ABSTRACT
The role of planning and
forecasting in business organization is a topic chosen from the business
administration and management field.
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 ORGANIZATION. Both primary and secondary data were used
to elicit information from sample studied, the primary source of data were
response form the personal interview which secondary source form textbook on
business management and administration and periodicals.
Twenty-five people 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 finding as follows.
Ø The planning and Forecasting is
aids to correct mismanagement in business organization.
Ø And the planning and forecasting
gives go ahead over 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.
TABLE OF CONTENT
CHAPTER ONE
1.1
Introduction
1.2
Background of the Subject Matter
1.3
Problem Associated with the Subject Matter
1.4
The Problem the Study will be concerned with
1.5
The Importance of Study
1.6
Definition of Importance Term
1.7
Reference
CHAPTER
TWO: LITERATURE REVIEW
2.1
The Origin of the Subject Matter
2.2 Schools
of Thought Within the Subject Area
2.3
The schools of Thought Relevant to
2.4
The Subject Matter
2.5
Difference Methods of Studying the Problem
2.6
Summary
2.7
Reference
CHAPTER
THREE:
CONCLUSION
3.1
Data Presentation
3.2
Analysis of the Data
3.3
Recommendation
3.4
Conclusions
3.5
References
CHAPTER ONE
1.1
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 of tension resulting from observing unexpected events.
(Toulinin,1960).
Planning and Forecasting
present efforts to reduce surprise caused by such events by giving practicable
accounts of how they come about.”
WHAT IS PLANNING AND
FORECASTING?
Forecasting is preparing
of an organizational future objectives and its current material and personnel
inventory, the general or departmental manager makes 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 hire to meet its goals
(Needle 1999:178).
Any business
organization without element of forecasting in like driving a car blind- folded
and being directed by a man looking out through the back window. Furthermore,
forecasting is prediction; it is an effort by enterprises to know what the
future holds for it. 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 hey role it
plays in planning Koontz et al stated that “as influence in plans of the entire
environment outside the enterprises has come to be increasingly recognizes
forecasting of the environment has risen in importance”.
The role of forecasting
in business organization is so important that it must be adapted by managers.
The making of forecasting and their review by manager compel thinking ahead
looking to the future and providing for it. Also, the very act of forecasting
may disclose areas where necessary control is lacking.
PLANNING:
Andreas Faludi state
“Man’s understanding 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 appreciation”. Planning in its simplest
meaning is the determination of anything in advance of action. Planning is
defined by Koontz O. Donneil as, “deciding in advance what to do who is 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.
In designing an
environment for effective performance of individual working together in groups,
the most essential task is to see that purpose and objective 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 the denied goal.
Through planning a manager can approach pre-determined objective rationally.
All the work of an executive whether he know it or not, is some way connected
with the unfolding of a plan. In identifying the role of planning in business
organization, Koontz et al State that, “we are in an economic technological
social and political era in which planning like other function of managers has
become requisite 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 in that for a good result both go together they could be
regarded as independent parts that make a specified whole writing also in the
concept, Koontz O’ Donneil states that forecasting especially where
participated throughout the organization may help to unify and co-ordinate
plans. By focusing attention on the future, it assists in bringing a singleness
of purpose 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 the independence of this country, this took place
at Ogui Road Enugu then Anambra State now Enugu State which is formerly known
as the headquarters of Eastern Nigeria.
The supermarket is
situated opposite Nnamdi Azikiwe Stadium and around it were other big shops
like Bubble’s, ABC Transport etc. the amazing thing 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 1 of
Agulu in Aniocha Local Government Area of (old and new) Anambra State. He is
one of the pioneer members of Enugu State association of supermarket this was
to enable him to curb some of the problems that he is passing and planning in
business. The supermarket has other branches in Lagos, and Onitsha. In the
establishment, he employed general operation manager (GOM) who sees to the
running of the business. The company also has shop manager who direct the
affairs of cashier, store manager and restaurant department and report to the
GOM. Eastern shop is made up of five (5) departments/ units.
