Category: University of Mumbai BMS Notes

University of Mumbai BMS Notes

Management Planning, Steps, Benefits, Challenges

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Planning is the process of setting objectives and determining the best course of action to achieve them. It involves analyzing current conditions, forecasting future trends, and identifying goals. Effective planning helps in allocating resources, minimizing risks, and setting a clear direction for the organization. It includes defining tasks, timelines, responsibilities, and strategies to reach desired outcomes. Planning is essential in both short-term decision-making and long-term goal setting, enabling organizations to stay proactive, organized, and adaptable to changing circumstances. It serves as the foundation for all other management functions such as organizing, leading, and controlling.

According to Urwick, “Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses”. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals.

According to Koontz & O’Donell, “Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur”.

Steps in Planning Function

  1. 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.
  • As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager.
  • Such goals should be specified in qualitative terms.
  • Hence objectives should be practical, acceptable, workable and achievable.

2. 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. 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.

5. Securing Co-operation

    1. After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence.
    2. 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 plans can be made more realistic.

Benefits of Planning:

Planning is one of the crucial functions of management. It is basic to all other functions of management. There will not be proper organization and direction without proper planning. It states the goals and means of achieving them.

  1. Attention on Objectives:

Planning helps in clearly laying down objectives of the organization. The whole attention of management is given towards the achievement of those objectives. There can be priorities in objectives, important objectives to be taken up first and others to be followed after them.

  1. Minimizing Uncertainties:

Planning is always done for the future. Nobody can predict accurately what is going to happen. Business environments are always changing. Planning is an effort to foresee the future and plan the things in a best possible way. Planning certainly minimizes future uncertainties by basing its decisions on past experiences and present situations.

  1. Better Utilization of Resources:

Another advantage of planning is the better utilization of resources of the business. All the resources are first identified and then operations are planned. All resources are put to best possible uses.

  1. Economy in Operations:

The objectives are determined first and then best possible course of action is selected for achieving these objectives. The operations selected being better among possible alternatives, there is an economy in operations. The method of trial and error is avoided and resources are not wasted in making choices. The economy is possible in all departments whether production, sales, purchases, finances, etc.

  1. Better Co-ordination:

The objectives of the organization being common, all efforts are made to achieve these objectives by a concerted effort of all. The duplication in efforts is avoided. Planning will lead to better co-ordination in the organization which will ultimately lead to better results.

  1. Encourages Innovations and Creativity:

A better planning system should encourage managers to devise new ways of doing the things. It helps innovative and creative thinking among managers because they will think of many new things while planning. It is a process which will provide awareness for individual participation and will encourage an atmosphere of frankness which will help in achieving better results.

  1. Management by Exception Possible:

Management by exception means that management should not be involved in each and every activity. If the things are going well then there should be nothing to worry and management should intervene only when things are not going as per planning. Planning fixes objectives of the organization and all efforts should be made to achieve these objectives. Management should interfere only when things are not going well. By the introduction of management by exception, managers are given more time for planning the activities rather than wasting their time in directing day-to-day work.

  1. Facilitates Control:

Planning and control are inseparable. Planning helps in setting objectives and laying down performance standards. This will enable the management to cheek performance of subordinates. The deviations in performance can be rectified at the earliest by taking remedial measures.

  1. Facilitates Delegation:

Under planning process, delegation of powers is facilitated. The goals of different persons are fixed. They will be requiring requisite authority for getting the things clone. Delegation of authority is facilitated through planning process.

Limitations of Planning:

Despite of many advantages of planning, there may be some obstacles and limitations in this process. Planning is not a panacea for all the ills of the business. Planning will only help in minimizing uncertainties to a certain extent.

(a) Fundamental limitation i.e. the limitation of forecasting:

Under this category of the limitations of planning, only one limitation of planning is placed viz., the limitation of forecasting. This limitation of forecasting is considered as the fundamental (or basic) limitation; in as much as, no amount of planning is possible without involving some minimum element of forecasting; and till-do-date no hard and fast system of forecasting future events and conditions is able to develop.

As a result, the fate of planning depends on the accuracy of forecasting; which is still a matter of guess-work howsoever rational or scientific. In fact, some of the best laid down plans might collapse in the face of unprecedented changes taking place in future conditions only to the ill-luck of management.

This fundamental limitation of planning (based on forecasting) assumes paramount significance; in cases where the socio-economic environment is changing quite fast. Under such circumstances planning become a mere formality; just providing a psychological satisfaction to management of having done planning.

It is, in fact, this limitation of planning which, among other factors, might have induced scholars to come forward and recommends a situational (or contingency) approach to managing – ruling out any need for advance planning.

