NAGINDAS KHANDWALA COLLEGE OF MANAGEMENT STUDIES

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PRINCIPLES OF MANAGEMENT 2 S.Y.B.M.S. - B

Project Topic: Coke (PLANNING, CONTROLLING, ORGANISING, LEADERSHIP)

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TO:- PROF. RUPA MAM

GROUP NO. 03

GROUP MEMBERS ARE:

PRITISH RAUT VIVEK RAWAT JUGAL RUPAREL JITESH SAIYA BHAVIT SALVI JINESH SAMPAT SACHI SANGHARAJKA

3015 3016 3017 3018 3019 3020 3021

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INTRODUCTION

World's #1 soft-drink company. Owns four of the top five soft drink brands. Makes more than 400 drink products.

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HISTORY

Invented by Dr.John S. Pemberton Introduced on 8th May, 1886. Country of Origin United States Head Quarters located in Atlanta, Georgia Name Given By Frank Robbinson Methods of management
Management has been described as getting things done by other people. Managers have responsibility for enabling an organisation to achieve its objectives. They are therefore responsible for planning, organising, and controlling organisational activities. Managers set budgets, monitor those budgets, and identify ways of making sure that the budget is kept to. In addition managers manage resources - people, plant, time, materials, finance, etc. People sometimes think that management is a very precise science. However recent research has shown that this
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idealistic picture is often quite different from the reality. In the real world, managers operate in a whirl of activity, constantly having to switch their attention from one subject, problem or person to another. They live in an uncertain world, where relevant and useful information is often mixed up with gossip and speculation.

The planning process

Planning is the primary function of management process.It is the starting point of the whole Management process as other management functions are related to planning function.

According to PHILIP KOTLER,Planning is deciding in the present what to do in the future. It is the process whereby companies reconcile their resources with their objectives and resources.
Plans are developed in order to set out a route map to help in achieving objectives. Whilst the plan is made by managers with consideration to internal factors such as resources available, the direction of previous plans, the organisations objectives etc, it is also important to consider external influences. External influences that effect planning include the actions of competitors, and a range of social, legal, economic, and technological factors. A plan therefore needs to be designed to take account of the external environment. For example, if the organisation is planning to expand it is important to make sure that the market will justify such an expansion (which depends on social and economic factors such as consumer tastes and incomes). The planning process can therefore be illustrated in the following way: > Large companies like Coca-Cola, Kellogg's, and BT will create a
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number of plans. At the highest level they will create an organisation wide plan termed corporate strategy. This will be supported by a range of lower level plans including marketing plans, production plans, advertising plans, human resources plans etc. Production planning will also concern the development of new products, involving research and development of new products, the production of prototypes, and the final product selection. Leaders are proactive. They make change happen instead of reacting to change. The future requires corporate leadership with the skills to integrate many unexpected and seemingly diverse events into its planning. Every organization must plan for change in order to reach its ultimate goal. Effective planning helps an organization adapt to change by identifying opportunities and avoiding problems. It sets the direction for the other functions of management and for teamwork. Planning improves decision-making. All levels of management engage in planning.

Strategic Planning
Strategic planning produces fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it. It requires broad-scale information gathering, an exploration of alternatives, and an emphasis on the future implications of present decisions. Top level managers engage chiefly in strategic planning or long range planning. They answer such questions as "What is the purpose of this organization?" "What does this organization have to do in the future to remain competitive?" Top level managers clarify the mission of the organization and set its goals. The output needed by top management for long range planning is summary reports about finances, operations, and the external environment. Strategic planning is the process of developing and analyzing the organization's mission, overall goals, general strategies, and allocating
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resources. A strategy is a course of action created to achieve a longterm goal. The time length for strategies is arbitrary, but is probably two, three, or perhaps as many as five years. It is generally determined by how far in the future the organization is committing its resources. Goals focus on desired changes. They are the ends that the organization strives to attain. Traditionally strategic planning has been done annually. However, many companies are doing away with annual business plans altogether and moving to a system of continuous planning, to permit quicker response to changing conditions. Thus, the strategic plan involves adapting the organization to take advantage of opportunities in its constantly changing environment. Chunka Mui and Larry Downes in Unleashing the Killer App: Digital Strategies for Market Dominance (Harvard Business School Press, 1998) suggest that strategic planning will be replaced by "digital strategy." They make the argument that business change originates with technology -- particularly with new computer-based products and services that transform industries, the way American Airlines' SABRE system transformed travel. Top management must formulate digital strategies (software and digitally delivered services) that not only support business but also actually dictate how business is done. The planning process is rational and amenable to the scientific approach to problem solving. It consists of a logical and orderly series of steps. Strategic planning sets the stage for the rest of the organization's planning. The tasks of the strategic planning process include: *Define the mission. *Conduct a situation or SWOT analysis by assessing strengths and weaknesses and identifying opportunities and threats. *Set goals and objectives. *Develop related strategies (tactical and operational). *Monitor the plan.

