Discuss The Purpose Of Planning Business Essays
Planning in organization is the process of creating and maintaining a plan and a psychological process of thinking about the activities required to create a desired goal on some scale. Thus forecasting of developments with the preparation of scenarios of how to react to them is planning. In simple words planning is a primary stage of before doing any kind of work which starts by arising following questions in mind such as what to do? How to do? When to do? Who will do? And how the result would be evaluated.etc and this is the main concept of planning to identify the organization direction and future aspects.
Corporate level is the top most management who indulge in long term planning process generally 5yrs or more Strategic planning determines how the organization intends to responds to its environment in the long term. Corporations are responsible for creating value through their businesses. They do so by managing their portfolio of businesses, ensuring that the businesses are successful over the long-term, developing business units, and sometimes ensuring that each business is compatible with others in the portfolio.
Business unit level is the middle level management who indulge in planning process for 1-5yrs.
At the business unit level, the strategic issues are less about the coordination of operating units and more about developing and sustaining a competitive advantage for the goods and services that are produced. At the business level, the strategy formulation phase deals with:
positioning the business against rivals
anticipating changes in demand and technologies and adjusting the strategy to accommodate them
Influencing the nature of competition through strategic actions such as vertical integration and through political actions such as lobbying.
Tactical planning breaks dawn strategic plan so that each unit or department has its own plans contributing to the overall strategy.
Departmental level is the lower divisional level of hierarchy who indulge in Operational planning for up to 1 yr only
Operational planning specifies the requisite activities for each department and for each individual to pay their part in achieving tactical and strategic plans.
Planning is done at three levels of the organisation. The top level managers who are the CEOs of the company make most of the strategic planning for the organisation. These types of planning are long term and have a directional specificity. They are mostly forÂ single use example budget plans etc. the middle level managers made both strategic and operational planning's for the organisation. The front line managers make most of the operational planning. These types of planning are short term which is only for one or 2 years, have a specific direction or detailed direction. Operational plans are also standing plans which are ongoing that provides a guidance for the activities performed for example policies and procedures.
An objective setting is a specific step, a milestone, which enables organisation to accomplish a goal. Setting objectives involves a continuous process of research and decision-making. Knowledge of yourself and your unit is a vital starting point in setting objectives. Setting right objectives is critical for effective performance management. Such objectives as higher profits, shareholder value, and customer satisfaction may be admirable, but they don't tell managers what to do.
Data retrieved on 25/Nov 2010 from
Discuss the purpose of control:-
The control cycle
The different types of control processes
Barriers of control
Control is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner.
Cycle Take action Measure
If appropriate Performance
Desired results with
According to Henri Fayol,
Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring.
Setting performance standards.
Measurement of actual performance.
Comparing actual performance with standards.
In most of the organization discrepancies and miss use of the resources results in off track of planning process thus to carry out the desired planning process in right track there is great need to control or monitor the operations and find out the new way to increase efficiency to achieve the organizational goal.
For e.g.:- Savior machines are installed in the organization for getting information of incoming and outgoing of staff so that there would be no productivity loss. Camera is put to keep a check on employees work etc.
Feed forward controls: These are the controls which are place to ensure that production runs smoothly before it begins. They are known as preliminary controls. An example of a feed forward control can be seen in a shoe factory, where the uncut leather for shoes and boots would be checked to make sure there were no flaws in it. Only the good quality leather would be used in the production process. Another example shows us that human inputs, as well as material inputs, can be controlled prior to processing. A public swimming pool operated by a local council may employ only people who are trained in resuscitation.
Concurrent controls are controls which are in place during the production process for e.g. a thermostat in a vat of hot oil turns off the heating element once the oil has risen to the right temperature. When the oil temperature drops, the thermostat automatically switches on the heat again. In this way, the oil is kept at a constant temperature perfect for cooking there food.
This is the final type of control in the open system. Once production is complete the outputs are reviewed. A common example with which most students will be familiar is that of completing an evaluation of a training course one the course is completed. The feedback give n by students will be used to improve the content and the presentation of the next course.
