The Planning Function of ManagementCortnie ChildersMGT/330August 10, 2010Scott SmithThe Planning Function of Management??? He who fails to plan, plans to fail.??? (Thinkexist. com, 1999-2010). Planning is the first step an organization takes when pursuing a goal. With the goal in mind one must layout the business plan that will allow the organization and everyone involved to reach the goal.
The plan will include activities delegated to individuals, groups, or the overall organization that will be used as a tool in reaching the goal. When a company begins planning it is important to ??? analyze current situations, anticipate the future, and determine the objectives.??? (Bateman & Snell, 2009). Lots of thought and decision making goes into deciding what activities the company will choose followed by business strategies. The company must know the resources needed to reach the organizations goal. Within the company of Sports Authority, the executives will send reports to all stores stating their numbers in all categories. There is always a requirement of where each store should be and there is always room for improvement. In this case, it??™s up to the store managers of each location to prepare a business plan that will show the executives a goal has been set and an action plan is in progress.
The plan begins by researching and gathering ideas of how to reach this goal. Ideas from managers, employees, customers, suppliers, and other stakeholders are all a part of the planning process. In order to have a strong and successful plan it is smart to look at the customers and employees since those are who run the floors and keep the company alive. When evaluating the planning function of management it is necessary to look at many sides of the planning process. It??™s important to be aware of legal issues, ethics, and the social responsibility that challenge the plan making. Influences such as strategic planning, tactical planning, operational planning, and contingency planning all go hand in hand when striving to achieve the goal of the organization.
Legal issues can arise quickly when laws are not followed by the organization. Management should plan for the worst and know how to handle any situation that may arise to be sure they are following all state and federal laws. When a legal matter occurs the appropriate actions must be taken in handling the situation. Most of the times HR or upper management will step in to make sure no errors are made.
A common issue in the workplace is safety. If an employee gets hurt on the job or a customer??™s gets hurt in the building it is the companies responsibility to take action and make sure the situation is handle properly so no further legal issues come of it. For example, a customer shopping at Sports Authority was in the fitting room trying on a pair of snow pants. As the customer reached his hand deep in the pocket he felt something sharp and immediately pulled his hand out. In the pocket was a sharp knife used for slicing fish. It looked as if a customer had tried stealing the knife, couldn??™t get the sensor tag off, so he hid it in the pocket of snow pants. When such a serious injury occurs proper action must take place.
There are people to inform the report to and forms to be filled out. If procedures are not followed correctly the company will have legal issues and a chance to be sued. With a detailed and honest plan set, a company has more of a chance to stay ethical while striving to achieve the organizations goal. When managers are under pressure, some will do just about anything to make the goal.
With deadlines to be met and jobs on the line, lying and cheating can cause ethical problems to arise within the company. If a clear plan is laid out with effective steps and activities that will guide the team in the right direction, it will be less likely managers and employees will feel they have to do unethical behaviors to reach the goal. For example, the Stockton, Ca Sports Authority is told by higher management that their goal is to have over $1, 000 dollars in warranties sold by the end of the week. If there is not a clear set plan as to what the goal is and how the goal will be reached, managers and employees may feel pressured to do unethical actions. Selling the warranty but marking down the price of the merchandise the price of the warranty so the customer isn??™t paying anything extra for the warranty is against company policy and unethical behavior.
It??™s unethical to cheat by marking down merchandise to sell warranties in order to reach the goal. Corporate social responsibility comes to play when planning is made. The company wants to be perceived by the public as ethical, law abiding, and profitable. It??™s important for a business to have positive effects and a positive image to society; after all, it??™s the public that is keeping the company in business. It??™s the responsibility of the company to produce goods and services customers want and at a price that keeps customers coming back. Lots of factors are involved when a company plans to achieve a goal.
It??™s all about time. What??™s the time frame of the plan Is it long term or short term A company will use strategic planning when there is a plan to be made as to where the company is going over the next year or more. There has to be a plan that shows how the organization is going to get there and focus on departments that must take action.
Following strategic planning comes tactical planning. Tactical planning takes the strategic plan and breaks it down into short term action plans. The time period for tactical planning starts today and continues for three years. All activities and should follow the strategic plan. If there is disagreement and interests change that can take the plan off track. Operational planning is used daily in the workplace. Short term plans that need to take action immediately and results must be in at the end of the week or month. During operational planning it??™s important for the company to know where they are now, where they want to be, how do they get there, and how to they measure progress With action planning in place the goal will be reached in a timely manner.
Lastly, when plans start to fall apart or not working as planned contingency planning is required. Every plan should always have a back-up plan. How often do things really go according to plan What do you do if the plan has taken a bad turn The contingency plan provides alternative strategies and activities to recover the loss and allow the team to reach the goal originally set. Planning is the most important part of a company??™s performance. A plan is needed so everyone involved in reaching the goal is a aware of the goal, the activities, and how the plan will be achieved. It??™s something to fall back on when side-tracked or to show the boss goals are enforced and how they will be achieved. Organizing and gathering information from managers, employees, customers, and stakeholders all have a responsibility in helping a company reach the goal.
ReferencesBateman, Thomas S., Snell, Scott A. Management: Leading and Collaborating in a Competitive World. Eighth Edition.
2009. McGraw-Hill. Drucker, Perter F.
ThinkExist. com Quotations. 1999-2010.
