Tag: PERFORMANCE MANAGEMENT

Management Notes

Decision making as key Step in Planning

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Decision-making is one of the most crucial steps in the planning process. Effective decision-making helps managers choose the best course of action to achieve the organization’s goals. In the context of planning, decision-making involves selecting the most appropriate strategies, actions, and alternatives based on available information, analysis, and forecasts. This step serves as the foundation for developing and implementing a plan, ensuring that all activities and resources are aligned with the organization’s objectives. Below is an explanation of the significance of decision-making in the planning process and how it contributes to organizational success.

  • Establishing Objectives

The first step in planning is setting clear objectives, and decision-making plays a pivotal role in this process. Managers must make decisions about the goals the organization needs to achieve. These objectives must be specific, measurable, achievable, relevant, and time-bound (SMART). During this stage, managers evaluate the needs of the organization, market trends, and external factors to decide on the goals that align with the organization’s mission and vision. The decision about which objectives to prioritize influences the direction of the entire planning process.

  • Analyzing Alternatives

Once objectives are set, decision-making continues with the analysis of different alternatives and approaches. There are often several ways to achieve the same goal, and each approach may have different implications. Decision-makers assess the various alternatives by considering factors such as cost, time, resources, feasibility, and risks. They also take into account potential obstacles and challenges that may arise. The selection of the best alternative is crucial as it will guide the entire planning process and determine the actions required to accomplish the goals.

  • Allocating Resources

One of the critical decisions in planning is how to allocate resources, including human, financial, and physical assets. Decision-makers must assess the availability and requirements of resources for each task or objective. They need to decide which projects, activities, or departments will receive which resources. Effective allocation ensures that resources are used efficiently and effectively to achieve the desired outcomes. Poor decision-making at this stage can lead to resource wastage, project delays, or unmet goals.

  • Risk Assessment and Contingency Planning

Another important aspect of decision-making in planning is the assessment of risks. All plans are subject to some degree of uncertainty, and decision-makers must make informed choices about the potential risks and how to mitigate them. This includes deciding on the risks that are acceptable and those that require action. Managers often create contingency plans to address possible challenges and to ensure that the organization can adapt if unexpected situations arise. These decisions are critical for ensuring the continuity and resilience of the organization in the face of uncertainties.

  • Setting Timelines and Milestones

Decision-making in planning also involves determining the timelines for achieving objectives. Managers must decide on the duration of each task, the deadlines for milestones, and the overall time frame for completing the plan. Effective decision-making ensures that timelines are realistic, resources are appropriately allocated, and tasks are achievable within the specified period. Decisions about setting achievable deadlines are important for maintaining motivation, reducing stress, and keeping the plan on track.

  • Monitoring and Evaluation

Decision-making does not end once the plan is put into action. Managers must continuously make decisions regarding the monitoring and evaluation of the plan’s progress. They decide on the metrics to measure performance, establish control mechanisms, and assess whether the plan is on target. If the progress deviates from the plan, managers may decide to adjust strategies, reallocate resources, or make other changes to keep the plan aligned with the objectives.

  • Adapting to Change

In a dynamic business environment, decision-making in planning also includes the ability to adapt and adjust to changing circumstances. This requires managers to make ongoing decisions about modifying the plan based on new information, changing market conditions, or internal developments. The ability to adapt the plan ensures that the organization remains competitive and responsive to external factors.

Management Notes

Planning, Meaning, Objectives, Fundamentals, Nature, Scope, Types, Process, Importance and Limitations

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Planning is the first and foremost function of management, which involves setting objectives and determining the best course of action to achieve them. It is a systematic process of forecasting the future, identifying goals, and selecting activities and resources to reach those goals efficiently and effectively. Planning helps managers decide in advance what to do, how to do it, when to do it, and who will do it.

At its core, planning is goal-oriented. It aligns organizational efforts with long-term visions and short-term priorities. Managers analyze internal strengths and weaknesses, assess external opportunities and threats, and formulate strategies that ensure optimal resource utilization. It also provides a framework for decision-making, as future uncertainties are anticipated and alternative courses of action are considered.

Planning is a continuous and dynamic process. As conditions change, plans must be revised to reflect new realities. Effective planning reduces risk, avoids duplication of effort, improves coordination, and sets standards for performance evaluation. It enhances organizational adaptability by preparing for potential challenges and seizing emerging opportunities.

In both strategic and operational contexts, planning is essential for success. Whether in business, government, or non-profit organizations, planning enables systematic action and proactive problem-solving. It turns vision into achievable goals and ensures that everyone in the organization moves in the same direction.

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”.

Objectives of Planning

  • Achieving Organizational Goals

The primary objective of planning is to ensure that all efforts and resources are aligned toward achieving organizational goals. It defines what the organization aims to accomplish in a specific timeframe. Planning translates vision and mission into measurable targets and guides employees at all levels. By outlining objectives and the paths to reach them, planning ensures focused action, better coordination, and clarity of purpose, leading to higher efficiency and goal accomplishment across departments and functions.

  • Reducing Risks and Uncertainty

Planning helps managers anticipate potential risks and uncertainties in the business environment. It involves analyzing future conditions and preparing for different scenarios, which minimizes surprises and losses. Through forecasting, managers identify possible threats and devise preventive or corrective measures. This proactive approach reduces the impact of external disruptions. By reducing ambiguity and enhancing preparedness, planning enables organizations to operate more confidently and sustainably, even in dynamic or volatile economic, political, and technological contexts.

  • Ensuring Optimum Utilization of Resources

An essential objective of planning is to facilitate the efficient use of all available resources, such as manpower, money, machinery, and materials. Through proper allocation and scheduling, planning ensures that resources are neither underutilized nor wasted. It helps in setting priorities, avoiding duplication of effort, and minimizing idle time. By optimizing resource use, planning contributes to cost reduction and higher productivity, thereby enhancing the overall operational efficiency and profitability of the organization.

  • Facilitating Coordination

Planning acts as a unifying framework that aligns the efforts of different departments, teams, and individuals. It ensures that all organizational activities are interlinked and directed toward common objectives. Through clear plans and communication of roles and responsibilities, it prevents overlap and conflict. Planning fosters better understanding, cooperation, and synchronization across functions. This coordination leads to smooth workflows, timely execution, and organizational harmony, which are vital for the successful implementation of business strategies.

  • Promoting Innovation and Creativity

Planning encourages managers and employees to think ahead and develop innovative solutions to meet future challenges. While identifying new goals and strategies, it pushes individuals to explore alternatives and adopt creative approaches. Strategic planning, in particular, opens doors to experimentation, product development, and process improvement. It provides a structured process for innovation while managing associated risks. In a rapidly changing world, planning supports organizations in staying relevant, competitive, and technologically progressive.

  • Providing Direction and Clarity

Planning provides a clear sense of direction to all members of the organization. It defines what is to be done, how, when, and by whom. This clarity eliminates confusion and enhances employee confidence and accountability. It enables individuals to align their actions with broader organizational goals. Direction through planning leads to better decision-making, time management, and prioritization. It acts as a guiding compass, ensuring that energy and efforts are not wasted in unproductive or misaligned tasks.