Barriers of control
Multicultural employees: - Sometimes the employees don't understand and do the work not according to which he/she is taught. This happens because of language problem which leads to lose control on work and towards employees. Thus multicultural is a big barrier in control as the thinking between the employees differs.
Technology: - lack of technology is a barrier in control. For example: - if the camera in shop is not sufficient to capture all the part, then the employee or outsider may take the benefit of it.
Action orientation:- Planning without action is nothing, similar to that if the organisation wants to do the control he have to take action where late in action leads to disorder in the functioning of the organisation. Thus action sometimes becomes the barrier in controlling. For example, a person caught by doing something wrong in the company and management delayed in taking an action towards that employee, because of delayed in action the other employees started doing the same thing.
Therefore delay in action is also a barrier in control.
By Sandy Millar and Christopher Theunissen Third Edition
"Managing organizations in New Zealand" P-105
By Robbins, Bergman, Stagg and Coulters
"Management 5" P- 696
Discuss one type of planning and control that managers may apply in large organisation as compared to small organisations.
Organisations require plans that cover different time horizons. Planning and controlling in large organisation differ as compared to small ones because the large organisation has wider area and wider goal than small ones. Also the large organisation planning is for a long duration of time.
For Example Strategic planning
Strategic plans are long-term needs and set comprehensive directions for an organization or sub unit. Top management planning of this scope involves determining objectives for the entire organization and then deciding on the actions and resource allocations to achieve them. A successful example, when many large businesses sought to diversify into unrelated areas. A successful oil firm might have acquired an office products company, or a successful cereal manufacturer might have acquired a clothing company. These decisions represent strategic choices regarding future directions for these companies and their use of scarce resources, instead of reinvesting in areas of core competency; they were spending available monies on unrelated and probably unfamiliar areas of business activity.
This type of planning is done in large organisation by the top managers whereas the area of small organisation is small as well as their fund.
Control is aimed at ensuring that plans are fulfilled and that performance targets are met. Planning sets the directions and allocates resources. Organizing brings people and material resources together in working combinations. Leading inspires people to best use these resources. Controlling seems to it that the right things happen, in the right way, and at the right time.
One of the controlling methods that managers used is inspection. Inspecting in regular interval of time is also a controlling process. For example in Feed forward control the managers has to keep an eye on workers to ensure that production runs smoothly before it begins which are also called as preliminary controls. An example of a feed forward control can be seen in a shoe factory, where the uncut leather for shoes and boots would be checked to make sure there were no flaws in it. Only the good-quality leather would be used in the production process. The key to feed forward controls, therefore, is taking managerial action before a problem occurs. Feed forward controls are desirable because they allow managers to prevent problems, rather than having to correct them later after the damage (such as poor-quality products, lost customers, lost revenue and so forth) has already been done.
John Campling David Poole Retha Wiesner Eng Sieng Ang Bobbie Chan Wee-Liang Tan John R.Schermerhorn, 3rd Asia-pacific Edition 2002
Identify and explain with appropriate business examples the stages of problem solving?
Ans: - Stages in problem solving: - To be a successful problem solver we must go through these stages:
Recognizing and defining the problemÂ
Finding possible solutions
Choosing the best solution
Implementing the solution.
Recognizing and defining the problem:-
Problem identification includes two different kinds: before the fact and after the fact. Before-the-fact problem identification entails discovering deficiencies before they have an impact on performance, before they result in deviations. This kind of problem finding requires a forward-looking problem-solving style and generally includes a change audit, a decision audit, an implementation audit, a resource audit, and an activity audit
For example; the entry of a competitor in the business environment could lead to reduced sales and hence reduced profits.
Finding possible solutions:-
At the heart of finding the best solution is weighing the pros and cons of possible solutions, by finding potential solutions to a problem, identifying the positive and negative aspects of each solution, and choosing the best solution based on these considerations. This method assumes that both the problem and the potential solutions are already well identified. While using a list of pros and cons is simple and requires little expertise, more complex problems require more sophisticated approaches. Analyzing the problem involves identifying and collecting the relevant information and representing it in a meaningful way. A solution is a man-made resolution to a problem. Here are two common types of solutions:
Bad: An unsatisfactory solution:-The solution is more costly than desired, it creates new problems, or it doesn't last. Someone invariably loses.
