Unit - 3 principles of management

 UNIT–3: PLANNING AND ORGANIZING

(LONGEST + HIGHEST SCORING UNIT)

This unit is very important for 10–15 mark questions.

PART–A: PLANNING

1️⃣ Meaning of Planning

🔹 Definition

Planning is the process of deciding in advance:

What to do

How to do

When to do

Who will do it

It bridges the gap between present and future.

🔹 Definitions

Koontz & O’Donnell:

“Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.”

2️⃣ Nature / Characteristics of Planning

Goal-oriented – Focuses on objectives

Primary function – Base of all other functions

Continuous process – Never ends

Intellectual process – Requires thinking

Future-oriented – Deals with forecasting

Flexible – Can be modified

📌 Exam Tip: Write 5–6 points with explanation.

3️⃣ Objectives of Planning

To reduce uncertainty

To ensure coordination

To achieve efficiency

To control future activities

To improve decision-making

4️⃣ Importance / Significance of Planning

Provides direction

Reduces risk and uncertainty

Avoids wastage of resources

Encourages innovation

Improves coordination

Facilitates control

📌 Very common 5/10 mark question

5️⃣ Types of Planning

🔹 On the Basis of Time

Short-term plans (≤ 1 year)

Long-term plans (> 5 years)

🔹 On the Basis of Use

Standing plans (policies, procedures, rules)

Single-use plans (programmes, budgets)

6️⃣ Elements of Planning

Objectives – End results

Policies – Guidelines for decisions

Procedures – Step-by-step methods

Rules – Strict regulations

Programmes – Combination of plans

Budgets – Financial plans

7️⃣ Steps in Planning Process (VERY IMPORTANT)

Setting objectives

Developing planning premises

Identifying alternatives

Evaluating alternatives

Selecting best alternative

Implementing plans

Follow-up and review

📌 Diagram question – write in flow form.

8️⃣ Decision Making (Part of Planning)

🔹 Meaning

Decision making is the process of selecting the best alternative among available options.

🔹 Steps in Decision Making

Identifying the problem

Collecting information

Developing alternatives

Evaluating alternatives

Selecting best alternative

Implementing decision

Reviewing results

🔹 Types of Decisions

Programmed decisions

Non-programmed decisions

Strategic decisions

Operational decisions

🔹 Importance of Decision Making

Core of management

Affects organizational success

Helps in problem-solving

PART–B: ORGANIZING

9️⃣ Meaning of Organizing

Organizing is the process of arranging tasks, people, authority and resources to achieve objectives.

🔹 Definition

Organizing involves:

Identification of activities

Grouping of activities

Assigning duties

Establishing authority relationships

🔟 Nature of Organizing

Division of work

Coordination of efforts

Authority-responsibility relationship

Continuous process

1️⃣1️⃣ Principles of Organizing

Principle of unity of objectives

Principle of specialization

Principle of span of control

Principle of delegation

Principle of authority and responsibility

Principle of coordination

1️⃣2️⃣ Span of Control

🔹 Meaning

Span of control refers to the number of subordinates a manager can effectively supervise.

🔹 Types

Narrow span – Fewer subordinates

Wide span – More subordinates

🔹 Factors Affecting Span of Control

Nature of work

Manager’s ability

Skill of subordinates

Degree of decentralization

1️⃣3️⃣ Line and Staff Relationship

🔹 Line Authority

Direct authority

Responsible for core activities

🔹 Staff Authority

Advisory role

Provides support

🔹 Conflicts Between Line and Staff

Authority confusion

Resistance to advice

Role ambiguity

📌 Short note question favourite

1️⃣4️⃣ Authority, Delegation and Decentralization

🔹 Authority

Right to command and make decisions.

🔹 Delegation

Delegation is the process of assigning authority and responsibility to subordinates.

Elements of Delegation:

Authority

Responsibility

Accountability

🔹 Importance of Delegation

Reduces workload of managers

Develops employees

Improves efficiency

🔹 Decentralization

Decentralization means systematic delegation of authority at all levels.

🔹 Centralization vs Decentralization

Basis

Centralization

Decentralization

Authority

Concentrated

Dispersed

Decision

Top-level

All levels

Flexibility

Low

High

1️⃣5️⃣ Organizational Structures

🔹 Types:

Line organization

Functional organization

Line and staff organization

Matrix organization

1️⃣6️⃣ Formal and Informal Organization

🔹 Formal Organization

Official structure

Pre-defined rules

🔹 Informal Organization

Social relationships

No official rules

🔹 Differences (Exam Table)

Formal

Informal

Official

Unofficial

Planned

Spontaneous

Rigid

Flexible

1️⃣7️⃣ Staffing (Introduction)

Staffing ensures:

Right person

Right job

Right time

(Detailed staffing is linked with HRM, but basics are required)