Organization of labour as per

GOI Guidelines

Adiba Siddiqui
Professor
MMCON
 Planning is the process by which an individual or
organization decides in advance on some future
course of action.

 Planning is the process of determining how the

organization can get where it wants to go.

 Planning involves selecting from among

alternative future courses of actions for the
organization as a whole and for every department
or section within it.
Characteristics of Planning
 Planning is goal-oriented.
 Planning is made to achieve desired objective of
business.
 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.
  Planning is looking ahead.
 Planning is done for future.
 It requires peeping in future, analyzing it and
predicting it.
 Thus planning is based on forecasting.
 A plan is a synthesis of forecast.
 It is a mental predisposition for things to happen
in future
  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.
 A manager can prepare sound plans only if he has
sound judgement, foresight and imagination.
 Planning is always based on goals, facts and
considered estimates
  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.
 A manager is surrounded by no. of alternatives. He
has to pick the best depending upon requirements
& resources of the enterprises.
  Planning is the primary function of management /
Primacy of Planning.
 Planning lays foundation for other functions of
management.
 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.
  Planning is a Continuous Process.
 Planning is a never ending function due to the
dynamic business environment.
 Plans are also prepared for specific period f 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 enterprise
exists issues, problems may keep cropping up and
they have to be tackled by planning effectively
  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, govt. policies
etc.
 Under changed circumstances, the original plan of
action must be revised and updated to male it
more practical.
 Steps of Planning
 Establishment of objectives
 Planning requires a systematic approach.

 Planning starts with the setting of goals and

objectives to be achieved.

 Objectives provide a rationale for undertaking

various activities as well as indicate direction of
efforts.
 Moreover objectives focus the attention of managers
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.
  Establishment of Planning Premises

 Planning premises are the assumptions about the

lively shape of events in future.
 They serve as a basis of planning.
 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 capital investment policy, management labour
relations, philosophy of management, etc. Whereas
external includes socio- economic, political and
economical changes.
 Internal premises are controllable whereas external are
non- controllable.
  3.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.
 The planners should take help of various quantitative
techniques to judge the stability of an alternative.
 4.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 expediate the achievement of basic
plans.
 These detail plans include policies, procedures, rules,
programmes, budgets, schedules, etc.

 Derivative plans indicate time schedule and sequence of

accomplishing various tasks.
  5 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.
  6 Follow up/Appraisal of plans
 After choosing a particular course of action, it is put into
action.
 After the selected plan is implemented, it is important to
appraise its effectiveness.
 This is done on the basis of feedback or information
received from departments or persons concerned.
 This enables the management to correct deviations 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
Principles for having effective planning

