02 Management notes for mba

Principle Of Management
Full Notes Of Management For Student of MBA
9/23/2014
The Muslim Education System Abbottabad
By Awais Qasim Student Of The Jawad Ahmad Zeb
By Awais Qasim

MANAGEMENT
Introduction
“Management”
• From Old French ménagement “the art of conducting, directing”
• From Latin manu agere “to lead by the hand”
• Characterizes the process of leading and directing all or part of an
organization, often a business, through the deployment and manipulation
of resources (human, financial, material, intellectual or intangible).
Management focuses on:
• Entire organization from both a short and a long-term perspective.
• Management is the managerial process of forming a strategic vision
• Setting objectives
• Crafting a strategy
• Then implementing and executing the strategy.
• The key emphasis is on issues related to environmental scanning and
industry analysis.
• Appraisal (Assessment) of current and future competitors
• Assessment of core competencies.
• Strategic control and the effective allocation of organizational resources.
Definition:
Management is the organizational process that includes:
• Strategic planning,
• Setting objectives,
• Managing resources,
• Deploying the human and financial assets needed to achieve objectives
• And measuring results.
OR
2 By Awais Qasim Student Of Jawad Ahmad Zeb

The process of planning, leading, organizing and controlling people within a
group in order to achieve goals.
OR
Management is the process of designing and maintaining an environment in
which individuals working together in groups efficiently accomplish selected aims.
OR
Management in all business areas and organizational activities are the acts of
getting people together to accomplish desired goals and objectives efficiently and
effectively.
OR
Effective utilization and coordination of resources such as capital, plant, materials
and labour to achieve defined objectives with maximum efficiency.
OR
The process of getting activities completed efficiently with and through other
people;
OR
The process of setting and achieving goals through the execution of five basic
management functions:
 Planning,
 Organizing,
 Staffing,
 Directing,
 Controlling;
That utilizes human, financial, and material resources.
MANAGEMENT PROCESS/FUNCTIONS
Management is creative problem solving. This creative problem solving is
accomplished through four functions of management:
1. Planning
2. Organizing
3. Staffing
4. Leading
5. Controlling
6. Coordination
1. Planning: -

• Planning is a pre-requisite of doing any thing.
• Planning is continuous and never ending activity.
• It leads to more effective and faster achievements in any organization
• Enhance the ability of the organization to adapt to future eventualities.
• We can say that it is nothing but a decision making in advance at all
levels.
• Planning is an indispensable function of management.
• It determines the objectives to be achieved and the course of action to be
followed to achieve them.
• No real plan exists until a decision about commitment of human or
material resources has been made.
• Planning includes:-
a. Determination of objectives
b. Forecasting
c. Search of alternate course of action and their evaluation
d. Drawing policies and procedures
e. Budgeting (Make Financial Plans/Arrangements)
2. Organizing: -
• Organizing is the process of dividing the work into the convenient tasks
• Duties of delegating authority to each so that work is carried out as
planned.
• Organizing involves identification and grouping activities to be performed
and dividing them among the individuals and responsibility relationships
among them.
• Organizing contributes to the efficiency of the organization.
• The process of organizing involves the following steps:-
(i) Determination of objectives.
(ii) Division of activities.
(iii) Fitting individual to specific jobs.
(iv) Developing relationship in terms of authorities and responsibilities.
(v) Coordinating the activity throughout the organization as planned.

3. Staffing: -
• The managerial function of staffing involves manning the organizational
structures through:
(i) Proper recruitment and selection of people.
(ii) Fixing remuneration.
(iii) Training and developing selected people to discharge
organizational function.
(iv) The appraisal (Assessment) of personnel.
4. Leading: -
• Leading is influencing people so that they will contribute to
organization and group goals.
• It is the part of management process which actuates
organization members to work efficiently and effectively for the attainment
of organization objectives.
• Planning, organizing and staffing are merely preparation for
doing work and the work actually starts when managers start performing
the leading function
• Leading is the interpersonal aspect of management which deals
directly with
i. Influencing,
ii. Guiding,
iii. Supervising
iv. And motivating the subordinates for the accomplishment
of the pre-determined objectives.
Leading consist of following:-
 Communication: -
o It is the process of passing information and understanding from one
person to another.
o A manager in order to be successful should develop an effective
system of communication so that he may issue instruction, receive
the reactions of the sub-ordinates and motivate them.
 Leadership: -
o It is the process by which a manager guides and influences the
work of his subordinates.
 Motivation: -

o Motivation means inspiring the subordinates with a zeal to do work
for the accomplishment of organization objectives.
 Supervision: -
o Manager has to personally
 Watch, direct and control the performance of subordinates.
 In doing this, they have to plan the work of their
subordinates,
 Give them direction and instructions, guide them and
exercise leadership.
5. Controlling:-
• Controlling is visualizing that actual performance is
guided towards expected performance.
• It is the measurement and correction of the
performance of activities of subordinates in order to make sure that
enterprise objective and the plans devised to attain them are being
accomplished.
• Controlling involves followings: -
(i) Fixing appropriate standards.
(ii) Measurement of actual performance
(iii) Comparing actual and planned performance
(iv) Finding variances between the two and reason for the variances.
(v) Taking corrective actions.
• Control keeps a check on other functions for successful functioning of
management.
• The most notable feature of control is that it is forward looking.
• A manager cannot control the past but can avoid mistakes in future by
taking in the light of past experiences.
MANAGERIAL LEVELS:
• The term “Levels of Management’ refers to a line of
demarcation (Separation) between various managerial positions in an
organization.
• The number of levels in management increases when
the size of the business and work force increases and vice versa.

• The level of management determines a chain of
command, the amount of authority & status enjoyed by any managerial
position.
• The levels of management can be classified in three
broad categories:
LEVELS OF MANAGEMENT
1. Top-Level Managers/Administrative level
2. Middle-Level Managers/Middle Management
3. First-line managers/Low level/Supervisory/Operative
ROLE & SKILLS OF MANAGERS:
1. TOP-LEVEL MANAGERS
 Top-level managers, or top managers, are also called senior
management or executives.
 These individuals are at the top one or two levels in an organization,
 Top-level managers make decisions affecting the entirety of the firm.
 Top managers do not direct the day-to-day activities of the firm; rather,
they set goals for the organization and direct the company to achieve
them.
 It devotes more time on planning and coordinating functions
 Top managers are ultimately responsible for the performance of the
organization, and often, these managers have very visible jobs.
They hold titles such as:
o Board of directors
o Chief executive or managing director
o Chief Executive Officer (CEO), Chief Financial Officer (CFO)
o Chief Operational Officer (COO)
o Chief Information Officer (CIO)
o Chairperson of the Board
o President
o Vice president
o Corporate head.
Role of Top Management:
The role of the top management can be summarized as follows –

Top management lays down the objectives and broad policies of the
enterprise.
It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
It prepares strategic plans & policies for the enterprise.
It appoints the executive for middle level i.e. departmental managers.
It controls & coordinates the activities of all the departments.
It is also responsible for maintaining a contact with the outside world.
It provides guidance and direction.
The top management is also responsible towards the shareholders for the
performance of the enterprise.
2. MIDDLE-LEVEL MANAGERS:
 Middle-level managers, or middle managers, are those in the levels
below top managers.
 Middle-level managers are responsible for carrying out the goals set by
top management.
 They do so by setting goals for their departments and other business
units.
 Middle managers can motivate and assist first-line managers to
achieve business objectives.
 Middle managers may also communicate upward, by offering
suggestions and feedback to top managers.
 Because middle managers are more involved in the day-to-day
workings of a company, they may provide valuable information to top
managers to help improve the organization's bottom line
Middle managers' job titles include:
o General manager
o Plant manager
o Regional manager and
o Divisional manager
ROLE OF MIDDLE MANAGERS/MIDDLE MANAGEMENT:
Their role can be emphasized as –
 They execute the plans of the organization in accordance with the
policies and directives of the top management.

 They make plans for the sub-units of the organization.
 They participate in employment & training of lower level management.
 They interpret and explain policies from top level management to lower
level.
 They are responsible for coordinating the activities within the division
or department.
 It also sends important reports and other important data to top level
management.
 They evaluate performance of junior managers.
 They are also responsible for inspiring lower level managers towards
better performance.
3. FIRST-LINE MANAGERS
 First-level managers are also called first-line managers or supervisors.
 First-line managers are responsible for the daily management of line
workers—the employees who actually produce the product or offer the
service.
 There are first-line managers in every work unit in the organization.
 Although first-level managers typically do not set goals for the
organization, they have a very strong influence on the company.
 These are the managers that most employees interact with on a daily
basis, and if the managers perform poorly, employees may also
perform poorly, may lack motivation, or may leave the company.
These managers have job titles such as:
o Office manager
o Shift supervisor
o Department manager
o Foreperson
o Crew leader
o Store manager
ROLE OF FIRST LINE MANAGERS/LOWER MANAGEMENT
Their role includes:
 Assigning of jobs and tasks to various workers.
 They guide and instruct workers for day to day activities.

