Planning and control in institutions

We will receive the next chapter of our unique series of articles on the principles of business management in a series of articles that revolve around another core topic in the field of corporate management, which is planning and control. Managers in the world of business administration and the institutional work environment face many surprises and obstacles, and careful planning and appropriate control of all operations carried out by the organization, whether at the present time or in future work plans, are required.

In our upcoming articles, we will explain what the planning process is and its importance and why institutions need to carry out planning and control processes constantly, and we will continue to explain the different types of plans in institutions and how individuals and institutions affect the development of goals and plans, we will also highlight the nature of the planning process at the present time and the role of the control process And its impact on the members of the organization, and we will conclude the articles of this chapter by explaining the concept of management by objectives as an effective management method, and clarifying the difference between the implementation of planning and control procedures under the control-based management and the participatory management.

.anntional__paragraph { border: 3px solid #f5f5f5; margin: 20px 0 14px; position: relative; display: block; padding: 25px 30px; }

Explore management careers

Elizabeth Charbonnier is the creator of ChezPastis.com

The brainchild of Elizabeth Charbonnier, ChezPastis.com is the company that specializes in selling French food and other delicacies online. Elizabeth and her associates were professional chefs before the company was founded, and their goal was to bring delicious products to the world. ChezPastis.com got off to a strong start, and soon Elizabeth and her partners became too busy to plan for the future and were trying to keep the company going, but after six months the company faced many challenges and difficulties associated with its growth and development stage, as well as Other startups specializing in e-commerce.

One of Elizabeth’s associates, Zack Fortuna, one day tried to buy some books to give to his daughter on her birthday, and was disturbed by the message he received after trying to place the order which was: “Sorry, the goods you ordered are currently unavailable, It will not be available for two months.

Zach needed to get the books in two weeks, not two months, so he decided to go to the bookstore and buy the books in stock instead of wasting time searching for merchandise that might not be available online. Zack suddenly realizes that this situation is happening at ChezPastis.com, too. As it often runs out of some types of goods in the organization and this hinders and delays the demands of customers. What can be concluded is that the challenges facing ChezPastis.com as it grows may be related to sourcing issues.

Questions: Is the inventory problem at ChezPastis.com due to poor planning, poor oversight, or both? How can Elizabeth, Zack and their other partners improve the situation and address the problem?

Managers often say phrases like, “If one is good enough, one does not have to make time for formal planning. In fact, the time it takes to plan reduces the time it takes to implement.” They probably say this to justify the lack of a formal planning program. These sayings are not at all true; Planning enhances the effectiveness of the entire organization and contributes to avoiding many problems and surprises.

To see how important planning is, consider this story: Calico Candy a few years ago produced Santa Claus toffee, which was a huge hit. The company set its plan after that success and produced the “Easter Bunny” toffee and brought the “Santa Claus” toffee back at Christmas, but this time Calico’s toffee was not a success due to poor planning. Market studies clearly showed that consumers preferred chocolate to toffee, but the company kept planning based on its past success, rather than planning to introduce new consumer preferences, and lost a lot of money as a result. No one can deny that good planning is one of the cornerstones of success.

Actions and results: Zack went to work the next day, after his situation, excited about his conclusions. The partners were aware that inventory was a constant source of problems for the company, but they did not realize the effects that could have on potential customers to be upset about orders being delayed and moving to another store. 50% only!

In light of these results, the partners decided, after being shocked by this fact, to hold periodic strategic planning meetings in order to study the facts and comprehensive information and plan for the future. Their first decision was to put in place better control over the inventory process and to collect data on customers’ online shopping experiences at ChezPastis.com.

Elizabeth suggested that their current goal should be to never have to tell customers that ordered merchandise was not available at the moment, and that meant working to make all the merchandise that customers ordered directly. Zack acknowledged that this goal is excellent, but he believes that they must set an ambitious and achievable goal, which is that the percentage of customer requests that they can meet immediately should not be less than 80%; Their company is a small business in a changing and unstable environment, and they don’t want employees to be discouraged by a goal that might be impossible to achieve.

The essence of planning is to pay attention to future opportunities and threats, and then exploit them or confront them as necessary. Planning can be seen as a philosophy, not in the literal sense of the word, but as a direction or a way of life.

The importance of planning

Planning is the process by which managers set goals and determine how to achieve those goals. Plans contain two main components: goal statements and action statements. Goal statements state the ultimate goals and outcomes that managers hope to achieve, while action statements state the methods organizations will pursue in order to achieve their goals.

