 A warm welcome to the learners. In the previous video lesson, we have got some idea about and we discussed about the concept of management, the definition of management, the meaning of management and you have got some idea about the theories of management and the functions of management. So, when we talk about functions of management, we have to talk about planning, organizing, staffing, directing and controlling. So in this video lesson, we are going to discuss about the primary functions of management that is planning and also we will get some idea about organizing. So at the end of this video session, you will be able to define planning and organizing and their importance, their features and also you will be able to know about the various types of planning, you will be able to know the steps in the planning process and also we will discuss the various types of organizational structure. When we talk about planning, planning is the foremost and the primary function of management. In our day to day life, when we wake up in the morning, we plan our whole day and we work accordingly. So planning is the first and the foremost function of management. Planning has been defined variously by various authors, by various researchers. As we have seen and we have discussed in the last session that there are various levels of management and in those levels of management, maybe it the middle level management, the top level management or lower level management, planning is very important in each level of the management. Planning we cannot think of organizing, we cannot think of controlling, we cannot think of directing. So planning is the basic and the primary function of management that we have already discussed. So when we talk about planning in a very simple way we can say that planning is deciding in advance what to do, how to do, where to do, when to do and who is going to do that. So planning is the bridge between where we are and where we want to go. So planning what managers do at all levels, it requires taking decisions since it involves all the choice from the alternative that have been taken place and in due course of time the planning is very necessary for the achievement of the goal of the organization. So planning means setting of objectives, targets and formulating in action plan to achieve them. So planning is concerned with both the ends and means that is what is to be done and how it is to be done. So planning is concerned with some questions like what is to be done, how it is to be done, who will do it, where it is to be done and what time it is to be done. So when we talk about planning I would like to discuss about the features of planning. It is the primacy of planning, like planning is the first function on which the other functions of management are based, focus on objective, a plan emphasis in achievement of objective, the plan sets the objective considered in prevailing conditions in the environmental factors or in the internal factors and the different alternative actions that to be taken and ultimately to the achievement of the goal of the organization. Perversiveness of planning, as we have already discussed that it is important in all the levels of management that planning should be considered may be top or lower or middle. So the top manager is concerned with the formulation of plan for the whole organization. The middle level manager is concerned with the formulation of the plan for his department and the lower level formulates the plan related to the day to day operations of the organization. The next feature is coordination. Coordination means inter relating the different subsystem or the different sub functions into the integrated approach in the organization. So in an organization planning facilitate the coordination of all the activities which are necessary to achieve the goal of the organization or to achieve the objective of the organization. Next feature is the flexibility. Planning is based on future expectations. So future we know that is very much uncertain, it is full of risk. So under this situation a plan must be flexible enough so that it can adapt itself to any changes, to any changes may be external or internal so that a rigid plan cannot serve the real purpose of the organization to achieve the goal of the organization. So plan should be flexible. Now learners we come to the importance of planning. Planning is important for direction. Planning is important in achievement of objective, minimizing the impact of risk uncertainties. Planning helps in coordination. It is the basis for control and provides competitive advantages. So these are some of the importance of planning and when we talk about plan, plans are of different types like we plan for long term, we plan for short term, we plan maybe for an hour what plan should be taken for the next two hours. So plans are of different types. So when we talk about types of planning, there are corporate planning, there are functional planning and there are operational planning. When we talk about corporate planning, this type of planning is done at the top level of management where the manager formulate the plan for the whole organization considering all the relevant environmental as well as external environmental and as well as the internal environmental factors of the organization. So they forecast the likely changes in the environmental factors that may influence the activities of the organization and they determine the long-term objective of the organization for say three to five years. Again let us discuss about the functional planning. So it is a plan for major functions of the organization. It formulate within the purview of the corporate planning that we have already discussed and it is undertaken at the middle level of the organization. So for example, we can take an example of any manufacturing organization where the various activities like production, marketing, finance, HR, this kind of activities takes place. So functional planning is undertaken for this each activities and corporate plan for this organization will cover all these activities. So functional planning can also formulate by dividing the major organizational activities further. So this type of planning covers maybe one to two to three years. So this type of planning is done at the middle level of the organization. And now we will talk about operational planning. Operational planning is undertaken for a day or for two days functioning of the organization. So operational planning translates the functional planning into a specific goal. It is undertaken at the lower level of the management and covers a period of maybe one year or less. Now I would like to tabulate this types of planning into a table where you can see the points of differences. The corporate planning, the functional planning and the operational planning are divided. First one is the scope where the corporate planning is broadcasted covers all the activities of the organization. Functional planning is much narrower where it covers only the functional area and operational planning. It is the narrowest which covers only the operational activities. The time factor, the time factor in the corporate planning, it is the longest period. It takes around three to five years for the planning to be taken place. Then the functional planning, it is much shorter like we have already discussed one to two years. And for operational planning, it is the shortest that is 12 months or less time taken in operational planning. Then comes to the point of difference the nature. Corporate planning is the most complex as it covers both the external and internal factors. In the functional planning, it is less complex but specific as it covers only the specific activities that been taken in the organization. In the operational planning, it is the least complex as it covers day to day activities in the organization. Now, come to the fourth point of difference that is the level of management involved. Corporate planning, top level management is involved. In the functional planning, middle level management is involved. In the operational planning, lower level management is involved. And the last point of difference maybe the dependence. So, in the corporate planning, it depends on the business environment and also the internal resources of the organization. In the functional planning, it is prepared on the basis of corporate plan. And in the operational planning, it prepared on the basis of functional plan. So, these are some of the point of differences where these three types of planning can be differentiated in a table of form. So, when we talk about planning, planning has different steps. Planning is a process and it has different steps before going into the steps of planning. Let us discuss some of the terms that been used in the planning process. Let us discuss objectives. Objective are the end result which an organization wants to achieve. It provides the score for organizational activities and set the direction for organization. Now, let us talk about strategies. So, strategies are also very familiar word. It is a plan of action to achieve the organizational objective or goals. The strategies are the way to meet the challenges which may occur due to the changes of the environment, the external environment or the internal environments. And while determining the strategies, the organization takes into account its internal resources like the position and the phase value of the business. And it states how the objective can be attained. Now, let us talk about policies. Policies are the general statement which guides the manager in decision-making process. Policies set the broad outline within which the manager can make the decision for the organization. Now, let us talk about procedure. Procedure means a set of sequential steps that should be completed to do a particular task. So, it specifies the task and steps required to be taken to perform the task of the organization. Generally, time element is attached to the different steps and once the procedure is set, it can be used for a routine type of the activities in the organization. So, let us now discuss the steps in the planning process. So, now what is planning process? Planning process has different steps. Like, first it analyzes the business environment, then it establishes the objective for the organization, then it establishes the planning premises, it develops the alternative course of action that has to be taken like we have plan A, plan B, then the evaluation of alternative course of action, then selecting the best alternative out of it like we have to choose plan A for attaining this goal or plan B for attaining those that should be selected, then the formulation of derivative plans, then implementation of plan, then we follow up whole process of the planning system. So, when we talk about planning process, it starts with analyzing the business environment. So, an organization resorts to planning process to face the business challenges and to take the advantages of the opportunities that exist in the business environment. So, therefore, analysis of business environment is very much necessary without environmental analysis of the organization will not be able to perceive any opportunities and it cannot be a good plan cannot be undertaken. So, it is essential to analyze the environment to forecast the opportunities and threats for the organization. At the same time, the organization will be able to measure its strength and weaknesses in the light of the opportunities and threats. Now, let us discuss the second step that is establishing the objective for the organization. In this step, the objective for organization are establish and then objective for the major departments are set. The objectives may relate to productivity, profitability, market share, market research, etc. It helps in determining the course of action to be taken for achieving such objectives. Now, let us discuss the next step that is establishing planning premises. This is a planning process in which the establishment of planning premises means the conditions under which the organization will implement the plan that has been taken and this relates to assumption of future changes in the various internal and external factors of the organization. Next is the developing alternative course of action. There may be different ways to achieve the organization objective or to achieve the organizational goal. For example, if an organization establishes one of the objective as expansion of the business, then the probable alternatives available to the organization are investing in altogether new project taking over an existing company, adding new products to its product line, etc. So, thus in this step, the manager has to develop the alternative course of action to achieve this objective. In developing the alternatives, the manager must ensure that the alternative must be selected on the basis of capacity of the organization in terms of certain criteria like time, cause and various other factors. Next is the evaluation of alternative course of action. After developing the viable alternatives, the manager must go for the detailed evaluation of the alternatives. The detailed evaluation will help the manager in choosing the best alternatives of the plans that have been undertaken. The manager may take up the alternative project one by one or may go for the evaluation of the alternatives or may take up the evaluation for new alternatives. Now, let us discuss the next step that is selecting the best alternative. In this step, the manager has to take decision regarding the selection of the best alternatives for the goal that has been set to achieve the objective. Again, we will discuss the formulation of derivative plan. So, after the formulation of the basic plan, the derivative plans are prepared to support the basic plan in achieving the organizational objective. The derivative plan are prepared for the functional activities which may relate to purchasing of raw materials, recruiting the sales personnel or the employees, the raising the required capital and there are so many factors comes under these functional activities. These plans are prepared within the broad framework of the basic plan that has been taken by the organization. Now, the implementation of the plan. At this stage, the plan practically come into place and the organization sets the determined course of action for the future, preparing the plan step by step ensures its success in near future. Then comes the follower which is the last step in the planning process. The implementation of plan does not mean that we end up with the process by implementing the plan, but follow-up is very much necessary so that the organization can know that the planning process is successfully done or not. So, planning process is an ever-ending process. The manager must make periodical review of the main and the derivative plans. It will ensure this follow-up will ensure that the plan is being properly implemented or not in the organization and the resources that are directed in a desired direction or not. So, this is the steps in the planning process which covers all these factors which are very, very, really necessary for the planning process. So, we have discussed about the planning process, how it is to be done, where it is to be done, who will do the planning process, the short-term planning, the long-term planning. So, after planning comes the organizing process. Organizing is a term that we really very familiar with. We use this term like in any organization or in our day-to-day life like we organize birthday party, we organize meetings, we organize picnic. So, organizing is a very familiar term that we use. So, the term organizing means systematic arrangement of activities. It refers to the method in which the work of a group or people is arranged, distributed among them to achieve the desired objective of an organization. So, organizing is bringing together various resources like physical, financial and human and establishing relationship among the resources for achieving common objectives. As a management function, the term organizing refers to the process of bringing together human and non-human resources as already discussed like man, material, machine, money and other things and defining and establishing the authority, responsibility, relationship for achieving the objective. Baikon's O'Donnell defines organizing as the establishment of authority, relationship with the provision for coordination between them both vertically and horizontally in the enterprise. A study of the definition shows that organizing involves in identifying and grouping of work, defining the responsibility, delegating authority, establishing of structure relationship and coordinating interrelated activities. Learners, now let us discuss the importance, some of the importance of why organizing is necessary in organization. Organizing increases managerial efficiency as it avoids delays, duplication or confusion in performance and removes friction or rivalry among the employees. It promotes specialization. The detailed job specification helps to place the right person in the right job at the right time on the basis of their knowledge, their skills and experiences. It ensures flow of activities. Organization structure are developed on scientific management basis that is time, motion and fatigue study to ensure logic flow of activities. Again, it clarifies authority and power. The process of organizing clarifies the authority of the management of the different departments and it this minimizes the conflicts and confusion among the employees, among the people in the organization. It acts as a source of support and security and satisfaction. It provides a definite status position in relation to other within the organization. It ensures better communication because communication is very important in an organization. There should not be a great find that should be happening in the organization. So, communication is very important. Organization structure provides a network of relationship. So, this makes interaction and communication among the member and department of the organization more effective. It stimulates creative and innovative thinking. Identified areas of work and delegation of authority promote creativity and innovativeness among the employees and in their respective fields as well as in the organization as a whole. It helps in smooth delegation of authority. The employee or the superior can delegate the authority downwards so that they can get the things done smoothly. It also helps in fixing the responsibility for a particular task. Organizing provides scope for training and development because training and development is very necessary in an organization. So, it helps in providing the scope for training and development. Management personnel are trained to acquire a wide and varied range, varied knowledge and experiences in diverse activities by their placement in different jobs through the job rotations and thus they are prepared for higher responsibility in the organization. There are a few principles that undertaken in the organization let us now discuss some of the principles that should be followed like the unity of objective. An organization is a mechanism to accomplish certain objectives that we have already discussed. The principle of unity of objectives states that every part of the organization should pull together to accomplish their predetermined objectives. Then the division of labor. According to this principle, the entire work in the organization should be divided into specific job or specific task and this specific job, this specific task should be given to a specific individual. Then the principle of unity of command. According to this principle, a subordinate should receive order from only one superior and should be accountable to that superior only. Then the principle of span of control. It is also known as span of management. Span of control is also known as span of management or span of supervision and it refers to the number of subordinates which a manager can effectively supervise. So, according to this principle the number of subordinates should be limited to a reasonable number so that the supervision order control becomes more effective. Principle of unity of direction. There should be one head and one plan for a group of activities having the same objectives. This principle emphasis the importance of common goal being pursued by all in group activity under the direction of one head. Then the principle of efficiency. According to this principle, the organizational structure should enable the enterprise to attain objective with the lowest possible cost. Then the principle of authority and responsibility. The person to whom responsibility or performing any duty is assigned should be given adequate authority to perform the task or perform the duties. Delegation of authority is needed to perform the work effectively and assigning the responsibility without delegation of authority is not that useful for the organization. So, authority and responsibility should be given to the person who is responsible for performing a specific task. So, we have discussed some of the principles of organizing. Let us now discuss the different types of organizational structure that exist in the organization. There are different types of structures like line organization or line authority, the line and staff organization, functional organization, committee organization, project organization and matrix organization. So, when we talk about line organization or line authority, it is a type of structure, a senior delegates authority power order instruction to his subordinate who in turn delegates the same to another subordinate and the process goes on forming a line from top to bottom level of the organizational structure. This structure so formed is called the line structure and the direct vertical flows of authority and responsibility creates superior subordinates relationship in a structural form. This line structure is the oldest form of organization and is also known as military organization as a military organization is formed in this fashion. So, in this diagram, this is an example of line organization where the authority and responsibility flows from upward to downward. Now, let us discuss about line and staff organization. In order to overcome the limitation of line organization, line and staff organization was developed. It combined the staff specialist with the line managers. Here the specialist in specific areas, this is the line manager. This specialist or experts do not have the powers to command any subordinate other than those who are under their control. They can only advise the line manager on some certain matters which are very essential. This diagram shows the concept of line and staff organization, the functions of the management are performed effectively through this organizational structure. Now, let us discuss the functional organizational structure. This is a type of structure where there will be a separate department to look after all the different lines of activities. FW Taylor is the exponent of the functional organization structure. The functions are done through specialized knowledge and advice. The departments are found on the basis of division of labor and hence the efficiency of the production and the skills of the labor are improved. The coordination and cooperation are enhanced in this form of organization structure and the subordinate receives instruction not from one superior but from the several functional specialists. This is the diagram, a form of functional organization structure where the subordinates are accountable to different functional specialists for the performance of different function. Again, we have committee organization. A committee is a group or group of two or more appointed, nominated or elected persons to consider, discuss, recommend or report on some issues that matters in achieving the organizational objective. A number of committees may be created in organization depending upon their requirement. A review committee for example, may be considered to review the progress work of the organization and there may be various committees formed in the organization for the smooth running of the business or the organizational objectives. Now, let us discuss about project organizational structure. This is a type of structure which is a temporary in nature and designed to perform a specific task with a help of specialists drawn from various departments within the organization. A project organization structure is led by a project manager and assisted by the team of functional specialist. The team focuses on all the energies, all the skills and the resources on the project that has been taken into place. When the project is completed, the project team is abolished and its member moved to the new project to return to their parent department in the organization. So, this diagram shows the type of project organization where the project manager A and the project manager B is there and we see the specialized groups have been divided in the organization objective taken into place. Now, let us discuss about matrix organization and that this type of organizational structure, they are functional managers and project managers. Functional managers are in charge of specialized resources such as production, quality, inventories, marketing, finance, etc. and project managers are in charge of one or more projects. They are authorized to prepare project strategies and they call on the various functional managers for the necessary resources. Matrix organization is suitable for large number of small projects. A matrix organization is also known as a combined organizational structure. So, here we can see a flow chart or a diagram of matrix organization. The matrix organization has two chain of commands. Here the flow of authority is both vertical that is line authority as well as horizontal and separate departments have to share their resources with the rest of the organization and cannot claim any exclusive right. So, learners, we have discussed almost all the aspects of planning and organizing. How planning and organizing is so important in an organization and we discuss in this video lesson about the meaning of planning. Planning is a continuous process. We also discuss about the various types of planning like corporate planning, functional planning, operational planning and we discuss about organizing is the various types of organization. So, this is how we have come to the end of the main function of management that is planning and organizing and in the next few video lessons we will discuss about the other functions of management and with this note I would like to end up my video lesson. Thank you.