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Control
Control is concerned with making sure that plans are kept to and taking appropriate actions when production is falling behind plan. A production budget sets out planned output for ongoing periods. Variances from the plan can then be identified, and where production is falling behind plan it will be possible to allocate extra resources and management time to getting back on plan - i.e. a control process. Production reports set out targets and performance so that it is possible to see at a glance, how effective production is. Reports will set out targets achieved, variances from the production budget, as well as areas where there are problems that need sorting out. The word 'control' means the ability to direct or restrain. A controller carries out a function automatically.

Planning, control are three important aspects of effective production. Production plans set out the targets, time scales and methods of production. Targets set out quantities and types of products to be produced within a given time frame and need to be closely allied to meeting the needs of the market. Production plans can be set out on a weekly, monthly or longer period. For example, in a company like Audi production planning will be tied to developing new models and expanding production of existing lines.

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Planning - control can thus be seen as a cyclical process. The plans provide a tool for controlling production. The reports provide an analysis and evaluation of the success of the planning/control process. The findings of the reports can then be used for developing new plans and adjusting existing ones, and for creating new control procedures. Organisations like Travis Perkins employ a plan-action-report cycle for most of their activities.

Controlling
Controlling is directly related to planning. The controlling process ensures that plans are being implemented properly. In the functions of management cycle - planning, organizing, directing, and controlling planning moves forward into all the other functions, and controlling reaches back. Controlling is the final link in the functional chain of management activities and brings the functions of management cycle full circle. Control is the process through which standards for performance of people and processes are set, communicated, and applied. Effective control systems use mechanisms to monitor activities and take corrective action, if necessary. The supervisor observes what happens and compares that with what was supposed to happen. He or she must correct below-standard conditions and bring results up to expectations. Effective control systems allow supervisors to know how well implementation is going. Control facilitates delegating activities to
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employees. Since supervisors are ultimately held accountable for their employees' performance, timely feedback on employee activity is necessary.

Control Process
The control process is a continuous flow between measuring, comparing and action. There are four steps in the control process: establishing performance standards, measuring actual performance, comparing measured performance against established standards, and taking corrective action.

Step 1. Establish Performance Standards.

Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard. What is expected? How much deviation can be tolerated?

Step 2. Measure Actual Performance.

Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports, and sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback.

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Step 3. Compare Measured Performance Against Established Standards.

Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation - the acceptable variance - has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem.

Step 4. Take Corrective Action.

The supervisor must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a supervisor can take immediate corrective action and get performance back on track. Also, the supervisors can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation. Immediate corrective action is more efficient; however basic corrective action is the more effective.

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Types of Control
Controls are most effective when they are applied at key places. Supervisors can implement controls before the process begins (feed forward), during the process (concurrent), or after it ceases (feedback).

Feedforward controls focus on operations before they begin. Their

goal is to prevent anticipated problems. An example of feed forward control is scheduled maintenance on automobiles and machinery. Regular maintenance feeds forward to prevent problems. Other examples include safety systems, training programs, and budgets.

Concurrent controls apply to processes as they are happening.

Concurrent controls enacted while work is being performed include any type of steering or guiding mechanism such as direct supervision, automated systems (such as computers programmed to inform the user when they have issued the wrong command), and organizational quality programs.

Feedback controls focus on the results of operations. They guide

future planning, inputs, and process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, annual) reports so that almost instantaneous adjustments can be made.