  • Establishing Standards for Control

Planning sets benchmarks and performance standards that serve as a basis for controlling and evaluating progress. These standards make it possible to measure actual performance against planned objectives. Any deviation can be identified, and corrective measures can be implemented promptly. Thus, planning and controlling are interdependent. While planning sets the course, control keeps the organization on track. This objective ensures consistent improvement and accountability at every level of management through regular review and feedback.

  • Enhancing Organizational Efficiency

By streamlining activities and ensuring timely execution, planning significantly improves overall organizational efficiency. It helps reduce wastage, duplication, and delays. Managers are able to allocate resources wisely and eliminate unnecessary efforts. It also boosts employee morale by providing clear roles and structured workflows. Efficient planning results in faster decision-making and better productivity. As a result, organizations become more agile, cost-effective, and capable of delivering value to customers and stakeholders in a timely manner.

Fundamentals of Planning

  • Setting Objectives

The first fundamental of planning is to define clear, measurable, and achievable objectives. These objectives serve as the foundation for all planning activities. They guide decision-making and provide direction for individual and organizational efforts. Whether it’s improving profitability, expanding markets, or enhancing customer satisfaction, objectives ensure that everyone works towards a common goal. Clear objectives also allow for better evaluation of progress and help maintain focus amidst operational challenges or environmental uncertainties.

  • Forecasting Future Conditions

Planning requires forecasting future trends and conditions to make informed decisions. Managers must anticipate economic shifts, customer demands, technological changes, and competitor actions. Accurate forecasting reduces uncertainty and prepares the organization for upcoming challenges or opportunities. It may involve market research, data analysis, or historical comparisons. Effective forecasting allows the organization to position itself advantageously, reduce risk, and maintain operational stability even in a rapidly changing external environment.

  • Developing Planning Premises

Planning premises are the assumptions or expected conditions under which a plan will operate. These may include market trends, resource availability, government policies, or socio-economic conditions. Developing sound premises is crucial because they influence how realistic and feasible a plan is. If premises are flawed or ignored, the plan may fail. Managers must continuously evaluate and revise these assumptions to ensure that the plan remains relevant and achievable as circumstances change.

  • Identifying Alternatives

A fundamental aspect of planning is to generate multiple possible courses of action to achieve desired objectives. This encourages innovation, creativity, and risk assessment. Managers must evaluate various options based on cost, feasibility, impact, and alignment with organizational goals. Identifying alternatives prevents tunnel vision and allows flexibility in execution. By comparing different strategies, organizations can select the most effective path forward, ensuring both resource optimization and adaptability to unforeseen changes.

  • Evaluating and Selecting the Best Alternative

Once alternatives are identified, the next fundamental is to analyze and select the most suitable option. This involves evaluating each alternative in terms of benefits, costs, risks, time, and resource requirements. Strategic, operational, and contingency factors must all be considered. The chosen alternative should be realistic and aligned with organizational values and capabilities. This step ensures that planning is practical, efficient, and results-oriented, leading to better execution and achievement of business objectives.

  • Formulating Supporting Plans

Primary plans often need secondary or derivative plans to support their execution. For example, if the main plan is to launch a new product, supporting plans may involve budgeting, staffing, marketing, and supply chain management. These supporting plans ensure that all aspects of the primary plan are addressed cohesively. Each function or department must contribute to the overall objective through tailored sub-plans, ensuring effective coordination and integrated implementation across the organization.

  • Establishing Timelines and Schedules

A successful plan must include realistic timelines, milestones, and schedules. This ensures that each phase of the plan progresses in a timely and organized manner. Timelines help managers allocate resources effectively, prioritize tasks, and monitor performance. Deadlines also create accountability and help identify delays early. With clearly defined timeframes, managers can synchronize activities across departments and ensure that the project is completed within the expected period without unnecessary bottlenecks.

  • Monitoring and Reviewing the Plan

Planning does not end with implementation. A key fundamental is continuous monitoring and review. Managers must track progress, compare actual performance with planned objectives, and make necessary adjustments. This feedback loop ensures that the organization remains aligned with its goals despite internal or external changes. Periodic reviews help identify shortcomings, learn from mistakes, and improve future plans. Monitoring also boosts accountability and enables timely corrective action to keep the organization on track.

Nature of Planning

  • Planning is Goal-Oriented

Planning is not an end in itself; it is always undertaken to achieve specific organizational goals. Every plan specifies the objectives to be accomplished and the steps necessary to reach them. For instance, the primary goal of “Make in India” is to boost manufacturing. All plans by participating companies, whether for setting up new plants or skill development, are directed towards achieving this specific national and corporate objective. Without a goal, planning loses its meaning and direction.

  • Planning is a Primary Function

Planning is the first and most crucial function of management. All other managerial functions—organizing, staffing, directing, and controlling—are based on the foundation laid by planning. A manager must plan before he or she can organize resources or control performance. For example, a manager must first plan the sales target for a quarter (planning) before setting up a sales team (organizing) or evaluating their performance (controlling).

  • Planning is Pervasive

Planning is required at all levels of management and in all departments of an organization. The scope and nature of planning change with the level. Top management plans for the entire organization (e.g., Tata Group’s strategic plan for electric vehicles), while middle management plans for their department (e.g., production schedule), and supervisors plan day-to-day activities (e.g., work shift roster). It is a universal function, not confined to any single level.

  • Planning is Futuristic

Planning is essentially looking ahead and preparing for the future. It involves forecasting future events, trends, and conditions to decide a course of action. However, since the future is uncertain, planning is always based on intelligent forecasts and assumptions. For example, an Indian pharmaceutical company like Dr. Reddy’s plans its R&D investment based on forecasts of future disease patterns and drug demand, making it a future-oriented activity.

  • Planning is Continuous

Planning is an ongoing and dynamic process. Old plans need to be revised and new ones need to be created as the business environment changes. A plan is not made once and forgotten. For instance, an airline like IndiGo constantly revises its flight schedules, pricing, and routes (its plans) in response to changing fuel prices, passenger demand, and competitive actions, making it a continuous cycle.

  • Planning is an Intellectual Process

Planning requires managers to think rationally and logically. It involves mental foresight, sound judgment, and conscious decision-making. It is not guesswork; it requires analysis of the situation, visualization of the future, and choosing the best alternative from various available options. Deciding the store location for a new DMart outlet, after analyzing demographics and traffic, is a result of such an intellectual exercise.

  • Planning Involves Decision-Making

The essence of planning is choosing between various alternative courses of action. At every step, the planning manager has to make decisions—what to do, when to do it, how to do it, and who will do it. For example, a startup must decide whether to focus on metro cities or tier-2 towns—a critical decision that forms the core of its market entry plan.

Scope of Planning

  • Objectives

Objectives are the ultimate goals towards which all organizational activities are directed. They are the endpoints that planning aims to achieve. Planning must start by clearly defining these objectives, as they provide the fundamental direction for all other decisions. For an Indian company, an objective could be “to achieve a 20% market share in the electric two-wheeler segment within three years.” All subsequent plans are built to accomplish this specific, measurable goal.

  • Policies

Policies are broad guidelines formulated by top management to channelize managerial thinking and decision-making. They define the boundaries within which decisions must be made. For instance, a company like Infosys may have a “promotion-from-within policy,” which guides all departmental heads to prioritize internal candidates for open positions. Planning involves establishing such policies to ensure consistent and coordinated actions across the organization, saving time for routine decisions.