 They are responsible for the quality as well as quantity of production.
 They are also entrusted with the responsibility of maintaining good
relation in the organization.
 They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and higher level goals
and objectives to the workers.
 They help to solve the grievances of the workers.
 They supervise & guide the sub-ordinates.
 They are responsible for providing training to the workers.
 They arrange necessary materials, machines, tools etc for getting the
things done.
 They prepare periodical reports about the performance of the workers.
 They ensure discipline in the enterprise.
 They motivate workers.
 They are the image builders of the enterprise because they are in
direct contact with the workers.

Management Concept
Management Concepts promotes organizational achievement by providing
• The specific knowledge,
• Skills,
• And resources needed by your most valuable asset - people.
The Concept of Management
The concept of management is not fixed. It has been changing according to time
and circumstances. The concept of management has been used in integration
and authority etc.
The main concepts of management are as follows:
Functional Concept:
According to this concept
• 'Management is what a manager does'.
• "Management is principally the task of planning, coordinating, motivating
and controlling the effort of others towards a specific objective.
• Management is what management does. It is the task of planning,
executing and controlling."
• "Management is a distinct process consisting of
o Planning,
o Organizing,
o Activating and
o Controlling performed to determine and accomplish the objective by
the use of human beings and other resources."
• "Management is defined as the process by which the elements of a group
are integrated, coordinated and/or utilized so as to effectively and
efficiently achieve organizational objectives."
• "To manage is to forecast, and plan, to organize, to command, to
coordinate and to control."
'Getting Things Done Through Others' Concept:
• 'Management is the art of getting things done through others'.
• It is very narrow and traditional concept of management.

• Under this concept, the workers are treated as a factor of production only.
• The work of the manager is confined to taking work from the workers.
• He need not do any work himself.
• Modern management experts do not agree with this concept of
management. Some of these authors have explained this concept in the
following words:
o Harold Koontz, "Management is the art of getting things done
through and with people in formally organized groups.
• It is the art of creating an environment in which people can perform as
individuals and yet cooperate towards attaining of group goals.
• "Management is the art of directing and inspiring people."
Leadership and Decision-making Concept:
According to this concept,
• "Management is an art and science of decision-making and leadership.
• “Most of the time of managers is consumed in taking decisions.
• Achievement of objectives depends on the quality of decisions.
• Similarly, production and productivity both can be increased by efficient
leadership only.
• Leadership provides efficiency, coordination and continuity in an
organization.
Productivity Concept:
• "Management is an art of increasing productivity."
• Economists treat management as an important factor of production.
• According to them, "Management is also a factor of production like land,
labor, capital and enterprise
• "Management may be defined as the art of securing maximum prosperity
with a minimum of effort so as to secure maximum prosperity and
happiness for both employer and employee and give the public the best
possible service."
Universality Concept:

• "Management is universal".
• Management is universal in the sense that it is applicable anywhere
o whether social,
o religious or
o Business and industrial.
• "Management is a universal activity which is equally applicable in all types
of organization whether social, religious or business and industrial".

Management’s Ethical Responsibility
• Ethics can be defined as a process of evaluating actions according to
moral principal and values (A. Alhemoud).
• Those issues concern
o fairness, justice, rightness or wrongness;
o As a result it can only be resolved according to ethical standards.
Ethical Issues in Management
• Ethical conflict and ethical issues are relevant in many aspects of
management but particularly important in the aspect of work assignments.
• Managers face an ethic issue of work assignment conflict, which is the
byproduct of a diverse society at the workforce.
• The decisions that correct such an issue require the correct ethical tools of
thought.
• Some ethic issues in management stem from the basis of:
o Race, religion, and national origin.
o Managers have an ethical responsibility to practice relative moral
standards that set high-quality examples for employees to emulate
o The correct ethical choice in management is crucial to the success
of a manager and the company he works for.
o The relationship between social issues and ethically responsible
management practices play a relative role in resolving workplace
dilemmas.
o An unethical decision in management is a poor choice, which may
lead to extreme litigation for the company and possible termination
of the manager at fault.
o Managers face ethical issues at the workforce through interaction
with employees who have diverse ideologies based on their cultural
beliefs.
o The concept of diversity encompasses acceptance, respect, and
understanding.

o Ethics issues arise from diversity and are relative to an individual
misconstrue thought of race, gender, social class, physical
disability, and age of another individual or group.
o Managers face the common ethical dilemma of bias and such
matters treated incorrectly can generate inequality and bias among
workers.
o Members of a diverse workforce may show bias that favor ethnic
culture among groups.
o A group of individual members made up of a common culture may
feel more inclined to respect and work with individuals who share
similar or the same culture.
o The same group may not think as inclined to respect and work with
individuals who do not share similar culture attributes....
Social Responsibilities of Management
• The term social responsibilities can be defined as:
o The obligation (Commitment) of management towards
 The society and others concerned.
Reason for Social Responsibilities:
• Business enterprises are creatures of society and should respond to the
demands of society.
• If the management does not react to changes in social demands, the society will
either force them to do so through laws or will not permit the enterprise to
survive.
• Therefore the long term interests of business are best served when management
assume social responsibilities.
• The image of business organization liked with the quality of its products and
customer service and the extent to which it fulfills the expectations of
o Owners,
o Employees,
o Consumers,
o Government and
o The community at large.
• For long term success it matters a great deal if the firm has a favourable image in
the public mind.
• Every business enterprise is an organ of society and its activities have impact on
the social scene.

• Therefore, it is important for management to consider whether their policies and
actions are likely to promote the public good, advances the basic values of
society, and constitute to its stability, strength and harmony.
• These interested groups are directly or indirectly affected by the pursuit of
business activities and they are the stake-holders of the business enterprise.
Responsibility towards owners:
• The primary responsibility of management is to assure a fair and reasonable rate
of return on capital.
• With the growth of business the shareholders can also expect appreciation in the
value of their capital.
Responsibility towards employees:
• Management responsibility towards employees relate to the
o Fair wages and salaries,
o Satisfactory work environment,
o Labour management relations and employee welfare.
• Fair wages should be fixed in the light of labor productivity, the prevailing wage
rates in the same or neighbouring areas and relative importance of jobs.
• Managers’ salaries and allowances are expected to be linked with their
responsibility, initiative and skill.
• But the spread between minimum wages and highest salaries should be
reasonable.
• Another aspect of responsibility towards employees is the provision of welfare
amenities like:
o Safety and security of working conditions,
o medical facilities,
o housing,
o canteen,
o Leave and retirement benefits.
• Employees are expected to build up and maintain harmonious relationships
between superior and subordinates.
Responsibility towards consumers:
• In a competitive market, serving consumers is supposed to be a prime concern of
management.
• Management should anticipate developments, satisfy consumer needs and
protect consumer interests.
• Goods must be of appropriate standard and quality and be available in adequate
quantities at reasonable prices.
• Management should avoid resorting to hoarding or creating artificial scarcity as
well as false and misleading advertisements.
Responsibility towards the Governments:
• As a part of their social responsibility,
o Management must conduct business affair in lawful manner,

o Honestly pay all the taxes and dues,
o And should not corrupt public officials for selfish ends.
• Business activities must also confirm to the economic and social policies of the
government.
Responsibility towards the community and society:
• The socially responsible role of management in relation to the community are
expected to be revealed by its policies with respect to the:
o Employment of handicapped persons, and weaker sections of the
community, (Minorities).
o Environmental protection, pollution control, setting up industries in
backward areas,
o And providing relief to the victims of natural calamities etc.
MBO:
The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in
1954.
Definition:
Management by objectives (MBO) is a systematic and organized approach that allows
management to focus on achievable goals and to attain the best possible results from
available resources.
It aims to increase organizational performance by aligning goals and subordinate
objectives throughout the organization.
Ideally, employees get strong input to identify their objectives, time lines for completion,
etc. MBO includes ongoing tracking and feedback in the process to reach objectives.
Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his
book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the
significance of this organization management method, when he said: "It's just another
tool. It is not the great cure for management inefficiency.
Steps In Management By Objectives Planning:-
Goal setting: The first phase in the MBO process is to define the organizational
objectives. These are determined by the top management and usually in consultation
with other managers. Once these goals are established, they should be made known to
all the members. In setting objectives, it is necessary to identify "Key-Result Areas'
(KRA).
Manager-Subordinate involvement: After the organizational goals are defined, the
subordinates work with the managers to determine their individual goals. In this way,
everyone gets involved in the goal setting.
Matching goals and resources: Management must ensure that the subordinates are
provided with necessary tools and materials to achieve these goals. Allocation of
resources should also be done in consultation with the subordinates.