Good: A satisfactory solution: - The desired objective is achieved within acceptable parameters and it lasts. There is an opportunity for win-win.
Choosing the best possible solution: - It's a process of decision making based on a comparison of the potential outcome of alternative solutions. This involves
identifying all the features of an ideal solution, including the constraints it has to meet
eliminating solutions which do not meet the constraints
evaluating the remaining solutions against the outcome required
assessing the risks associated with the 'best' solution
making the decision to implement this solution
A problem is only solved when a solution has been implemented. In some situations, before this can take place, you need to gain acceptance of the solution by other people, or get their authority to implement it. This may involve various strategies of persuasion.
Implementing the solution
This involves three separate stages:
planning and preparing to implement the solution
taking the appropriate action and monitoring its effects
reviewing the ultimate success of the action
Implementing your solution is the culmination of all your efforts and requires very careful planning. The plan describes the sequence of actions required to achieve the objective, the timescale and the resources required at each stage. Ways of minimizing the risks involved and preventing mistakes have to be devised and built into the plan. Details of what must be done if things go wrong are also included.
Once the plan has been put into effect, the situation has to be monitored to ensure that things are running smoothly. Any problems or potential problems have to be dealt with quickly. For example, where there is likely to be only one or a few solutions, the emphasis will be on defining and analyzing the problem to indicate possible causes. At any stage in solving a problem it may be necessary to go back and adapt work done at an earlier stage.
Data retrieved on 1/Dec/2010 from
Discuss how the problem solving model may be used by organizations to make decision under the following business conditions:
Limitations of time, money and information
A fundamental part of a manager's role is to make decisions; it is an essential component of all management functions. The way in which an organisation develops its strategies, achieves its business plans, allocates resources and maintains its flexibility depends on the decisions taken by managers at every level throughout the organisation. Good decision making is a vital part of being a good manager.
A decision is a choice made from available alternatives or options. However, making the choice is only a part of the process. 'Decision making' is the process of identifying and clarifying issues. It then involves making an appropriate choice according to the circumstances and constraints.
For e.g.; - A manager has to decide who to allow to take leave when too many staff have submitted the same leave dates.
Certainty, Risk, Uncertainty, Ambiguity: Certainty, Risk, Uncertainty, Ambiguity. Certainty all the information the decision maker needs is fully available Risk decision has clear-cut goals good information is available future outcomes associated with each alternative are subject to chance Uncertainty managers know which goals they wish to achieve information about alternatives and future events is incomplete managers may have to come up with creative approaches to alternatives Ambiguity by far the most difficult decision situation goals to be achieved or the problem to be solved is unclear alternatives are difficult to define information about outcomes is unavailable
Level of certainty: - Level of certainty means all the information which the decision maker needs is fully available.
Level of Risk: - Level of risk means
. That the decision has clear -cut goals
. Good information is available.
. Future outcomes associated with each alternative are subject to change or come.
Level of uncertainty:-
Managers know which goals they wish to achieve is correct or not. Information about alternatives and future events is incomplete in case of uncertainty. Managers may have to come up with creative approaches to alternatives.
Ambiguity of information: - it refers to -
By far the most difficult decision situation is ambiguity where accurate information is needed in order to take right decision. Goals to be achieved or the problem to be solved is unclear. Alternatives are difficult to define. Information about outcomes is unavailable
Limitations of time, money and information: - Unless there would be time limit in completing one task, the managers can't put their control on the employees to do the work, which might result in unsuccessful of planning and the solution they choose. Thus managers are putting all their efforts in solving a problem from money to time and collecting information regarding the same.
By Robbins, Bergman, Stagg and Coulters 2007
"Management 5" P- 212
Suggest three techniques to aid decision making in an organisation.
Decision making is an essential component of all management functions. The way the organisation allocates its resources. Solves its problems and accomplishes its goals depends on the decisions of its managers. However, the types of decision and the circumstances in which decisions have to be made may vary significantly from day-to-day decisions within a well-structured operational framework to longer-term business or strategic decisions made in conditions of uncertainty, ambiguity and risk.