  • Procedures

Procedures are a series of related, chronological steps that outline how a recurring activity must be carried out. They provide a standardized way of performing tasks. Planning involves designing these routines to ensure efficiency and uniformity. For example, a State Bank of India (SBI) branch has a clear procedure for granting a loan, involving application submission, verification, credit appraisal, and approval. This procedural plan eliminates confusion and ensures compliance.

  • Rules

Rules are specific, rigid statements that dictate what must or must not be done. They allow no flexibility or deviation. Planning includes establishing rules to maintain discipline and safety. For example, a rule in a Tata Steel plant could be “Wearing a hard hat is mandatory in the production area.” Unlike a procedure, a rule is not a sequence but a strict directive that must be followed without exception.

  • Strategies

Strategies are comprehensive plans designed to achieve long-term objectives, especially in the context of competition. They involve deciding how the organization will deploy its resources to gain a sustainable advantage. For example, the strategy behind “Reliance Jio” was to initially offer free data and voice services to rapidly acquire a massive customer base, disrupting the entire Indian telecom market. Strategic planning is crucial for survival and growth.

  • Budgets

A budget is a numerical or financial plan that quantifies expected results for a future period. It is a statement of expected income and expenditure. Planning involves creating budgets to allocate resources efficiently and to serve as a standard for control. An annual marketing budget for a new Amul product is a plan that allocates specific funds to advertising, promotions, and events, ensuring financial discipline.

  • Programmes

Programmes are a complex of goals, policies, procedures, rules, and resources required to carry out a given course of action. They are a single-use, major plan that coordinates various smaller plans. For instance, the Indian government’s “Swachh Bharat Abhiyan” is a programme. It has a clear objective, a set of policies, defined procedures for waste management, and an allocated budget, making it a comprehensive plan integrating multiple elements.

Types of Planning

1. Strategic Planning

Strategic planning involves setting long-term goals and determining overall organizational direction. It is usually done by top-level management and focuses on identifying mission, vision, objectives, and competitive positioning. It considers external factors like market trends, economic conditions, and regulatory changes. Strategic planning defines where the organization wants to go over the next 3 to 5 years and outlines how to get there. It provides a foundation for all other types of planning and decision-making.

2. Tactical Planning

Tactical planning translates strategic plans into medium-term, departmental objectives and actions. It is performed by middle management and typically spans a one-to-three-year period. Tactical plans define how resources will be allocated and how specific departments (like marketing or operations) will contribute to strategic goals. These plans are more detailed than strategic plans and often include budgets, schedules, and performance metrics. Tactical planning bridges the gap between broad organizational goals and daily operations.

3. Operational Planning

Operational planning focuses on short-term activities and tasks that support tactical and strategic plans. It is handled by lower-level managers and supervisors and typically covers a time frame of weeks or months. Operational plans are highly specific and detail procedures, deadlines, staffing, and workflows. They help ensure that day-to-day tasks align with broader objectives. Examples include work schedules, routine reports, and production plans. This type of planning is essential for smooth and consistent daily operations

4. Contingency Planning

Contingency planning prepares the organization to respond effectively to unexpected events or emergencies. It includes developing backup plans or alternatives in case the original plan fails due to unforeseen issues like natural disasters, system breakdowns, or financial crises. Contingency plans help minimize disruption and ensure business continuity. Managers identify potential risks, assess their impact, and create response strategies. This type of planning is vital for risk management and organizational resilience in volatile environments.

5. Financial Planning

Financial planning involves estimating future financial requirements, allocating funds, and managing financial risks. It includes budgeting, forecasting revenue and expenses, capital investment decisions, and managing cash flow. Financial planning ensures that the organization has sufficient resources to meet its objectives and obligations. It supports informed decision-making by providing insight into the financial health of the business. This type of planning is crucial for profitability, solvency, and long-term sustainability of operations.

6. Growth Planning

Growth planning focuses on expansion and development strategies such as entering new markets, launching new products, or increasing market share. It may involve mergers, acquisitions, or diversification. This type of planning requires detailed research and analysis to ensure that the growth aligns with organizational capabilities and market demand. Growth plans help identify the best opportunities for scaling operations and increasing revenue while mitigating associated risks. It supports long-term sustainability and business development.

7. Manpower or Human Resource Planning

Manpower planning involves determining the organization’s future human resource needs, forecasting labor supply and demand, and developing strategies for recruitment, training, and retention. It ensures that the right number of people with the right skills are available when needed. HR planning also supports succession planning and employee development programs. This type of planning is essential for maintaining productivity, reducing turnover, and aligning workforce capabilities with organizational goals and future business needs.

8. Growth and Innovation Planning

Innovation planning focuses on developing new ideas, technologies, or processes to improve organizational performance and stay competitive. It includes R&D strategy, innovation budgeting, idea incubation, and new product development plans. Innovation planning is closely tied to organizational culture and long-term vision. By systematically encouraging creativity and managing innovation projects, organizations can gain first-mover advantages, increase customer satisfaction, and foster a culture of continuous improvement and forward-thinking leadership.

Process or Steps in Planning Function

Step 1. Establishing Objectives

The first step in the planning process is to set clear, measurable, and achievable objectives. These objectives guide all subsequent decisions and actions. They define what the organization aims to accomplish within a specific period. Objectives must align with the organization’s vision and mission. Whether the goal is increasing market share, launching a new product, or reducing costs, clearly defined objectives help managers focus their efforts and set priorities for effective and goal-oriented planning.

Step 2. Analyzing the Environment

Once objectives are set, the next step is to analyze internal and external environments. Internally, managers evaluate the organization’s strengths, weaknesses, resources, and capabilities. Externally, they assess market trends, competition, customer behavior, economic conditions, and regulatory factors. Tools like SWOT (Strengths, Weaknesses, Opportunities, Threats) and PESTEL (Political, Economic, Social, Technological, Environmental, Legal) analyses are commonly used. This step helps managers understand the context in which the plan will operate and identify opportunities and risks.

Step 3. Determining Planning Premises

Planning premises are the assumptions about the future on which plans are based. These include forecasts about market demand, interest rates, technological changes, policies, and competitor actions. Identifying and validating these premises help in developing realistic plans. If the premises change, the plan may need adjustment. Therefore, accurate and updated premises ensure the plan’s feasibility. This step reduces uncertainty and provides a foundation for consistent, evidence-based decision-making throughout the planning process

Step 4. Identifying Alternatives

With goals and assumptions in place, the next step is to generate various alternative courses of action. Managers brainstorm multiple strategies or paths to reach the same objective. This encourages creativity, flexibility, and contingency thinking. Exploring different options enables the organization to respond effectively if one strategy fails. Identifying alternatives broadens the planning perspective and prevents reliance on a single approach, allowing more informed and balanced decision-making based on risk, cost, and feasibility.

