Explain_in_Detail_How_the_Planning_Process_Is_Considered_to_Be_a_Key_Function_of_Management

A. Explain in detail how the planning process is considered to be a key function of management Any organisation needs to set goals and objectives which it then must achieve in order to be successful. These goals and objectives are set out in different elements of the management process which are known as the functions of management. Different experts have classified functions of management. The classic framework was developed in 1912 by a pioneer writer on management, Henri Fayol,(1841-1925) who based it on an analysis of his experience as a practising manager. Fayol stated that all undertakings require Planning, Organising, Command, Co-ordination and Control to function properly. This concept was expanded further by Luther Gulick and Lyndall Urwick in 1937 who used the acronym POSDCORB to describe Planning, Organising, Staffing, Directing, Co-ordinating, Reporting and Budgeting. Koontz in 1958 stated that the function of management was different from that of the accountant or engineer and that “getting things done through people” could be achieved by Planning - Establishing goals and objectives and selecting a future course of action in order to achieve them Organising - Allocation of resources to allocate resources to ensure the plans can be achieved. Staffing - Selection, training, developing and rewarding of effective employees for the accomplishment of organisational goals. Leading - Inducing of individuals or groups to assist willingly in the attainment of the organisational goals Controlling - Monitoring progress made by the organisation; Taking action to ensure goals match targets. These five functions are the most widely accepted in the business world. For theoretical purposes, the functions of management may be separated but practically these functions are overlapping in nature and are inseparable. Each function blends into the other and each affects the performance of others. Figure 1 The Planning process is a cycle of four elements:-  Formulate Plans - Plan  Carry out Plans – Do  Compare Outcomes - Review  Take Corrective Action if required – Revise Figure 2 Planning is simple in concept. Williamson (1981) states that it consists basically of a decision today on where the company wants to be tomorrow and the selection of means and actions that will get it there. Professor David Storey prefaces Paul Barrow (2001) by stating that the clinching argument for planning is that it forces the owner to think first and then act. In our everyday lives we have to, consciously or unconsciously, plan. We plan dinner, shopping, holidays, day-trips. If there is no planning then there is higher risk of something going wrong. Plans give shape and purpose to our lives and enable us to gather resources and cooperate with others in achievement of ends. In short, the purpose and benefits of planning are as follows;  Co-ordination of activities – important in multidepartmental situations where each separate unit should know where the others are at  Gives purpose and direction to the organisation  Has motivational implications – gives employees a sense of purpose  Allows for participation of employees  Reduces the impact of changes in the external environment – can anticipate risks  Reduces uncertainty  Reduces wastage and inefficiency  Creates accountability to staff in implementation of the plan The cycle of planning needs to be dynamic – the control aspect of planning requires review and revision if necessary. Planning sets the direction and points the organisation along its route; control ensures that the direction is maintained or a new direction chosen. Although planning is vital for an organisation there may be problems with the process such as; • Lack of accuracy - planning relates to future and the future is always uncertain and so prediction about future is so much difficult. • Costs - formulation of plans involves costs which are in the form of time spent, money spent etc. If the plan is not useful then the amount or time spent on its formulation is a waste . • Inappropriate use of planning specialists - a planning department can become large, self-interested and distant from the line managers. • Less than enthusiastic top management commitment – resistance to change or external issues such as government factors outside of the control of managers can dissuade management from fully backing a plan • Lack of planning expertise – this could mean that an organisation might settle for less than the best results.