Three techniques to aid effective decision making in an organisation are as follows:-
Acting as entrepreneurial: - As entrepreneur is the person who bears with all risk factor and risk taking. In this entrepreneurial role, managers act as initiators, designers and encouragers of change and innovation. They constantly look for new ways to improve the unit's performance. When one appears they evaluate its potential and, where appropriate, initiate action. This technique of being an entrepreneur helps the organisation in taking effective decision for the business.
Resource allocator: - finding the correct way of allocating the resources and this could help the organisation in going right direction and obviously the way of taking decision would be simple and easy. In this major technique the manager distributes resources of all types, including time, funding and equipment as well as human resources. But, as in the disseminator role, the manager filters the allocation of resources, passing on only those that sections or staff is thought to require.
As negotiator: -The manager needs to represent the best interests in the organisation, customers or staff, dependent upon the situation. Since most work situations are dynamic, with constantly changing demands and pressures, it is hardly surprising that studies of managers indicate a considerable amount of time spent in negotiation with others. This technique of being a negotiator would really help the manager in making the best decision for the future of the business.
By Robbins, Bergman, Stagg and Coulters 2007
"Management 5" P-212
Discuss the importance of ethics and social responsibility within an organisation.
Ethics also known as moral is determined by the class of philosophy to addresses about morality i.e. concepts such as good vs. bad, right vs. wrong and matters of justice, love, peace and virtue. The term is used to indicate how individuals or organization choose to conduct themselves in relation to universal moral behavior and actions. Ethics involve choosing actions that are right and proper and just.
The individual behaviour can be right or wrong, proper or improper and almost the managerial or individual decisions can be fair or unfair.
Ethics is important not only in business but in all aspects of life because it is the vital part and the foundation on which the society is build. A business/society that lacks ethical principles is bound to fail sooner or later. Ethics refers to a code of conduct that guides an individual in dealing with others. Business Ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in business environment. It deals with issues regarding the moral and ethical rights, duties and corporate governance between a company and its shareholders, employees, customers, media, government, suppliers and dealers. Henry Ford said, "Business that makes noting but money is a poor kind of business". Ethics is related to all disciplines of management like accounting information, human resource management, sales and marketing, production, intellectual property knowledge and skill, international business and economic system.
Social responsibility is an ethical or ideological theory that business should not function amorally but instead should contribute to the welfare of their communities and an entity whether it is a government, corporation, organization or individual has a big responsibility to society at large. This responsibility can be "negative", meaning there is exemption from blame or liability, or it can be "positive," meaning there is a responsibility to act beneficently (proactive stance).
For Example in corporate company a chief executive make expenditures on reducing pollution beyond the amount that is in the best interests of the corporation or that is required by law in order to contribute to the social objective of improving the environment. There are lot many benefits to any organization of being social responsible. First and foremost benefit to organization is that to ensure the customers, suppliers and the local community knows what you are doing. Publicity like this can be a key part of using CSR to win contracts. People want to buy from businesses they respect. Through this way your business reputation will be grow day by day and it encourage to customers to stay with u and do business with your company. A company using recycled paper for production but he never responsible regarding society and community lost chance to do go business. For Example note book of classmate is in demand because it takes responsibility of study for millionaires poor children.
Compare and contrast the difference between "ethics" from a personal perspective to one established viewpoint of ethics from an organisational perspective.
Personal perspective view of ethics:-
Personal ethics are the moral foundation on which people build their lives. They assist in decision making, guiding person to participate in actions that meet his/her internal moral standards. Ethics represents the core value system the person use for everyday problem solving. They create a framework for determining "right" versus "wrong". Ethics are developed throughout life based on a wide variety of factors. They are not absolute rules. For many people, to define personal ethics is a difficult endeavor. They simply consider their "inner voice" to be all the ethical guidance they need. After all, intuition plays a large role in what one finds ethical. By organisation view, ethics plays a vital role that defines the way of representation, way of talking, body language, attitude etc. The lack of personal ethics gives a negative response in managerial processes. E.g.:- if a company is launching the product with risk taking, then the manager should be fully ensured with correct way of personal ethics, as the product may be failed to attract customer if marketing manager lacks in personal ethics so it is clear that personal ethics makes a man to take a right managerial decision.
