PPM Mind Map

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PPM – Unit 1 & 2 (Full Syllabus Notes + Examples + Case Links)

Unit 1: Introduction to Management

Definition: Management means planning, organizing, leading and controlling human and material resources to achieve organizational goals effectively and efficiently.

Effectiveness = achieving the right goal. Efficiency = achieving it with minimum cost, time, and effort.

Example: A hospital administrator manages doctors, staff, and supplies so patients get timely care with low waiting time.

Case link: If a case shows poor results or resource wastage → Identify which management function failed (Planning, Organizing, Leading, or Controlling).

Nature of Management

  • Goal Oriented: Every activity aims to achieve specific objectives.
  • Universal: Used in business, schools, hospitals, government.
  • Continuous: Ongoing process of improvement.
  • Dynamic: Adapts to changes in technology, environment, and people.
  • Group Activity: Works through coordination and teamwork.
  • Multidisciplinary: Combines economics, psychology, sociology, and statistics.
Example: A hotel modifies its services based on customer feedback showing dynamic nature of management.

Management as Science, Art & Profession

  • Science: Has tested principles (e.g., motivation theories, time studies).
  • Art: Requires skill and creativity (motivating teams, communication).
  • Profession: Has code of conduct, training, and social responsibility.
Example: A manager uses scientific forecasting tools (science) but convinces his team creatively (art) with ethics (profession).

Levels of Management

  • Top Level: CEO, Directors – set goals and policies.
  • Middle Level: Department heads – link between top and lower level, implement policies.
  • Lower Level: Supervisors, foremen – handle daily operations and guide workers.
Example: In a manufacturing company, top level decides to expand, middle prepares budget, lower level executes production.

Functions of Management (POLC)

  • Planning: Deciding objectives, methods, and policies.
  • Organizing: Arranging people and resources logically.
  • Leading: Motivating, guiding, communicating.
  • Controlling: Checking performance and taking corrective actions.
Example: An IT firm plans a new app, assigns teams, motivates them through bonuses, and tracks progress weekly.

Managerial Roles (Henry Mintzberg)

  • Interpersonal Roles: Figurehead, Leader, Liaison.
  • Informational Roles: Monitor, Disseminator, Spokesperson.
  • Decisional Roles: Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator.
Example: A bank manager who resolves conflicts (disturbance handler) and signs an agreement (negotiator).

Managerial Skills (Robert Katz)

  • Technical Skills: Practical job knowledge – needed by lower managers.
  • Human Skills: Communication, leadership – needed at all levels.
  • Conceptual Skills: Big-picture thinking – needed by top managers.
Example: A supervisor needs technical skill to fix machinery; a CEO needs conceptual skill to decide mergers.

Evolution of Management Thought

1. Classical Approach:

  • Scientific Management (Taylor): Time & motion study, standardization, cooperation.
  • Administrative Theory (Fayol): 14 Principles of Management.
  • Bureaucratic Model (Weber): Rules, hierarchy, and authority.

2. Neo-Classical Approach: Human Relations & Behavioral Science (Elton Mayo) – focused on motivation, communication, teamwork.

3. Modern Approach: System Approach (organization = system of interrelated parts) and Contingency Approach (no one best way, depends on situation).

Example: A firm using SOPs (classical) + employee welfare (neo-classical) + data analytics (modern) shows evolution of thought.

Fayol’s 14 Principles (Summary)

Division of Work, Authority, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interest, Remuneration, Centralization, Scalar Chain, Order, Equity, Stability of Tenure, Initiative, Esprit de Corps.

Scientific Management (F.W. Taylor)

Focuses on efficiency through science. Principles: Science not rule of thumb, Harmony not discord, Cooperation not individualism, Maximum output, Development of workers.

Example: Factory times each task and rewards faster yet accurate work.

Hawthorne Studies (Elton Mayo)

Showed that attention, recognition, and participation increase productivity. Workers perform better when they feel valued and belong to a team.

Example: When a manager appreciates employee efforts, motivation increases even without salary raise.

Unit 2: Planning

Definition: Planning means deciding in advance what to do, when, how and by whom to achieve objectives efficiently. It is the primary function of management.

Features of Planning

  • Future Oriented – looks ahead.
  • Continuous – ongoing at all levels.
  • Intellectual – requires reasoning and foresight.
  • Pervasive – needed at all levels and departments.
  • Primary Function – foundation for other functions.
  • Flexible – must adjust to environment changes.
Example: An e-commerce firm plans festive offers but updates them if demand changes.

Steps in Planning Process

  1. Setting Objectives
  2. Developing Assumptions (premises)
  3. Identifying Alternatives
  4. Evaluating Alternatives
  5. Selecting the Best Plan
  6. Implementing the Plan
  7. Monitoring and Follow-up
Example: A travel company plans a new route: sets goal, studies customer needs, compares bus vs. flight, chooses bus, implements, and tracks bookings.

Types of Plans

  • Mission/Vision: Purpose and direction (e.g., “Zero waste company by 2030”).
  • Objectives: Specific measurable targets.
  • Strategies: Major plans to achieve goals.
  • Policies: General guides for decision making.
  • Procedures: Step-by-step methods.
  • Rules: Mandatory actions.
  • Programmes: Group of activities.
  • Budgets: Financial statements of plans.
Example: A bakery has a hygiene policy, a cake-making procedure, and monthly ingredient budget.

Importance of Planning

  • Provides direction and focus.
  • Reduces uncertainty and risks.
  • Improves coordination and control.
  • Encourages innovative ideas.
  • Sets standards for performance.
Example: A startup’s 6-month marketing plan helps every employee know their target.

Limitations of Planning

  • Can be rigid and reduce flexibility.
  • Time-consuming and costly.
  • Fails under sudden changes.
  • Over-dependence on forecasts.
  • False sense of security.
Example: Payal planned festival bakery sales but airport flight cancellations ruined her plan—needed contingency.

Management by Objectives (MBO)

Meaning: A process where managers and employees set goals together, plan how to achieve them, and evaluate results periodically.

  • Encourages participation and commitment.
  • Improves communication and clarity.
  • Helps in performance appraisal.
  • Links organizational and personal goals.
Example: A sales team sets a goal with manager: “Increase sales by 15% in 3 months.” Regular reviews keep everyone focused.

Decision Making in Planning

Decision-making is choosing the best alternative among several options. It involves identifying the problem, gathering information, generating choices, evaluating and selecting the best one.

Example: Choosing between in-house production and outsourcing is a key managerial decision.

Case Study Writing Template

Structure:

  1. Intro: 2 lines summary of the case.
  2. Problem: Identify main & sub-problems.
  3. Theory Link: Apply Taylor/Fayol/Mayo principle.
  4. Analysis: Short reasoning or SWOT.
  5. Solutions: 2–3 practical steps.
  6. Recommendation: Conclude with final suggestion.
Example: “NCC hires temporary teachers → violates Stability of Tenure (Fayol). Suggest permanent contracts + clear roles + recognition programs.”

Quick Revision Mind Points

  • POLC: Planning, Organizing, Leading, Controlling
  • Taylor: Efficiency through science, time study, cooperation
  • Fayol: Administrative theory with 14 principles
  • Mayo: Motivation & social factors increase productivity
  • Planning: First function; sets direction for control
  • MBO: Joint goal setting, performance review
  • Modern: Systems & Contingency → flexible, data-based

Exam tip: Always write answers as — Definition → Explanation → Example → Case Link → Short Conclusion.

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