Implementation of plan: After objectives are established and resources are allocated,
the subordinates can implement the plan. If any guidance or clarification is required, they
can contact their superiors.
Review and appraisal of performance: This step involves periodic review of progress
between manager and the subordinates. Such reviews would determine if the progress
is satisfactory or the subordinate is facing some problems. Performance appraisal at
these reviews should be conducted, based on fair and measurable standards.
THE MBO PROCESS
Features of MBO:
1. Management by Objectives is a philosophy or a system, and not merely technique.
2. It emphasizes participative goal setting.
3. It clearly defines each individual responsibility in terms of results.
4. If focuses attention on what must be accomplished (goals rather than on how it is to
be accomplished.
5. It converts objective needs into personal goals at every level in the organization.
6. It establishes standards or yardsticks (goals) as operation guides and also as basis
of performance evaluation.
7. It is a system intentionally directed toward effective and efficient attainment of
organizational and personal goals.
8. MBO process (or management by Objective cycle or key elements of management
by Objectives or minimum requirements of management by objectives.

The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the comparison
of the employee’s actual performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the choosing the course of
action to be followed by them, they are more likely to fulfill their responsibilities.

GOAL:
The goal is where we want to be.
OBJECTIVE:
The objectives are the steps needed to get there."
1. Define your goals.
• Goals are your desired outcomes.
• They may include the desire to expand into a bigger office, give your staff
a raise or increase profits by a specific date.
• Your goals are your dreams and visions.
• Write your goals down. Brainstorm about them with your management
team, accountant and partners.
2. Define your objectives.
• Generally speaking, objectives are smaller goals--the means by which
your ultimate goals are met.
• For example, if your ultimate goal is to increase sales revenue in the
upcoming month by $2,000, your objectives are the steps that must be
taken in order for the goal to be realized.
• To find acceptable and realistic objectives, take notes and jot down all
activities you may need to accomplish to reach your overall goal.
• Weed out unrealistic objectives. This information will help you break down
your goals and objectives and insert them into a project plan.
3. Create a project plan.
• Once you have defined your goals and objectives, you must have a plan
to put them into action.
• To begin, list your goal on the top of your page.
• List each objective under your goal, creating a basic outline. This will
become the beginning of your project plan.
Setting goals is more than making vague statements like, "I will find a new job" or "I will
increase my business." It means creating a written plan that includes reasonable and
measurable long-term and short-term objectives. It means setting SMART goals.
S.M.A.R.T. refers to goals that are:
• Specific,
• Measurable,
• Achievable,
• Realistic and
• Time Framed.
Specific:

• Goals need to be something specific. Often we set goals that are so loose, it's
nearly impossible to judge whether we hit them or not. For example, a statement
like "I will lose weight" is too vague. How will you know if and when you've
reached your goal? Saying, "I will lose five pounds this month" is more specific.
At the end of the month it will be a simple matter of weights and measures: take
your measurements and get on the scale.
Measurable:
• Goals need to be measurable. For example, many of us want to increase our
number of contacts. But, "making new contacts" is an ambiguous statement. A
clearer objective is "I will attend four networking events each month and try to
connect with one person at each." It's a simple, concrete goal. This makes it easy
to see if you hit your target.
Achievable:
• Goals need to be reasonable and achievable. Nearly everyone has tried to drop
a few pounds at one time or another. Often their success or failure depends on
setting practical goals. Losing 15 pounds in 30 days is unrealistic (unless you're
planning a medical procedure). Losing six to eight pounds in 30 days is
reasonable. Don't set yourself up for failure by setting goals that are out of reach.
Realistic:
• Goals need to be realistic. When we're kids we think we can do anything. As
adults we learn that while we can have a lot, we can't have it all at the same time.
It's important to honestly evaluate yourself. Do you have the ability and
commitment to make your dream come true? Or does it need a little adjustment?
For example, you may love to play tennis, but do you have the time, talent and
commitment to become a pro? Be honest.
Time Framed:
• Goals need to have a time frame. Having a set amount of time will give your
goals structure. For example, many of us want to find a new job or start their own
business. Some people spend a lot of time talking about what they want to do,
someday. But, without an end date there is no sense of urgency, no reason to
take any action today. Having a specific time frame gives you the impetus
(Movement) to get started. It also helps you monitor your progress.
The acronym SMART has a number of slightly different variations, which can be used to
provide a more comprehensive definition for goal setting:
S - Specific, significant, stretching
M - Measurable, meaningful, motivational
A - Agreed upon, attainable, achievable, acceptable, action-oriented
R - Realistic, relevant, reasonable, rewarding, results-oriented
T - time-based, timely, tangible, trackable

"Many people fail in life, not for lack of ability or brains or even courage, but simply
because they have never organized their energies around a goal."
SMART Goals
Specific
• Well defined
• Clear to anyone that has a basic knowledge of the project
Measurable
• Know if the goal is obtainable and how far away completion is
• Know when it has been achieved
Agreed Upon
• Agreement with all the stakeholders what the goals should be
Realistic
• Within the availability of resources, knowledge and time
Time Based
• Enough time to achieve the goal
• Not too much time, which can affect project performance
Effective Goal Setting:
1. Make Your Goals Your Own.
To really put in the effort required to reach your goals the objective must truly be your
own.
No one will do the work for you so be sure your ambition is what you really want not just
the expectation of others.
You happiness is what needs fulfilling, so you must seek personal ambitions and make
sure your goal setting plans have you as the main beneficiary. Define what YOU want
and go after it.
2. Write Down Your Goals - NOW.
To help with focus and to stop straying of the path of success, the need to clearly target
your aim is a must.
Distractions are everywhere in the modern world, but having your end goal written down
serves to have a mark in the sand to gravitate towards and also to make a contract with
ourselves.
Start your goal setting lesson plans and stop procrastinating.
3. Make Them Positive.

Positivity begets more positive responses. When you are goal setting and have a goal
that says "I want to achieve wealth to create a fantastic lifestyle for my family" you have
a instant mindset that says if I do this with the right attitude I can succeed.
Make your goal setting list energetic and positive to match the energy you need to
achieve.
If on the other hand your goal is "I hate being poor, it makes me miserable and I just
want to get out of debt", you have created an instant negative mindset which will make
you and your actions negative.
It is very difficult to achieve positive results with a misery mindset.
4. Be Through Be Specific.
Have a clear and specific target in mind for your efforts because many people make their
aim to broad and lose focus or have too many variables to contend with, so be specific
and you will have an easier time planning for accomplishment.
This is an important goal setting exercise because you need to be clear, as there is no
room for ambiguity. Know what you want and go after it.
5. Find A Helpful Resource.
Well you are here now and have taken the first steps, so why not use your new found
goal setting training or you could get some professional success coaching or just enlist
the help of a friend or a family member, the key is to have as much support, information
and encouragement as you can get.
6. Have Some Varied Goals.
People are more than capable of multiple achievements so don't be hesitant in setting
more than one goal.
By having goals of varying difficulty we can accomplish small achievements and use that
momentum to encourage us towards bigger and better success.
When goal setting plans have both long and short term goals written down and you will
have more success along the way.
7. What Do You Bring The Party?
Know your best attributes because they are the qualities that will help you succeed.
By making a broad list of all of your best and most useful traits you not only boost your
self confidence, but you take a step towards realizing the possibilities that are available.
It's important when setting professional goals or corporate goal setting, to understand
why you can achieve you goals and be clear as to why you can accomplish your
dreams.
By understanding your best qualities, you'll get ahead of the curve and be able to self
promote with more subtlety and conviction.

8. Show Diligence.
Anything of value takes perseverance and effort to get the results we want, so we must
be diligent and make consistent effort to achieve our desired outcome.
There is no short term pay out for many things and showing diligence will develop one's
self in to a better more disciplined character.
9. Adjust As Is Necessary.
Rigid, inflexible goals can often become out of reach during times of adversity and
change, but by being prepared to adjust to suit our situation as necessary gives us not
only leeway but a safer base from which to attack our goals with confidence.
Times will change and unexpected things will happen.
10. Challenge Fear.
If fear will stop you now it will stop you again and again. Success is almost impossible
with a fearful mindset.
If you spend your life saying "what if I do" instead of "what if I don't" then many
opportunities will sail by you and on to someone else who had the courage to face their
fears with a brave mindset.
We don't want you to think there is a magic formula for bravery - There isn't, it must
come purely from your desire to say "Yes, I must take risks to succeed" and when you
do that you strengthen your attitude and create an environment of belief.
If you want to achieve a goal then be prepared for ups and downs but have the courage
to know that if and when you succeed it is your ability to take on what others wouldn't
that helped you there.
11. Believe.
Self belief is one of the key factors in maintaining the path to an accomplished goal.
Doubt and disbelief distracts focus and attack much needed persistence and that can
sabotage even your best efforts.
Without the belief in ourselves that we absolutely can be an achiever, it becomes almost
impossible to give 100% of our attention to our goals.
Build your confidence and self-esteem, know your best attributes and believe in your
abilities.
12. Have Some Big Goals.
Don't fall victim of setting the bar too low - this can lower your expectation of yourself.
Realistic goals are a must for self development, but you must have a big goal, something
that will take a long time and much hard work to reign in.
By having a large goal we have long term productive satisfaction and studies show high
levels of happiness in those who strive to achieve a large accomplishment.

