ABSTRACT
The role of planning and
forecasting the business organization is a topic chosen from the business
administration and management field.
The research was
conducted mainly to examine the positive and negative effects of not making
good use of planning and forecasting in the business administration of an
organization. For effective research on this topic THE ROLE OF PLANNING AND
FORECASTING IN BUSINESS ORGANIZATION, both primary and secondary data were used
to elicit information from sample studied, the primary source of data were
response from the personal interview, while secondary sources from text books
on business management and administration periodicals.
Twenty- five persons
were interviewed as the sample of the staff and management of EASTERN SHOP
NIGERIA LTD.
The data analysis was
based on oral interview we had with the staff of eastern shop (twenty-five).
The major findings are as follows:
Ø The planning and forecasting
is aids to correct mismanagement in business organization.
Ø And the planning and forecasting
gives go ahead order to any individual, organization that is going into
business to make judicious use of forecasting and planning as a way of success
in any business.
Ø Poor forecasting attitude and
inadequate planning.
Ø Poor integration of forecasting and
planning in running of business.
Ø Problem of in- experience in
running of organization, as a result of making use of sentiment, instead of
strategy.
Ø Problem of business is also noticed
to be an issue of planning on daily basis instead of medium term and long term
planning and forecasting basis.
Ø Problem arises, because management
“ organization believes that planning is not important, even if they believe
that it is inborn and endowed from birth and indication.
This project has three
chapters. Chapter one contains introduction, statement of problems, objectives
of the study, significant of the study, definition and important terms and
research questions.
Chapter two is the
literature review. Here some related literatures were reviewed.
Chapter three deals with
the finding, summary, recommendation and conclusion.
In summary, recommendation state that he who fails to plan, plans to fail, and
so human heart can not breath without air, so also business will not work
without planning.
TABLE OF CONTENTS
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chapter one |
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1.1 introduction |
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1.2 back ground of the subject matter |
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1.3 problem associated with the subject matter |
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1.4 the problem the study will be concerned
with |
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1.5 the importance of study |
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1.6 definition of importance terms |
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1.7 references |
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chapter two |
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2.0 literature review |
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2.1 the origin of the subject matter |
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2.2 school of thought relevant of the subject
matter |
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2.3 school of thought within the subject area |
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2.4 difference methods of studying the problem |
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2.5 summary |
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2.6 references |
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chapter three |
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3.0 conclusion |
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3.1 data presentation |
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3.2 analysis of data |
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3.3 recommendation |
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3.4 conclusion |
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3.5 references |
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CHAPTER ONE
1.1 INTRODUCTION
Andreas faludi states “
planning and forecasting is the queen mother function of management
(organization) and that if planning and forecasting fail, what/who will you
direct, control, budget, staff, co-ordinate or organize rather than failure and
shame! Again he states that, “theories provide explanations, explanations are
response to state of tension resulting from observing unexpected events.
(Toulinin, 1960)
Planning and forecasting
present efforts to reduce surprise caused by such event by giving practicable
accounts of how they come about”
WHAT IS PLANNING AND
FORECASTING
FORECASTING:
Forecasting is preparing
of an organizations future objectives and its current materials and personnel
inventory, the general or departmental managers makes an estimate of the
current materials and human resources that will be able to do in the future and
how many more human and materials resources the organization must hire to meet
its goals. (Needle 1999; 178)
Any business
organization without element of forecasting is like driving a car bind –folded
and being directed by a man look out through the back-window. Further more,
forecasting is prediction, it is an effort by enterprises to know what the
future holds for it. Hennery Fayoi speaks of prevalence as the essence of
management. According to Fayoi, “ this looking ahead includes both assessing
the future and making provision for it.
Modern business management has become a complex activity and so there is need
for adequate forecasting. The need for adequate forecasting is apparent from
the key role it plays in planning. Koonazetal stated that, “as influence in
plans of the entire environment outside the enterprise has come to be insanely
recognizes, forecasting of the environment has risen in importance”
The role of forecasting
in business organization is so important that managers must adapt it. The
making of forecasting and the review by manager complex thinking ahead looking
to the future and providing for it. Also, the very act of forecasting may
disclose area where necessary control is lacking.
PLANNING
Andreas Falodi states
“man’s understanding of the world and his ability to act in it depends on his
constructing and imaginary in his own mind. This applies equally were the
planners understand of himself and his operation”
Planning in its simplest meaning is the determination of anything in advance of
action, planning is defined by Koontz O’Donnell as, “deciding I advance what to
do, who is to do it, how to do it, what to do, who is to do it, how to do it,
when to do it, and why it should be done”
Planning bridges the gap
from where we are, to where we want to go. Planning can also be defined as “a
predetermined cause of action that helps to provide purpose and direction for
members of an enterprise.
