MANAGERIAL FUNCTIONS

Jitin Kollamkudy

MANAGERIAL FUNCTIONS

Planning Organizing Staffing Leading/Directing Controlling

PLANNING

Planning involves the determination of future course of action, that is why an action what is to done, how to de done and when to be done

“Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen”

-Koontz and O'Donnell

IMPORTANCE OF PLANNING

Planning provides directions Planning reduces the risks of

uncertainty Planning reduces overlapping and

wasteful activities Planning provides innovative ideas Planning facilitates decision making Planning establishes standards for

controlling

STEPS IN PLANNING

Being aware of opportunity Setting objectives or goals Considering planning premises Identifying alternatives Comparing alternatives in light of

goals Choosing an alternative Formulating supporting plans Quantifying plans by making budgets

OBJECTIVES

Objectives were defined earlier as the important ends toward which organizational & individual activities are directed.

Nature of objectives Hierarchy of objectives Multiplicity of objectives Quantitative & Qualitative

objectives

STRATEGY Strategy can be defined as

determination of basic long term goals and objectives of an enterprise and the adoption of course of action and allocation of resources necessary for carrying out these goals.

THE CHARACTERISTICS OF STRATEGY

Strategy is a single use plan made to meet the challenge of a specific situation; when situation changes ,the strategy becomes outdated.

It is a comprehensive & unified action plan drawn to seek specific objectives in changed situation.

STRATEGY FORMULATION Strategy formulation is an

intellectual process that calls for use of analytical abilities, imagination and creativity on the part of managers.

THE MAIN STEPS

DETERMINING MISSION AND OBJECTIVES OF THE ORGANIZATION

The organizational mission and objectives serve as the basis to develop a suitable strategy.

SWOT ANALYSIS SWOT is an acronym for strengths,

weaknesses,opportunities and threats.

POLICY

The term’ business policy’ is used interchangeably with ‘strategic management'. It is because business policy provides a broad framework within which the corporate plans are made.

POLICY FORMULATION

Policies are formulated at the top level of the organization. But with regard to functional & operational policies, the co-operation of lower level managers is also sought.

Identification of Need. Collection of Required Information. Discovery of Tentative Policy

Proposal. Evaluation of an Alternative. Approval & Application of Policy. Policy Review& Appraisal.

EVALUATION OF STRATEGY

Like all other plans, this strategy also needs periodic review & evaluation. This is done to ensure that it is implemented as effectively as possible.

Internal Consistency. Consistency with Environment. Appropriateness of strategy in the

Light of Available Resources. Acceptable Degree of Risk Involved

in Strategy. Appropriateness of Time Horizons of

Strategy. Workability of Strategy.

THE TOWS MATRIX

It’s a modern tool for analysis of the situation.

The TOWS matrix has been introduced for analyzing the competitive situation of the company .

T -ThreatsO -OpportunitiesW -WeaknessesS -Strengths

FOUR ALTERNATIVE STRATEGIES The WT strategy aims to minimize

both weaknesses & threats and maybe called the Mini-Mini.

The WO strategy attempts to minimize the weaknesses & maximize the opportunities.

The ST strategy is based on using the organization’s strengths to deal with threats in the environment.

The SO strategy which capitalizes on a company’s strengths to take advantage of opportunities ,is the most desirable.

BLUE OCEAN STRATEGY

It focus on opportunities It focus on the uncontested market

by offering a product or service that is unique in a market space where there is no competitor.

It helps to make the competition irrelevant.

THE MAIN FOUR ACTIONS SHOULD BE CONSIDERED BY THE COMPANIES Identify & eliminate those factors that

may be unimportant to the buyer. If elimination is not an option, consider

reducing those factors. Raise or strengthen those factors that

are unique. Create new or unique factors that are

wanted by the buyers but are ignored by the competitors.

PORTER’S INDUSTRY ANALYSIS & GENERIC COMPETITIVE STRATEGIES

This analysis becomes the basis for formulating generic strategies.

1. Industry analysis2. Overall cost leadership strategy3. Differentiation strategy4. Focused strategy

THANK YOU…