The solution is, when goal setting choose a big goal to work towards as well as the
smaller ones.
13. Progress Is Success
Too many people get caught in the "are we there yet" trap and don't see the "look how
far we have come" picture.
The progress you make no matter how minor is an achievement in it's own right and the
knowledge of this is a key to building the momentum required to haul in those larger,
long term goals.
Be patient and realize ever dollar you earn or every ounce of weight you lose is a mini
success and will build to form a much larger accomplishment in time.
14. Plan and Plan Well.
It is not enough to plan, a plan must be thorough, complete, in depth and well
constructed.
While goal setting realize that your plan of action is the map you will take on your
journey to victory, so it must be the best one you can build.
Make research the backbone of your plan, investigate the possibilities and set in place a
path that will give you the best possible chance of success.
15. Every Road Has A Bump Or Two.
Don't worry it happens, everything seems to be going great then bam something you
didn't see coming shakes your foundations.
You can help mitigate the unexpected with a well constructed plan and a flexible base to
work from.
Even then the unforeseen will still occur, but your resilience and intestinal fortitude can
see you through bumps in the road if you have a little courage and display due diligence.
16. Control Your Focus.
Don't let hype distract you from discipline. Laser like focus is a necessity for achieving
goals however the sharper the focus the less time we have it.
In other words if you put far too much short term emphasis on something then the
chances are you will burn out and give up.
The solution is to put heavy focus into the task at hand but when finished your efforts for
the day you must remove your focus and have a rest, break or what ever it takes to
alleviate your mind.
Hype only gives you a push it doesn't last, only persistence can do that, so focus hard
and then change subjects to help maintain a healthy intensity.
17. Strike A Balance.

If you don't then life will do it for you. Don't neglect important areas of your life to gain
more time for a goal, as this approach may create problems in other areas of your life
that you haven't prepared for.
The solution is to Balance your life to include family time, relaxation, rest and activity -
Then you are in control and won't have to deal with family resentment or burn out.
18. Prioritize.
Know the most important details from the least important, don't miscue your actions or it
may have dire consequences.
In goal setting you must learn to prioritize those things that are of seeming importance
from those that are genuine.
If something seems harder and you put it off you only cheat yourself, your actions will
lack control and you will subconsciously feel like you are failing.
Don't procrastinate and don't misinterpret your priorities if you control the facets of your
plan of action properly success will happen faster.
19. Get Inspired.
People everywhere are achieving great things and so can you if you have the right tools
for setting goals and accomplishing them. Inspiration can help motivate us to work
harder, think bigger and to believe that our goals are indeed possible.
Use the victories of ordinary everyday people to make the realization that if you want to
succeed then you absolutely, positively can.
Use the knowledge that ordinary people achieve more than the extraordinary as goal
setting help
20. Be Patient.
It really is a virtue worth having. Patience almost begets consistency and is a key factor
in overcoming the day to day obstacles to achieving our goals.
Rome was built with patience and most fortunes, weight loss, sports championships and
worthy accomplishments were also the product of patient, prudent planning.
Impatience begets anger, distraction and failure, so pay attention to the patient
successes of the past by seeking to emulate them in the future.
Goal setting plans require an advanced patience mixed with controlled enthusiasm, but
not the kind that burns out after hype.

Definition:
Planning involves selecting missions and objectives as well as the actions to achieve
them. It requires decision making that is, choosing future courses of action from among
alternatives.
The process of:
• Setting goals,
• Developing strategies, and
• Outlining tasks and schedules to accomplish the goals.
• An act of formulating a program for a definite course of action.
Nature and Purpose of Planning:
THE NATURE AND PURPOSE OF PLANNING:
• PLANNING is a process for accomplishing purpose.
• It is a blue print of business growth and a road map of development.
• The conscious, systematic process of making decisions about goals and
activities to be pursued in the future.
• It helps in deciding objectives both in quantitative and qualitative terms.
• It is setting of goals on the basis of objectives and keeping in view the resources.
• It predicts what the future should look like.
• Formal procedures used in such an endeavor, such as the creation of
documents, diagrams, or meetings to discuss the important issues to be
addressed, the objectives to be met, and the strategy to be followed.
PLANNING is also a management process, concerned with defining goals for future
organizational performance and deciding on the tasks and resources to be used in order
to attain those goals. To meet the goals, managers may develop plans such as a
business plan or a marketing plan.
Planning always has a purpose. The purpose may be achievement of certain goals or
targets.
The planning helps to achieve these goals or target by using the available time and
resources.
To minimize the timing and resources also require proper planning.
The concept of planning is to identify what the organization wants to do by using the four
questions which are:
• Where are we today in terms of our business or strategy planning?
• Where are we going?
• Where do we want to go?
• How are we going to get there?
WHAT SHOULD A PLAN BE?
• A plan should be a realistic view of the expectations.

One of the most common sets of activities in the management is planning. Very simply
put, planning is setting the direction for something -- some system -- and then working to
ensure the system follows that direction. Systems have inputs, processes, outputs and
outcomes. To explain, inputs to the system include resources such as raw materials,
money, technologies and people. These inputs go through a process where they're
aligned, moved along and carefully coordinated, ultimately to achieve the goals set for
the system. Outputs are tangible results produced by processes in the system, such as
products or services for consumers. Another kind of result is outcomes, or benefits for
consumers, e.g., jobs for workers, enhanced quality of life for customers, etc. Systems
can be the entire organization, or its departments, groups, processes, etc.
Whether the system is an organization, department, business, project, etc., the process
of planning includes planners working backwards through the system. They start from
the results (outcomes and outputs) they prefer and work backwards through the system
to identify the processes needed to produce the results. Then they identify what inputs
(or resources) are needed to carry out the processes.
Goals
Goals are specific accomplishments that must be accomplished in total, or in some
combination, in order to achieve some larger, overall result preferred from the system,
for example, the mission of an organization. (Going back to our reference to systems,
goals are outputs from the system.)
Strategies or Activities
These are the methods or processes required in total, or in some combination, to
achieve the goals. (Going back to our reference to systems, strategies are processes in
the system.)
Objectives
Objectives are specific accomplishments that must be accomplished in total, or in some
combination, to achieve the goals in the plan. Objectives are usually "milestones" along
the way when implementing the strategies.
Tasks
Particularly in small organizations, people are assigned various tasks required to
implement the plan. If the scope of the plan is very small, tasks and activities are often
essentially the same.
Resources (and Budgets)
Resources include the people, materials, technologies, money, etc., required to
implement the strategies or processes. The costs of these resources are often depicted
in the form of a budget. (Going back to our reference to systems, resources are input to
the system.)
The Planning Cycle brings together all aspects of planning into a coherent, unified
process.

The stages in this planning process are explained below:
Stage 1: Analysis of Opportunities
In light of:
• The Market
• Competition
• What Customers Want
• Our Strengths.
• Our Weaknesses
Stage 2: Identifying the Aim of Your Plan
• What do I want the future to be?
• What benefit do I want to give to my customers?
• What returns do I seek?
• What standards am I aiming at?
• What values do I and my organization believe in?
You can present this aim as a 'Vision Statement' or 'Mission Statement'.
• Vision Statements express the benefit that an organization will provide to its
customers.

• Mission statements give concrete expression to the Vision statement, explaining
how it is to be achieved.
Stage 3: Exploring Options
• By this stage you should know where you are and what you want to do.
• The next thing to do is to work out how to do it.
• At this stage it is best to spend a little time generating as many options as
possible, even though it is tempting just to grasp the first idea that comes to
mind.
• By taking a little time to generate as many ideas as possible you may come up
with less obvious but better solutions. Just as likely, you may improve your best
ideas with parts of other ideas.
Stage 4: Selecting the Best Option
• Once you have explored the options available to you, it is time to decide which
one to use.
• If you have the time and resources available, then you might decide to evaluate
all options, carrying out detailed planning, costing, risk assessment, etc. for each.
Normally you will not have this luxury.
Stage 5: Detailed Planning
• By the time you start detailed planning, you should have a good picture of where
you are, what you want to achieve and the range of options available to you. You
may well have selected one of the options as the most likely to yield the best
results.
• Detailed planning is the process of working out the most efficient and effective
ways of achieving the aim that you have defined.
• It is the process of determining who will do what, when, where, how and why,
and at what cost.
A good plan will:
• State the current situation.
• Have a clear aim.
• Use the resources available.
• Detail the tasks to be carried out, whose responsibility they are, and their
priorities and deadlines.
• Detail control mechanisms that will alert you to difficulties in achieving the plan.
• Identify risks, and plan for contingencies. This allows you to make a rapid and
effective response to crises, perhaps at a time when you are at low ebb or are
confused following a setback.
• Consider transitional arrangements – how will you keep things going while you
implement the plan?
Stage 6: Evaluation of the Plan and its Impact
• Once you have worked out the details of your plan, the next stage is to review it
to decide whether it is worth implementing. Here you must be objective –

