ABSTRACT
The research was conducted mainly to examine the positive and negatives 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 ORGANISATION both
primary and secondary data were used to elicit information from sample studied,
the primary source of data were response from the personal interviews, while
secondary source from text-books on business management and administration and
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
I had with the staff of EASTERN SHOP (twenty-five). The major
findings are as follows:
The planning and forecasting gules go ahead order to any individual,
organization that is going into business to make judicious use of forecasting
and planning and forecasting is aids to correct mismanagement in business
organization.
Poor forecasting attitude and in adequate planning poor integration of
forecasting and planning in running of business organization.
Problem of in-experience in running of organization as a result of making use
of sentiment, instead of strategy planning.
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.
Problem arises because management “organization” believes that planning is not
important, even if they believed that it is inborn and endowed from birth and
inclination.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background
of the Subject Matter
1.2 Problems
Association with the Subject Matter
1.3 The
Problem the Study will be Concerned with
1.4 The
Importance of Study
1.5 Definition
of Important Terms
1.6 References
CHAPTER TWO:
LETERATURE REVIEW
2.1 The
Origin of the Subject Matter
2.2 Schools
of Thought Within the Subject Area.
2.3 The
School of Thought Relevant to the Subject Matter
2.4 Difference
Methods of Studying the Problem
2.5 Summary
2.6 References
CHAPTER
THREE: CONCLUSION
3.1 Data
Presentation
3.2 Analysis
of the Data
3.3 Recommendation
3.4 Conclusion
3.5 References
CHAPTER ONE
INTRODUCTION
Andreas Faludi states
that “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 state that “Theories provide explanations, explanations are response
to state of tension resulting from observing unexpected events (Tonlinin
(1960). Planning and forecasting present efforts to reduce surprise
caused by such events by giving practicable accounts of how they came about”.
WHAT IS PLANNING AND
FORECASTING?
FORECASTING:
Forecasting is preparing of an organizations
future objectives and its current material and personnel inventory, the general
or departmental manager make an estimate of the current material and human
resources that will be able to do in the future and how many more human and
material resources the organization must line to meet its goods (Needle 1979 :
178). Any business organization without element of forecasting is
like driving a car blind-folded and being directed by a man looking out through
the lack-window.
Further more, forecasting is prediction, it is an effort by enterprises to know
what the future holds for them. Henry Fayol speaks of prevalence as the essence
of management. According to Fayol “This looking ahead include
both assessing the future and making provision for it. Modern
business management has become a complex activity and so there is the need for
adequate forecasting. The need for adequate forecasting is apparent
from the key role it plays in planning.
KOONTZ et el stated that “as influence in plans of the entire environment
outside the enterprise has come to be increasingly recognizes forecasting of
the environment has risen in importance”.
The role of forecasting in business organization is to important that it must
be adopted by managers. The making of forecasting and their review
by manager compel their king ahead looking to the future and providing for
it. Also the very act of forecasting may disclose areas where
necessary control is lacking.
PLANNNING:
Andrees Faludi state “mains under standing of
this world and his ability to act in it, depends on his constructing an
imaginary in his own mind. This applies equally well to the
planner’s understanding 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. DONNCCL as “deciding in advance what to be 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 pre-determined cause or action the at helps to provide
purpose and direction for members of an enterprise.
In designing an environment for the effective performance of individuals
working together in groups, the must essential teak is to see that purpose and
objective, and method of attaining them are clearly understood.
Planning is the first function of a manager it is necessary if anything or
activities are to reach the serviced goal. Through planning a
manager can approach predetermined objective rationally. All the work of
an executive, whether he knows it or not, is some, how connected with the
unfolding of a plan. In identifying the role of planning in
business organization, Koontz et al states that “we are in an economic,
technological, social and poetical era in which planning like other function of
managers, has become requites for enterprise survival”.
Planning is unique in that it established the objective 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 facilitate the
proper functioning of the many aspects of company’s
activities. Planning and forecasting are compliment parts
that make a specified whole. Writing also in this concept, KOONTZ
O. Donncil states that, “forecasting especially where participated through out
the organization, may help to unity and co-ordinate plans. By
focusing attention on the future, it assists in bringing a singleness of
purpose to planning”
1.1 BACKGROUND
OF THE SUBJECT MATTER
The popular super market
called EASTERN SHOP was established in May 28, 1960. Almost five
(5) months after the independence of this country. This took place
at Ogui Road, Enugu. Then under Eastern region new Enugu State,
which is formerly known as the headquarters of Eastern Nigeria. The
super market situates opposite Nnamdi Azikwe Stadium and around is are other
big shops like Bobbles, 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 literal into the business with little or no experience in the field of
supermarket business.
Organically, the name of
managing director of the supermarket is chief M. O. Okoli Ozozulu Agulu of
Agulu in Aniocha Local Government Area of Anambra State. He is one
of the power members of Enugu State Association of supermarkets.
This was to enable him to curb some of the problems that he is facing through
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 (G.O.M) who sees to the
running of the business. The company also has shop manger who
directs the affairs of cashier, store manager and restaurant departments and
report to the G.O.M Eastern Shop is made up of five (department/units.