A standard way of understanding ethical decision-making is to understand the philosophical basis for making these decisions. People and organizations need each other. Business ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the organization's culture sets standards for determining the difference between good and bad decision making and behavior.
Discuss four benefits and four disadvantages of social responsibility to an organisation.
Benefits of social responsibility :-
Providing good value for money
If the management and workers of the organization are well social responsible for internal and external environment of the organization then it would result in best productivity and obviously the good image of the organization. The biggest power of the any organization among all resources is the human resource that's why if human resource is so well behaved with good ethical ways the value of any organization will be good enough.
Broadening the futuristic concept of business
If the organization is giving best output to the public demand satisfying their needs with latest trends and technology, it means that the business of the organization is good and as public response is excellent the organization would have better future aspects. This all happen due to the organizations social responsibility towards their own employees and environment factors.
E.g.:- MC Donald's is giving best variety of food in hygienically manner, where all the perception of individual match such as price, food quality, taste etc. Their business is so good that we can find its outlet anywhere in the world. MC Donald's is popular because they are socially responsible to the environment and for their work.
ï‚· A good reputation makes it easier to recruit employees.
ï‚· Employees may stay longer, reducing the costs and disruption of recruitment and retraining.
ï‚· Employees are better motivated and more productive.
ï‚· CSR helps ensure you comply with regulatory requirements.
ï‚· Activities such as involvement with the local community are ideal opportunities to generate positive press coverage.
ï‚· Good relationships with local authorities make doing business easier. See the page in this guide on how to work with the local community.
Disadvantages of social responsibility towards organisation
Everything has some prons and crons, similar to social responsibility where so many people argued on the benefits and disadvantages of social responsibility. First the most important is that the organization is running for profit maximization mostly, the social responsibility shows the fundamental misconception of the character and nature of a free economy. Business functions are moreover economic rather than social if come to the practical way and it is judged by economic criteria alone. This point of view comes to the employees mind most of the time leading to not to concentrate much in their work which automatically results in bad productivity.
The role of corporation is to make a profit and maximize social welfare through the efficiency of the employees. In some cases where employees are not much social responsible for the organization than it would be very difficult for the managers or corporation to do the best out of the work and lead the group, resulting in bad image of the organization and bad internal environment
There is the concern for the efficient use of national resources, because of social costs; profitability is not necessarily the best measure of effectiveness which affects the organization goal.
Lack of interest of the employees towards social responsible in their business also not good for the organization
Competency sometimes makes the stake holders to go beyond the limit forgetting their social responsibility that harm the nature and organization too. Being socially responsible costs organisations money, and sometimes the bill is huge. Therefore the organization think to do for profit maximizing rather than be social responsible.
Discuss social responsibility barriers that inhibit an organisation
Barriers that inhabit an organization
Social responsibility has certain costs. It's not the natural thing to be responsible. Greed and selfishness work against social responsibility. When greed and selfishness become higher values, social responsibility goes out the window. One of the problems with our culture is that we worship wealth. People who have a lot of money are heroes to us and we strive to emulate them. We see wealth and power as an indicator of merit and virtue. But people who are rich and want to be richer, and corporate and industrial leaders whose jobs are to put the prosperity of their companies at the top of their priorities, often trivialize social responsibility, and this sets the tone for the whole culture. In social responsibility every individual in the organisation is not social responsible towards the work, it depends upon the people behaviour and motivation level within the organisation. Today every people think about wealth rather than social responsibility that they possess towards the organisation. This is the barrier in the organisation.
For e.g.:- in an organisation if certain facility is lacking for the staff then staff will suffer and this management must be think which in reality they don't. This lacking of facility may affect the work out going on within the organisation.
Flow of information in the organisation should be well enough to avoid any conflicts between the staff but it arises due to the problems that every employee are not social responsible. A vendor to the company first think towards the money he/she will get from doing particular kind of work.
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