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What is Planning?
Planning is the process of setting future objectives and deciding on the
ways and means of achieving them. It involves deciding in advance what is
to be done in the future for a specific period and then taking the necessary
steps to do the things decided upon.

Nature and Characteristics of Planning

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1. Primary Planning:
Precedes other managerial functions.
Foundation for organizing, staffing, directing, and controlling.
2. Planning as Process:
Involves stages or steps.
Begins with identifying mission and goals and ends with implementation
arrangements.
3. Perceived as Planning:
Managerial function across all levels.
Varies in content and quality among different managerial levels.
4. Future Orientation:
Inherently future-oriented.
Addresses uncertainties and unknowns unfolding in the future.
5. Information Basis:
Relies on information.
Essential for diagnosing issues, developing alternatives, and making choices.
6. Rationality:
Purposeful and conscious managerial activity.
Backed by adequate information, knowledge, and understanding.
7. Formal and Informal Notion:
Involves both formal and informal elements.
Formal: systematic, rigorous.
Informal: intuitive, verbal.
8. Intellectual Process:
Requires conceptual skills.
Involves abstract and concrete thinking, anticipating opportunities, and
analyzing alternatives.
9. Pragmatic Action Orientation:
Primarily pragmatic and action-oriented.
Emphasizes thinking and desiring before acting.
10. Planning as a Form of Decision Making:
Involves problem-solving and decision-making.
Decisions made on organizational objectives, policies, programs, and
procedures.
11. Planning Premises:
Based on assumptions about future events.
Known as planning premises, derived through forecasting.
12. Dynamism:
A dynamic process, involves continuous assessment and reassessment.
13. Level of Planning:

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Divided into corporate entireorganization and functional withinunits

planning.
Further categorized into strategic longterm and tactical/operational
shortterm planning.

14. Types of Plans:

Including objectives, strategic policies, programs, budgets, schedules,
procedures, methods, and rules.
Categorized into single-use plans specif icsituations and standing plans
stable, repetitivesituations.

Importance of Planning

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1. Provides Direction:
Gives a clear sense of direction to organizational activities and managerial
behavior.
Strengthens confidence in understanding the organization’s goals and
chosen path.
2. Analyzing Alternatives:
Allows managers to examine and analyze alternative courses of action.
Enhances awareness of likely consequences for informed decision-making.
3. Reduce Uncertainties:
Forces managers to look beyond immediate concerns and gain control over
environmental complexities.
4. Minimize Impulsive Decision:
Reduce impulsive and arbitrary decisions.
Promotes disciplined managerial thinking.
Improves the organization’s capability to assume calculated risks within
defined limits.
5. Kingpin Functions:
Acts as a prime managerial function around which other functions are
designed.
Organizational structure and functions are built around planning.
6. Resource Allocation:
Involves judicious allocation of strategic resources for achieving
organizational goals.
Strategic resources include funds, competent executives, technological
talent, etc.
7. Resource Use of Efficiency:
Contributes to the efficient functioning of work units.
Prompts managers to close gaps, rectify deficiencies, and reduce wastage for
overall resource efficiency.
8. Adaptive Responses:
Improves organization’s ability to adapt to change in the external
environment.
Adaptive behavior is crucial for survival, especially in technology, markets,
and products.
9. Anticipative Action:
Goes beyond mere adaption.
Stimulating proactive initiatives and crisis anticipation.
Helps perceive opportunities ahead of competitors for competitive lead.
10. Integration:

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Facilitates effective integration of diverse managerial decisions over time.

Provides framework for internally consistent major decision on
organizational activities.

Limitations of Planning
1. Assumption:
Plans are based on forecasts and assumptions, which might be inaccurate,
affecting the plans.
2. Incomplete Information:
Planning often relies on incomplete or untimely information leading to
decisions based on partial knowledge.
3. Lack of Control:
Managers have limited control over external factors, and external events can
influence plans unexpectedly.
4. Difficulty Adapting to Change:
Plans may become outdated in rapidly changing environments, making it
challenging to adapt.
5. Fluid Process:
Planning is a dynamic process because the future is always changing,
making it hard to have a stable view of past, present, and future.
6. Delay in Action
7. Rigidity
8. Plans Remaining on Paper
9. Implementation Challenges at Lower Levels:
Detailed plans at lower organizational levels may not align with broader
plans, causing inconsistency and implementation difficulties.

