Kondratiuk S.Y.

Tryhub I.P.

 

National University of Food Technologies

 

PLANNING AS A FUNCTION OF MANAGEMENT

 

Research and analysis of functions of management is urgent problem indeed. Management combines characteristics of science and art [1]. Any organization, whether new or old, small or big, requires certain methods, procedures and plans in place for its efficient functioning. For this to happen, they must develop and implement management concepts which help them implement their vision for the future of the organization.

The management is based upon for main functions which includes Planning, Organizing, Leading and Controlling [4]. Each function play vital role to consolidate the management in the Organization. But in my view the most important feature is the planning.

In business, planning is a process by which management teams and executives set business objectives, analyze the market and industry and determine the best ways to reach those goals. However, planning is ongoing; it does not stop when the work starts. Management teams must frequently evaluate the work as compared to the plan and make adjustments to account for unplanned developments or industry changes. Managers must clearly communicate plans to employees and be open to feedback and ideas from employees to improve on the plan [3].

          Importance of Planning [2]:

1.                 Planning increases the organization's ability to adapt to future eventualities: The future is generally uncertain and things are likely to change with the passage of time. The uncertainty is augmented with an increase in the time dimension. With such a rise in uncertainty there is generally a corresponding increase in the alternative courses of action from which a selection must be made. The planning activity provides a systematic approach to the consideration of such future uncertainties and eventualities and the planning of activities in terms of what is likely to happen

2.                 Planning helps crystallize objectives: The first step in planning is to fix objectives which will give direction to the activities to be performed. A proper definition and integration of overall and departmental objectives would result in more co-ordinated inter-departmental activities and a greater chance of attaining the overall objectives.

3.                 Planning ensures a relatedness among decisions: A crystallization of objectives as mentioned above would lead to a relatedness among the decisions which would otherwise have been random. Decisions of the managers are related to each other and ultimately towards the goals or objectives of the enterprise.

4.                 Planning helps the company to remain more competitive in its industry: Planning may suggest the addition of a new line of products, changes in the methods of operation, a better identification of customer needs and segmentation and timely expansion of plant capacity all of which render the company better fitted to meet the inroads of competition.

5.                 Adequate planning reduces unnecessary pressures of immediacy: If activities are not properly planned in anticipation of what is likely to happen, pressures will be exerted to achieve certain results immediately or a in a hurry. Thus adequate planning supplies orderliness and avoids unnecessary pressures.

6.                 Planning reduces mistakes and oversights: Although mistakes cannot be entirely obviated, they can certainly be reduced through proper planning.

7.                 Planning ensures a more productive use of the organization's resources: By avoiding wasted effort in terms of men, money and machinery, adequate planning results in greater productivity through a better utilization of the resources available to the organization.

8.                 Planning makes control easier: The crystallization of objectives and goals simplify and highlight the controls required.

9.                 Planning can help the organization secure a better position or standing: Adequate planning would stimulate improvements in terms of the opportunities available.

10.             Planning increases the effectiveness of a manager: As his goals are made clearer, adequate planning would help the manager in deciding upon the most appropriate act.

So proper planning has a significant impact on the future of any business. It truly can make or break a company, so it is up to the management team to take the time to create and implement an effective plan. It is important to set challenging goals that are realistically achievable [2]. If management sets the bar too high, it will set employees up for failure, which hurts morale. However, if the goals are met, employees will take pride in their work, which is good for productivity. A successful plan improves the company as a whole; the company will be better off financially and better positioned in the industry when a plan is implemented successfully.

Summing up the results of the conducted analysis the following conclusions can be made: management operates through various functions. To decide how much functions management I has compared some viewpoints of scientists. To my mind management has only four functions. And in my opinion, planning is a crucial component of business management. Because of planning depends all further activities of the organization. So managers and executives must plan every aspect of their business, including marketing, budgeting, hiring, strategic positioning and making the business as profitable as possible. Management teams should meet frequently to discuss long-term goals and short-term plans to move toward those goals.

References:

1. Bernard L. Erven (2003). The Five Functions of Management: The Foundation of ManagementExcel. Retrieved March 29, 2009, from:http://extension.osu.edu/~mgtexcel/Function.html

2. Henri Fayol (1916). Model: Five functions of management. Retrieved March 30, 2009, from: http://www.provenmodels.com/3

3. James Higgins, The Management Challenge, Second edition, Macmillan, 1994.

4. Jayashree Pakhare (25.09.2007). Management Concepts - The Four Functions of Management. Retrieved March 29, 2009.