1.1 Introduction
Andrena Faludi state that “planning and Forecasting is the Queen mother function of management (organistion) and that if planning and forecasting fail, what/who will you direct, control, budget staff, co-ordinate or organize rather than provide explanations, explanations are response to state of tension resulting from observing unexpected events. (Toulinin, 9660).
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:
Forecasting is preparing of an organistion’s future objectives and its current material and personnel inventory, the general or departmental managers makes resources that will be able to do in the future and how many more human and material resource the organisation must hire to meet its goals (Needle 1999: 178)
Any business organization without element of forecasting is 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 key role it plays in planning. Koontzat al stated that, as influence in plans of the entire environment outside the enterprise has come to be increasingly recognizes, forecasting of the environment has risen in importance”
The role of forecasting in business organisation is so important that it must be adapted by managers. The making of forecasting and their review by managers 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 applied equally well to the planner’s understanding of himself and his operation”
Planning in it simplest meaning is the determintion 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, how to do it, how to do it , when to do it , and why it should be done” planning bridge the gap from where we are to wher 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 the effective performance of individual working together in groups, the most essential tasks is to see that purpose and ibjective and mwthod 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 denial goal. Through planning, a manager, can approach pre-determined objective rationally. All the work of an executive, whether he knows it or not is some way connective whether he knows it or not, is some way connected with the unfolding of a plan. In identifying the role of planning in business organisation, Koonzet al states that, “ we are in an economic, technological social and political era in which planning like other functions of managers has become requisite far 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 of current marketing strategy and manpower planning and in the indentification 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 compliments in that for a good result botjh go together. They could be regarded as independent parts that make a specified whole writing also in this concept, Koontz O’ Donneil states that ‘ forecasting especially where participated throughout the organization, may help to unify and co-ordinae plans. By focusing …