Designing an environment
for the effective performance of individual working together in groups, the
most essentia task is to see purpose and objectives, and methods of attaining
them are clearly understood. Planning is the first function of a manager, it is
necessary if anything or activities is to reach to the denied goal. Through planning,
a manager can approach pre-determined objective rationally. All the work of an
executive, whether he knows it or not, is some way connected with the unfolding
of a plan, in identifying the role of planning in business organization,
Koonzetal states that, “ we are in a economic, technological, social and
political era in which planning like other function of managers, has become
requisite far enterprise survival”
Planning is unique in
that it established the objectives necessary for all group efforts.
Planning and forecasting are important tools of company management and decision
making as they assist in the appraisal of investment project, in the analysis,
measurement and improvement of current marketing strategy and manpower planning
and in the identification and development of new products and new market,
further they promote and facilitates the proper functioning of the many aspects
of company’s activities.
Planning and forecasting
are compliments in that for a good result both go together. They could be
regarded as independent parts that make specified whole. Writing also in this
concept, O’Donnell states that, “forecasting especially where participated
throughout the organization, may help to unify and coordinate plans. By
focusing attention on the future, it assists in bringing a singleness of
purposes to planning”.
1.2 BACKGROUND
OF THE SUBJECT MATTER
The popular super market
called EASTERN SHOP was established in May 28, 1960. Almost five (5) months
after independence of the country. This took place at Ogui Road, Enugu. Then
Anambra sate now Enugu state, which is formerly known as the headquarters of
the eastern shop Nigeria.
The supermarket is
situated opposite Nnamdi Azikiwe Stadium and around it were other big shops
like Bobbies, ABC Transport etc. the amazing thing that concerns this shop is
that the manager or the sole proprietor is a family man, that had engage in
other business and finally settle in opening a big supermarket. He
entered into the business with little or no experience in the field of
supermarket business.
Originally, the name of
managing director of the supermarket is Chief. M.O Okoli, Ozo Zulu Agulu I of
Agulu in Aniocha local government of (old and new Anambra state) . he is one of
the pioneer members of Enugu state association of supermarkets. This was to
enable him to curb some of the problems that he is passing through, a as result
of poor forecasting and planning in business. The supermarket has other
branches in Lagos, and Onitsha. In the establishment, he employed general
operation manager (Com) who sees to the running of the business. The company
aso has shop manager who direct the affairs of cashier, store manager and
restaurant departments and report of the AOM. East shop is made up of file (s)
department/units
v Accounting department
v Cashier department
v Store department
v Restaurant department
v Cold room department
Eastern shop deals
mostly on consumer’s good like cosmetics, wears, earned, food, baby wears and
toys.
The problem of proper planning and forecasting is among the major problem that
limits the more expansion of the business. These can be clearly seen from an
adage that says, “ that business is full or risks” besides, the researchers
were able to note that the sum of N500 naira was used as initial capital of the
business and today the property of the business is on millions and it have more
that twenty people as employees. This simply means that it is no longer
small-scale business as the law required. But as a result ofinadequte
application role, of good understanding in the techniques of forecasting an
planning integration in business, he cannot make good pricing, quantity and
quality of products.
Since improper planning is as good as not planning at all, based on the above
promising and manifesting problem, these calls for the researchers to
investigate the project topic to help the present situation that is facing the
business.
1.3 PROBLEMS
OF ASSOCIATED WITH THE SUBJECT MATTER
It
has obviously been provide that “he who fails to plan plans to fail” and it is
also believed that he who fails to put records and recognizance of the past
event should not predict/forecast future. If any body that fails to envisage
the future is bound to crash.
Planning and forecasting
have been integrated to be wonderful tools for effective management. Since
planning and forecasting are like touch light used in darkens. We also believed
that business dwell in the world of dynamism and unsteady-setting, which called
for effective use of planning and forecasting. It can also be seen as an eye of
every business that wants to grow in a competitive environment.
Even the Bible says, “where there is no vision the people perish” in this
context vision, which is sight in modern business management, is planning and
forecasting. Moreover Hoesa 4: 6 said, “My people perish for lack of knowledge.
Like wise, many business collapses because of inadequate knowledge of planning
and forecasting. It is because of these present problems and eminent problems,
which many business are encountering and also will encounter in future, that
make the researchers to bring out the topic title “PLANNING AND FORECASTING IN BUSINESS
ORGANISATION:
From the light to the above, it is approved that for a society to progress is
to embrace planning and forecasting.