The Process of Planning

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1. Planning Preparation:
Planning doesn’t just happen, it needs careful consideration.
Management establishes a planning culture through education and training.
2. Internal Assessment:
Top management analyzes the organization’s current state, strength,
weakness, and performance.
Reviews financial, manpower, competitive positions, and other key aspects.
3. External Analysis:
Examines external factors like economic, social, and technological trends.
Identifies opportunities and threats affecting the organization.
4. Key Area for Planning:
Management evaluates the relevance of existing aspects based on internal
and external appraisals.
Considering retaining, strengthening, modifying, or exploring new directions.
5. Alternative Plans:
Managers use creative thinking to generate alternative plans, strategies, and
objectives.
Evaluate these plans based on merits and demerits to make informed
choices.
6. Medium and Short Range Plans:
Long-range plans cover 1 to 3 years, while short-range plans are for one
year or less.
7. Implementation Arrangements:
Effectively implementing plans is crucial.
Top management ensures cooperation, participation, and commitment from
managers at various levels.
Specifies authority and accountability for resource allocation, decision-
making, and communication.

Forecasting as an Element of Planning

Forecasting in planning is crucial for anticipating future conditions and events that may
impact an organization. It involves estimating variables like economic, social,
technological, and political factors. Managers use forecasting to gain insight into
potential challenges and opportunities. For businesses, it helps predict sales,
profitability, technological changes, and market trends. While forecasting is not perfect
and future events may deviate, it remains essential for informed decision-making and
planning. Planning premises, including external and internal factors, further refine the
process by converting forecasting into meaningful assumptions for effective planning.

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Types of Planning
1. Strategic Planning:
Integrated organization-wide course action.
Originated from military campaigns.
Addresses opportunities, threats, strengths, weakness.
Aims to improve competitive position.
Involves major measures and moves for growth, profitability, and market
share.
2. Tactical Planning:
Sub-plans to implement strategies.
More specific, functional sub-corporate.
Concerned with detailed decisions and actions at lower managerial levels.
Based on more information and less risky condition.
Provide the basis for coordinated and time-bound activities.
3. Long-Range Planning:
Formulates long-range objectives.
Considers a fairly long time horizon.
Varies based on enterprise characteristics.
Guides critical goals and major decisions for the future.
4. Short-Range Planning:
Formulates short-range objective.
Time span of one year or less.
Action-oriented detailed and quantitative.
Breaks down long-range plans into compact, actionable programs.
Basis for coordinated performance and source allocation.
5. Operational Planning:
Refers to tactical planning and short-range planning.
Involves planning detailed operations at middle and supervisory levels.

Principles of Planning

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1. Top Management Interest:

Leaders should demonstrate genuine interest in planning and inspire their
teams to do the same.
2. Long-Range View:
Decisions should consider long-term effects after thorough analysis and
objective consideration of available facts.
3. Contribution to Objectives:
Planning should purposefully contribute to organizational objectives.
4. Primary of Planning:
Planning is the foundational function from which all other managerial
functions flow.
5. Flexibility:
Adaptive plans help organizations cope with unforeseen changes without
abandoning predetermined plans.
6. Navigation Change:
Regular monitoring of external events combined with plan review and
revision is crucial for goal achievement.
7. Commitment:
Planning should cover the necessary time period to fulfill commitments
made in decisions.
8. Limiting Factor:
Managers must address limiting factors hindering the smooth progress
towards achieving objectives.

International Trade
Export Trade: when a country sells goods to another country
Import Trade: when a country buys goods from another country
Re-export Trade: when goods imported from one country and the same are
exported to another country

Aids to Trade
It refers to various services, facilities, and resources that facilitate and support the
smooth conduct of trade activities. It helps to overcome obstacles such as hindrance of
time, place, knowledge, etc.

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1. Transportation: facilitates movement of goods from producers to customer, road,

rail, ports, airports etc.
2. Warehousing: storage facilities and warehousing services help to good efficiently
3. Advertising: promotion activities, advertising, and marketing strategies help
business to reach their target audience.
4. Banking: access to financial services, credit and banking facilities support the
financial aspects of trade
5. Insurance: trade involves risk, and insurance services provide coverage for
potential losses due to factors like theft, damage etc.

Business Features
Refers to organization or individuals engaged in commercial, industrial or
professional activities with the aim of earning profit.

