u What Type of Skills Managers Need? Managerial Skills

important environmental factors such as market demand for goods, cost of raw materials, technology to be used, population growth, government policy, etc. on the future plans are made. Plans should be formulated by the management, keeping the constraints imposed by internal as well as external conditions in mind. u Evaluating alternatives and selection: After establishing the objectives and planning premises, the alternative courses of action have to be considered.

The pros and cons as well as the consequences of each alternative course of action must be examined thoroughly before a choice is made. u Formulating derivative plans: After selecting the best course of action, the management has to formulate the secondary plans to support the basic plan.

The plans derived for various departments, units, activities, etc., in a detailed manner are known as ‘derivative plans’. For example, the basic production plan requires a number of things such as availability of plant and machinery, training of employees, provision of adequate finance, etc. To ensure the success of a basic plan, the derivative plans must indicate the time schedule and sequence of performing various tasks. u Securing cooperation and participation: The successful implementation of a plan depends, to a large extent, on the whole-hearted cooperation of the employees. In view of this, management should involve operations people in the planning activities. u Providing for follow-up: Plans have to be reviewed continually to ensure their relevance and effectiveness. In the course of implementing plans, certain facts may come to light that were not even thought of earlier. In the light of these changed conditions, plans have to be revised. Without such a regular follow-up, plans may become out-of-date and useless. Moreover, such a step ensures the implementation plans along right lines.

Principles of Planning

To be useful, planning should try to incorporate some of the time-tested and interrelated principles, beautifully summed up by Koontz thus: 1. Principle of contribution to objectives:Every plan should help in the achievement of organisational objectives. 2. Principle of primacy of planning: Planning precedes all other managerial functions. It is the first and the foremost function to be followed in the process of management. 3. Principle of pervasiveness of planning: Planning is an all-pervasive function. It is important to all managers regardless of their level in the organisation. 4. Principle of flexibility: By flexibility of a plan is meant its ability to switch gears, change direction to adapt to changing situations without unnecessary cost (ability to vary product mix, shift marketing effort geographically, raise additional funds on favourable terms, reshuffle and relocate personnel quickly, change organisation structure etc.).

5. Principle of periodicity: Plans should be integrated and interconnected in such a way as to achieve the stated objectives economically and efficiently. A manager should review events and expectations regularly; refine and redraw the plan and keep it on track. 6. Principle of planning premises: Every plan is based on carefully considered assumptions, known as planning premises. “The more the individuals charged with planning, understand and agree to utilise consistent planning premises, the more coordinated enterprise planning will be”. 7. Principle of limiting factor: While choosing an appropriate course of action among different alternatives, the limiting or critical factor (such as money, manpower, machinery, materials, management) should be recognised and given due weightage. When ignored, the critical factor would seriously impact the process of planning and make it impossible to achieve goals.

Effective Planning

How can managers effectively plan when the external environment is continually changing? The following steps have to be taken—according to experts-- in order to make planning effective: 1. Climate: Planning must not be left to chance. Additionally, conducive climate must be provided so that activities proceed smoothly and systematically. Top managers should remove obstacles to planning, by establishing clear cut goals, realistic planning premises and offering required information and appropriate staff assistance at various levels. 2. Top management support: Planning must start at the top. It must receive attention of the top management continually. They must be willing to extend a helping hand, whenever required. 3. Participation: Plans are implemented by people. So, it is necessary to secure acceptance and commitment from them. One way to increase commitment is to solicit subordinates’ participation in the planning process. Planning comes alive when employees are involved in setting goals and determining the means to reach them.

BOX 5.2 : TEN COMMANDMENTS OF A GOOD PLAN

1. Should have a clear objective 2. Should be simple and easy to understand 3. Should provide for proper analysis and clarification of actions 4. Should be flexible enough to move in sync with changing trends 5. Should have a balanced focus 6. Should be practicable and capable of delivering results 7. Should allow people---especially those who look after its implementation-- to participate actively and enthusiastically 8. Should provide for optimum use of resources