Peter drunker said that,
“ planning and forecasting which is aspect of management is doing not knowing”
therefore, we should know that planning must be practialized not nursing or
desire in heart. It is a thing of paramount importance to see that problems or
course of liquidation of much business is as a result of lack of adequate
planning and forecasting. Moreover, this project necessitate a result that few
people and some organizations that recognized the role of planning and
forecasting. They do it any how, without knowing that planning is “QUEEN MOTER”
of all the management and if it fails what how then will you direct, organize,
control, staff and budget it to and so on.
This issue of poor attitude and how understanding of the role or meaning and
importance of twice brothers planning and forecasting makes business not to
grow well, talk more of progressing. And if one will progress at all, without
planning it will be by trying and error or miracle working or simply put just
by chance or luck, but planning of business is a well program oriented for
profit venture or business.
In attempt to plan, as
many think, they do only half bake planning which is as good as not thinking at
all, in which most of their planning is found wanting because it lacks the
basic element of planning as regards as follows:
1. futuristic in out look, that
is, planning some future problems of business at today’s doorsteps besides that
future can never be predicated with hindered percent efficiency. This is why
provision has to be made to accommodate future uncertaies.
2. most people in their
planning lacks action, planning need to initiate action since mere sanding of
the expected income an expenditure during fiscal year calls for Acton to make
sure that the objectives of realizes.
3. most people in their
planning fails to identify manpower that will take the active action since
everybody in an organization cannot take the action and also to identify at
what point or time the action are to be taken.
The most disturbing and
annoying issue that manifest in these lack of planning and forecasting in
business, that makes the researchers to write on planning and forecasting as
this topic is the nature –less in mode of their planning. Since most
organization fails t adopt generalized approved nature of planning by all
management according to Willian Nnewam 1963. He said that the four major
aspects of planning could highlight the essential nature of planning.
Contribution to purpose
and objectives primacy of planning, perverseness of planning and efficiency of
plans. People fail to understand the need to appreciate planning process; this
also, magnified needs of this project topic. All planning process must obey
rules of goal setting, strategy formulation, recognition of some elements.
Besides some people that tries to apply the process fails to update with the
modifies by an author Nwachukwu C. C. who in his book called management theory
and practice says that it is done in six step process which is shown in the
diagram below.
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PLANNING PROCESS
All these challenges put together, make the researchers to found it duly worthy
to write on this topic, to revive and resurrect a dead and sick business
organization by the power of wonderful role of inseparable twin brothers which
is planning an forecasting, since all management function and if it fails what
or who and how will one (business manager) direct control budget, staff and so
on and so fort.
It is nothing rather than to co-ordinate failure and shame.
Management today
believes in managements by objectives (M.B.O) this project will also have it
objective to draw the problem nearer home and to expose the thought biliously.
PROBLEMS OF THE STUDY
WILL BE CONCERNED WITH
The problems planning and forecasting encounter in an organization affects it
productivity. Over the years, business organization has series a lot eradicate
these problems that some times equal management progress in eastern shop
Nigeria limited Ogui Road Enugu.
The problems are stated
thus:
v To know how planning and
forecasting in Eastern shop Ltd carryout their tasks.
v To know both the internal and
external affairs of the company.
v Whether the problems are caused as
a result of poor motivation.
v What other variable could explain
why the problems have not been eradicated.
v To know whether the working
environment is conducive for planning and forecasting.
These problems also
attached it with the research questions and we will use the same opportunity to
discuss the research questions.
RESEARCH QUESTION
Why is planning and
forecasting needed in an organization
What impact can it
create in progress of business?
Does planning and
forecasting has any theoretical backups and backgrounds
Can we really do without
planning and forecasting
What makes planning and
forecasting organic function of management
Is information an
effective tool for planning and forecasting in business organization
On the reason why, is
planning and forecasting needed in an organization, both chartable and
non-profit organization had fail, because of inadequate planning and
forecasting.
Planning having initiate
in selection of man-power, bridge or links up past, present and future together
for effective returns, by bringing in future at door step of managers. Planning
being the primary of all business function has tried to house all functions
because, it fails as house other thing will fail and so with the aid of proper
planning business organization are bound to succeed.
In today’s business some people jumps into business world without minding the
rate of planning and forecasting, due to he believe that says, “with
money all things are possible” and also believe that they are man enough to
handle any thing, which is very wrong, and also an abuse to the business
concept.
They assumption, but by
real planning and forecasting.
These questions were
also raised to scrap out issues that manager is born not made and since proper
planning and forecasting, has brought increase in productivity that is
immeasurable and quantifiable in today’s business.
What input can (planning
no forecasting) creates more progress of business?
This impact of planning
in its strict senses no matter the face of circumstances. Having known these,
the Important of planning and forecasting will not be far fetched or traced,
since planning makes mangers to have objective goals or resources to arrest
them which an be of (4m) man, material, money and machine or (m5) man,
materials, money machine and method, and these erupt the modern strategy of
(MBO) management by objective and being objective means seeing things from the
generalized means seeing things form generalized and accepted phase not with
personal subjective phase.