Typically involve the production, purchase or sale of goods and services in order to
meet the needs of customer.
Dealing in goods and services-business deal with goods and services, the goods
may be consumer goods shoe, bread, cloth etc. they may be producer”s good
machinery, equipment etc, also deal with services transport, banking, insurance
Production and or exchange- business activity should concern with the transfer of
goods or exchange of goods between a buyer and a seller.
Continuity and regularity in dealings-a single transaction shall not be treated as
business it under taken continually or at least recurrently.
Element of risk-every business there is possibility to incurring loss, it is termed as
risk. There are two kinds of risk:
Risk whose probability can be calculated and can be insured. Losses due to
fire, theft, flood etc.
Risk whose probability cannot be calculated eg: changing technology, fall in
demand, changing fashion.

Business Objectives

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Economic Objectives:
1. Earning profit
2. Exploring market & creation of more customer
3. Growth and expansion of business
4. Cost efficiency
5. Innovation and improvements in goods and service
Human Objectives:
1. Employee satisfaction
2. Employee development
3. Health and safety
4. Work place diversity and inclusion.
Social Objectives:
1. Corporate social responsibility
2. Ethical business practices
3. Sustainable practices.

Business vs Profession vs Employment

Basis of
Business Profession Employment
Comparison

Entrepreneur’s decision Membership of

Mode of Appointment letter
and other legal professional body and
Establishment and service agreement
formalities if necessary certificate of practice
Rendering of Performing work as
Provision of goods and
Nature of Work personalized, expert per service contract or
services to the public
services rules of service
Qualification and
No minimum Expertise and training
training as per
Qualification qualification is in a specific field is a
prescribed by the
necessary must
employer
Reward or
Profit earned Professional fee Salary or wages
Return
Capital Required as per size of Limited capital needed
No capital required
Investment business for establishment
Profits are uncertain Fee is generally
Fixed and regular pay;
Risk and irregular; risk is regular and certain;
no risk
present some risk

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Innovation, Invention, and Creativity

Innovation refers to the process of improving or introducing new methods,
ideas, or products. It involves taking an existing concept and making it better,
more efficient, or more valuable to solve problems or meet needs effectively
e. g. , developingasmartphonewithadvancedf eatureslikef acerecognition.

Invention is the creation of something entirely new that did not exist before,
often as a result of scientific or technical advancement. It involves generating
a novel idea, process, or product
e. g. , theinventionof thetelephonebyGrahamBell.

Creativity is the ability to generate original ideas. It is the foundation for

invention and innovation e. g. , writingauniquestory.

Characteristic Innovation Invention Creativity

Improving or applying Creating something Generating unique,

Definition new ideas to existing entirely new that did original, and imaginative
products not exist before ideas or concepts
About changing or
Creating something
Focus adding a new pattern Thinking up new things
new to the world
to something
Based on strategic
Fuzzy ideas and cannot
marketing and
Basis Scientific skills be clarified until it is
primarily technical
made into a prototype
skills

Types of Innovation

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1. Incremental Innovation:
Making small, gradual improvements to existing products, processes, or
services.
2. Disruptive Innovation:
The introduction of new products, services, or technologies that significantly
alter the existing market landscape.
3. Architectural Innovation:
Taking the lessons, skills, and overall technology and applying the same in a
different market.
4. Radical Innovation:
Usually gives birth to new ideas, consuming the old one, thereby creating a
revolutionary technology e. g. , crowdf unding.

Make in India
Encourages industrialists to set up their manufacturing units in India through
foreign direct investment F DI , so as to put India on a global map with
respect to manufacturing.

FDI to invest in the manufacturing sector

FDI to invest in the defense sector
License manufacturing of foreign defense equipment under defense procurement
DP P

Made in India
Simply indicates that the product or its components were manufactured or
produced within the geographical boundaries of India.

This label is often used to promote and support locally made goods, contributing to the
country’s economy and emphasizing the origin of the product particulars. Factors of
production.

Digital India
The aim of this initiative is to transform India into a digital nation, and the
objective of this is to reduce paperwork involved in getting many formalities
complexed.

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For example passport services, vote id , driving license and also connect rural sector to
urban sector.

Digital India Feature:

1. Broadband connectivity
2. Digital literacy
3. E-governance
4. Universal access to phone
5. Public internet access
6. Information for All
7. E-kranti - As per UNINDIA February 2019 program which is extension of Digital
India development agenda.

The government of India is planning to invest in modernizing classrooms across India.

Some other programs: Internet sathi, government services on your fingertip, DIGDHA,
RAS, online market etc.

Startup India
It’s a program of the government of India with a major aim of building a
sector ecosystem that is favorable for the growth of start-up businesses. It
gives sustainable economic growth leading to large scale opportunities for
employment.

Action plan of start-up India:

1. Simplification and handholding

2. Funding support and incentives
3. Industry academia partnership and incubation.

Incubator
Basically, is an organization which shows the part to the start-up companies
to speed up their growth and success.

Social Responsibility
Means that individuals and companies have a responsibility to take steps in
the best interests of their environment and civilization as a whole.

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Corporate Social Responsibility CSR

Is how companies conduct their business activities to have an overall
positive impact on society; it covers sustainability, social impact and ethics.

Corporate Ethics
It is a form of applied ethics or professional ethics, that examines ethical
principles and moral or ethical problems that can arise in a business
environment.

Business Plan
A business plan is a road map that gives headings for designing future
courses of action.

Paradigm Shift
A fundamental change in the basic concepts and experimental practices of a
discipline.

The paradigm shift in corporate responsibility has changed over time due to factors like
NGO influence, media reach and corporate scandals. Globalization has shifted the role
of governments, leading to changing social expectations. Consumers now demand
transparency beyond philanthropy. This shift resulted in two types: A change in
business philosophy and a focus on society.

1. Philosophy of business: In the first shift in business philosophy recognize that,

business are more than just profit makers, they are social institutions with duties
to society and the environment. It emphasizes that society, not just the
entrepreneurs, decides if a business should continue based on fulfilling assigned
duties.
2. Towards society and Natural environment: In business ethics, businesses need to
consider different participants, those inside the company like stakeholders and
employees, and those outside like customers and the community. And the natural
environment is also a crucial part of this. However, in reality businesses often
prioritize shareholders and immediate impacts. The challenge is making sure
businesses balance their responsibilities to society and the environment with their
financial goal.

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Corporate Responsibility
Corporate responsibility consists of: CSR, corporate governance, and environmental
accountability. Corporations have accountability to those groups and individuals that
they can influence, i.e., its stakeholders, and society at large benefits of CSR, better
brand recognition, positive business reputation, increased sales and customer loyalty,
operation cost, media interest and good interest.

CSR theory: CSR is a decision to improve the welfare of the community through
discretional business practices and contributions to the corporation resources.
Stakeholder theory: It’s a theory of organizational administration and business
moral that argues with ethics and qualities in dealing with everyday operations.
Triple bottom line: It is a notion which makes wider a business emphasis on the
budgetary concern to involve social and natural contemplations. A triple primary
concern estimates an organization’s level of social obligation, its monetary worth,
and its natural effect.

Co-operatives
Financial co-operatives where members pool savings and provide loans to
each other, promoting financial inclusion.

Classified into two: credit agriculture and non-credit agriculture societies

1. Agricultural co-operative: created by farmers to pool resources for activities like

purchasing supplies, processing, and marketing agricultural products
2. Farming co-operatives: these society are most helpful to small and marginal
farmers and enable them to get the advantages of large scale operations

Other cooperative societies are: processing co-operative, construction, co-operatives,

transport co-operatives, fishery co-operatives, diary co-operatives etc..

Requisites of an Ideal Form of Business Org

The requisites of an ideal form of org are as follows:

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1. Ease of Formation: The org should be simple to establish with minimal legal and
procedural requirements.
2. Scope of Raising Capital: It should provide opportunities to access sufficient
funds to meet operational and expansion needs.
3. Extent of Liability: Limited liability is preferred, as it protects owners personal
assets from business debts.
4. Flexibility of Operations: The structure should allow easy adaptation to change
in market conditions or business goals.
5. Stability and Continuity: The business should remain operational despite
changes in ownership or management.
6. Effectiveness of Management: An ideal organization ensures competent and
efficient decision-making process
7. Extent of Government Control and Regulations: Minimal interference from the
government allows smoother functioning and quicker decision-making .
8. Business Secrecy: The structure should enable confidentiality of sensitive
information.
9. Tax Burden: A lower tax liability improves profitability and cash flow.
10. Ownership Prerogatives: Should have sufficient control and decision-making
rights to manage the organization effectively.