 (1) Develop accurate forecasts

 (2) Gain acceptance for the plan
 (3) Make sure the plan is sound
 (4) Assign responsibility for planning
 (5) Be objective
 (6) Keep the plan flexible
 (7) Revise your long- term plan every year
 (8) Make sure that the plan fits the situation
Advantages of Planning
 Planning facilitates management by objectives.
 Planning minimizes uncertainties.
 Planning facilitates co-ordination.
 Planning improves employee’s moral.
 Planning helps in achieving economies.
 Planning facilitates controlling.
 Planning encourages innovations.
 Company: Google
Mission: To organize the world’s information and
make it universally accessible and useful.
Vision: To provide access to the world’s information in
one click
 Company: Facebook
Mission: To give people the power to build
community and bring the world closer together.
Vision: People use Facebook to stay connected with
friends and family, to discover what’s going on in the
world, and to share and express what matters to them.
 Company: Amazon
Mission: We strive to offer our customers the lowest
possible prices, the best available selection, and the
utmost convenience.
 Vision: To be Earth’s most customer-centric company,
where customers can find and discover anything they
might want to buy online.
 ompany: Samsung
Mission: Inspire the world with our innovative
technologies, products and design that enrich people’s
lives and contribute to social prosperity by creating a
new future.
 Vision: Inspire the world. Create the future.
Advantages of Having a Vision
 A few benefits accruing to an organization having a
vision are as follows:
 They foster experimentation.
 Vision promotes long term thinking
 Visions foster risk taking.
 They can be used for the benefit of people.
 They make organizations competitive, original and
unique.
 Good vision represent integrity.
 They are inspiring and motivating to people working in
organization.
Mission
 Mission statements are the starting points of an
organization’s strategic planning and goal setting
process. They focus attention and assure that internal
and external stakeholders understand what the
organization is attempting to accomplish.
 The vision statement communicates both the purpose
and values of the organization. For employees, it gives
direction about how they are expected to behave and
inspires them to give their best.
Characteristics
 In order to be effective, a mission statement should posses
the following characteristics.
 A mission statement should be realistic and achievable.
Impossible statements do not motivate people. Aims
should be developed in such a way so that may become
feasible.
 (ii) It should neither be too broad not be too narrow. If
it is broad, it will become meaningless. A narrower
mission statement restricts the activities of
organization. The mission statement should be precise.
 (iii) A mission statement should not be ambiguous. It
must be clear for action. Highly philosophical
 Characteristics
 (iv) A mission statement should be distinct. If it is not
distinct, it will not have any impact. Copied mission
statements do not create any impression.
 (v) It should have societal linkage. Linking the
organization to society will build long term perspective in
a better way.
 (vi) It should not be static. To cope up with ever
changing environment, dynamic aspects be looked into.
 Characteristics
 (vii) It should be motivating for members of the
organization and of society. The employees of the
organization may enthuse themselves with mission
statement.
 (viii) The mission statement should indicate the process
of accomplishing objectives. The clues to achieve the
mission will be guiding force.
 Formulation of Mission Statements

 The mission statements are formulated from the

following sources:
 (i) National Priorities projected in plan documents
and industrial policy statements.
 (ii) Corporate philosophy as developed over the
years.
 (iii) Major strategists have vision to develop mission
statements.
 (iv) The services of consultants may be hired.
 Vision serves the purpose of stating what an
organization wishes to achieve in the long run.

 Mission relates an organization to society.

 Objectives state what is to be achieved in a given time

period.
Mission Statement Vs Vision
Statement
Basis for Comparison Mission Statement Vision Statement

A statement that
A short statement that
describes the company's
depicts the company's
Meaning objectives and its
aspiration for the future
approach to reach those
position of the company.
objectives

What it is? Cause Effect

Talks about Present Future

Shows Where we are at present? Where we wants to be?

Term Short term Long term

Purpose To inform To inspire

Mission Statement Vs Vision
Statement
 The vision statement discusses the desired position of
the company in future. On the contrary mission
statement talks about the company’s business, purpose
and the approach to pursue them.
 The Vision Statement remains same till the company
survives. Conversely, the Mission Statement may
change if required by the company.
 The Vision Statement is made to inspire. On the other
hand, the Mission Statement is made to inform.
Mission Statement Vs Vision
Statement
 The Vision Statement shows the company’s future
aspirations whereas the Mission Statement explains
the company’s core purpose.
 The Vision Statement is shorter than Mission
Statement.
 Example
 Vision Statement
 Facebook – “People use Facebook to stay connected
with friends and family, to discover what’s going on in
the world, and to share and express what matters to
them.”
 Google – “to provide access to the world’s information
in one click.”
 Mission statement
 Facebook – “to give people the power to share and
make the world more open and connected.”
 Google – “to organize the world’s information and
make it universally accessible and useful.”
 From the company’s point of view both the statement
are essential for its survival and growth. The Vision
and Mission Statement are closely interrelated. The
mission is made by the company keeping the vision in
mind. Therefore, we can say the vision is the effect,
and the mission is its cause.
 The Mission Statement is a sort of representative one
while the Vision Statement is predictive. Both the
statements must be clear, complete and correct in all
respects as the whole future of the company depends
on these two.
Need for Establishing Objectives
 The following points specifically emphasize the need for
establishing objectives:
 Objectives provide yardstick to measure performance
of a department or SBU or organization.
· Objectives serve as a motivating force. All people
work to achieve the objectives.
· Objectives help the organization to pursue its
vision and mission. Long term perspective is translated
in short-term goals.
· Objectives define the relationship of organization
with internal and external environment.
· Objectives provide a basis for decision-making.
Need for Establishing Objectives
 The following points specifically emphasize the need for
establishing objectives:

