Download Topic 4 - TCS VB

REV 01
DDG 1223
PRINCIPLES OF MANAGEMENT
1
REV 01
PLANNING

A process that involves defining the
organization’s objectives or goals,
establishing an overall strategy for achieving
those goals, and developing a
comprehensive hierarchy of plans to
integrate and coordinate activities.
DDG 1223
PRINCIPLES OF MANAGEMENT
2
REV 02
Why Should Managers Formally Plan?
because of 4 reasons:
1. Provide direction – co-ordinate work activities –
fostering co-operation and teamwork
2. Reduce the impact of change – reduce
uncertainty
3. Minimize waste and redundancy – reduce
overlapping and wasteful activities
4. Set the standards to facilitate control – if
organizational member unsure of what they
attempting to achieve, how can they determine
whether they have achieve it
DDG 1223
PRINCIPLES OF MANAGEMENT
3
REV 01
Strategic Plan
 Plans that are organization-wide,establish
overall objectives, and position the
organization in terms of its environment.
Tactical Plan
 Plans that specify the details of how an
organization’s overall objectives are to be
achieved.
Short-term plans
 Plans that cover less than one year.
DDG 1223
PRINCIPLES OF MANAGEMENT
4
REV 01
Long-term plans
 Plans that extend beyond five years.
Specific plans
 Plans that have clearly defined objectives
and leave no room for misinterpretation.
Directional plans
 Flexible plans that set out general guidelines.
Single-use plans
 A plan that is used to meet the needs of a
particular or unique situation.
DDG 1223
PRINCIPLES OF MANAGEMENT
5
REV 01
Standing plan
 A plan that is ongoing and provides guidance
for repeatedly performed actions in an
organization.
MBO – Management by Objectives
 A system in which specific performance
objectives are jointly determined by
subordinates and their supervisors, progress
toward objectives is periodically reviewed,
and rewards are allocated on the basis of
that progress.
DDG 1223
PRINCIPLES OF MANAGEMENT
6
REV 01
The Strategic Management Process
Analyze the
Environment
Identify the
organization’s
current mission,
objectives, and
strategies
Identify
Opportunities
and treats
Reassess the
organization’s
mission and
objectives
Analyze the
Organization’s
resources
DDG 1223
Formulate
strategies
Implement
strategies
Evaluate
results
Identify
Strengths and
weaknesses
PRINCIPLES OF MANAGEMENT
7
REV 01
SWOT Analysis
 Analysis of an organization’s strengths,
weaknesses, opportunities, and threats in
order to identify a strategic niche that the
organization can exploit.
Grand Strategies
 Growth strategy
 Stability strategy
 Retrenchment strategy
 Combination strategy
DDG 1223
PRINCIPLES OF MANAGEMENT
8
REV 02
1.
2.
3.
4.
5.
How to sustain Competitive Advantage?
Managers need to create barriers that make the
imitation by competitors difficult or reduce
competitive opportunities
Reduce price to gain volume
Tie-up suppliers with exclusive contracts that
limit their ability to supply materials to
competitors
Lobby for government policies that impose
tariffs designed to limit foreign companies
Require constant action to stay one step ahead
of the competition
DDG 1223
PRINCIPLES OF MANAGEMENT
9
REV 02
Benchmarking
 The search for the best practices among
competitors or non-competitors that lead to
their superior performance.
 The basic idea underlying benchmarking is
that management can improve quality by
analyzing and then copying the methods of
the leaders in various fields.
DDG 1223
PRINCIPLES OF MANAGEMENT
10
REV 02
ISO 9000 series
 A process whereby independent auditors attest
that a company’s factory, laboratory or office has
met quality management standards.
 These standards, once met, assure customers
that a company:
 uses a specific steps to test the product it
sells;
 continuously trains its employee to ensure
they have up-to-date skills, knowledge, and
abilities;
 maintains satisfactory records of its
operation;
 correct problems when they occur
DDG 1223
PRINCIPLES OF MANAGEMENT
11