Criteria for the Choice of Org

The decision regarding the choice of organization assumes importance at two stages of
business

A-At the time of starting

B-At the time of expansion.

A:

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1. Nature of the Business: Choose based on the type of activity e.g. manufacture,
services etc.
2. Volume of Business: Small businesses prefer simple structures, large scale
businesses need more formal ones.
3. Area of Operation: Local businesses need simpler forms, while global ones
require complex setups
4. Desire of Control: Sole proprietorship offers full control, while partnerships and
companies share it.
5. Capital Requirements: High capital needs suit partnerships or companies, low
needs favor sole proprietorships.
6. Government Regulations: Simple structures face fewer regulations, complex ones
need more compliance.

B:

The expansion programs may have the following implications:

Need for large financial resources.

Need for internal reorganization and control
Need for specialized services like communication, accounting, marketing etc.
Increase in government controls and regulations
Increase in tax liability
Increase in the problem of control & coordination.

Schemes of Public Sector Enterprises

1. Maharatna Scheme:
It is the classification or status granted by Public Sector Undertakings P SU s
based on their financial performance, market capitalization and other criteria.
2. Navaratna Scheme:
It is another classification system for PSUs in India, initiated by the
government of India.
This scheme was introduced to identify and empower a select group of nine
PSUs to enhance their efficiency, competitiveness and global reach.
These companies are expected to be leaders in their respective sectors.
3. Miniratna Scheme:
The miniratna scheme launched in 1997 by the government of India provides
increased autonomy and financial power to Central Public Sector Enterprises
CP SEs with the goal of enhancing their efficiency and competitiveness.

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Organizing
Refers to the process involving the identification and grouping of activities to
be performed, defining, and establishing the authority responsibility
relationship.

In simple terms, the organization is a group of people working together to achieve

common goals; it involves arranging tasks, defining responsibilities, and creating a
structure that helps everyone work efficiently towards the objectives of the company or
groups.

Characteristics of Organization
1. Group of People: An organization forms when people work together for a
common purpose
2. Division of Work: Tasks are divided based on skills and assigned to individuals.
3. Common Purpose: The organization has shared goals separate from personal
objectives.
4. Chain of Command: A hierarchy is formed, determining the flow of authority and
communications.
5. Dynamic Org: Interactions are influenced by sentiments, attitudes and behavior
adding a dynamic element.

Importance of Organizing
1. Facilitates Administration: Enables management to align resources with
objectives of planning, coordination and control.
2. Facilitates Growth and Diversification: Supports organizational expansion and
adaptability to changing needs.
3. Optimum Use of Resources: It allows efficient use of technical and human
resources fostering development.
4. Stimulates Creativity: Encourages creativity by providing clear roles and allowing
managers to focus on important issues.
5. Encourages Humanistic Approach: Fosters a team oriented environment, job
satisfaction and human centric approach to work.

Steps in the Organization Process

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1. Determination of Objectives: Identify objectives to guide the organization and

bring unity of direction.
2. Identification and Grouping of Activities: Classify the major activities to avoid
duplication and clarify expectations.
3. Allotment of Duties: Assign specific jobs to individuals based on their abilities
and provide authority.
4. Developing Relationships: Establish clear structures of relationships, enhancing
accountability and facilitating delegation.
5. Integration of Activities: Achieve unity through authority relationships and
organized information systems.

Principles of Organization

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1. Unity of Objectives: Every part of the organization should be directed toward

achieving common goals. Clear formulation and understanding of objectives are
crucial for focusing efforts.
2. Division of Work and Specialization: Tasks should be divided, allowing
individuals to specialize in specific areas, promoting efficiency and quality.
Coordination is vital to interrelate specialized functions.
3. Definition of Job: Each position in the organization must have clearly defined
duties and responsibilities to avoid overlapping functions and maintain clarity.
4. Separation of Line Staff Functions: Distinguish between functions directly
contributing to the main objectives linef unctions and support functions
staf f f unctions for better organizational efficiency.