Characteristics of Effective Controls

Control systems must be designed properly to be effective. When control standards are inflexible or unrealistic, employees cannot focus on the organization's goals. Control systems must prevent, not cause, the problems they were designed to detect. Performance variance can also be the result of an unrealistic standard. The natural response for employees whose performance falls short is to
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blame the standard or the supervisor. If the standard is appropriate, then it is up to the supervisor to stand his or her ground and take the necessary corrective action. An example of effective controls is the dashboard on a car. There are many things that can go wrong with a car. Only the most critical items to the car's operation are the focus on the dashboard (oil level, engine heat, fuel gauge, etc.). Variations in these items are most likely to inflict the most damage to the car. The critical items on the dashboard are easily understood and used by drivers. They point out a problem and specify a solution. They are accurate and timely. They call the driver's attention to variations in time to prevent serious damage. Yet, there is not so much information on the dashboard that the driver is overwhelmed.

Methods of management
Management has been described as getting things done by other people. Managers have responsibility for enabling an organisation to achieve its objectives. They are therefore responsible for planning, organising, and controlling organisational activities. Managers set budgets, monitor those budgets, and identify ways of making sure that the budget is kept to. In addition managers manage resources - people, plant, time, materials, finance, etc. People sometimes think that management is a very precise science. However recent research has shown that this
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idealistic picture is often quite different from the reality. In the real world, managers operate in a whirl of activity, constantly having to switch their attention from one subject, problem or person to another. They live in an uncertain world, where relevant and useful information is often mixed up with gossip and speculation.

Concepts of Organizing
The working relationships vertical and horizontal associations between individuals and groups that exist within an organization affect how its activities are accomplished and coordinated. Effective organizing depends on the mastery of several important concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. Many of these concepts are based on the principles developed by Henri Fayol. Not only does a business's organizational structure help determine how well its employees make decisions, but it also reflects how well they respond to problems. These responses, over time, can make or break an organization. In addition, the organizational structure influences employees' attitudes toward their work. A suitable organizational structure can minimize a business's costs, as well as maximize its efficiency, which increases its ability to compete in a global economy. For these reasons, many businesses have tinkered with their organizational structures in recent years in efforts to enhance their profits and competitive edge. Once managers have their plans in place, they need to organize the necessary resources to accomplish their goals. Organizing, the second of the universal management functions, is the process of establishing the orderly use of resources by assigning and
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coordinating tasks. The organizing process transforms plans into reality through the purposeful deployment of people and resources within a decision-making framework known as the organizational structure. The organizational structure is defined as The set of formal tasks assigned to individuals and departments The formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managerial control The design of systems to ensure effective coordination of employees across departments The organizational structure provides a framework for the hierarchy, or vertical structure, of the organization. An organizational chart is the visual representation of this vertical structure.

The Organizational Process

Organizing, like planning, must be a carefully worked out and applied process. This process involves determining what work is needed to accomplish the goal, assigning those tasks to individuals, and arranging those individuals in a decision-making framework (organizational structure). The end result of the organizing process is an organization a whole consisting of unified parts acting in harmony to execute tasks to achieve goals, both effectively and efficiently. A properly implemented organizing process should result in a work environment where all team members are aware of their responsibilities. If the organizing process is not conducted well, the results may yield confusion, frustration, loss of efficiency, and limited effectiveness.
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In general, the organizational process consists of five steps (a flowchart of these steps is shown)

Figure 1 The organizational process.

1. Review plans and objectives.

Objectives are the specific activities that must be completed to achieve goals. Plans shape the activities needed to reach those goals. Managers must examine plans initially and continue to do so as plans change and new goals are developed.

2. Determine the work activities necessary to accomplish objectives.

Although this task may seem overwhelming to some managers, it doesn't need to be. Managers simply list and analyze all the tasks that need to be accomplished in order to reach organizational goals.

3. Classify and group the necessary work activities into manageable units.

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A manager can group activities based on four models of departmentalization: functional, geographical, product, and customer.

4. Assign activities and delegate authority.

Managers assign the defined work activities to specific individuals. Also, they give each individual the authority (right) to carry out the assigned tasks.

5. Design a hierarchy of relationships.

A manager should determine the vertical (decision-making) and horizontal (coordinating) relationships of the organization as a whole. Next, using the organizational chart, a manager should diagram the relationships.

BIBLIOGRAPHY
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 www.google.com www.cocacola.co.in www.yahoo.com Forebs magazine

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