Step 5. Evaluating Alternatives

After generating alternatives, each one is carefully analyzed for its pros and cons. Managers evaluate options based on factors like cost, time, resources, risks, alignment with objectives, and expected outcomes. Quantitative tools such as cost-benefit analysis or decision matrices may be used. This step ensures that decisions are not based on intuition but thorough analysis. It also helps in identifying the most efficient, feasible, and profitable course of action from among the alternatives

Step 6. Selecting the Best Alternative

Based on evaluation, the most suitable plan is selected for implementation. The chosen plan should be realistic, cost-effective, and aligned with organizational objectives. Selection must also consider organizational capabilities and constraints. This step transforms ideas into actionable strategies. Managers ensure that the selected alternative offers maximum returns with minimum risk. Once selected, the plan becomes the blueprint for execution and must be communicated clearly to all stakeholders to ensure coordinated and focused efforts

Step 7. Formulating Supporting or Derivative Plans

Once the main plan is selected, supporting or derivative plans are created to assist in its execution. These could be departmental plans such as marketing, HR, finance, or logistics plans that align with the main objective. Supporting plans help in organizing resources, assigning responsibilities, and defining tasks. These detailed sub-plans ensure consistency and coordination across departments, enabling smooth implementation of the overall strategy and avoiding confusion or duplication of efforts during execution

Step 8. Implementing and Monitoring the Plan

The final step involves executing the plan and monitoring its progress. Managers assign tasks, allocate resources, and set timelines for implementation. Continuous monitoring helps compare actual performance with planned objectives and detect deviations. Feedback mechanisms and performance indicators are used to evaluate results. If any shortcomings arise, corrective actions are taken. Monitoring ensures accountability and allows for improvements. It keeps the plan dynamic and responsive to changes, ensuring that the organization remains on track.

Importance of Planning

  • Provides Direction

Planning provides a clear sense of direction for the organization. It defines what to do, how to do it, when to do it, and who will do it. This clarity aligns all employees toward common objectives. It minimizes confusion, guides decision-making, and ensures coordinated efforts across departments. With a strong plan in place, employees understand their roles and responsibilities, allowing the organization to move steadily towards its short-term targets and long-term vision with consistency.

  • Reduces Uncertainty and Risk

Through forecasting and structured decision-making, planning helps anticipate future uncertainties and prepare for them in advance. It equips managers with strategies to respond to economic fluctuations, technological shifts, or competitive threats. This reduces risks and enhances business resilience. Instead of reacting impulsively to crises, the organization acts proactively. Effective planning creates confidence among stakeholders, helps businesses adapt to change smoothly, and ensures operational continuity even in unpredictable and challenging external environments.

  • Promotes Efficient Use of Resources

Planning ensures optimal allocation and utilization of resources such as time, money, manpower, and materials. It eliminates wastage and prevents duplication of efforts by assigning the right tasks to the right people at the right time. Managers can prioritize actions and align available resources with organizational goals. This enhances productivity and reduces unnecessary costs. Efficient resource use, enabled by planning, strengthens profitability and helps organizations operate sustainably and competitively in a resource-constrained environment.

  • Facilitates Coordination

Planning acts as a blueprint that integrates the efforts of all departments and individuals. It ensures that every action taken is aligned with the organizational goal, reducing conflicts and overlaps. When departments understand their specific roles within the overall strategy, coordination becomes seamless. This enhances inter-departmental communication, promotes teamwork, and improves workflow efficiency. Coordination through planning leads to smooth execution, timely delivery, and the creation of a united organizational culture focused on shared success.

  • Aids in Decision-Making

Planning improves the quality of decisions by providing managers with necessary information, clarity of objectives, and alternatives to choose from. With a structured plan in place, decision-making becomes systematic rather than intuitive. Managers can evaluate different options, weigh risks and benefits, and make informed choices. It reduces guesswork and minimizes errors. As a result, decisions become more rational, strategic, and aligned with long-term goals, improving both short-term performance and long-term competitiveness.

  • Establishes Standards for Control

Planning sets performance benchmarks that help in measuring actual outcomes. It enables the control function by defining clear goals and expected results. Managers can compare performance against planned targets, identify gaps, and take corrective measures. This ensures accountability and fosters continuous improvement. Without a plan, there would be no criteria for evaluating success. Thus, planning provides a basis for performance appraisal, helps in identifying inefficiencies, and strengthens organizational discipline and goal-oriented behavior.

  • Encourages Innovation and Creativity

Planning encourages innovative thinking and creativity by requiring managers to look ahead and explore new ways to achieve goals. It promotes brainstorming, problem-solving, and scenario analysis, which often lead to better strategies and improved processes. In a competitive and fast-evolving environment, innovation becomes essential for survival. Through planning, organizations can experiment with new ideas, evaluate risks beforehand, and implement creative solutions, thereby gaining an edge over competitors and staying relevant in the market.

  • Enhances Organizational Efficiency

Well-structured planning leads to better time management, reduced operational chaos, and increased overall efficiency. It ensures that efforts are not wasted, deadlines are met, and organizational activities are streamlined. Planning aligns employee efforts with corporate strategy and minimizes confusion. It also sets the foundation for continuous evaluation and improvement. As processes are planned and refined, organizations become more agile, responsive, and productive. This leads to higher customer satisfaction and better organizational performance.

Limitations of Planning

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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

Talent Management and HRIS LU BBA 6th Semester NEP Notes

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Unit 1 [Book]
Talent Management: Introduction, Overview, History, Scope and Need VIEW
Key Processes of Talent Management VIEW
Talent People vs. Knowledge People VIEW
Source of Talent Management VIEW
Consequences of Failure in Managing Talent VIEW
Tools for Managing Talent VIEW

 

Unit 2 [Book]
Talent Planning, Objectives, Steps in Talent Planning VIEW
Succession Planning Program VIEW
Developing a Career Strategy VIEW
Career Life-cycle VIEW
Innovative Talent Planning VIEW
Current Industry Practices for Talent Planning VIEW
Coaching and Mentoring as Career Development Tools VIEW

 

Unit 3 [Book]
Talent Management and HRIS VIEW
How is HRIS helpful in Talent Management? VIEW
Database Concepts and Applications in HRIS VIEW
Assessing Organizational Needs for HRIS VIEW
HR Administration and e-HRM VIEW

 

Unit 4 [Book]  
Database Concepts and Applications in Human Resource Information Systems VIEW
Data, Information, and Knowledge Database Management Systems VIEW
HRIS Training and Development VIEW
HRIS Performance Management and Rewards Administration VIEW
HRIS Metrics and Workforce Analytics VIEW
Lucknow University BBA Notes

Interview Preparation & Planning LU BBA 3rd Semester NEP Notes

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Unit 1 Communication [Book]
Communication skill VIEW VIEW
Body language VIEW
Verbal and nonverbal VIEW VIEW
Diction and Accent VIEW
Business writing skills VIEW VIEW

 

Unit 2 [Book]
Time management VIEW VIEW
Stress management VIEW VIEW
General knowledge and General awareness VIEW
Goal setting VIEW VIEW
Non-ethnocentricism VIEW

 

Unit 3 [Book]
Dressing up, Grooming VIEW
CV writing skill VIEW VIEW
Session on how to avoid typos, howlers, boast and bravado VIEW
Making it to the Point and No nonsense working document to highlight true Strength and Competence VIEW

 

Unit 4 [Book]
Corporate etiquettes VIEW
Cross cultural communications VIEW
etiquettes VIEW
Mock Interview VIEW
Group Discussion sessions VIEW
Lucknow University BBA Notes

Human Resource Management LU BBA 3rd Semester NEP Notes

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Unit 1 Human Resource Management {Book}
Introduction to Human Resource Management VIEW
Personnel vs. Human Resource Management VIEW
Significance and Functions of HRM VIEW
Importance and Objectives of HRM VIEW
Evolution and Development of HRM VIEW
Human Resource VIEW
Planning: Process, Significance and VIEW
Planning Integration with Strategic Planning VIEW VIEW
Job Analysis: Concept and Components VIEW VIEW