however much work you have carried out to reach this stage, the plan may still
not be worth implementing.
• This is frustrating after the hard work of detailed planning. It is, however, much
better to find this out now than when you have invested time, resources and
personal standing in the success of the plan. Evaluating the plan now gives you
the opportunity to either investigate other options that might be more successful,
or to accept that no plan is needed or should be carried out.
Stage 7: Implementing Change
• Once you have completed your plan and decided that it will work satisfactorily, it
is time to implement it. Your plan will explain how! It should also detail the
controls that you will use to monitor the execution of the plan.
Stage 8: Closing the Plan
• Once you have achieved a plan, you can close the project. At this point is often
worth carrying out an evaluation of the project to see whether there are any
lessons that you can learn. This should include an evaluation of your project
planning to see if this could be improved.
Hierarchy:
Definition
• A series of ordered groupings of people or things within a system;
• The organization of people at different ranks in an administrative body
• A hierarchy is an arrangement of units into related levels of different
weights or ranks, meaning that levels are considered "higher" or "lower"
than one another.
• A body of authoritative officials organized in nested ranks.
• Any group of objects ranked so that every one but the topmost is
subordinate to a specified one above it.
• A hierarchical organization is an organizational structure where every
entity in the organization, except one, is subordinates to a single other
entity. This arrangement is a form of a hierarchy.
• In an organization, the hierarchy usually consists of a singular/group of
power at the top with subsequent levels of power beneath them. This is
the dominant mode of organization among large organizations; most
corporations, governments, and organized religions are hierarchical
organizations with different levels of management, power or authority.
• A hierarchy is typically visualized as a pyramid, where the height of the
ranking or person depicts their power status and the width of that level
represents how many people or business divisions are at that level relative

to the whole—the highest-ranking people are at the apex, and there are
very few of them; the base may include thousands of people who have no
subordinates).
• These hierarchies are typically depicted with a tree or triangle diagram,
creating an organizational chart or organigram. Those nearest the top
have more power than those nearest the bottom, and there being fewer
people at the top then at the bottom. As a result, superiors in a hierarchy
generally have higher status and command greater rewards than their
subordinates.
• Organizational structure refers to the way that an organization arranges
people and jobs so that its work can be performed and its goals can be
met. When a work group is very small and face-to-face communication is
frequent, formal structure may be unnecessary, but in a larger
organization decisions have to be made about the delegation of various
tasks. Thus, procedures are established that assign responsibilities for
various functions. It is these decisions that determine the organizational
structure.
• In an organization of any size or complexity, employees' responsibilities
typically are defined by what they do, who they report to, and for
managers, who reports to them. Over time these definitions are assigned
to positions in the organization rather than to specific individuals. The
relationships among these positions are illustrated graphically in an
organizational chart. The best organizational structure for any organization
depends on many factors including the work it does; its size in terms of
employees, revenue, and the geographic dispersion of its facilities; and
the range of its businesses (the degree to which it is diversified across
markets).

Definition
SWOT analysis is a general technique which can be applied across diverse functions
and activities. Performing SWOT analysis involves generating and recording the:
• Strengths,
• Weaknesses,
• Opportunities, and
• Threats
• Relating to a given task.
It is customary for the analysis to take account of internal resources and capabilities
(strengths and weaknesses) and factors external to the organization (opportunities and
threats).
Benefits
SWOT analysis can provide:
• A framework for identifying and analyzing strengths, weaknesses, opportunities
and threats
• The impetus to analyze a situation and develop suitable strategies and tactics
• A basis for assessing core capabilities and competences
• The evidence for, and cultural key to, change
• A stimulus to participation in a group experience.
In SWOT, strengths and weaknesses are internal factors.
For example:
Strengths could be:
• Your specialist marketing expertise.
• A new, innovative product or service.
• Location of your business.
• Quality processes and procedures.
• Any other aspect of your business that adds value to your product or service.
Weaknesses could be:
• Lack of marketing expertise.
• Undifferentiated products or services (i.e. in relation to your competitors).
• Location of your business.
• Poor quality goods or services.
• Damaged reputation.
In SWOT, opportunities and threats are external factors.
Opportunities could be:
• A developing market such as the Internet.
• Mergers, joint ventures or strategic alliances.
• Moving into new market segments that offer improved profits.

• A new international market.
• A market vacated by an ineffective competitor.
Threats could be:
• A new competitor in your home market.
• Price wars with competitors.
• A competitor has a new, innovative product or service.
• Competitors have superior access to channels of distribution.
• Taxation is introduced on your product or service.

Effective Planning:
Planning:
Planning involves selecting missions and objectives as well as the actions to
achieve them. It requires decision making that is, choosing future courses of
action from among alternatives.
The process of:
• Setting goals,
• Developing strategies, and
• Outlining tasks and schedules to accomplish the goals.
• An act of formulating a program for a definite course of action.
Steps in the Effective Planning Process:
1. Define the overall purpose or goal
2. Determine the major components or objectives of the plan
3. Make sure that your objectives support the overall purpose
4. Collect and evaluate the data you will need to determine what it will take to
complete each component of the plan
5. Make sure that the data you collected and evaluated supports the overall
purpose
6. Develop a forecast plan
7. Make sure that your forecast plan supports the overall purpose
8. Determine action steps
9. Make sure that your action steps support the overall purpose
10.Develop contingency plans
11.Make sure that your contingency plans support the overall purpose
12.Implement your plan
13.Make sure that your implementation supports the overall purpose
14.Check the progress of your plan frequently
15.Make sure as your plan is implemented that the overall purpose remains
in focus.

Types of Plans in an Organization
There are three major types of plans which can help managers achieve their
organization's goals:
1. Strategic
2. Tactical
3. Operational
4. Contingency
Strategic plans
• A strategic plan is an outline of steps designed with the goals:
o Of the entire organization as a whole in mind, rather than with the
goals of specific divisions or departments.
o Strategic planning begins with an organization's mission.
• Strategic plans look ahead over the next two, three, five, or even more
years to move the organization from where it currently is to where it wants
to be.
• Requiring multilevel involvement, these plans demand harmony among all
levels of management within the organization.
• Top-level management develops the directional objectives for the entire
organization,
• While lower levels of management develop compatible objectives and
plans to achieve them.
• Top management's strategic plan for the entire organization becomes the
framework and sets dimensions for the lower level planning.
Tactical plans
• Tactics are the means needed to activate a strategy and make it work.
• A tactical plan is concerned with:
o What the lower level units within each division must do,
o How they must do it, and
o Who is in charge at each level?
• Tactical plans are concerned with shorter time frames and narrower
scopes.

• These plans usually span one year or less because they are considered
short-term goals.
Operational plans
• The specific results expected from:
o Departments,
o Work groups, and
o Individuals are the operational goals.
• These goals are precise and measurable. “Process 150 sales applications
each week” or “Publish 20 books this quarter” are examples of operational
goals.
• An operational plan is one that a manager uses to accomplish his or her
job responsibilities.
o Supervisors,
o team leaders, and
o Facilitators develop operational plans to support tactical plans.
• Operational plans can be a single-use plan or an ongoing plan.
• Single-use plans apply to activities that do not recur or repeat. A one-time
occurrence, such as a special sales program, is a single-use plan because
it deals with the:
• Who, what, where, how, and how much of an activity.
• A budget is also a single-use plan because it predicts sources and
amounts of income and how much they are used for a specific project.
• Operational plans lead to the achievement of tactical plans, which in turn
lead to the attainment of strategic plans.
Contingency plans
• In addition to these three types of plans, managers should also develop a
contingency plan in case their original plans fail.
• Intelligent and successful management depends upon a constant pursuit
of adaptation, flexibility, and mastery of changing conditions.
• Strong management requires a “keeping all options open” approach at all
times — that's where contingency planning comes in.

• Contingency planning involves:
o Identifying alternative courses of action that can be implemented if
and when the original plan proves inadequate because of changing
circumstances.
• Keep in mind that events beyond a manager's control may cause even the
most carefully prepared alternative future scenarios to go awry.
• Unexpected problems and events frequently occur.
• When they do, managers may need to change their plans.
• Anticipating change during the planning process is best in case things
don't go as expected.
• Management can then develop alternatives to the existing plan and ready
them for use when and if circumstances make these alternatives
appropriate.