Ø Accounting department
Ø Cashier department
Ø Store department
Ø Restaurant department
Ø Cold room department
Eastern shop deals
mostly on consumer’s goods like cosmetics, wears, candy foods, 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 of risks”.
Besides, the researchers
were able to note 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 than twenty people as employees, this simply means that it is no
longer small- scale business as the law required. But as a result of inadequate
application role of good understanding in the techniques of forecasting and
planning integration in business; he cannot make good pricing quality and
quantity of product sales.
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
ASSOCIATED WITH THE SUBJECT MATTER
It has obviously been
proved that “He who fails to plans to fail” 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 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 at every business that wants to grow in a competitive
environment.
Even the Bible says,
“Where there is no vision, people perish” in this context vision, which 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 of 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 Organization”
from the light of the above, it is approved that for a society to progress is
to embrace planning forecasting.
Peter Drunker said that
“Planning and forecasting, which is aspect of management is doing not knowing”
therefore, we should know that planning must he 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 organization that recognized the
roles of planning and forecasting they so 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 brothers planning and forecasting makes business not to grow well, talk
more of progressing. And if any 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 profit venture or
business.
In attempt to plan as
may think they do only half bake planning which is as good as not planning at
all in which most of their planning has
Found wanting because it
lacks the basic elements of planning as regards as follow.
a) Futuristic
in outlook that is planning some future problem of business at today’s
doorsteps beside that future can never be predicted with hundred percent
efficiency. This is why provision has to be made to accommodate future
uncertainties.
b) Most
people in their planning lacks action, all planning need to imitate action
since mere stating of the expected income and expenditure during fiscal year
calls for action to make sure that the objectives are realized.
c) Most
of these planning fails to identify manpower that will the active action since
every-body in an organization cannot take 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 this 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 to adopt generalized approved nature of planning by all
management according to WILLIAM NEWMAN 1963. He said that the essential nature
of planning could be highlighted by the four major aspects of planning.
1.
Contribution to purpose and objective primacy of planning, perverseness of
planning and efficiency of plans. People fail to understand the needs of
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. Beside
Some people that tries
to apply the process fails to update with the modifies process by an author
Nwachukwu C.C. who in his book called management theory and practice says that
it is done an six step process which is shown in the diagram below:
PLANNING PROCESS
All these challenges put together, makes the researcher to found it duly worthy
to write on this topic, to revive and resurrects a dead and sick business
organization by the power of wonderful role of inseparable twin brothers which
is planning and forecasting, since 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 shame.
Management today,
betides in management by objectives (MBO). This project will also have its
objective to draw the problem nearer home and to expose the thought obviously.
1.4 THE
PROBLEMS THE STUDY WILL BE
CONCERNED WITH
The problems planning and forecasting encounter in an organization affects its
productivity. Over the years, business organization has tried a lot to
eradicate these problems that sometime engulf managerial progress in Eastern
problems are stated thus:
1.
To know how planning and forecasting in Eastern Shop Ltd. Carryout 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 variable could explain why the problems have not been eradicated?
5.
To know whether the working environment is conducive for planning and
forecasting.
These problems also
attached itself with the research questions and we will use the same
opportunity to discuss the research questions.
RESEARCH QUESTION:
Ø Why is planning and forecasting
needed in an organization?
Ø What impact can it create in
progress of business?
Ø Does planning and forecasting has
any theoretical backups and background?
Ø Can we really do without planning
and for casting?
Ø What makes planning and forecasting
organic function of management?
Ø 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 charitable and
none-profit organization had fail, because of inadequate planning and
forecasting.
Planning having initiate
in selection of man-power, bridge or links up past, presents and future
together for effective returns, by bringing in future at door step of managers.