 

Unit 2 Recruitment {Book}
Recruitment: Concept, Sources VIEW VIEW
Assessment of Recruitment Techniques VIEW
Selection Concept and Procedure VIEW VIEW
Placement VIEW
Induction VIEW
Training and Development: Concept, Need, Objectives and Methods VIEW
Stages in Training Process VIEW
Job Design: Approaches and Techniques of Job Design VIEW VIEW

 

Unit 3 {Book}
Job Evaluation Concept, Objectives VIEW
Job Evaluation Methods/ Techniques VIEW
Employee Remuneration VIEW VIEW VIEW
Concept of Wage and Salary VIEW
Reward Management VIEW
Fringe Benefits and Incentive Payments VIEW
Performance Appraisal Concept, Objectives, Process and VIEW
Performance Appraisal Techniques VIEW

 

Unit 4 Industrial Relations {Book}
Industrial Relations Concept, Objectives VIEW
Approaches of Industrial Relations VIEW
Actors of Industrial Relations VIEW
Discipline: Disciplinary Procedure, Objectives and Aspects of Discipline VIEW
Grievance Procedure: Characteristics, Need VIEW VIEW
VIEW
Trade Unionism: Concept, Functions, Objectives VIEW
Problems of Trade Unions VIEW
Collective Bargaining VIEW VIEW
Industrial Disputes VIEW VIEW
Management Notes

Change Management Need

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Change management is defined as the methods and manners in which a company describes and implements change within both its internal and external processes. This includes preparing and supporting employees, establishing the necessary steps for change, and monitoring pre- and post-change activities to ensure successful implementation.

Significant organizational change can be challenging. It often requires many levels of cooperation and may involve different independent entities within an organization. Developing a structured approach to change is critical to help ensure a beneficial transition while mitigating disruption.

Changes usually fail for human reasons: the promoters of the change did not attend to the healthy, real and predictable reactions of normal people to disturbance of their routines. Effective communication is one of the most important success factors for effective change management. All involved individuals must understand the progress through the various stages and see results as the change cascades.

Change Management Need

Change management is a complex process and requires serious attention as well as involvement from the management and people from all levels, in order to achieve a meaningful or a progressive transformation across various levels. For being ahead in the competitive race and gaining a winning edge, organizations have been focusing on expansion of business worldwide, achieving excellence in processes and operations, implementing innovations in technology and identifying/developing the right talent. The fast changes which have taken place and the way in which this has affected the strategies, people, policies and processes in an organization, it has become all the more imperative that organizations clearly establish a well-defined change management framework for realizing the strategic objectives. Change is inevitable and it can only be managed, failing which the organizations may cease to exist.

In the era of globalization, organizations function across the cultural boundaries with large investments in human capital as well as physical resources, give utmost importance to technological change and innovative practices for a leadership advantage. Business alliances like mergers, acquisitions, diversifications, takeovers and various other collaborative ventures have become the most preferred strategic best practices for the organizations to survive the fierce forces of competition, through transfer of people, technology, processes and leadership. For successfully handling this transition and converting the threats of change into opportunities, organizations must be flexible and open for Change Management.

By improving the readiness for change, organizations can strengthen their adaptability mechanisms and build their internal competencies for facing future uncertainties or many such multiple change auguring situations. An organization’s readiness for change management influences organizational strategies and policy related decisions, as it involves a comprehensive, well planned approach and implementation of systemic interventions which would have an overall influence on the system, processes, people as well as the organizational structure as a whole.

Innovations in technology and research advancements, have created opportunities for working virtually across any part of the globe; changes in the organizational structure and hierarchy; changes in the human resource policies and regulations, has resulted in organizational reengineering and change in the style of working of employees.

For meeting the growing demands of ever changing business operations, more dynamic and flexible organizations have endorsed new methods of working like flexi work hours, work from home, freelancing opportunities, virtual method of working, business operation outsourcing and project driven operations, etc. which provide ample opportunities to the workmen to work as per their convenience and flexibility.

Organizations change for responding to the fluctuations or volatility in the business environment. Any change in order to have successful outcomes must involve comprehensive planning, focused approach and involvement of the key stakeholders in the entire process.

For any organization, people play a very vital role in driving business excellence as they are the most valuable assets. Hence, a change in the method of handling a job role, implementation of facilitating interventions and training people about the new practices or techniques, can result in impressive results in terms of the return on investment (ROI). How organizations manage change or respond to the business transitions largely depend upon the adaptability of people or readiness of the people in understanding the changes in the process and method of handling a job. Change management process may directly affect the human resource strategies of an organization depending upon the goals or strategies of an organization.

A well-defined change management process can help in mitigating risks related with the people side. If this aspect is ignored, it might result in increase in the overall costs, decline in productivity as well as employee motivation and increase in the absenteeism level and employee attrition. Hence, it improves the overall preparedness of the management and the decision-making authorities in understanding the need for managing change, the key processes involved in it and in understanding the operational technicalities connected with it.

Planned change if effectively implemented can be beneficial in terms of controlling costs, minimizing risks, reducing the stress and anxiety by controlling uncertainties. It helps in setting up new milestones, establishing objectives, defining priorities and identifying the limitations for driving excellence in new initiatives.

Effective Change management process help organizations in understanding the changing customer needs, meeting their demands and expectations much better since the requirements are well defined. If implemented with proper planning, change management does not affect the day to day functioning of an organization, rather it functions concurrently. Instead it creates a scope for establishing best practices, defining the operational framework and regulations for the people, processes and system. It engages people in the entire process and motivates them to work towards realization of a common goal or objective and deliver excellence in performance through collaborative efforts and involvement in the process as a whole. Research in this direction proves the fact that organizations which have an established change management process are more likely to excel in meeting the business goals or achieve excellence in their project outcomes.

Effective change management is the key to realization of operational effectiveness, plays a key role in creating an optimism in the organizational environment as it has holistic outcomes and enables achievement of outcomes by defining superior benchmarks and working towards it for realization of the set benchmarks.

Organizational change affect the leadership thinking style and may optimize the benefits by establishing the systems and processes in place, establishing an integrated framework for achieving the developmental goals with the complete involvement of people in the end to end stages of change management cycle.

Management Notes

Theories of Change Management

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Kotter’s change management theory

Kotter’s change management theory is one of the most popular and adopted ones in the world. This theory has been devised by John P. Kotter, who is a Harvard Business School Professor and author of several books based on change management. This change management theory of his is divided into eight stages where each one of them focuses on a key principle that is associated with the response of people to change.

Stages

  • Increase urgency: This step involves creating a sense of urgency among the people so as to motivate them to move forward towards objectives.
  • Build the team: This step of Kotter’s change management theory is associated with getting the right people on the team by selecting a mix of skills, knowledge and commitment.
  • Get the vision correct: This stage is related to creating the correct vision by taking into account, not the just strategy but also creativity, emotional connect and objectives.
  • Communicate: Communication with people regarding change and its need is also an important part of the change management theory by Kotter.
  • Get things moving: In order to get things moving or empower action, one needs to get support, remove the roadblocks and implement feedback in a constructive way.
  • Focus on short term goals: Focusing on short term goals and dividing the ultimate goal into small and achievable parts is a good way to achieve success without too much pressure.
  • Don’t give up: Persistence is the key to success, and it is important not to give up while the process of change management is going on, no matter how tough things may seem.
  • Incorporate change: Besides managing change effectively, it is also important to reinforce it and make it a part of the workplace culture.

