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Management is the art of getting people together to accomplish the organisational objectives and goals(Drucker ,1997 ).Business revolves around three words know as 3 M's of management that is MEN,MONEY,METERIAL. The job of every manager is to help the organisation or the business in achieving the objectives by utilising these three main resources. The basic function of management revolves around four basic concepts i.e. Planning,Organising,Leading & Controlling. Some management practiosoiner asserts that this view is outmoded and the management is to focus more on leadership skill and they stress on the fact that this leadership skill must participative ,facilitative, empowering how vision and establishment are carried out. But in reality this is not a change in management function, rather it emphasis of certain accepts of management.
Functions of management.
Traditionally the term management comprises of five basic functions or processes- Planning, Organising, coordinating, controlling &commanding.(Fayol 1949) Managers uses these process to manage. Management for the maximum utilization of resources to accomplish the organisational goals. Top, Middle & low level managers are responsible for the integration of five functions. The five functions management can diagrammatically represented as below:-
According to many authors management has seven functions.
Planning: Determines the various objectives in advance and how it can acheve
Organising: this provides structural frame work of the authority for all works
Staffing: Recruit higher and trained workers to maintain a favourable working condition
Directing: This is related to making decision, issuing orders and directing
Coordinating: This function interrelated all sectors in organisation
Reporting: Informs the hierarchy through, reports, records and instruction
Budgeting: This depends upon fiscal and monitoring planning
Planning is the process of discovering the steps and objectives to accomplish certain task, implementing the plan and analyse the outcome.(David ,2008) Planning comprises of identifying the goals, objectives, the various method to achieve the goals and objectives, various resources that is needed to carried out the process, responsibilities and time limit for the completion of this task. Planning is normally done by the top and middle level management. Planning gives us broader and narrowest view of the organisation for example the broader view it gives the clear statement about the mission of the organisation and narrowest it gives the various tactics to accomplish the task. Planning gives a clear picture of future impact of today's decision. It is a must fundamental function of all above however lot of organisation postpone the planning procedure. The drigamatical representation of planning process is shown below
Planning-to set the direction
Decide where you want to go
Decide how to best go about it
To create structures
Leading-to inspire effort
Controlling-to ensure results
Take corrective action
Planning as a terminology consists of vision, mission, objectives & goals of organisation. Planning explains who, what, when, where and how activities will take place to accomplish the task
Vision:- It gives the motivational guidance for the entire organisation normally provided by the top management
Mission:-It explains by the organisation therefore it gives the clear picture the scope of the business and the factor that differentiate this business some similar kind of business. Mission statement also reflects the organisational culture and values of the organisation.
Objectives:-It addresses the key issues such as profitability, financial resources work performances, efficiency, innovations, productivities, how to place the product in the market etc. Objectives are expected to general, observable and challenging
Goals:-Goals are specific statement that further explains the objectives. This objectives are expected to be SMART..Specific, measurable, attend able, rewarding and time
Why do Companies Plan?
Now a day's companies facing many issues from different sources. Both external and internal environment may affect the unplanned business environment. Here proper planning in this condition is the best solution to overcome the pressures and unbalance of the company (Schermerhorn 2006). In order to improve the qualities like focus, flexibility, action orientation, coordination, time management and control the organisation need good planning.
Short term plans & Long term plans
Top managent group involved in long term plan that covers three or more years and lower management focus on short term term plans covers one year or less.
Strategic & Operational planning.
Strategic planning determines the entire direction of organisation, what it should what it shouldn't at the same time operational planning is the day by day month by month planning of the what organisation is doing. (Schermerhorn 2006) Both the plans not only differ on the time horizon but also various in the scope. Strategic plan is broad, comprehensive and long term plan which gives the organisation a specific direction to achieve. For the successful working of the firm the both plans have to be integrated.
Strategic planning focuses on organization vision and mission and also ensures the members of the organisation are working towards the same goals. It integrate the daily operation decision into strategic process for the harnesses the full potential of the organisation. It helps the organisation in understanding What they are doing? Whom they are doing? Why they are doing? It help the organisation to re-examine their establish directions and strategies for contemporary relevance and practical results, by asking questions like whether we need to change our vision, do we need to change our target customers, should we need to change our promotional campaigns.
Strategic planning process
1. Envirnomental scanning:- The organisation need to review the current and estimated changes in local, political, social, economical, cultural, legal and environments. It needs to identify the challenges and opportunities. In this process lot of tools like SWOT and PESTEL analysis is used.
2. Plotting Direction:- On the basis of environment scan the firm need to identify the major issues and opportunities the organisation faces
3 The mission statement: -In the mission statement or the reason why the organisation exist is revived. This is to draw up principles that will provide the inspiration to staff and the board
4.The Goals: - On the basis of mission statement the strategies have to set what are the thing needed to accomplish this goals to the organisation
Strategic plan should include different action plan specifying the responsibilities and time lines to attain different objectives and who needs to do and what time and when. The strategic should evaluate the plans and results at a regular interval of time.
Operational planning is for a shorter period of time. Typically operational planning consist of the production plans-that is the various inventory and technological aspects of business, financial plan- in this we deal with money required to support various operational plans, facilities plan- consist of facilities and work layout ,marketing plan-dealing with requirement of product selling , distributing or service and human resource plans-dealing recruitment ,placement of people in different positions(Schermerhorn 2006)
Components of operational planning
1. Outcome: - Outcome are results of organisation to achieve during the year.it should under the control of organisation and it should be realistic.
2. Purpose: -This explain the intent behind the outcome and why it is important to achieve those outcome
3. Products: - It is tangible results that will be in hand after the completion of the plan
4. Major actions: - It explains the decide actions needed to achieve the outcomes
5. Action plan: Every plan will have major plan and several small plans. In every step of this, it is important to identify who is responsible, what is the time to accomplish the task, and start time of the different plans have to decide.
Planning is the formal approach of a business environment. Proper planning identifies both the future impact and present situations of a organisation, it bridges the gap between the both situation. Planning is the essential thing for the continuous improvement of the organisation. Planning having its own important role in every success stories of organisation. Finally if there are any unplanned activities, it may affect the smooth running of the organisation. It may even couses loss or even winding up of business. In order to improve the success rates, we have to build a strong planning back ground.Â