POM Chapter 4+

Principles of Management
Fall Semester 2023 – JGLS, JGU
Essentials of Planning & Managing by

Objectives
Instructor: Dr. Piyush Pranjal

(Associate Professor)
Source: Chapter 4 (Prescribed Book) + additional materials

Learning Objectives
1. Explain Managerial Planning & its Importance

2. Identify & Analyze various types of plans and show how they
related to one another
3. Outline & discuss the steps in planning
4. Define objectives & explain its nature
5. Describe how verifiable objectives can be set for different
situations
6. Discuss the concept of MBO
What is Planning?
• Selecting Mission & Objectives as well as the Actions to

achieve them which require Decision Making, i.e., choosing
the course of action from among alternatives
• Planning bridges the gap from where we are to where we

want to reach and how
• Planning & Controlling are inseparable: We essentially control

plans i.e., plans furnish standards of control
Types of Plans
1. Missions or Purposes
2. Objectives or Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
1. Missions & Purposes
• The basic purpose or function or tasks of an enterprise or
agency or any part of it
• For Example:
Toyota
2. Objectives or Goals
• The ends toward which an activity is aimed

• It concerns planning, organizing, staffing, leading, and
controlling
3. Strategies
• The determination of the basic long-term objectives of an
enterprise and the adoption of courses of action and
allocation of resources necessary to achieve these long-term
goals
4. Policies (Explicit Norms)
• General statements or understandings that guide or channel
thinking in decision making [not all policies are explicit; some
are merely implied from the actions of managers - Norms]
• For e.g. Recruitment Policy, Pricing Policy, CSR Policy, etc

5. Procedures
• Plans that establish a required method of handling future
activities
• For e.g. Recruitment process

6. Rules
• Specific required actions or non-actions (Dos & Don’ts),
allowing no discretions
• For e.g. No Smoking, No bullying in class, No trespassing

7. Programs
• A complex of goals, policies, procedures, rules, tasks,

assignments, steps to be taken, resources to be employed,
and other necessary elements to carry out a given course of
action [more holistic than other types of plans]
• For e.g. Employee Wellness Program, Purchase Development

Program, etc
8. Budgets
• A statement of expected results expressed in numerical terms
• It may be called as a quantified plan
• It may be expressed in terms of finances, labour hours, units

of product, machine hours, etc.
• For e.g. India’s Financial Budget, A Company’s annual budget,

A manufacturing units budget in terms of labour hours
Steps in Planning
Nature of Objectives
• Should be verifiable: An objective is verifiable when at the

end of the period one can determine whether or not it has
been achieved
• Key Result Area (KRA): An area in which performance is

essential for the success of the enterprise
Relationship of Objectives & Organizational Hierarchy
How to set Objectives?
• A mix of quantitative & qualitative objectives: Quantify as

much as possible
• Guidelines: should be concise, clear, verifiable, challenging,

prioritized, promote personal & professional growth
• A checklist is always handy; may include questions as below:

 Do the objectives cover the main features of my job?
 Is the list too long?
 Are the objectives challenging yet reasonable?
 Are my resources and authority sufficient?
Management by Objectives
• A comprehensive managerial system that integrates many key

managerial activities in a systematic manner and is consciously
directed toward the effective and efficient achievement of
organizational and individual objectives
• Used for motivating employees, performance management, HR

Planning, Career Planning, Budgeting, etc.
• Benefits: result-oriented planning, clarification of roles and

authority, encouragement of commitment to personal and
organizational goals, development of effective control and
corrective mechanisms
Weaknesses of MBO
• Difficult to implement on ground (tedious)
• Giving guidelines to Goal-setters is difficult
• Quantifying each goal is also difficult
• Balance between short-run Vs long-run goals
• Overuse of quantitative (distinction between challenging &

impossible goals)
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Principles of Management

Fall Semester 2023 – JGLS, JGU

Essentials of Planning & Managing by

Instructor: Dr. Piyush Pranjal

Source: Chapter 4 (Prescribed Book) + additional materials

1. Explain Managerial Planning & its Importance

• Selecting Mission & Objectives as well as the Actions to

• Planning bridges the gap from where we are to where we

• Planning & Controlling are inseparable: We essentially control

• The ends toward which an activity is aimed

• For e.g. Recruitment Policy, Pricing Policy, CSR Policy, etc

• For e.g. Recruitment process

• For e.g. No Smoking, No bullying in class, No trespassing

• A complex of goals, policies, procedures, rules, tasks,

• For e.g. Employee Wellness Program, Purchase Development

• A statement of expected results expressed in numerical terms

• It may be called as a quantified plan

• It may be expressed in terms of finances, labour hours, units

• For e.g. India’s Financial Budget, A Company’s annual budget,

• Should be verifiable: An objective is verifiable when at the

• Key Result Area (KRA): An area in which performance is

• A mix of quantitative & qualitative objectives: Quantify as

• Guidelines: should be concise, clear, verifiable, challenging,

• A checklist is always handy; may include questions as below:

• A comprehensive managerial system that integrates many key

• Used for motivating employees, performance management, HR

• Benefits: result-oriented planning, clarification of roles and

• Difficult to implement on ground (tedious)

• Giving guidelines to Goal-setters is difficult

• Quantifying each goal is also difficult

• Balance between short-run Vs long-run goals

• Overuse of quantitative (distinction between challenging &

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