Benefits of this model

  • This is a step-by-step model that is easy to follow and incorporate.
  • The main idea behind it is to accept the change and prepare for it rather than changing itself.

Nudge Theory

Nudge Theory or Nudge is a concept that finds use in behavioral science, economics, and political theory but can be applied to change management in organizations and businesses as well. This theory is mainly credited to Cass R. Sunstein and Richard H. Thaler. Nudging someone or encouraging and inspiring them to change is the basic essence of this theory. Nudge theory is not only helpful in exploring and understanding existing influences but also explaining them to either eliminate them or change them to an extent where positives may begin to be derived.

It is important to note that there are many unhelpful ‘nudges’ around which can either be deliberate or may just be accidental. What this theory mainly seeks is to work upon the management as well as the understanding of the many influences on human behavior that lead to the changing people. It focuses on the design of choices which is responsible for directing our preferences and influencing the choices that we make. What this theory says is that choices must be designed in such a way that it can be aligned with the way people think and decide.

As compared to other theories, Nudge Theory is more sophisticated in its approach and is radically different from other ways of transitioning. This theory eliminates traditional change methods like punishment enforcement and direct instructions. One of the main benefits of this theory is that it takes into account the difference in feelings, opinions, and knowledge of people and also considers the reality of the situation as well as the characteristics of human nature and behavior. It thus minimizes resistance from employees of a company and is very well applied in several industries.

Bridges’ Transition Model

Bridges‘ transition model was developed by William Bridges who is a change consultant, and this theory came into the eye of the public after it was published in the book “Managing transitions”. The specialty of this model or theory is that it concentrates and focusses upon transition and not change as such. The difference between transition and change may be subtle, but it is important to understand it. Where transition on one hand is internal, change on the other is something that happens to people, even when they don’t realize it. Transition is something that happens to people when they are going through the change. Change can be instant, transition may take time.

The model focuses on three main stages that are given as follows:

  • The Neutral Zone: This is the stage of uncertainty, impatience, and confusion. This stage can be considered as the bridge between the old and the new when people are still attached to the old but trying to adapt to the new. This stage is associated with low morale and reduced productivity, and one may experience anxiety and skepticism as well when going through this stage. But despite this, the neutral zone may also include innovation, renewal and a burst of creativity.
  • Ending, Losing, and Letting Go: When people are first introduced to change, they may enter this first stage that is marked with resistance and emotional discomfort. Some of the emotions experienced at this stage include fear, resentment, anger, denial, sadness, frustration and most of all-disorientation. One has to realize that he/she is coming near to a certain end so as to accept new beginnings.
  • The New Beginning: When the neutral phase is passed through support and guidance, the stage of acceptance and energy enters the picture. At this level, people begin to embrace the change and understand its importance. They are beginning to build the skills needed to reach the new goals and may start to experience benefits of the change already. It is associated with high levels of energy, new commitment and a zest to learn.

Kübler-Ross Five Stage Model

The Kübler-Ross five stage model was developed by Elisabeth Kübler-Ross after she pursued her research on the dying and death. This model is also thus known as the Grief Model as it talks about the various emotional states and stages a person goes through when he/she discovers that he/she may be nearing their end. The model can also be applied to other life situations such as loss of job, changes in work and other less serious health conditions. The model helps to understand and deal with personal trauma and has been widely accepted worldwide. The following are the various stages that are associated with the Kübler-Ross model:

Anger: When the news actually gets absorbed, then the first reaction is usually that of anger. The denial converts into anger when one realizes that the change will actually affect them and is for real. One starts looking for someone to blame during this stage. For different people, there can be different ways of directing anger.

Denial: Denial is the first stage of the model and is a stage when one is unable to accept the news. It is like a buffer or defense that a person tends to create due to the inability to absorb the news. One may experience shock as well as a sense of numbness during this stage and this happens because every person shows resistance towards change and may not want to believe what is happening.

Bargaining: The next step or stage involves bargaining so as to avail the best possible solution out of the situation or circumstance. Bargaining is a way for people to avoid ending up with the worst-case scenario and is a natural reaction to avoid the extreme change.

Depression: When one realizes that bargaining isn’t working, he/she may end up getting depressed and may lose all faith. This is the phase when one is not bothered by anything and moves into a sad and hopeless state of mind. There are many ways to observe or identify depression and some of them include low energy, non-commitment, low motivation and lack of any kind of excitement or happiness.

Acceptance: When one realizes that there is no point in being depressed or fighting change, he/she may finally accept what is happening and may begin to resign to it. There are different ways in people handle this stage. While some may begin to explore the options left with them to make the most of the situation, others may just feel that no option is left for them and may just resign to destiny.

Bangalore University B.com Notes

Business Management & Startups Bangalore University B.com 1st Semester NEP Notes

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Unit 1 Principles & Functions of Management {Book}
Introduction, Meaning, Definitions, Importance & Scope of management VIEW
Principles of Management VIEW
Managerial Functions: Meaning, Definition, Characteristics VIEW
Benefits & Limitations of Planning VIEW
Benefits & Limitations of Organizing VIEW
Benefits & Limitations of Directing VIEW
Benefits & Limitations of Coordinating VIEW
Benefits & Limitations of Controlling VIEW
Task & Responsibilities of Professional Manager VIEW

 

Unit 2 Leadership & Motivation {Book}
Leadership: Concept, Importance VIEW
Major Theories of Leadership:
Likert’s scale Theory, Fred Fielder’s Situational leadership VIEW
Blake & Mouton’s Managerial Grid theory VIEW
House Path Goal theory VIEW
Modern Leadership styles in the changing world (Charismatic leadership, Transformational leadership, Visionary Leadership, Transactional Leadership, Servant Leadership, Situational Leadership). VIEW
Motivation: Concept & Importance of Motivation VIEW
Contemporary Motivation Theories
Expectancy Theory VIEW
Equity Theory VIEW
Goal Setting Theory VIEW
Reinforcement theory VIEW

 

Unit 3 Startups & Its Financial Issues {Book}
Startups Introduction, Meaning, Features, Types, Ideation VIEW
Design Thinking VIEW
Entrepreneurship Lessons for Startups VIEW
3 Pillars to Initiate startup (Handholding, Funding & Incubation) VIEW
Startup Financial issues VIEW
Feasibility Analysis: The cost & Process of Raising capital VIEW
Unique Funding issues of a High-tech Ventures:
Funding with equity VIEW
Financing with debt VIEW
funding strategies with bootstrapping VIEW
Crowdfunding VIEW
Venture Capital VIEW

 

Unit 4 Incubation Support to Startups {Book}
Introduction, Meaning & Definition of Incubation Support, Services Types VIEW
Objectives & Functions of Incubation Centers VIEW
Incentives for Incubators VIEW
Role of Incubators in startup Policy VIEW
List of Major Startups Incubators in India VIEW
Case studies on Startups

 

Unit 5 Government Initiatives for Startups in India {Book}
Government Initiatives, Startup India Initiative VIEW
Seed Fund, ASPIRE VIEW
SAMRIDDHI Scheme VIEW
Mudra Scheme (Sishu, Kishore & Tarun) VIEW
ATAL Innovation Mission VIEW
MSME Multiplier Grants Scheme VIEW
Credit Guarantee fund Trust for micro & Small business VIEW
Software Technology Park VIEW
Venture Capital Assistance Scheme VIEW
Single Point Registration scheme VIEW
M-SIPS, Self-Employment & Talent Utilization (SETU) VIEW

 

Management Notes

Strategic Decision: Nature of Strategy and the Marketing Strategy Interface

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Strategic decisions are the decisions that are concerned with whole environment in which the firm operates, the entire resources and the people who form the company and the interface between the two.