5. Chain Command or Scalar Principle: Maintain clear lines of authority from top to
bottom, facilitating delegation of authority through levels for effective decision
making
6. Parity of Authority and Responsibility: Ensure that responsibility is matched with
corresponding authority empowering individuals to fulfill their assigned tasks.
7. Unity of Command: Every individual should report to only one superior to prevent
confusion, conflict and ensure a clear reporting structure.
8. Unity of Direction: Group activity with a common goal should be managed by one
person, fostering cohesive approach towards organizational objectives.
9. Exception Principle: Higher level managers should focus on exceptional matters,
while routine decisions are made at lower levels, maintaining efficiency
10. Span of Supervision: The number of subordinates a manager can effectively
supervise should be balanced, considering factors like nature of work, managerial
ability,-efficiency
11. Principle of Balance: Maintain a proper balance between various aspects of the
organization, avoiding undue importance in any one area.
12. Communication: A good communication network is crucial for organizational
effectiveness, ensuring smooth flow of information and understanding
13. Flexibility: A business organization structure should be adaptable to change in
business nature and technological advancements, ensuring flexibility without
disrupting the basic design.
14. Continuity: The organization’s structure should be able to serve its objectives for a
long period and organizational basis.

Traditional Commerce vs E-commerce

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Feature Traditional Commerce E-commerce

Focuses on the exchange of Carrying out commercial transactions

Meaning
products and services electronically on the internet
Processing of
Manual Automatic
Transaction
Accessibility Limited time 24*7
Physical Goods can be inspected Goods cannot be inspected physically
Inspection physically before purchase before purchase
Customer
Face to face Screen to screen
Interaction
Marketing One way marketing One to one marketing
Scope of Business Limited to a particular area Worldwide reach
Payment Cash, cheque, credit card Credit card, e-wallet

Control
Controlling is the process of checking if work is happening as per by the
organization.

It ensures proper use of resources and helps achieve goals efficiently. Controlling
compares actual performance with expected standards, identifies any differences, and
takes corrective action to fix them.

Controlling is a systematic process to compare actual work with plans, track

progress, and learn from experiences for future improvements.

Delegation
Refers to the process of transferring responsibility for a task, function, or
decision from a superior to a subordinate, while the superior retains
accountability for the outcome.

Delegation of Authority

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Is a formal process where a manager transfers some of their decision-

making powers and responsibilities to their subordinate. It helps in
distributing workload and fostering employee development while
maintaining the manager's accountability.

Elements of Delegation
1. Conferment of Power of Authority: The right or power assigned to a subordinate
to make decisions and take actions necessary for completing a task.
2. Assignment of Responsibility: The obligation of a subordinate to complete the
task assigned to them.
3. Accountability: The subordinate is held answerable to the superior for the
performance and outcomes of the assigned task.

Principles of Delegation
1. Principle of Functional Definition: The tasks, authority, and accountability of both
managers and subordinates must be clearly defined.
2. Principle of Unity of Command: Each subordinate should receive instructions
from only one superior.
3. Principle of Authority-Level: A manager should delegate authority only to the
level that ensures efficient task completion.
4. Principle of Result Orientation: Delegation should focus on achieving results
rather than just task completion.

Importance of Delegation
1. Reduces Managerial Workload: Frees managers to focus on strategic and critical
tasks.
2. Encourages Employee Development: Builds skills, confidence, and decision-
making abilities in subordinates.
3. Improves Decision-Making: Decisions are made closer to the point of action,
increasing efficiency.
4. Promotes Organizational Growth: Allows managers to handle broader
responsibilities and complex projects.
5. Enhances Motivation: Employees feel valued and trusted when responsibilities
are delegated to them.

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Barriers to Effective Delegation

1. Manager-Related Barriers:

Fear of losing control or power.

Lack of trust in subordinates.
Insecurity about being outperformed by subordinates.

2. Subordinate-Related Barriers:

Fear of failure or lack of confidence.

Reluctance to accept more responsibility.
Lack of necessary skills or knowledge.

3. Organizational Barriers:

Poor communication systems.

Lack of a delegation culture.

Means of Effective Delegation

1. Clearly Define Responsibilities: Ensure tasks and expectations are well-defined
and understood.
2. Match Tasks with Capabilities: Assign responsibilities based on the subordinate’s
skills and expertise.
3. Provide Necessary Resources: Equip subordinates with the tools, time, and
authority needed to complete tasks.
4. Foster Trust and Confidence: Build a supportive relationship to instill confidence
in subordinates.
5. Regular Monitoring and Feedback: Periodically review progress and provide
constructive feedback.
6. Encourage Initiative: Allow subordinates to make decisions and take ownership of
tasks.
7. Promote Open Communication: Maintain a clear line of communication for
guidance and problem-solving.

