Efficient planning and controls; need for corporate sector

In recent decades, the term ”planning and controlling” has become popularized widely in management circles

  • Planning and control are critical management activities regardless of the type of organization being managed

Definition of Planning

  • Planning is the process by which an individual or organization decides in advance on some future course of action
  • Planning is the process of determining how the organization can get where it wants to go
  • Planning involves selecting from among alternative future courses of actions for the organization as a whole and for every department or section within it.

The purpose of every plan and all derivative plans is to facilitate the accomplishment of enterprise purpose and objectives.

  • Planning is the primary management function, the one that precedes and is the basis for the organizing, influencing, staffing, leading and controlling functions of managers.

The efficiency of a plan is measured by the amount it contributes to purpose and objectives as offset by the costs and other unsought consequences required formulating and operating it.

The planning function has four important goals:

a)     To offset uncertainty and change.

b)     To focus attention on objectives,

c)      To gain economical operation, and

d)     To facilitate control.

  • Planning minimizes costs because of the emphasis on efficient operation and consistency.
  • It substitutes joint directed effort for uncoordinated piecemeal activity, even flow of work for uneven flow, and deliberate decisions for snap judgments.

Managers cannot check on their subordinate accomplishments without having planned goals against which to measure. There is no way to measure control without plans to use as standards.

Individuals are more likely to know what they are supposed to do and the probability that conflicting forces will push them in two directions at once is considerably reduced.,

Once plans that furnish the organization with both long-range and short-range direction have been developed, they must be implemented. Obviously, the organization can not directly benefit from planning process until this step is performed.

The Standing Plans

Those include plans that are used over and over again because they focus on organizational situations that occur repeatedly. Examples for them are

a)     The policy: is a standing plan that furnishes broad guidelines for action, consistent with reaching organizational objectives.

b)     Procedures: are standing plans that outline a series of related actions that must be taken to accomplish a particular task.

c)      Rules: are standing plans that are designate specific required action. A rule indicates what an organization member should or should not do and allows no room for interpretation.

Strategies:

The strategy is the process of achieving a fit between an organization’s capabilities and its evolving environment to achieve a favorable position within the competitive marketplace. Strategies pertain to those destiny-shaping decisions concerning:

·   The choice of technologies on which products are based

·   The development and release of new products

·   The processes for producing products and services

·   The way they are marketed, distributed, and priced

·   The way the firm responds to rivals

What are the main principles for having effective planning?

There are many, among the most important of them:

(1)     Develop accurate forecasts

(2)     Gain acceptance for the plan

(3)     make sure the plan is sound

(4)     Assign responsibility for planning

(5)     Be objective

(6)     Keep the plan flexible

(7)     Revise your long- term plan every year

(8)     make sure that the plan fits the situation

There are many steps for developing any plan (planning processes), they are:

(a)    Being aware of opportunity.

(b)    Establishing objectives.

(c)    Considering the planning premises.

(d)    Determining and identifying the alternative courses.

(e)    Evaluating these alternatives.

(f)     Selecting the appropriate course of action.

(g)    Developing plans to pursue the chosen alternative.

(h)    Number zing plans by budget.

(I)     put the plans into action.

There are many outstanding benefits that result from the statement of planning objectives, these are:

(a)   Objectives provide direction.

(b)    Objectives serve as motivators.

(c)    Objectives contribute to the management process.

(d)    Objectives are the basis for management philosophy.

(e)    Objectives serve as a guide for organizational efficiency.

There are many reasons for planning failure, among the most important of them:

(a)  The plan is not integrated into the total management system.

(b)  Management at different levels has not properly engaged in or contributed to          planning activities.

(c)   Management fails to operate by the plan.

(d)   Using inadequate inputs in planning

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