Characteristics/Features of Strategic Decisions

  • Strategic decisions have major resource propositions for an organization. These decisions may be concerned with possessing new resources, organizing others or reallocating others.
  • Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities.
  • Strategic decisions deal with the range of organizational activities. It is all about what they want the organization to be like and to be about.
  • Strategic decisions involve a change of major kind since an organization operates in ever-changing environment.
  • Strategic decisions are complex in nature.
  • Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot of risk.
  • Strategic decisions are different from administrative and operational decisions. Administrative decisions are routine decisions which help or rather facilitate strategic decisions or operational decisions. Operational decisions are technical decisions which help execution of strategic decisions. To reduce cost is a strategic decision which is achieved through operational decision of reducing the number of employees and how we carry out these reductions will be administrative decision.

Nature of Strategy

Based on the above definitions, we can understand the nature of strategy. A few aspects regarding nature of strategy are as follows:

  • Strategy is a major course of action through which an organization relates itself to its environment particularly the external factors to facilitate all actions involved in meeting the objectives of the organization.
  • Strategy is the blend of internal and external factors. To meet the opportunities and threats provided by the external factors, internal factors are matched with them.
  • Strategy is the combination of actions aimed to meet a particular condition, to solve certain problems or to achieve a desirable end. The actions are different for different situations.
  • Due to its dependence on environmental variables, strategy may involve a contradictory action. An organization may take contradictory actions either simultaneously or with a gap of time. For example, a firm is engaged in closing down of some of its business and at the same time expanding some.
  • Strategy is future oriented. Strategic actions are required for new situations which have not arisen before in the past.
  • Strategy requires some systems and norms for its efficient adoption in any organization.
  • Strategy provides overall framework for guiding enterprise thinking and action.

Marketing Strategies

Marketing strategy is the total and unbeatable instrument or a plan shaped and designed specifically for attaining the marketing objectives of a firm. A marketing mission and objectives tell us as to where we want to go and marketing strategy provides us with the grand design for reaching out there.

The borrow the words of Prof. Jerome Mc Carthy “strategy is the all important part of marketing. The one time planning decision the most crucial decision that determines what business the company is in and the general strategy, it will follow may be more important than has ever been realized”

In the words of Mr. Robertson and Yoram Wind, “there are three generic strategies for achieving success in the competitive market place. The first of these is to gain control over the supply or distribution, the second competitive cost advantage and the third product differentiation; marketing as a discipline is critical component of all these three strategies. Marketing performs a boundary role function in the firm’s selection of an appropriate strategy; marketing spares the customer interface and provides the assessment of needs which must ultimately guide all strategy development”.

To quite Michael E. Porter “marketing strategy has mainly one aim to cope up with competition; these are five major and vital forces that decide the nature and intensity of competition the threat of new entrants, bargaining power of customers, bargaining power of suppliers, threat of substitute products and jockeying among the existing contest arts ; the collective strength of these forces determine the ultimate profit potential, of an industry; the strategists goal is to find a position in the industry where his company can best defined itself against these forces or can influence them in his favour; strategy can be viewed as building defences against competitive forces.

In the final analysis marketing strategy stands for competitive marketing actions that are bound to evoke a response from competition. That is why a successful marketer needs to have a comprehensive strategy to tackle competition at any cost.

However, one cannot go to the extent of “any cost” unless one works according to a plan and that is competitive strategy for thumping success in marketing. It is but, therefore, natural that competitive strategy has to be one that will evoke the much sought after competitive advantage. Having given the competitive advantage, the said strategy should give a sustainable competitive edge.

It warrants the thorough investigation and analyses of competition before one hope to have a competitive advantage. Thus competitive investigation, scanning and analysis consist of two things namely, the “long-term profit- opportunity” and owns one’s competitive position.

The ways of out beating competition are:

  1. Reducing competition

Perhaps this is the simplest way of fighting out. It sounds well in theory; however in practice it means acquisition of smaller or weaker units which are in competition. Thus, Hindustan Lever acquired TOMACO and Broke Bond acquiring Kissan and Lipton.

  1. Joining competition

This is another way out to mitigate competition which is gaining ground. The best example is that of joint venture of Procter and Gamble and Godrej Soaps.

  1. Pre-empting competition

This is another way which is a proactive approach, which is very effective particularly when it is backed by competitive analysis. The example of pre-empting competition is that of.

  1. To create barriers

This implies forbidding others from entry in the line based on very strong financial and muscle power. Good many companies spend heavily barring others to just think of such extravagance a luxury or a dream for them. The example of this kind is that of.

  1. To differentiated the products

It pays to differentiate the products. One must not hesitate to differ his own product with a new to provide better value for the money paid by the customers. It is not only ideal but practical. That is majority of the companies to do it. The examples are good many but we can take toiletotries of all companies.

  1. To improve the speed of response

The competitive edge can be further sharpened than one thinks. There are certain manufactured products where speed of response as well as quick source is of top significance.

Though the companies are aware of keeping pace with changing technological tempo they should be well ahead of the same. Quality in consonance with technology has much valid response if it catches the required speed.

  1. To divest from regular activities

Instead of moving in the same grow; it should more out of it. The firm should divest out of focus activities. This makes available much wanted scarce recess in the focused activities.

  1. To improve efficiency

It is but natural that there is close alliance between important efficiency and the competitive edge. This helps the marketer to distinguish his products though reduced cycle of line and reduced costs.

To restate, a competitive marketing strategy should be such that will give sustainable competitive advantage. One has to be therefore proactive and quick in one’s responses and one should be willing to invest in long-term profits.

Nature of Marketing Strategies

The exact nature of strategy is self evident from the definitions we have gone through.

The nature is clearly spoken by the following points:

  1. They are dynamic

The concept of marketing strategy is relative as it is designed to meet the changing demands of a situation. Each situation and event needs a different strategy that is why strategies are revised and recast very frequently to cope up with the changes in a given situation or event.

  1. They are futuristic

A marketing strategy is forward looking. It orients towards future. A marketing strategy is designed to bring out the organization from a ditch of degression to the path of progress for better change in the coming times.

  1. They are complex

A marketing strategy is a very complex plan impounding in its compound other plans or firms of plans which area must to achieve the organizational goals. It is a compendium or complex of plans within plan to out beat the strength and vitality of others in the line are allied activities.

  1. They provide direction

Marketing strategies provide a set direction in which human and physical resources will be allocated and deployed for achieving organisational goals in the face of change environmental pressure, stress and strains and constraints and restraints.