Environment Analysis:
Market environment consist of all factors that in one way or another affect the
organization decisions.
There are external and internal factors.
Internal factor, these involve (6M's)
1. Men
2. Money
3. Material
4. Management
5. Machine
6. Methods
Organization comprises of:
• Person: More than 2 persons
• Interacting: The person should be interacting together for example
having conversation, communication, sharing ideas
• Management structure, Structure, Relation, Purposes or Objectives
• Place, Process, Division of Work or Specialization
• Authority and Responsibility
• System of Communication and System of Coordination
• Effective Management, Organization objectives.
Thus, for support the component of organization above, the organization should
have the following characteristics:
• Hierarchical order
• Policy and Controlling
• Formal Communication
• Delegation of Work
• Qualified human resources with professional skill
External factors, these include
• Macro factor and micro factors:
Macro factors are the one that affect the organization indirectly, these are
(PESTLE)
1. Political

2. Environment
3. Socio-cultural
4. Technological and
5. Ecological
6. Legal
While micro factors are those which affect the organization directly it involve
1. Customers
2. Competitors
3. Suppliers and
4. Public
The external environment is typically made up of things, situations, and events
that occur outside of an organization, (usually beyond the organizations control),
and affects the organization in either a positive or negative way. Some of these
external things, situations, and events that affect the organization in a positive or
negative way may include the following:
1. Demographics
2. Economy
3. Government interference
4. Political issues
5. Social issues
6. Competition
7. Environment issues

Organization’s External Environment
The external organization comprises of all the entities that exist outside its
boundary, but have significant influence on its growth and survival. An
organization has little or no control over its environment but needs to constantly
monitor and adapt to these external changes, a proactive or reactive response
leads to significantly different outcome.
The Environmental Domain
The domain consists of all the entities of the environment that interacts with the
organization. Although the domain can be large, it is important to focus on the
ones that have the highest significance. The common external factors that
influence the organization are discussed below.
Competition:
It comprises of the related industries with:
• Similar products or services,
• Their geographic locations and markets.
Related Industries:
• It is important to know all the competitors,
• Their organizational size and skills pool,
• Their competitive advantages,
• Their marketing strategies,
• Offshore development etc.
Global context:
• Due to increasingly broad world economy,
• It is important to watch the competition across the oceans,
• Competitive products launched from abroad,
• Changing socio-political situations, and home grown entrepreneurs.
Customers:
• They are the end-users of the product and services,
• The most critical aspect of the environment.

Preference changes:
• Customer likes and dislikes changes rapidly,
• People live in a tight social system that create and encourage trends.
• It is important to anticipate changes in user’s product requirements,
• Emerging technologies that can change how the products are used etc.
Demographical changes:
• These include the social, economical and cultural changes like
o Population age, ethnicity, education level and economic class.
o Such changes affect the customer preference and the mass market
trends.
Resources:
• An organization depends upon availability of certain external resources for
its operations and productivity.
Skilled Workers:
• These include undergraduate students, related university courses, training
schools and labor market.
• The availability of adequately skilled employees at various levels in the
organization can change dramatically over the period of time.
• Once the demand for certain skill drops, so does the supply, in a long run
it adversely affect the organization since it becomes hard to obtain highly
skilled new workers.
• Similarly, as the competition grows, they compete for the same skill set in
the market creating a high temporary demand.
Raw Materials:
• Every organization uses certain raw materials to manufacture its product
or service,
• Any disruption in its supply, changes in cost of materials etc can have an
adverse effect.
• The raw material definition includes sub parts that are contracted to be
manufactured by others, projects that are send overseas for production,
the leased space the organization uses or the transportation of its goods.

Finance:
• It provides operational support;
• It includes savings or available cash,
• Credit lines to fund new ventures, venture capitals, the stock markets and
investors.
• It is particularly noteworthy in the organizations that operate on thin
margins or new startups since they have little support to raise capitals.
Technology:
• It includes the science and technology required for the production,
• The technical tools that are used in the manufacturing or the technology of
the product itself in case of high-tech industry. Internet, social network,
advances in semiconductors and communication technologies have
revolutionized how organizations operate in current era.
Laws and Regulations:
• All organizations have to abide by the legal system, new laws and
regulations are constantly added due to the political or social changes.
• Compliance can result in additional cost, developing new technology,
additional taxes or legal fees; one such example is lowered carbon
emission requirements.
Environmental Uncertainty
The rate at which the external domain can possibly change defines the
environmental uncertainty; put differently, it’s a measure of how many factors
change during a single planning period. Not all factors impact the day to day
operations and thus needs to be weighed differently. Higher level of uncertainty
entails that organizational leaders have a complex environment to deal with, it
test their visionary and decision making capability in absence of clear data.
A framework of environmental uncertainty can be formulated by determining the
complexity and stability of the environment.
Complexity of Environment:
• It’s a measure of number of domain elements that influence the
organization’s operation.

• Not all domain factors might have considerable impact, one company
might have very few competitors with little market share while another
might be threatened by new players.
Stability of Environment:
• It is the frequency at which the domain elements change and how
predictable are the changes.
• Domain is considered to be stable if only few elements change in a
predicable fashion. It is considered unstable if the domain elements are
dynamic and shift abruptly, and it is hard to anticipate the changes.
• Competitors marketing strategies or alliances, price wars, sudden change
in political climate are some unpredictable factors that add to the domain’s
instability.
Environmental Intelligence
• Environmental intelligence gathering is a process of constantly scanning
the environmental domain for changes.
• Its purpose is to detect the changes, gather vital information, perform
methodical analysis and present its reports to the top executives in the
organization.
• There are two channels of obtaining environmental domain changes that
are mentioned below.
External Linkage:
• Organizations are an open system and are tightly bounded to its external
environment.
• Almost every functional unit has either direct or indirect linkage with the
environment and it receives tips and information about the related
changes.
• Sales & marketing can provide information about the competition’s new
product, road-map and pricing, R&D about the emerging technologies, HR
about skilled resources, laws and regulations.
• Similarly procurement dept can detect changes in suppliers and finance
about availability of credit, economic outlook etc. Some organizations
create an additional functional unit that acts as a bridge between other
units, it systemically collects and compiles the competitive information that
is used by top executives in strategic planning and decision making.

External Consultants:
• Organizations can also use specialized external services in field of
competitive intelligence and strategic planning.
• These services utilize various tools like survey & questionnaires, systemic
scanning of public information and the web and use various statistical
techniques to analyze the collected data.
• These consultants work with the internal functional units as well the
external environment to obtain their information, thus can potentially
provide unbiased recommendations which are sometimes hard to obtain
internally.
Adapting to External Environment
• In order to survive and prosper, the organization has to adapt itself to the
ecological system that surrounds itself.
• It is important to utilize the environmental intelligence to determine the
uncertainty and take appropriate actions for the well being of the
organization.
Forecasting and Planning:
• Environmental uncertainty should be used to predict the future course of
the environment and plan appropriately to reduce its adverse impact.
• A planned organization is better prepared against the unstable
environment and can respond quickly and coherently.

Corporate Strategy:
Strategy:
"Strategy is the direction and scope of an organization over the long-term: which achieves
advantage for the organization through its configuration of resources within a challenging
environment, to meet the needs of markets and to fulfill stakeholder expectations".
In other words, strategy is about:
• Where is the business trying to get to in the long-term (direction)
• Which markets should a business compete in and what kinds of activities are involved in
such markets? (Markets; scope)
• How can the business perform better than the competition in those markets?
(Advantage)?
• What resources (skills, assets, finance, relationships, technical competence, and
facilities) are required in order to be able to compete? (Resources)?
• What external, environmental factors affect the businesses' ability to compete?
(Environment)?
• What are the values and expectations of those who have power in and around the
business? (Stakeholders)
Corporate Strategy
Issues include:
o Scope of Business-----What Business you are in??
o Resource deployment----How you are going to use your resources??
o Competitive advantage----What are your competitive advantages??
o Coordination of Production, Marketing, Personnel etc.

Definition:
• Corporate Strategy - is concerned with the overall purpose and scope of the business to
meet stakeholders’ expectations.
• Corporate strategy is concerned wit:
o The firm’s choice of business,
o Markets and activities’, and thus
o It defines the overall scope and direction of the business.
OR
• CORPORATE STRATEGY is the direction an organization takes with the objective of
achieving business success in the long term. The development of a corporate strategy
involves:
o Establishing the purpose and scope of the organization's activities and
o The nature of the business it is in,
o Taking the environment in which it operates,
o Its position in the marketplace, and
o The competition it faces into consideration; most times analyzed through a
SWOT analysis.
Business Strategy
• The definition of business strategy is:
o A long term plan of action designed to achieve a particular goal or set of goals or
objectives.
• Creating a business strategy is a core management function.
• A business strategy is what is used when an opportunity or a crisis occurs. A business
strategy brings together the resources available (talent, capital, and time) to maximize
the opportunity or minimize the crisis.
• Unlike a business plan which is done on an annual basis, the business strategy plan is
done when an event occurs.
• Since the event usually occurs infrequently most CEOs and business owners have little
experience or no background in creating the best business strategy plan to deal with the
event.
• A business strategy typically is a document that clearly articulates the direction a
business will pursue and the steps it will take to achieve its goals.

• In a standard business plan, the business strategy results from goals established to
support the stated mission of the business.
o A typical business strategy is developed in three steps:
1. Analysis,
2. Integration and
3. Implementation.
1. Analysis Step:
• In the analysis step of business strategy development, one of several methods is used to
analyze a firm’s market, resources, obstacles to success and specific advantages.
• The goal of strategic analysis is to identify what a business wants to accomplish, the
strengths it can bring to bear on accomplishing the goal and weaknesses that need to be
addressed prior to integration and implementation.
• Strategic assessment methodologies can include evaluating the business environment,
gaming various competitive scenarios, determining what market forces are at work and
rating competitors, among others.
2. Integration:
• Integrating a business strategy usually is one of many steps in a larger business planning
process.
• A business plan begins with an overall vision.
• From the vision, a mission statement for the business is constructed, usually the shorter
and more precise the better.
• A mission leads to specific goals the business will achieve to accomplish its mission and
that in turn leads to strategy to achieve goals.
• Specific tactics are usually then developed to support the business strategy.
• This process usually begins with senior managers who then communicate the strategy to
respective teams.
• Each team is made to understand how the strategy will affect its daily activities.
• Taking the business strategy to the lowest level of the company possible helps integrate
the strategy throughout the firm.
• Business strategy can be applied to small businesses, too.
3. Implementation:
• Implementation of the business strategy typically follows assessment and integration.