Motivation

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Is the psychological process that arouses, directs, and sustains an

individual's behavior towards achieving specific goals. It is the driving force
behind a person’s actions, influenced by internal needs or external
incentives.

Theory of Motivation
Motivation theories explain why individuals behave in particular ways and
how they can be encouraged to act effectively.

Theories of motivation are categorized into:

1. Content Theories: Focus on what motivates individuals

′ ′
e. g. , M aslow sH ierarchyof N eeds, H erzberg sT wo − F actorT heory .
2. Process Theories: Focus on how motivation occurs
e. g. , ExpectancyT heory, EquityT heory.

M.C. George's Participation Theory

Highlights the role of employee participation in decision-making and
organizational processes.

Key aspects include:

1. Involvement Enhances Motivation: Employees feel valued and more motivated

when they are involved in decisions.
2. Improves Accountability: Participation fosters a sense of ownership and
responsibility.
3. Reduces Resistance: Involving employees in decisions minimizes resistance to
changes.
4. Boosts Morale: Collaboration strengthens morale and teamwork.

Maslow's Needs Priority Theory

Explains human motivation as a progression through five levels of needs.

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1. Physiological Needs: Basic survival needs like food, water, and shelter.
2. Safety Needs: Security, stability, and freedom from harm.
3. Social Needs: Belongingness, love, and social connections.
4. Esteem Needs: Recognition, respect, and self-esteem.
5. Self-Actualization: Fulfillment of personal potential and self-growth.

Maslow’s theory suggests individuals must satisfy lower-level needs before pursuing
higher-level ones.

Herzberg's Motivation-Hygiene Theory

Divides factors influencing job satisfaction into two categories.

1. Motivation Factors: Lead to job satisfaction. Include achievement, recognition,

responsibility, advancement, the work itself, and personal growth.
2. Hygiene Factors: Prevent dissatisfaction. Include company policy, administration,
interpersonal relations with supervisors, peers, subordinates, salary, working
conditions, company policies, and job security.

Types of Motivation

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1. Positive and Negative Motivation

Positive Motivation: Encourages individuals to take action by offering

rewards or recognition. Example: Promotions, bonuses, or appreciation for
good performance.
Negative Motivation: Motivates individuals by using fear of consequences or
penalties. Example: Fear of job loss, demotion, or reprimand for poor
performance.

2. Extrinsic and Intrinsic Motivation

Extrinsic Motivation: Arises from external factors like rewards, recognition,

or punishments. Example: Salary hikes, trophies, or disciplinary actions.
Intrinsic Motivation: Originates from internal satisfaction and personal
goals. Example: Pursuing a task because it aligns with one’s passion,
curiosity, or self-fulfillment.

3. Financial and Non-Financial Motivation

Financial Motivation: Involves monetary rewards to encourage desired

behavior. Example: Bonuses, commissions, profit-sharing, or salary
increments.
Non-Financial Motivation: Includes non-monetary benefits to motivate
individuals. Example: Recognition, flexible work hours, career development
opportunities, or a pleasant work environment.

Five Marketing Concepts

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1. Production Concept: Believes that customers prefer products that are easily
available and affordable. Companies prioritize efficient production and large-scale
distribution.
2. Product Concept: Emphasizes that customers value products with superior
quality, performance, and innovative features. Organizations focus on creating the
best possible products.
3. Selling Concept: Based on the idea that customers need to be persuaded to buy
through aggressive marketing and promotional efforts, especially for products not
actively sought by consumers.
4. Marketing Concept: Focuses on identifying and meeting customer needs and
wants better than competitors. It emphasizes customer satisfaction as the key to
achieving organizational goals.
5. Societal Marketing Concept: Integrates the interests of society, the environment,
and customer satisfaction. It aims to fulfill customer needs in a way that benefits
both the organization and society at large.

Marketing Mix for PCs 4P s

1. Product: Includes the physical hardware e. g. , desktops, laptops and related
software. Features such as processing speed, storage capacity, graphics
performance, durability, and design play a crucial role. Brand reliability, after-sales
service, and warranties are also part of the product strategy.
2. Price: Pricing strategies can

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