  1. They are all covering

Marketing strategies involve the right combination of factors governing the best results. In fact strategic planning warrants not only the isolation of various elements of a given situation but a judicious and critical evaluation of their relative importance.

  1. They are a link between the unit and environment

The strategic decisions that are basically related with likely trends in the changing marketing changes in govt., policies, technological developments, ecological change over’s, social and cultural overtones. Then, the ever-changing environment which is external to the organization has impact on it because unit is the sub-systems of supra-system namely environment.

  1. They are interpretative

Marketing strategies are the interpretative plans formulated to interpret and give meaning to other plans in the spot-light of a specific situation or situations. They demand an adjustment of plans in anticipator of the reactions of those who will be influenced. Strategic decisions are the result of a complex and intricate process of decision making.

  1. They are Top Management Blue-print

Marketing strategies their formulation is the basic responsibility of top management. It is because, it is top management that spells out the missions, objectives and goals and the policies and strategies are the ways to reach them. Thus, top management is not only to say to where to go but how best to go the terminal point.

Essentials of Marketing Strategies

Any marketing strategy to be worth calling as successful or effective must enjoy certain extras which can be called as essentials or requisites of it.

The basic guidelines, used to call a strategy a successful one used by experts are:

  1. It is consistent

A marketing strategy to be effective is to be consistent with the overall and specific objectives and policies and other, strategies and tactics of the marketing organization. Interval consistency is an essential ingredient of a good strategy as it identifies the areas where the strategic decisions are to be made imminently or in the long run.

  1. It is workable:

Any strategy however laudable and theoretically sound is meaningless unless it is able to meet the ever changing need of a situation. In this business world contingency is quite common and the strategy that strikes at the head to contribute to the progresses and prosperity of marketing organization.

  1. It is suitable

A strategy is emergent of situations or environment. It is the subservient of changing environment of business world. It is but natural that any strategy not suiting to .the environment can impound the marketing organization in the compounds of danger, digress and frustration.

  1. It is not risky

Any strategy involves risks as uncertainty is certain; what is important is that the extent of the risk involved or associated with strategy is reasonably low as compared to its pay-off or returns. It is because; a high risk very strategy may threaten the survival of the marketing organization, let alone its success, if calculations go fit.

  1. It is resource based

A sound strategy is one which is designed in the background of the available resources at its command. A strategy involves certain amount of risk which can hardly be segregated. A strategic decision warrants commitment of right amount of resources to the opportunity and reservation of sufficient resources for an anticipated or “Pass through” errors in such demands of resources.

  1. It has a time horizon

The statement “a stitch in time saves nine” that aptly applies to the concept of strategy. A sound strategy is time bound to be used at the nick of the hour and tick of the opportunity. It has an appropriate time horizon. This time this is costlier than money and its horizon banks on the goals to be achieved.

The time should be long enough to permit the organization to make adjustments and maintain the consistency of a strategy.

Management Notes

Competency Management Meaning, Features and Objectives

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Competence Based Management is comparatively a modern method to find on the means by which firms achieve excellent performance and also more important sustain that good performance. The significance of this method lies in the fact that it can provide a theoretical explanation about the way in which firms will be able attain and also sustain competitive advantage. This management approach provides the theoretical approach that can explain this method in a methodical and ordered manner.

In this method it is important to give stress to the competence of an organization rather than the environment in which it functions. So it is rather a method that looks inward into the organization. Therefore, this theory will be useful to understand the abilities of an organization that help it to achieve competitive advantage. It is considered to be based on four pillars namely dynamic, systemic, cognitive and holistic aspects of competences of the organization. Fundamentally competence should include these four natures of the organization to attain competitive advantage.

For every position, employees require specific competencies; qualities they need in order to perform their work well. In most cases, they are already in possession of these qualities.

At the same time, there are also many possibilities for developing various competencies. This is exactly what competency management is all about. When developing their competencies further, employees will be able to perform their tasks even better.

This will ultimately benefit the company. Many companies engage in competency management because it allows them to align business objectives with the knowledge, skills, and professional attitude of their employees. If it is clear what competencies are required, companies may adjust their recruitment policy accordingly.

Steps:

  1. Description of General Core Competencies

By first determining which core competencies are important, the organisation can create a general portfolio of the people it’s looking for. What is the company’s core business, how does it distinguish itself from competitors, and how does the company aim to profile itself to the outside world?

This step is at the strategical level, and revolves around the question of which core competencies are required to remain successful in the coming years.

For instance, an airline company will place great importance on competencies such as customer focus, service-oriented, solution-oriented, and communication. These are the competencies required of employees in every department and within all business units.

  1. Development of Competency Profiles

Once the core competencies are clear, one can start determining the competencies of the individual employee. Naturally, these must be derived from the core competencies.

Each department requires specific knowledge, skills and professional attitudes. In the same airline company, technical and analytical insight will be important among the technical staff, whereas stress-resistance will be considered one of the core competencies for the cabin crew.

If job-oriented competencies are not yet clear, it may help to establish profiles on the basis of interviews with managers and employees.

Moreover, the established competency profiles may be added to the job descriptions. A complete list of competencies may also be included in a competency handbook as a useful way to contribute to competency management.

  1. Making Competencies Measurable

Once it is clear which competencies apply to the various positions within an organisation, it is recommended to make these competencies measurable. Competencies may be linked to result areas and performance indicators.

This will take place at department level (tactical level), and it is the task of managers to clearly communicate this to their employees. By indicating in advance what is required of employees and how individual competencies are measured, everyone will know what is required of them.

This is made even clearer on the basis of SMART objectives; what are the Specific expectations, how is it Measurable, is it Acceptable and Realistic, and what is the Time frame?

For example, based on the number of complaints handled, this approach allows the airline company to evaluate how customer-oriented an employee has been in handling complaints during the past year.

  1. Create Support

Regular employees will not necessarily like it if only management and middle management are in charge of determining the competency profiles. They’ll get the impression that all the decisions are made for them.

By involving employees in drawing up the competency profiles, they will be more inclined to take these competencies to a higher level. Competency management will only be successful by creating support among employees.

In addition, employees must understand its usefulness. In the event of any resistance, it is the task of management to conduct individual conversations with employees.

  1. Implementation Competency Management

Ultimately, all competencies must be integrated into the human resources policy. The implementation of competency management is only a fact once it has become part of the corporate culture.

At the operational level, the competencies will then form the basis of both the selection process and development process of current staff. Competency profiles are implemented and used during assessment, performance, and personal development interviews, as well as during general job interviews.

Features

  • Pinpointing triggers for each role.
  • Identifying the key success factors.
  • Laying direction for superior performance.
  • Serving means for communicating performance expectations.
  • Ensuring that the employees obtain greater transparency about their roles.
  • Providing opportunities for development.
  • Setting defined expectations from employees.
  • Creating a more empowered workforce.
  • Employing the workforce effectively.

Objectives

Objectives set out both the general and definite intents of the organization. Strategy is thus formed by the objectives. Over all objectives identify the following:

  • The intention of the organization
  • Long and short-term aspirations and ambitions of the organization
  • The decision-making structure of the organization
  • The foreseen results of its plans and actions.

The main determinants of the objectives of an organization are:

  • The characteristics of its business activities
  • The available resources
  • The organizational culture
  • The stakeholders and the influence they exert
  • The operational environment
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