• Individual teams in the company, which understand respective roles in bringing the
strategy to pass, implement the specific tactics developed to support the strategy.
• At the implementation stage, individual business units or teams often have a subsection
of the business strategy on which they focus.
• Business strategies usually include a measurement component as well.
• The measurement component of the business strategy is derived from the overall goals
established to accomplish the business mission.
• Goals are broken down, usually by both business unit and time estimated to accomplish
them.
• The business strategy includes a component to periodically compare current progress
against goals.
• Based on how well the business strategy has led to goal achievement, the strategic
analysis process is repeated to adjust the strategy as necessary.
Functional Strategy:
• What, then, do we mean by "functional strategy?" While a business strategy's scope is
the business as a whole,
o A functional strategy’s scope is each of the functional units of the business: IT,
finance, marketing, engineering, manufacturing, etc.
o A functional strategy describes how that business function will deliver on its
responsibilities within the business strategy. Included are:
 What must the function be able to do?
 How will it do that, especially in light of what the other functions of the
business are doing?
 Or of what the same functions in competitive businesses are doing?

Management
Strategy can be formulated on three different levels:
1. Corporate level
2. Business unit level
3. Functional or departmental level.
1. Corporate Level Strategy:
• Corporate Strategy - is concerned with the overall purpose and scope of the business to
meet stakeholders’ expectations.
• Corporate strategy is concerned wit:
o The firm’s choice of business,
o Markets and activities’, and thus
o It defines the overall scope and direction of the business.
OR
• CORPORATE STRATEGY is the direction an organization takes with the objective of
achieving business success in the long term. The development of a corporate strategy
involves:
o Establishing the purpose and scope of the organization's activities and
o The nature of the business it is in,
o Taking the environment in which it operates,
o Its position in the marketplace, and
o The competition it faces into consideration; most times analyzed through a
SWOT analysis.
Corporate level strategy is concerned with:
1. Reach:
• Defining the issues that are corporate responsibilities;
• These might include:
o Identifying the overall goals of the corporation,
o The types of businesses in which the corporation should be involved, and
o The way in which businesses will be integrated and managed.

2. Competitive Contact:
• Defining where in the corporation competition is to be localized.
3. Managing Activities and Business Interrelationships:
• Corporate strategy seeks to develop synergies by sharing and coordinating staff and
other resources across business units, investing financial resources across business
units, and using business units to complement other corporate business activities.
4. Management Practices:
• Corporations decide how business units are to be governed:
o Through direct corporate intervention (centralization) or
o Through more or less autonomous government (decentralization) that relies on
persuasion and rewards.
2. Business Unit Level Strategy:
• A strategic business unit may be a division, product line, or other profit center that can
be planned independently from the other business units of the firm.
• At the business unit level, the strategic issues are less about the coordination of
operating units and more about developing and sustaining a competitive advantage for
the goods and services that are produced.
• At the business level, the strategy formulation phase deals with:
o Positioning the business against rivals
o Anticipating changes in demand and technologies and adjusting the strategy to
accommodate them
o Influencing the nature of competition through strategic actions such as vertical
integration and through political actions such as lobbying.
o Michael Porter identified three generic strategies (cost leadership,
differentiation, and focus) that can be implemented at the business unit level to
create a competitive advantage and defend against the adverse effects of the
five forces.
3. Functional Level Strategy:
o The functional level of the organization is the level of the operating divisions and
departments.
o The strategic issues at the functional level are related to business processes and the
value chain.

o Functional level strategies in marketing, finance, operations, human resources, and R&D
involve the development and coordination of resources through which business unit
level strategies can be executed efficiently and effectively.
o Functional units of an organization are involved in higher level strategies by providing
input into the business unit level and corporate level strategy, such as providing
information on resources and capabilities on which the higher level strategies can be
based.
o Once the higher-level strategy is developed, the functional units translate it into discrete
action-plans that each department or division must accomplish for the strategy to
succeed.

Strategic Planning:
Definition:
Strategic planning is the process of formulating, implementing and evaluating strategies to
support the cross functional decision of the company.
Competition, Innovation, polices, environment, technology and human resource are some major
concerns of the company.
Companies following the traditional ad-hoc, forecasting methods to compete in the market will
not work for long term.
Strategic planning is now become mandatory process to clearly define:
• Company objectives,
• Goals,
• Internal resources,
• External factors and
• To evaluate overall cycle for eliminating bottlenecks. (Blockage).
Strategic planning process compromise of following phases:
1. Company vision & mission
2. Internal audit
3. External audit
4. Formulation of strategy
5. Implementation of strategy
6. Evaluation of strategy
The figure below shows the strategic planning process and the feedback cycle.

1. Company vision & mission
• Company defines its vision which is the future roadmap and
• Mission to determine the company objectives, products, business, employees etc.
• In short mission statement communicates the reason of existence of the company both
internally and externally.
• This phase help out company to determine financial and strategic objective for the
company.
• Financial objective consists of budget, revenues.
• Strategic objectives comprises of market share, customer base and sales.
2. Internal audit
• The internal audit assists the company to find out their internal resources.
• Internal audit clearly identify the internal strengths and weakness of the company.
• Internal strengths are the valuable resources of the company to exploit new
opportunities.
• Internal weaknesses are overcome with time, and company will look forward to convert
these to strengths to avoid risk for the future.
3. External audit
• Company deals with two environments
• One is internal as discussed above and other is external.
• Internal environment can be controlled by the company but external environment is not
within control of the company.
• The external environment is made of (PEST) political, legal, social and technological
issues,
• Change in any one of these environment will impact the company.
• It’s not necessary change always harm the company objectives sometimes it is also in
favor of company.
4. Formulation of strategy
• Strategy is the road map to achieve goal and objectives of the company.
• The result of internal and external audit will allow the company to develop strategies by
looking at their:
o Strengths,

o Weakness,
o Opportunities and threats.
• To attain better profitability company develop core competencies over its rivals.
5. Implementation of strategy
• It’s not necessary best strategy always produce better result.
• Strategy that company adopts will work as company thought is totally dependent upon
this stage.
• The people implementing the strategy are important for the success of the strategy,
they must know the objectives of the company,
• People who are involved in strategy development should become the part of the
implementation team.
• All the team performing activities should have the full understanding of the strategy
otherwise without knowledge they can misunderstood and strategy can be
implemented in the wrong direction.
6. Evaluation of Strategy
• The implementation of strategy is monitored and if any discrepancy and bottleneck are
found it should be removed during that time to avoid future loss.
• This phase can revert back to any other phase of strategic management cycle for
correction/improvement of the strategy.

Rational Decision Making Model
• A rational decision making model provides a structured and sequenced approach
to decision making.
• Using such an approach can help to ensure discipline and consistency is built
into your decision making process.
• As the word rational suggests, this approach brings logic and order to decision
making.
• Rational decision making model consists of:
o A series of steps, beginning with problem/opportunity identification, and
ending with actions to be taken on decisions made.
Why? Well one reason that emerged from his research is that:
"Too often, managers make bad tactical selections ..... Because they believe that
following recommended decision-making practices would take too much time and
demand excessive cash outlays."
A General Rational Decision Making Model:
• Rational decision making processes consist of a sequence of steps designed to
rationally develop a desired solution.
Typically these steps involve:

1. Identifying a problem or opportunity
• The first step is to recognize a problem or to see opportunities that may
be worthwhile.
• A rational decision making model is best employed where relatively
complex decisions have to be made.
• The first decision making lesson should be to ask yourself if you really
have a problem to solve or a decision to make.
2. Gathering information
• What is relevant and what is not relevant to the decision?
• What do you need to know before you can make a decision, or that will
help you make the right one?
3. Analyzing the situation
• What alternative courses of action may be available to you?
• What different interpretations of the data may be possible?
4. Developing options
• Generate several possible options.
• Be creative and positive.
5. Evaluating alternatives
• What criteria should you use to evaluate?
• Evaluate for feasibility, acceptability and desirability.
• Which alternative will best achieve your objectives?
6. Selecting a preferred alternative
• Explore the provisional preferred alternative for future possible adverse
consequences.
• What problems might it create?
• What are the risks of making this decision?
7. Acting on the decision
• Put a plan in place to implement the decision.
• Have you allocated resources to implement?
• Is the decision accepted and supported by colleagues?
• Are they committed to making the decision work?
Limitations of the rational decision-making model:
• It requires a great deal of time.
• It requires a great deal of information.
• It assumes rational, measurable criteria are available and agreed upon.
• It assumes accurate, stable, and complete knowledge of alternatives, preferences, goals,
and consequences.
• It assumes a rational, reasonable, non-political world.