(b) Other limitations:

Some of the other important limitations of planning might be as follows:

(i) Egoistic planning:

Many-a-times, there is observed a tendency on the part of the so-called big bosses of an enterprise, to undertake planning of a type which would just add to their prestige or status in the organisation without, in any substantial manner, contributing to the enterprise’s goals.

Such egoistic planning, this way, becomes a great limitation of planning, as despite the expenditure of all efforts and resources incurred during the formulation process; such planning only raises false hopes of realization but producing no significant results.

(ii) Organisational inflexibilities:

In many enterprises, the rigid (or tight) rules, policies or procedures of the organisation might come in the way of the successful implementation of some progressive piece of plan. To ensure the success of a good number of plans, it is necessary that the management must frequently review its internal functioning process and modify the same in view of the current planning requirements. Many-a-times, a re-orientation of organisational functioning is not possible, due to technical, financial or certain other problems. Under such conditions of rigidity, planning is only a half-hearted success.

(iii) Wastage of resources:

Planning involves an expenditure of time, money, efforts and resources of the enterprise; during the stages of plan implementation and its execution. It is, in fact, a time-consuming, a money- consuming and a mind-consuming process.

One would not mind the expenditure of the above resources; if the plan is a success. However, whenever there is a plan-failure or only a limited success is generated by a plan; expenditure of precious organisational resources really pinches as it amounts to a sheer wastage.

(iv) Imparting a false sense of satisfaction:

Plans, quite often, impart a false sense of satisfaction to managers, subordinates and operators of an enterprise; who might think that the planned objectives and the planned courses of action are, perhaps, the ‘best’. They are reluctant to think in better terms. Many-a-times, people in the organisation behave like a fog in the well-unable to see beyond the horizons of planning. In fact, they never try to rise above the plans.

(v) External constraints:

Some of the external constraints like governmental regulations in certain business matters or the upper hand of labour unions over management on issues concerning workers and their economic interests might become a severe limitation of planning. Management, under the pressure of such constraints, might not be able to think freely and undertake ‘best conceived of planning for the enterprise.

(vi) Unreliable and inadequate background information:

Plans are as sound and fruitful as the data on which there are based. Sometimes, the data collected for the plan might not be very reliable. At some other times, background data for planning might be too inadequate to provide a complete base for plan formulation.

These limitations of data might be due to financial problems or the pressure of time or certain other causes; but there is no doubt that this unreliability or inadequacy of data is a great hindrance, in the way of successful planning.

(vii) Unsuitability in emergency situations:

Planning is a useful management efficiency device; but only in the normal course of functioning of the enterprise. Planning is not suitable in emergency situations as occasioned by war, civil disturbances or other unusual economic or social disorders; where ‘spot’ decisions are necessitated to take care of the environmental factors. Planning, as is too common to understand, takes its own time in setting objectives and selecting best alternatives; which renders itself wholly unsuitable for adoption in extra-ordinary business situations.

Lucknow University BBA Notes / Management Notes / University of Mumbai BMS Notes

Marketing of Services in Hospital

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Health marketing is an approach to public health promotion that applies traditional marketing principles and theories alongside science-based strategies to protect and promote the health of diverse populations. It involves creating, communicating, and delivering messages for the public on prevention, health promotion and health protection. Health marketing is one of the ways advancements in medicine and in health-protecting services, such as insurance, are made widely known.

The marketing strategy would follow the traditional “4Ps” of marketing, namely:

  • The “product” in question in this case the surgical procedure.
  • The “place” which refers to the access to this procedure.
  • “Promotion” refers to creating awareness and hence demand.
  • “Price” refers to the cost of the procedure e.g. money, time, reputation etc.

“Health marketing” is a term rarely used in public healthcare and related disciplines. “Social marketing” or “integrated marketing communication” are more commonly used in public health and other disciplines to refer to marketing-based planning frameworks for public health communication.

Medical marketing in the private sector

Health marketing or Medical Marketing is a specialized branch of marketing. Medical marketing was born from the necessity for private health professionals to attract new patients, the characteristics of the health market makes it a unique kind of marketing. Medical marketing is usually a business to consumer (B2C) services. The primary customers for these medical marketing companies are Generation Z. About 85% of Gen Zers said they are open to alternative healthcare options like telemedicine, dispatch services and membership-based services. Marketers and medobal healthcare provides offline/online medical services for healthcare seekers. Healthcare professionals using this type of marketing usually offer beauty related services, such as aesthetic medicine, plastic surgery, dental surgery or dermatology and much more.

