Planning Function In Management
The planning function of management is important because this function is the ability to plan ahead of the situation. Normal employees do not normally plan for the company as a whole; it is the leader's job to do this. It is having insight on where he or she wants to do in the coming quarter or year. Without planning, company leaders will always be caught unaware of new or unexpected situations.
In business, planning is a very important management skill, because there is a need to know the path of your business, your goals, your missions, and budgeting. As a businessperson, you need to know how much cost you will be spending for a specified period -short term plan. You also need how much cash is needed or cash inflows to predict your cash necessities in the near future. If you do not have these planning skills, you are like a commercial plane flying around without destination.
Management Levels
Senior managers plan the objectives of their organization and assess if the objectives are being met. Senior managers use strategic information. Such information includes overall profitability, the profitability of different segments of the business, future market prospects, the availability and cost of new funds, total cash needs, total manning levels and capital equipment needs. Much of this information must come from outside sources, although internally generated information will always be used.
Middle management uses tactical planning. Such planning includes productivity measurements, budgetary control or, variance analysis reports, and cash flow forecasts, manning levels and profit results within a particular department of the organization. A large proportion of this information will be generated from within the organization and is likely to have an accounting emphasis.
`Front-line’ managers such as foremen or head clerks ensure that specific tasks are planned and carried out properly within the factory or...
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