 Objectives provide yardstick to measure performance

of a department or organization.

 Objectives serve as a motivating force. All people work

to achieve the objectives.
Need for Establishing Objectives
 Objectives help the organization to pursue its vision
and mission. Long term perspective is translated in
short-term goals.
 Objectives provide a basis for decision-making. All
decisions taken at all levels of management are oriented
towords accomplishment of objectives.
Difference between objectives
and goals.
 The points of difference between the two are as
follows:

 The goals are broad while objectives are specific.

 The goals are set for a relatively longer period of time.
 Goals are more influenced by external environment.
 Goals are not quantified while objectives are
quantified.
 Policies are general statements that guide thinking or
channelize energies towards a particular direction.
Policies provide a basis for interpreting strategy which is
usually stated in general terms.
 They are guides to managerial action and decisions in the
implementation of strategy. For example, the company
may have a recruitment policy, pricing policy within
which objectives are set and decisions are made. If there is
an established policy, it becomes easier to resolve
problems or issues. As such, a policy is the general
response to a particular problem or situation
 There are policies for all levels and departments in the
organization ranging from major company policies to
minor policies.
 Major company policies are for all to know i.e., customers,
clients, competitors etc., whereas minor polices are
applicable to insiders and contain minute details of
information vital to the employees of an organisation.
 Policies define the broad parameters within which a manager
may function.
 The manager may use his/her discretion to interpret and
apply a policy.
 For example, the decisions taken under a Purchase Policy
would be in the nature of manufacturing or buying decisions.
 Should a company make or buy its requirements of packages,
transport services and other items?
 How should vendors be selected
 for procuring supplies? How many suppliers should a
company make purchases from? What is the criteria
 for choosing suppliers.

 All these queries would be addressed by the Purchase

Policy.
 Policies
 Policies – Plans reduced to statements or instructions that
direct organizations in their decision making; it is a
statement of expectations that sets boundaries for action
taking and decision making
 • Implied policies – Not written or verbally expressed, and
usually developed over time and follow a precedent; for
example a hospital may have a policy that employees
should be encouraged and supported in their activity in
regional, community, and national healthcare
organizations
 • Expressed policies – Delineated verbally or in writing
– May include a formal dress-code, a policy for sick
leave or vacation time, and disciplinary procedures
 PROCEDURES
 Procedures – Plans that establish customary or
acceptable ways to accomplishing a specific task and
outline a sequence of steps of required actions. – For
example, the unit manager must provide a clearly
written procedural statement regarding how to request
vacation time 0
 Difference between Policy
and Procedure
Basis Policy Procedure

Policies are general

It is a series of chronological steps which are
Meaning statements that guide
performed to do a particular activity.
managerial decision making.

Level of It is determined by top level It is determined by lower and middle level

management management. management.

Expression It is a general statement. It is a specific statement.

Manager’s It provides scope for

There is no scope for managerial discretion.
Discretion managerial discretion.