Fundamentals

Professional Referral Marketing: A reliable and continuing stream of inbound patient referrals from other medical, dental or other professional sources is the lifeblood of many specialty providers. And whether it’s a primary or secondary channel, professional referral sources can’t be taken for granted. Doctor referrals do not happen by magic or simply because you are a good provider. Success requires a written plan and an unfailing system to preserve and grow the flow of professional referrals.

Internet Marketing: From websites and social media tools, to patient portals and mobile apps, online marketing is a mainstream channel for marketing, advertising and public relations. Exactly how you use the muscle of the digital freeway can be highly effective and profitable, or a huge waste of time and money.

Branding: This is all about standing out from the crowd in a positive way, and it includes virtually everything you do. A powerful, differentiating brand for your healthcare business is part of your reputation. Meaningful and effective branding does not occur without a deliberate effort to shape and express the right message at the right time.

Internal Marketing: This heading includes all the ways and means that you communicate with people who already know you, primarily present and previous patients. Depending on the nature of your practice or situation, this influential audience can be a rich resource for referrals, additional services, testimonials and/or word-of-mouth advertising.

External Marketing: These are the media that reach prospective patients that don’t know you. Advertising in newspapers, radio, television, billboards and the like target an audience that needs to know that you provide an answer for their healthcare need. There’s little margin for error in an external media budget that is expected to produce a measurable return-on-investment.

Public Relations: This heading includes, among other things, planning and generating healthcare publicity and free press exposure, such as newspaper articles or broadcast interviews. The end results look easy, and it can be a positive and powerful influence. But “free press” typically results from careful planning, good timing, a clear message and a deliberate effort.

Management Notes / University of Mumbai BMS Notes

Marketing of Services in Tourism

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Tourism marketing is different because the customer purchases a series of services, but is left with very little concrete value at the completion of his trip. As a result, the marketing initiatives have to emphasize the value of the memories, make the collection of services easily accessible and add value through additional programming and other factors. A key challenge is to convince potential customers that the item they are purchasing provides good value for the price, and that the services will be as described and expected. The 8 P’s in marketing tourism summarize the special approach that is required. Many small businesses market tourism products and employ these marketing strategies.

Product: What You Have to Offer

The product is the collection of services that have features and benefits. Standard features and benefits include the normal amenities of a hotel room, for example. Good marketing adds special features, such as free breakfasts or free Internet.

Price: What Customers Will Pay

The price has to match the product, but good marketing makes the price seem more attractive. The operator can either add features to the product and keep the price the same or give a discount for the same features.

Promotion: How You Sell Your Wares

The promotion gives details of the product and the price. The key characteristics of your travel marketing strategy are the method of communicating the information, the content of the promotion and the cost to the operator. The promotion has a target market, and the method and content of the promotion has to appeal to the people who it reaches. The price the members of the target market are willing to pay has to cover the cost of the promotion.

Place: Where You Do Business

Place refers to the location where the customer buys the collection of services. Ideally, the operator who sends out the promotion uses it to encourage the potential customer to visit the operator’s location and complete the purchase. With the convenience of online payments, the operator may find that the best strategy is to direct potential customers to an attractive website where they can complete the purchase.

People: Your Hidden Strength

Since the product is a collection of services, the people who provide the services are a key to the success of the transaction. Operators must have top-level service to initially complete the sale and to encourage repeat customers.

Planning: Look Ahead

The key service component of the tourism experience is planning. The customer expects that the experience will correspond closely to what he purchased. The only way to ensure that kind of correspondence is to execute according to detailed plans, and have contingency planning in place for problems.

Programming: Cater to Your Clients

One way to add value to the standard product and to distinguish a particular offering from competitors is to offer exclusive programming, a practice known as service marketing. Customers will purchase a product that caters to their particular interests. Special programming can address such preferences and draw in additional customers.

Physical Evidence

If possible, the provision of physical evidence that the customer experienced the particular tourism product can help sales. Providing professional photographs of the customers at key events or the supply of branded products are effective strategies for promoting particular tourism products.

Lucknow University BBA Notes / University of Mumbai BMS Notes

Benefits of Production Control

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The production control is the function of management which plans, directs and controls the material supply and processing activities of an enterprise so that specified products are produced by specified methods to meet an approved sales programme. It ensures that activities are carried out in such a way that the available labour and capital are used in the best possible way.

Objectives of Production Control

(a) Issuing the necessary orders to the proper personnel through the prescribed channels for effecting the plan.

(b) To ensure availability of the means of carrying out the orders; the materials, machines, tools, equipment and manpower in the required quality at the required time.

(c) To ensure carrying out of the orders by the personnel so that goods are produced in the required quantities of the specified quality at the pre-determined time. Thus, the underlying principle of production control is that the highest efficiency in production is obtained by producing the required in time and in the best and cheapest method possible.

