, policies etc. for the whole organization are laid down. These plans are mostly long term plans.

• Middle-level Plans: Managerial hierarchy at the middle level includes the departmental managers. A corporate has many departments like purchase department, sales department, finance department, personnel department etc. The plans formulated by the departmental managers are called middle-level plans.

• Lower level Plans: These plans are prepared by the foreman or the supervisors. They take the existence of the actual workplace and the problems connected with it. They are formulated for a short period of time and called short term plan

d) Functional plans

They indicate how different operations within the organization will help accomplish the overall strategy. They include: Production plans, Financial plans, Facilities plans, Logistics plans, Marketing plans and Human resource plan

Q2 DISCUSS VARIOUS ORGANISATIONAL STRUCTURES

Managers deal with two types of organizational structures,formal and informal

The formal organization is usually delianated by ana organizational chart and job descriptions.the official reporting relationships are clearly known to every manager

Alongside the formal organization exists are informal organisatio which is a set of evolving relationshipsand patterns of humaninteraction with an organization that are not officially prescribed