· Accounting
department
· Cash
department
· Stores
department
· Restaurant
department
· Cold
room department
Eastern shop deals
mostly on consumer goods like electronics, wears, lamed foods, body wears toys
etc.
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 of risks”. Besides, the researcher was 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 has more than
twenty people as employees. This simply means that it is no longer
small on a scale business. But as a result of inadequate
application of good understanding, in the techniques of forecasting and
planning integration in business, it has grown to multi-chain of
supermarkets. It is now losing customers to its several
competitors. Based on the above promising and manifesting problem, this makes
the researcher to embark on the project topic to help the present situation
that is facing the business.
1.2 PROBLEM
ASSOCIATED WITH THE SUBJECT
MATTER
It has obviously been proved that he, who fails
to plan, plans to fails. And it is also believed that he who fails
to put records and recognizance of past event should not predict/forecast future.
If anybody 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 darkness. We also believed that business dowel in the
world of gravism and unsteadying 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 as competitive environment.
Even the Bible says, “Where there is no vision, people perish” in this context
vision, which is sight in modern business management, is planning and
forecasting.
Moreover Hosea 4 : 6 said “my people perish for lack of knowledge” likewise,
many business collapses because of inadequate knowledge of planning and
forecasting. It is because of these present problems and eminent
problems, which many businesses are encounter and also will encounter in future
that make the researcher to bring out the topic title “Planning and Forecasting
in Business Organisation”. From the light of the above, it is
approved that for a society to progress is to embrace planning and forecasting.
PETER ORUMKER said that
“planning and forecasting, which is aspect of management is doing not knowing”
therefore, we should know that planning must be practicalized not nursing or
desire in the heart it is a thing of paramount importance to see that problems
or courses of liquidation of many business is as a result of lack of adequate planning
and forecasting. Moreover this project necessitate a result that
few people and some oranisation that recognized the roles of planning and
forecasting. They do it any how, without knowing that planning is
“QUEEN MOTHER” 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 low understanding of the role or meaning and importance of twin
brother planning and forecasting makes business not to grow well, tack more of
progressing. And if any one will progress at all, without planning, it
will be by trial and error or miracle working or simply put just by chance or
luck, but planning of business is a well programme oriented profit venture or
business.
In attempt to plan, as
many think, they do only half bake planning which is as good as not planning at
all. In which most of their planning is found wanting because it
lakes the basic elements of planning.
PLANNING PROCESS
All those challenges put together, the
researcher to found how many are you write on this topic to review and
resurrects a deal and sick business organization by the power of wonderful role
of inseparable twin brothers which is planning and forecasting, sine planning
and forecasting is queen mother of 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 share. Management today, believes in management
by objectives (M.B.O). This project will also have it subjective to
draw the problem nearer how and to expose the thought obviously.
1.4 THE
PROBLEM THE STUDY WILL BE CONCERNED WITH:
The problems planning
and forecasting encounter in an organization effects its productivity.
Over the years business organization has tried a lot to eradicate these
problems that sometimes engulf managerial progress in Eastern Shop Nigeria
Limited Ogui Road Enugu.
The problems are stated
thus:
1) To
know planning and forecasting in EASTERN SHOP LTD carryout their tasks.
2) To
know both the internal and external affairs of the company.
3) Whether
the problems are caused as a result of poor motivation.
4) What
other variables could explain why the problems have not been eradicated?
5) To
know whether the working environment is conductive for planning and
forecasting.
These problems also
attached itself with the research question 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 background?
Can we ready do without
planning and forecasting?
What makes planning and
forecasting organic function of management? Is information an effective tore
fore planning and forecasting in business organization?
1.5 THE
IMPORTANCE OF THE STUDY
Having known 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, quantify, manpower, money, capital control and
so on.
This study is meant to
examine the problem of planning and forecasting in a business
organization. It will examine the role, which mangers try to
implement by using planning and forecasting to achieve effective and society at
large.
The research will also
find solution to some of the problems mangers 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 parastatals will also benefit
form this topic by applying knowledge of planning and forecasting in service of
civil servant, politicians manifest ideology.
Generally, everybody 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.
DEFINITION OF
IMPORTANT TERMS
MANAGEMENT: This is the application of human
and material resources in achieving the objective of an organisation effectively
and efficiently through planning and forecasting.
MANAGER: This is a person that makes use of
the material and human resources of an organisation in achieving the
objectives.
PLANNING: It is the act or process of making plan,
planning is a major component of the management process which is concerned with
defining ends means and conduct at every level of organisation life.
FORECASTING: To say what one think will happen
in the future base on information that he has now
ORGANISATION: It is a system of behaviour designed to enable
humans and the machines accomplished goals. Organisation is
also defined as the sum total of the ways in which it divides the labour
distinct tasks and their achieves co-ordination between them.
BUSINESS: This is only economic activity oriented
towards producing goods and services at a profit for the satisfaction of
mankind.
Department | Business Administration and Management |
Project ID Code | BAM0188 |
Chapters | 3 Chapters |
No of Pages | 76 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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