Former British Prime Minister Theresa May intends to change the way public company boards are formed by urging that employees themselves be part of boards, encouraging through her own words of action a representative of the employees on each board, such as Mick Mick Barker, who has been in the railroad since the 1970s, was involved in the decision-making process as a board member of the transportation giant, First Group.

Planning is an intellectual activity, and it is difficult to notice or see managers planning; This is because most of this activity takes place inside their minds and does not appear in their behaviours. During the planning process, managers must think about what needs to be done, who will do them, and how and when they will do them. In addition, when setting up an organization’s plans, managers review past events and consider future opportunities and potential threats. Planning requires awareness of the organization’s strengths and weaknesses, along with making decisions about desired outcomes and how to achieve them.

The process of planning what will happen in organizations, whether in the internal or external work environment, must be periodic and continuous, and be part of the daily, weekly and monthly tasks of the manager, and be a routine task for all members of organizations that allow for widespread employee participation. In addition, plans must be constantly monitored, and managers and other members of the organization must review these plans to see if they need to be modified to suit new conditions or recent information that will affect the future of the organization.

The planning management process should have some flexibility, especially in the midst of the new and changing circumstances of our time, but it is clear that Calico Candy has not pursued its plans in this way. When we say that planning is an ongoing activity, we mean creating ways to deal with emerging and unexpected opportunities and threats. Planning is the process of directing the various activities of an organization and making them valuable and useful.

Why should managers plan?

There are several reasons for managers to prepare plans for themselves, their employees, and the various units of the organization, and these reasons include:

Minimize the impact of changing conditions and uncertainties. Make the organization’s activities centered around a set of goals. Defining an organized course of action for future activities. Raising economic efficiency. Facilitate the oversight process by setting standards for subsequent activities.

There are several factors that give importance to the planning process in organizations. The first factor is related to the internal work environment; As the function of management becomes more complex with the expansion of the size of the institutions and the increase in their complexity, the planning process acquires its importance as it links future activities with other activities in the organization. The second factor is related to the increasing uncertainty faced by the manager, as a result of the increasing complexity and turbulence of the external work environment, and the planning process acquires its importance in this case as it allows organizations to deal with their external work environment in a systematic and organized manner.

A study from Cornell University and Indiana University found that absenteeism costs companies $40 billion annually. One of the major problems facing these companies was the lack of planning. Companies that follow a specific and clear plan in their day-to-day business are more successful than those that do not, and the study authors state that actions taken by organizations to control the consequences of absenteeism can prevent it from happening, and interestingly, these actions may be simple, such as Review the organizational policies that define the rules regarding employee absenteeism.

Do managers really plan?

Managers formally have to plan, but do they do it? Some observers maintain that managers are often too busy to plan in a systematic and orderly manner. Henry Mintsberg, a professor of management at McGill University, points out:

quotation

When managers plan, they do so in the course of day-to-day procedures, not in a two-week mountain retreat to make plans for the organization. The plans of the CEOs I have studied seem only to exist in their minds in the form of modifiable intentions, but they are often definite. The function of management does not produce thoughtful planners; Managers often respond to events and developments subjectively and in real time.

But there are other researchers who have observations contrary to the above. Professors Carroll and Gillen, who specialize in management, after reviewing a number of studies that focused on the extent to which planning and other managerial activities are essential parts of the management process, indicated that the functions of The traditional management identified by Henri Fayol, Lyndell Orrick, and others are not unconscious habits and behaviors as some contemporary management writers claim; Rather, it is an abstract description of what managers actually do and ought to do. Barbara Allen, president of Sunbelt Research Associates, says that she did a great deal of planning before launching her new venture, and that she reviews and updates her plans periodically, even after she’s successfully run the business.

Managers are often very busy, some of them act without an orderly plan of action, yet many of them plan in an orderly and methodical way. For example, many managers make systematic plans for how their organizations will react to crises. For example, United Airlines formed a crisis planning group, and the group developed a crisis contingency plan for United Airlines, in which they defined what the company’s crisis management team should do in the event of a crisis.

Keri Calagna, a financial and risk management consultant at Deloitte, reports that about 20.7% of a company’s value is related to its reputation, but CEOs and 77% of board members cite a company’s reputation as the area most at risk. When a crisis occurs and only 39% of them have a plan to deal with such crises.

In fact, the question of whether managers are really planning and the observation that they are often too busy—that they cannot solitude at the top of a mountain for a while to think about where and how the organization has to get there—does not put They do not take into account the fact that there are different types of planning.

A translation – and at his discretion – of the chapter Is Planning Important from the book Principles of Management

اترك تعليقًا

لن يتم نشر عنوان بريدك الإلكتروني. الحقول الإلزامية مشار إليها بـ *