Different Types of Decision Making
The following are the most common types of decision making styles that a manager in a
business or even a common man might have to follow.
1. Irreversible:
• These decisions are permanent.
• Once taken, they can't be undone.
• The effects of these decisions can be felt for a long time to come.
• Such decisions are taken when there is no other option.
2. Reversible:
• Reversible decisions are not final and binding.
• In fact, they can be changed entirely at any point of time.
• It allows one to acknowledge mistakes and fresh decisions can be taken depending upon
the new circumstances.
3. Delayed:
• Such decisions are put on hold until the decision maker thinks that the right time has
come.
• The wait might make one miss the right opportunity that can cause some loss, especially
in the case of businesses.
• However, such decisions give one enough time to collect all information required and to
organize all the factors in the correct way.
4. Quick Decisions:
• These decisions enable one to make maximum of the opportunity available at hand.
• However, only a good decision maker can take decisions that are instantaneous as well
as correct.
• In order to be able to take the right decision within a short span of time, one should also
take the long-term results into consideration.
5. Experimental:
• One of the different types of decision making is the experimental type in which the final
decision cannot be taken until the preliminary results appear and are positive.
• This approach is used when one is sure of the final destination but is not convinced of
the course to be taken.

6. Trial and Error:
• This approach involves trying out a certain course of action.
• If the result is positive it is followed further, if not, then a fresh course is adopted.
• Such a trail and error method is continued until the decision maker finally arrives at a
course of action that convinces him of success.
• This allows a manager to change and adjust his plans until the final commitment is
made.
7. Conditional:
• Conditional decisions allow an individual to keep all his options open.
• He sticks to one decision so long as the circumstances remain the same.
• Once the competitor makes a new move, conditional decisions allow a person to take up
a different course of action.
Types of Decision Making for Leaders
• A leader gives direction to people to follow. He is responsible for ensuring that his
decision provides the right direction to the organization.
• Be it in a business or in other organizations, decision making is an important component
of leadership skills.
• The different types of decision making that a leader typically encounters are:
1. Authoritative:
• In authoritative type of decision making the leader is the sole decision maker which
subordinates follow.
• The leader has all the information and expertise required to make a quick decision.
• It is important that the leader is a good decision maker as it is he who has to own up to
the consequences of his decision.
• Though effective, in case the leader is an experienced individual, it can harm the
organization if the leader insists on an authoritative type of decision making even when
there is expertise available within the team.
2. Facilitative:
• In facilitative type of decision making, both the leader and his subordinates work
together to arrive at a decision.
• The subordinates should have the expertise as well as access to the information
required to make decisions.

• Such an approach could be useful when the risk of wrong decision is very low.
• It is also a great way of involving and encouraging subordinates in the working of the
organization.
3. Consultative:
• As the name suggests, consultative decisions are made in consultation with the
subordinates.
• However, the fact remains that unlike in the facilitative decision making style, in
consultative decision making it is the leader who holds the decision making power.
• A wise leader tends to consult his subordinates when he thinks that they have valuable
expertise on the situation at hand.
4. Delegative:
• As per the term, the leader passes on the responsibility of making decisions to one or
more of his subordinates.
• This type of decision making is usually adopted by the leader when he is confident of the
capabilities of his subordinates.
It would have been so good had there been a universal model for decision making. However,
due to the dynamic nature of conditions, be it our workplace or our personal lives, we have to
resort to different types of decision making.

Maslow’s Hierarchy of Needs:
• Psychologist Abraham Maslow first introduced his concept of a hierarchy of needs in his
1943 paper "A Theory of Human Motivation"1 and his subsequent book, Motivation and
Personality.2
• This hierarchy suggests that people are motivated to fulfill basic needs before moving
on to other needs.
• Maslow’s hierarchy of needs is most often displayed as a pyramid.
• The lowest levels of the pyramid are made up of the most basic needs, while the more
complex needs are located at the top of the pyramid.
• Needs at the bottom of the pyramid are basic physical requirements including the need
for food, water, sleep and warmth.
• Once these lower-level needs have been met, people can move on to the next level of
needs, which are for safety and security.
• As people progress up the pyramid, needs become increasingly psychological and social.
Soon, the need for love, friendship and intimacy become important. Further up the
pyramid, the need for personal esteem and feelings of accomplishment take priority.
Maslow's Hierarchy of Needs

Self-Actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
Types of Needs
• Maslow believed that these needs are similar to instincts and play a major role in
motivating behavior.
• Physiological, security, social, and esteem needs are deficiency needs (also known as D-
needs), meaning that these needs arise due to deprivation (Lack).
• Satisfying these lower-level needs is important in order to avoid unpleasant feelings or
consequences.
• Maslow termed the highest-level of the pyramid as growth needs (also known as being
needs or B-needs).
• Growth needs do not stem from a lack of something, but rather from a desire to grow as
a person.
Five Levels of the Hierarchy of Needs
There are five different levels in Maslow’s hierarchy of needs:
1. Physiological Needs:
• These include the most basic needs that are vital to survival, such as:
o The need for water,
o Air
o Food and
o Sleep.
• Maslow believed that these needs are the most basic and instinctive needs in the
hierarchy because all needs become secondary until these physiological needs are met.
2. Security Needs:
• These include needs for safety and security.
• Security needs are important for survival, but they are not as demanding as the
physiological needs.
• Examples of security needs include:
o A desire for steady employment,

o Health insurance,
o Safe neighborhoods and
o Shelter from the environment.
3. Social Needs
• These include needs for belonging, love and affection.
• Maslow considered these needs to be less basic than physiological and security needs.
• Relationships such as:
o Friendships,
o Romantic attachments and
o Families help fulfill this need for companionship and acceptance,
o As does, involvement in social community or religious groups.
4. Esteem (High Regard/Value Needs:
• After the first three needs have been satisfied, esteem needs becomes increasingly
important.
• These include the need for things that reflect on:
o Self-esteem
o Personal worth
o Social recognition and
o Accomplishment.
5. Self-actualizing Needs:
• This is the highest level of Maslow’s hierarchy of needs. Self-actualizing people are
o Self-aware,
o Concerned with personal growth,
o Less concerned with the opinions of others and
o Interested fulfilling their potential.

Leadership:
• Leadership can be defined as a process by which one individual influences others toward
the attainment of group or organizational goals.
• Three points about the definition of leadership should be emphasized.
• First, leadership is a social influence process. Leadership cannot exist without a leader
and one or more followers.
• Second, leadership elicits voluntary action on the part of followers. The voluntary nature
of compliance separates leadership from other types of influence based on formal
authority.
• Finally, leadership results in followers' behavior that is purposeful and goal-directed in
some sort of organized setting. Many, although not all, studies of leadership focus on
the nature of leadership in the workplace.
• Leadership is probably the most frequently studied topic in the organizational sciences.
• Leadership should be distinguished from management.
• Management involves planning, organizing, staffing, directing, and controlling, and a
manager is someone who performs these functions.
• A manager has formal authority by virtue of his or her position or office.
• Leadership, by contrast, primarily deals with influence.
• A manager may or may not be an effective leader.
A leader's ability to influence others may be based on a variety of factors other than his/her
formal authority or position.

Path Goal Theory:
• Path Goal theory is about how leaders motivate subordinates to accomplish designated
goals. It was originally proposed by Robert House(1971).
• The stated goal of leadership is to enhance employee performance and employee
satisfaction by focusing on employee motivation
• Emphasizes the relationship between the leader’s style and characteristics of the
subordinates and the work setting
• The leader must use a style that best meets the subordinates motivational needs
Leadership Behaviors:
• Directive leadership:
• Leader gives:
• Instructions, expectations, time lines, and performance standards
• Supportive Leadership:
• Leader is:
• Friendly and approachable, attends to the well being of subordinates, and treats
everyone as equals
• Participative Leadership:
• Leader invites:
• Subordinates to give ideas, share opinions and integrates their suggestions into
the decision making process
• Achievement-Oriented Leadership:
• Leader challenges subordinates to perform at the highest level possible. Leader has
high standards of excellence and seeks continuous improvement.

Subordinate Characteristics
• Need for affiliation- prefer supportive leadership
• Preferences for structure – prefer directive leadership
• Desires of control- prefer participative leadership
• Self-perceived level of task ability- prefer achievement orientated leadership

Pros (In Favour):
• Helps understand how leader behavior effects subordinates satisfaction and work
performance
• Deals directly with motivation – one of the only theories to address this
• Provides a very practical model – make a clear path and follow it
Cons (Against)
• This is a very complex theory that incorporates many aspects of leadership
• Research only partially supports the theory
• Fails to explain adequately the relationship between leader behavior and subordinate
motivation
• Treats leadership as a one way street, places a majority of the responsibility on the
leader.

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