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IMPACT OF PLANNING AND CONTROL AS
A MANAGEMENT FUNCTION ON THE SURVIVAL OF SMALL SCALE BUSINESS
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
This
project is all about assessing the impact of planning and controlling as a
management function on the survival of small scale business.
Management
is universal in the modern world. Every organization requires the making of
decision, the coordination of activities, deciding in advance when, why how and
who does what, setting of standards, measuring performance against standard and
reviewing the standards.
Numerous
managerial activities have their own particular approach to specific types of
problems which fall under headings such as production and operation management
human resources management, management of health delivery system and others
According
to Nwachukwu (2007) management is the act of getting things done through and with
others.
Another
definition by Launer (1999) he refers to management as the corner stone of
organization effectiveness and is concerned with arrangements for the carrying
out of organizational processes and the execution of work.
Kountz
(2006) management is an operational process initially best dissected by
analyzing the management functions. The five essential managerial functions are
planning, organizing, staffing, directing, leading and controlling.
These tasks
of management are interrelated and actually dove tail into each other. Planning
sets the stage by helping the organization to determine where it wants to go
(objectives) and how to get there (strategies and tactics). These objectives
and strategies determine the type of organizational structure most suitable for
the organization.
Organization
structures are designed to fit the strategies which are meant to achieve the
objective and both strategies and objectives are the outcome of planning.
There is no
human endeavour that does not require proper management for it to function
efficiently. For every type of organization either government establishment or
private enterprise, there is need for qualified managers to handle its
activities.
Management
and organizations are seen as the product of their historical and social times
and place and to understand the evolution of management theory in terms of how
people wrestled with matters of relationship at a particular time in history.
The lesson here is to learn from the trials and tribulation of those who have
preceded us in steering the fortunes of formed organization.
It is now
obvious to every one that, of the factors that are necessary for economic take
off, none is to be stressed more often than management characteristically, the developing countries
are known for their low technological
progress and extremely low labour productivity. A realistic approach to the
development of these countries call for qualified high level manpower especially
at the management level. In present day organizations it is the manager that
determines the appropriate technology required and the best way to efficiently
and effectively utilize all types of resources, be it physical or human.
The Nigeria Nigeria
The need
for management is essential to the development of organizations, be it small
scale or large scale industries, therefore, when ever people work together,
there is generally a need for the coordination of efforts in order to attain
expected result in reasonable time, and with minimum amount of money,
discomfort or energy. A manager is expected to be vast in knowledge and to
possess special talents or abilities quite different from non manages.
1.2 STATEMENT
OF THE PROBLEM.
No
organization matter its size can survive without on effective managerial
function (planning and control). Therefore, three is need for sound and
qualified man and women to operate in every organization and also there should be
capable hands to manage the financial affairs in order to ensure a sound system
of operation in the enterprise.
It is
important to note that, effective operation is not exclusive concern of only
one person or department within an organization, it must involve every staff
who should have the interest of the organization at heart in order for it to
achieve it set goal and objectives.
-
Does effective management enhance workers performance?
-
Does the organization has capable hands to manage the
financial affairs?
-
Does the activities of managers focuses towards the
attainment of goods and objective of the organization.
1.3 OBJECTIVES
OF THE STUDY
This
project intends to assess the impact of planning and control as a management
function in the survival of small scale industrial towards the achievement of
the overall goals and objectives of the organization.
Specifically this project has the following
objective:
i.
To find out the present management practice of
planning and control and its effects on the organization
ii.
To examine some strategies for the attainment of goals
and objectives set out by the organization.
iii.
To find out the role of management in ensuring the
smooth running of the organization.
iv.
To ensure that organization at any given time is
capable of carrying out its activities that could aid in achieving its goals.
1.4 STATEMENT
OF HYPOTHESIS
A
hypothesis is a conjectural proposition and informed intelligent guess about
the solution to a problem. It is an assumption or proposition whose variety and
validity is to be established.
The researcher wishes to states his
hypothesis as follows:
Ho: Effective management function of
planning and control has no significance impact on the survival of small scale
business.
H1: Effective management function of planning
and control has significance impact on
the survival of small scale business.
1.5 SIGNIFICANCE
OF THE STUDY
The
significance of this project cannot be over emphasized because it is
prerequisite for the award of bachelors of arts and science in management
studies and effective management is the yardstick and bedrock of every
organization. Thereby, enhances the achievement of organizational and
objectives.
Furthermore,
it will guide and give a sense of direction to the entire organization in the area
of channeling resources and enhancing productivity and also giving status to
the organization.
1.6 SCOPE
OF THE STUDY
This
research work is restricted only to an enterprise in Kaduna Nigeria
Timruth Nigeria Nigeria
enterprises are sited at AX 32
Nnamdi Azikwe Way Kaduna
The
organization went into operation, with about six employees which later
increased to about eighty five employees engaged in supervising, marketing,
sealing and packaging of the product. And the main products of the company
include beverages and Yoghurt.
Since the
company came into operation the management has been experiencing a very high
rate of profit until early 2000 when the
profit rate began to reduce due to the presence of several competitions in the
market producing similar product.
The company
has over thirty dealers who help in the distribution of the products to various
parts of the state in order to ensure that a larger part of market is covered
adequate preparation has also been on ground to ensure that the demand of the
market is met.
The main
problem encountered during the vital stage of the business is that of financial
constraint, there is shortage of finance in the early stage of the business.
Other problem faced by the business is the activities of its competitors where
did not allow the product to gain a better ground portion of the market.
The main
source of finance to this company was from personnel savings and loan from
cooperative society.
1.9 Definition of Terms
Entrepreneur: One who organizes manages and
assumes the risk of a business firm or venture.
Assets:
Anything of value that the business owns
Management: The process of planning,
organizing directing, coordinating and controlling the activities of a business
enterprises so as to attain stated objectives by the use of people and other
resources requires decision making and leadership.
Liabilities: The claims of creditors against
the assets of the business i.e. what the business owns.
Small Business: One that is actively managed by
its owners highly personalized local in its area of operation of relatively
small size within the industry, and largely dependent upon internal source of
capital to finance its growth.
Business: This is all activities directly
or indirectly concern with production and distribution of goods and services
which is aimed principally at making profit.
Organization: An entity that is constructed and
deliberately reconstructed to achieve specific goals and objectives.
Planning: Setting future goals, developing
action plan and monitoring performance against the plan.
Controlling: Is a part of the management
process that involves ascertaining the extent to which expectation’s are being
met taking action to ensure that they are met and making some modification in
view of realities that emerge during execution.
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