Page 62 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes etc. The pros and cons as well as the consequences of each alternative course of action must
be examined thoroughly before a choice is made.
4. 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.

5. 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. Suggestions,
complaints and criticisms from operating personnel help management rectify the defects
in plans and set things right in the beginning itself. Involvement of subordinates in
planning has the unique advantage of getting a practical view of those closer to the scene
of operations. According to Koontz, ‘plans have to be set in an atmosphere of close
participation and a high degree of concurrence’. Participation enables employees to give
their best to plans. They are also motivated to carry out the plan to the best of their ability.
6. 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 Without such a regular follow-up, plans may become out-of-date and useless.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. Management
can notice shortcomings in time and initiate suitable remedial steps. A continuous
evaluation of plans also helps to develop sound plans in future, avoiding mistakes that
have surfaced while implementing the previous plans.

Notes Koontz has given some principles that make a plan successful.

1. Principle of contribution to objectives: Every plan should help in the achievement
of organisational objectives.
2. Principle of primacy of planning: Planning should precede all the other functions of
a managerial process.
3. Principle of pervasiveness of planning: Planning should be pervasive in nature
otherwise the functionaries might just not stick to the plan.
4. Principle of flexibility: By flexibility of a plan is meant its ability to switch gears,
change direction to adapt to changing situations without incurring unnecessary
costs.
5. Principle of periodicity: Plans should be integrated and interconnected in such a
way as to achieve the stated objectives well in time.
6. Principle of planning premises: Every plan should be based on carefully considered
assumptions, known as planning premises.

7. Principle of limiting factor: While choosing an appropriate course of action among
different alternatives, the limiting or critical factor (such as money, manpower,

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