Policies are framed to achieve

the objectives of an
Purpose A procedure is framed to implement a policy.
organisation. They all guide
in implementing the strategy.
Strategic planning
 Strategic planning has a long time frame, often three years
or more
 Strategic planning involves analyzing competitive
opportunities and threats, as well as the strengths and
weaknesses of the organization, and then determining how
to position the organization to compete effectively in their
environment..
 Strategic planning is often based on the organization’s
mission, which is its fundamental reason for existence.
 An organization’s top management most often conducts
strategic planning.
Operational planning
 Operational planning generally assumes the
existence of organization-wide or subunit goals
and objectives and specifies ways to achieve
them.
 Operational planning is short-range (less than a
year) planning that is designed to develop
specific action steps that support the strategic
and tactical plans.
The three limitations of
planning
 Planning may not work in a dynamic
environment: The business environment is dynamic
in nature.
 Every organisation has to constantly adapt itself to
changes in its environment in order to survive and
grow.
 However, it difficult to anticipate all the likely future
changes in the environment with utmost accuracy.
Hence, even with planning everything cannot be
foreseen.
The three limitations of
planning
 Planning reduces creativity: The top management
undertakes planning of various activities whereas the
other members are expected to merely implements
these plans. This restricts the creativity of the middle
managers as they are neither allowed to deviate from
plans nor are they permitted to act on their own..
The three limitations of
planning
 Planning involves huge costs: The process of
planning involves huge cost in terms of time and
money as detailed planning is based on a series of
scientific calculations. Moreover it may include a
number of related costs as well, like expenses on
boardroom meetings, discussions with professional
experts and preliminary investigations to find out the
viability of the plan. As a result the expenses on
planning may turn out to be much more than benefits
derived from it.
 Planning leads to rigidity as plans are drawn in
advance and managers may not be in a position to
change them in the light of changed conditions.
 Planning may not work ina dynamic environment
as through planning, everything cannot be foreseen.
 Planning reduces creativity as the top management
undertakes planning of various activities whereas the
middle managers are neither allowed to deviate from
plans nor are they permitted to act on their own.
 Planning involves huge costs in terms of time and
money required to undertake scientific calculations
and sometimes it may not justify the benefits derived
from it.
 Planning is a time consuming process and
sometimes there is not much time left for
implementation of the plans.
 Planning does not guarantee success because it is
not always essential that if a plan has worked before, it
will work again, as things may change. This kind of
complacency and false sense of security may actually
lead to failure instead of success of a business.
Institutional Policy
 An institutional policy is defined as any policy that
meets most of the following criteria:
 has broad application or impact throughout the
college;
 involves a subject matter specific to one area that has
direct financial or operational influence to the work of
other offices across the College
Gantt chart
 A Gantt chart represents your overall tasks and
schedule as a cascading horizontal bar chart.
 It’s easy to see at a glance important details like:
 when tasks are supposed to begin and end
 how long each task should take
 to whom each task is assigned
 which tasks are occurring simultaneously
 which tasks are dependent upon predecessors
How are Gantt Charts Used in Project Management?

 Gantt charts are great at showing planned and actual

progress of any number of tasks against a horizontal
time scale.
 The tasks are arranged chronologically in a vertical
list—often grouped into sub-projects—on the left side
of the chart.
 The relevant dates stretch horizontally across the top
of the chart, often grouped into weeks.
How are Gantt Charts Used in Project Management?

 Gantt charts are especially helpful during the planning

and execution phase of a project, and they are also
useful in the event that resources must be reallocated.
Cont..
 Identify the tasks that comprise the project and identify
primary milestones.
 There are a number of methods for accomplishing this,
including brainstorming, constructing a flowchart or or
creating an arrow diagram.
 Determine how much time should be required to complete
each task, then determine the sequence the tasks must
follow, including which tasks must be completed before the
next can start, and which tasks can overlap or occur
simultaneously.
 Identify the task that needs to be finished before reaching
each milestone in the project.
Advantages of Gantt Charts?
•Plan out project tasks, subtasks and predecessors
•Allocate resources based on availability
•Assign necessary time frames
•Monitor progress and milestones in real time
•Dig deep into each task’s business value and
resource requirements
•Grant access to all project contributors and
stakeholder