Role of Planning and Control to Management Efficiency and Productivity

ROLE OF PLANNING AND CONTROL TO MANAGEMENT EFFICIENCY AND PRODUCTIVITY (A STUDY OF PZ INDUSTRIES NIGERIA PLC, ABA)

This chapter trends to look at the review related literature relevant to the study. This was organized under the following subheadings;

  1. Meaning of the concepts
  2. Nature of planning and control

  • Steps in planning
  1. The process of planning
  2. Planning and control tools
  3. Types of plan
  • Principles of planning
  • Summary of literature review

An indepth study of the topic reveals the roles of planning and control as the key to management efficiency and productivities.

Planning and Control: Weihrich and Koontz (1972: 57-56) defined planning as selecting mission and objectives and the action to achieve them. It requires a decision making that is choosing among attentive and future course of action. On the other hand Igbochi (1990. 101) defines controlling as a process that measures performance against standard and ensure that organizational objective are been accomplished. Robert et al defined planning as the mental and intellectual work required before physical efforts take place. It allows the administrator to bring together resources effectively in accomplishing objectives McFarland (1979: 160) defined planning as the activity by which administrators analyze present condition to determine ways of reaching a desired future state. It is not necessary for one person or group to perform both activities.

An administrator can plan the work responsibilities and another would standardize the work process. Ekezie (2001: 26) defined controlling as the measurement and correction of the performance of activities of subordinates in order to make sure that all levels of objective and the plans devised to attain them are been accomplished. This is the task of every administrator to ensure that effective control takes place in the organization.

Austin (1974) defined planning as that process that involve two key aspects; developing the objectives or goals and an organization seeking to attain and decide on the means to achieve them. It is necessary for anyone or group to perform both activities.

Administrator can plan the work process:- In another decision a group of administrators would make the policies set the goals within a time horizon through forecasting while the other group would select the procedure and not the work as well as generate alternative programmes of action.

 

2.2   NATURE OF PLANNING AND CONTROL:

The nature of planning and controlling can be highlighted under its essential nature by examining it’s major aspects.

  1. The Contribution of Planning and Controlling to Purpose and Objectives:

Every plan and control, and all it’s supporting should contribute and be regarded as the key to management efficiency and productivities of enterprise purpose and objectives.

The principals derived from the nature of organized enterprise which exists for the accomplishment of group purpose through deliberate co-operations.

  1. The Primary of Planning and Control:

Here the management must plan in order to know what kind to organization relationship and personal qualifications are needed along which course subordinates are to be led and also management should take accurate measurement in order to make sure that all levels of objectives and plans to devised to attain them are being accomplished. And of course, all the management functions must be planned if they are to be effective.

  1. The Pervasiveness of Planning and Control:

According to Billye Coeyzy (1994) Planning and Control is a function of all administrators although the character and breath will vary with each administrator authority and with the nature of policies and plans outlines by superiors. If administrators are not allowed a certain degree of discretion and planning and controlling responsibility they are not truly administrators the pervasiveness of planning and control helps us to understand why some people distinguish between policy making the setting of guideline for decision making and administration or between the manager and the administrator or supervisor. One administrator because of his or her authority or position in an organization may be more important in planning and then another or for planning of one maybe more basic and applicable to a large portion of the enterprise then that of another but all administrators must plan and control in other to accomplish their objectives.

  1. The Efficiency of Plan and Control:

The efficiency of plans and control is measured by the contribution to purpose and objectives as offset by the costs and other factors required to formulate and operate it.

A plan and control enhances the attainment of objectives but at unnecessary high cost. They are efficient if they achieve their purpose of reasonable cost when cost is measure not only in terms of time or money, or production but also in the degree of individual and group satisfaction.

 

2.3   STEPS IN PLANNING

        According to Weihrich et al (1972) the planning process includes some essential element they are separated here for purpose of discussion which in practice are quite explained.

  1. Being aware of Opportunities: This is a real starting point for planning all administrators should take preliminary look at possible future opportunities and see them vlearly and completely know that they stand in light of their strength and weakness setting realistic objective depends on awareness.
  2. Determine the objectives: All planning center around objectives to be achieved and this objective are a result of planning process. The need to establish priorities among them within any organization requires that planning take place by centering planning around objectives direction is given to the planning process.
  • Developing Premises: The third logical step is to establish circular and obtain agreement to utilize crucial planning premises such as forecast, applying basic policies and existing company plans. It is important for all administrators involved planning to agree on the premises. The administrators in this step, utilize, the appropriate in formation to arrive at external and internal assumption about what will happen in the future. Effective decision cannot be made without forecast sales environmental consideration production level, personnel requirements and of the resources required for operations of the organization.
  1. Determining Alternative Causes: The fourth step in planning is to search for and examine alternative course of action especially, those not immediately apparent. There is seldom a plan for much reasonable alternative do not exists and quite often an alternative that is not obvious proves to be the best. The more problem do not find alternative but reducing the number of alternatives so that the most promising may be analyzed. Even with mathematical technique and the computer, there is a limit to the number of alternative that can be thoroughly examined the planner must usually make a preliminary examination to discover the most faithful possibilities.
  2. Evaluating Alternative Course: After seeking out alternative course and examining their strong and work points the next step is to evaluate the alternatives by weighing then in light of premises and goals. One course may appear to be the most profitable, but it may require a large cash outlay and a slow payback.
  3. Selecting A Course: This is the point at which the plan is adopted. i.e. the real point of decision making occasionally an analysis and evaluation of alternative course will disclose that two or more are advisable and administrator my decide to follow several courses rather than the best course.    
  • Formulating Derivative Plans: When decision is made, planning is seldom complete and a seventh step is indicated. Derivative plan are almost invariably required to support the basic plan.
  • Numberising Plans By Budgeting: After decision are made plan are set, the final step to give them meaning as was in the discussion of types of plans is to number them by converting them to budgets. The overall budget of an enterprise represent the sum of income and expenditure, with resultant profit or surplus an budgets major balance sheet items as cash capital expenditure.

2.4   THE PROCESS OF PLANNING

        With the process of planning, there are four principles that help in the development of a practical science of planning.

  1. Principle of the Limiting Factor: In choosing from among alternatives, the more accurately individuals can recognize and solve for those factors which are limiting or critical to the attainment of the desired goal, the more easily and accurately they can select the most favourable alternative.
  2. The Commitment Principle: Logical planning should cover a period of time as much as possible through a service of actions. The fulfillment of commitments involved in a decision made today.
  3. The Principle of Flexibility: Building flexibility into plans will lessen the danger of losses incurred through unexpected events but the cost of flexibility should be weighed against its advantage.
  4. Principle of Navigational Change: The more planning decision commit us to future path, the more important it is that we periodically check on events and expectations and redrawn plan as necessary to maintain a course towards a desired goal.

The commitment principle and the principles of flexibility and navigational change are aimed at contingency approach to planning. Although it makes series to forecast and drawly plans for enough into the future to make sure of meeting commitment

2.5   CONTROL PROCESS

        The four basic steps in the controlling process can be summarized as follows;

  1. Setting standards or formulating specific goals.
  2. Measuring actual performance against standards.
  3. Feedback of results
  4. Correcting deviation from standards

Standards are an expression of planning goals and maybe of different kinds, example, physical (quality or number produced) or monetary (amount realized from sales) some goals cannot be easily expressed in quantitative for e.g. moral of workers spiritual benefits university education. Therefore they can only be measured in a qualitative manner.

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