Planning being the primary of all business function has fried, to house all
functions because if it fails as house other thing will fail and so with the
aids 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 the believe that says “with money all thing are possible”
and also believe that they are man enough to handle anything, which is very
wrong, and also an abuse to the business concept. They fail to realize that
success cometh not by 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
and forecasting) creates in progress to business? This impact of planning and
forecasting creates more progress in business, because there is a quote that
says, “ Those who fails to plan, plan to fail”. And plan in its strict sense
means being organized to co-ordinate things no matter the face of
circumstances.
Having know these, the
important of planning and forecasting will not be far fetched or traced, since
plan makes managers to have objective goals or resources to arrest them which
can be of (M4) man, material, money and machine or (M5) man, material, 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 thing from the generalized and accepted phase not with personal
subjective phase.
Does planning and
forecasting have any theoretical backup or background? Theories provide
explanation which are responses to scales of tension resulting from observing
unexpected event (Toulmin, 1960) they represent efforts to reduce surprise
caused by such events by giving plausible accounts of how they have come
about. Meanwhile, does planning and forecasting has any theoretical
backup yes, of course, it has, According to Hargreanves 1983:3 and 7 says
“Before planning will be completed you will need to prepare details in
forecasting of sales, profit, production, finance and man-power, due to the
face that they will help to validate your plan.
Another pronounce
professional, Jack Mitovurie States that “forecasting is an essential aid for
management decision in such critical area as estimating, the profitability of
new produce, the cost and likely effectiveness of promotion possible effect of
price change and the need for additional resources of salesman, advertising or
administration.
According to Koontz and
Donnel (1980) define planning as deciding in advance what to do, how to do it,
who is to do it and why it should be done. (Management Heinemam 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 Deunker in practical management 1995. P 4
It says “He that love
his wife loves planning and he that hate planning embrace embarrassment; he
that fails to plan, plans to fail.
To prove it worthy, it
is justifiable to have scientific management theory backup for much laudable
pronunciation in management. Can we really do without planning and forecasting?
The answer will be yes due to if man will still be alive after his heart has
stop breathing.
But 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 can not live without food it will be
impossible for us to operate without planning and forecasting and of this is
impossible, it is simple 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 a
master planner and breadwinner of the family (organization, it also found to be
microchendra) (power house) in business life.
To answer these question,
clear, Andrew Faludi states, means of understanding of this world and his
ability to act in it depends on his constructing an imagery in his own mind.
This applies equally well that the planners understand himself and his
operation.
Finally, is information
an effective fool 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
manager future is to manage business and do manage business is to manage
information, planning and forecasting making use of information as a tool for
effective planning and forecasting of provides that information as life wire of
a business planning and forecasting.
These information, as a
means of communication keeps business planning and forecasting in a brace with
ever dynamic changes in business world for business to be standard it must
follow the trends of changes in information to put up with fashion that even
vogue.
1.1 THE
IMPORTANCE OF THE STUDY
If this course or project does not its salt it could not have been approved and
the researcher, project supervisor believed that some people will benefit from
this project topic when it is properly done.
Having know that
planning is organic function of management; it bring much good to business in
various arrived and get to arrive will benefit from these topic, if well
utilized especially in areas of pricing, quality, man-power, money, capital
control and so on.
This study is meant to
examine the problems of planning and forecasting in a business organization. It
will examine the role, which manager’s 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 manager’s 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 alone by all and planning is first born
and major aspect of management.
Government agency, and
parastatals will also benefit from this topic by applying knowledge of planning
and forecasting in service of civil servant. Politicians of these 5th republic
and others to come well benefit from it by planning their political manifesto
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.
1.2 DEFINITION
OF IMPORTANT TERMS
MANAGEMENT:- This is the application of human and
material resources in achieving the objective of an organization effectively
and efficiently through planning and forecasting.
ANAGER: - This is a person that makes
use of the material and human resources of an organization in achieving their
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
organizational life.
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 ways in which it divides the labour distinct
takes and then achieves co-ordination 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 | BAM0233 |
Chapters | 3 Chapters |
No of Pages | 73 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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