Does planning and
forecasting have any theoretical backup and background? Theories provides
explanation which are responses to states or tension resulting from observing
unexpected event (TOULMIN, 1960) they represent efforts to reduce surprises
caused by such events by giving plausible accounts of how they forecasting has
any theoretical backup yes of course, it has. According to Hagreanves 1983: 3
and 7 says “Before planning will be completed you need to prepare deals in forecasting
of sales, profits, production, finance an man-power, due to he fact that will
help to validate your plan”.
Another pronounce
professional, Jack Mitovurie states that “ forecasting is an essential aid for
management decision in such critical areas as estimating, the profitability of
new product, the cost and likely effectiveness of promotion possible effect of
price change and the need for additional resources of sale man, advertising of
administration.
According to Koonztz and
Donnell (1980) defines planning as deciding in advance what to do, how to do
it, who is do it and why it should be done. (Management Heinemann Oxford London
1973:60)
Again, Henry Fayol says
that planning and forecasting is “ looking ahead includes both assessing the
future and making provision for it.
Lastly but not the least that are going to mention is Peter Drunker in
practical management 1995:p4 it says “He that love his life wife loves,
planning an he that hate planning embraces embarrassment; he that fails to
plan, plans to fail.
To prove it worthy, it
is justifiable of have scientific management theory background for much
laudable pronunciation in management. Can we really do without planning and
forecasting? The answer will be yes due to, if man wills still b alive after
his heart organization breathing. But if not, so business has stop
breathing. If not so business organization cannot do without
embracing the role of planning and forecasting.
Again, as a clock cannot
work without battery in it, and if man cannot live without food it will be
impossible for us to operate business without planning and forecasting and if
this is impossible, it is simply means that planning and forecasting is
indispensable to business organization.
What makes planning and
forecasting the organic function of management is that it was found to be
master planner and bread winner of the family (organization, it also found to
be encroached) power house) in business life.
To answer this question,
clear, Andrew Falied state means of understanding of this word and his ability
to act in it depends mind. This applies equally well that the planner
understands himself and his operation.
Finally, is information an effective tool for planning and forecasting? Yes of
course.
Since planning aids to bringing future at the doorstep of an organization, this
shows that planning is to manage future. According to Peter Drunker, he says,
that “To manage future is to manage business and to manage business is to
manage information, planning and forecasting making use of information as tool
for effective planning and forecasting, it proves information is life wire of a
business planning and forecasting. These information, as a means of communication
keeps with ever dynamic changes in business world for business to be standard,
it must fellow the trends of changes in information to put with fashion this is
in rough.
1.5 THE
IMPORTANCE OF THE STUDY
If this course or
project does not its salt, it could not have approved, and the researches
project supervisor believed that some people would benefit form this project
topic when it is properly done.
Having know that
planning is organic function of management; it brings much good to business in
various ways, all business organization, both those that have arrived and get
to arrive will benefit from these topic, if well utilized especially in areas
of pricing, quantity, quality, man-power, money, capital control and so on.
This study is meant to
examine the problems of planning and forecasting in business organization. It
will examine the role, which managers, tries to implement by using planning and
forecasting to achieve effective and efficient management of the organization
and society at large. The research will also find solution to some of the
problems managers encounter by implementing planning and forecasting in their
day-to day activities.
However, the importance
of the research to management of any organization both profit and non-profit
organizations, students both graduate and undergraduate will not be over
emphasized. Family will also benefit from it, since management is done by all
and planning is first born and major aspect of management.
Government agency, and
prostates will also benefit from the this topic by applying knowledge of
planning and forecasting in service of civil servants. Politicians of these 5th republic
and others to come will benefit from it by planning their political manifesto
ideology.
Generally, every body or anybody and all that want to survive in these ever
dynamic business world must learnt to plan and forecast in these perilous or
risk evil days of ours.
1.6 DEFINITION
OF IMPORTANT TERM IN MANAGEMENT
MANAGEMENT: This is
the application of human and materials resources in achieving the objectives of
an organization effectively and efficiently through planning and forecasting.
MANAGER: This is a
person that makes use of the materials and human resources of an organization
achieving their objectives.
FORECASTING: to
say what one think will happen in the future base on information that he has
now.
ORGANIZATION: It is
a system of behaviour designed to enable humans and their machines accomplished
goals. Organization is also defined as the sum total of the way in which it
divides the labour district tasks and then achieves coordination between them.
BUSINESS: This is
any economic activity oriented towards producing goods and services at a profit
for the satisfaction of mankind.
Department | Business Administration and Management |
Project ID Code | BAM0164 |
Chapters | 3 Chapters |
No of Pages | 77 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |