Page 102 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes 6.2.2 Action Plan

The action plan is the means by which an objective is achieved. The action plan gives direction
and ensures unity of purpose to organisational activities. It will state in detail, exactly what is to
be done, how the subordinate will proceed, what steps will be taken, and what activities will be
engaged in as the subordinate progresses. It provides a specific answer to the question: ‘What is
to be done?’ Questions like who is responsible for each activity, what resources are needed, what
the time requirements are would also be answered.

Example: Nitin Albert and his sales manager might agree upon the following standards
of performance for Nitin:
1. increase sales of mobile phones in the Southern region by 10 percent by the end of the
current year; and

2. reduce travelling expenses during the above period.
There are two ways of developing specific action plans: They may be developed by both manager
and subordinate or by the subordinate alone. To ensure success, the superior must be willing to
sit with each subordinate and review the action plan (such as the above one), once it has been
developed. The periodic review process helps the superior to monitor progress towards goal
achievement. It helps in finding out better and more efficient methods of accomplishing goals,
in finding out the feasibility of implementing the earlier goals uncovering barriers to
accomplishment etc. If the subordinate does not appear to be on the right course, the performance
objective can be modified or the subordinate can be redirected into more productive behaviours.
The emphasis in periodic review sessions should be on checking the progress toward goal
achievement. If the performance is not satisfactory, the superior must try to isolate the causes of
lack of progress without criticising the subordinate and indicate specific steps, as to how to
proceed in future so as to achieve the goals. The emphasis should be on improving performance
rather than degrading subordinates.

6.2.3 Final Review

This is the last phase of the MBO programme. In this step, the actual results are measured against
predetermined standards. Mutually agreed-on objectives provide basis for reviewing the
progress. While appraising the performance of subordinates, the manager should sit with his
subordinates and find out the problems encountered while accomplishing the goals. The
subordinate, as in the periodic sessions, should not be criticised for failure to make sufficient
progress; the atmosphere should not be hostile or threatening. A give-and-take atmosphere
should prevail and the appraisal should be based on mutual trust and confidence between
managers and subordinates. In actual practice, this type of give-and-take session is extremely
difficult to achieve and rarely reaches its potential value, unless managers are gifted with
necessary interpersonal skills. Often, appraisal takes place for the purpose of determining rewards
and punishments; judging the personal worth of subordinates and not the job performance. As
a result, appraisal sessions become awkward and uncomfortable to the participants and intensify
the pressure on subordinates while giving them a limited choice of objectives. Insecure
subordinates may come to ‘dread’ the sessions and they may not feel free to communicate
honestly and openly, without fear of retaliation. Appraisals can be really useful, if the person
being evaluated knows and accepts in advance the grounds upon which he is being appraised.

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