Benefits of Production Control

A good production control system means more production on the same investment without unduly speeding up workers. The advantages of production planning and control are given below:

  1. Better service to customers

Promised delivery dates are kept, production flows as per scheduled time. This injects confidence in the traveling salesmen of the firm to set delivery date. Timely delivery and customers’ confidence, improve customer-relations and sales.

  1. Less overtime work

As production takes place as per schedule, there will be few rush orders. Therefore, there will be less overtime work in the organization, compared to other firms in the same industry.

  1. Need of smaller inventories of work-in-process and of finished goods

Enterprise working under an effective production planning and control system require lower inventories of material, parts, components, etc., for work-in-process and less of finished goods in stocks. This results in less investment in inventory. Funds thus freed may be put to other more income-earning uses. Also, orders of customers can be supplied in full. This would bring the benefits of economy in transport costs too.

  1. More Effective Purchasing

As better materials management lead to effective inventory control, purchasing is more scientific, economical and timely.

  1. More effective use of equipment

Management is constantly kept informed on the current position of all work-in-process and on equipment and personnel requirements for the next few weeks ahead. Therefore, workers can be informed in advance of possible lay-offs, transfers etc. Also belated purchase of equipment and materials can be avoided and idleness of men and machine eliminated.

  1. Less loss of time
  • Because of phased flow of material, workers need not wait for the material for long. Hence, there will be less of workmen hours.
  • The time of management staff is conserved in two ways.

First, their personal attention is drawn only when there is any serious flaw in the working of the system. Secondly, they need not spend much time on research and analysis of data, etc., required for long-range planning as they can proceed to prepare such plans for expansion on the basis of the data made available by the production planning and control system.

  1. Savings in the cost

A properly designed and introduced system of production planning and control results in major cost-savings.

  1. Less work-stoppages

Work-stoppages are avoided or minimized in terms of time-duration. Therefore, delay occurring in the dispatch of goods to customers is very rare.

Functions involved in Production Control

Following factors are involved in the practice of production control:

  1. Control Activities

This is done by releasing manufacturing orders through dispatching. Thus, plans are set in motion at the assigned time.

  1. Control of Material Movement

The time at which material is received from the supplier, and issued to the plant is observed and a close watch is kept on its movement from one plant to another to ensure that this movement is in accordance with the production cost.

  1. Availability of Tools is Controlled

Steps are to be taken to ensure that tools specified in the production plan are available as and when required.

  1. Quantity Produced is Controlled

Work-in-process at pre-determined stages of production is observed to determine that right quantity of specified quality work is processed.

  1. Control of Replacement

Quantity of raw material and work-in-process which fails to pass each stage of inspection is observed. Provision is made to issue replacement orders for each material for work.

  1. Labour Efficiency and Control

Time taken on each unit of work-in-process is observed and recorded. Comparison of time taken is made with the time allowed in scheduling.

Requirements of Production Control System

A good and effective production-control system requires sound organizational structure, reliable information, a relatively high degree of standardization and trained personnel for its success. Factors that are needed to make production control successful are summarized below:

  1. Information about Requirements and Productive Capacities
  • Complete knowledge of the products to be produced.
  • Detailed information about the number and types of each machine and processing unit together with the complete tabulated data on power, speed, and feeds of all machines.
  • Detailed information about the time and sequence of operations for each part of the final product and for the finished product as a whole.
  • Accurate up-to-date information regarding total material requirements, materials in stores, quantities to be purchased, time required to get them.
  • Knowledge on the availability of special tools such as jigs and fixtures needed for each part.
  • Information about the labor-force in the plant and their productive capacities.
  • Information on time taken and costs incurred on previous performance.
  • Records of best performance on similar work with best combinations of tools, feeds and speed;
  • Precise knowledge of the progress of the work-in-process.
  1. The following should Conform to Scientifically Determined Standards
  • Fabricated and purchased materials
  • Tools and equipment, to the extent possible
  • Operations on all parts as per design and procedure only
  • Production standards for labor force
  • Provision for adequate inspection to make sure that quality is maintained.
  • Reports on production performance in comparison with the scheduled production.
  1. The Best Organization Structure Set up

First, support from the top management with recognition of the need for production planning followed by delegation of their authority with fixed responsibility. Secondly, full understanding on the part of the supervisory staff that the determination of their work-schedule from the central planning room is just an extension of the principles and in no way amounts to erosion of the prestige and power.

  1. Availability of Suitable Personnel
  • Personnel should understand the scheduled operations.
  • They should be fully trained to fit into the requirements of the particular system adopted.
  • They should be properly remunerated to enlist their interest.
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