EVALUATING THE ROLE OF
PLANNING AND FORECASTING IN ACHIEVING MANAGERIAL EFFECTIVENESS
TABLE OF CONTENT
Table of content
of the research
of research problem
1.3 Area of
of the study
of the study
CHAPTER TWO: LITERATURE REVIEW
2.1 Source of
2.2 Review of
2.3 Review of
CHAPTER THREE: RESEARCH METHODOLOGY
of the study
and Validity of Instrument
3.7 Method of
3.8 Method of
Data presentation and analysis
4.1 Data presentation and Analysis
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Faludi states that “Planning and Forecasting is the Queen Mother function of
management (organization) and that if planning and forecasting fail what/who
will you direct, control, budget, staff, co-ordinate or organize rather than
failure and shame”. Again he state of tension resulting from observing
unexpected events. (Toulinin,1960)
Forecasting is preparing of an organizational future
objectives and its current material and personnel inventory, the general or
departmental manager makes an estimate of the current material and human
resources that will be able to do in the future and how many more human and
material resources the organization must hire to meet its goals (Needle
Any business organization without element of
forecasting in 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.
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 hey role it plays in planning Koontz
et al stated that “as influence in plans of the entire environment outside the
enterprises has come to be increasingly recognizes forecasting of the
environment has risen in importance”.
Planning bridges the gap from where we are to where 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.
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 applies equally well to the planner’s understanding of
himself and his appreciation”. Planning in its simplest meaning is the
determination 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, when to do it
and why it should be done”.
Planning and Forecasting are compliment in that for a
good result both go together they could be regarded as independent parts that
make a specified whole writing also in the concept, Koontz O’ Donneil states
that forecasting especially where participated throughout the organization may
help to unify and co-ordinate plans. By focusing attention on the future, it
assists in bringing a singleness of purpose to planning”.
1.1 BACKGROUND OF THE RESEARCH
popular super market called Eastern Shop was established in May 28, 1960 almost
five (5) Months after the independence of this country, this took place at Ogui
Road Enugu then Anambra State now Enugu State which is formerly known as the
headquarters of Eastern Nigeria.
The supermarket is situated opposite NnamdiAzikiwe
Stadium and around it were other big shops like Bubble’s, ABC Transport etc.
the amazing thing concerns this shop is that the manager or the sole proprietor
is a family man that had engage in other business and finally settle in opening
a big supermarket. He entered into the business with little or no experience in
the field of supermarket business.
Originally the name of managing director of the
supermarket is Chief M.O. Okoli, Ozo Zulu Agulu 1 of Agulu in Aniocha Local
Government Area of (old and new) Anambra State. He is one of the pioneer
members of Enugu State association of supermarket this was to enable him to
curb some of the problems that he is passing and planning in business. The
supermarket has other branches in Lagos, and Onitsha. In the establishment, he
employed general operation manager (GOM) who sees to the running of the
business. The company also has shop manager who direct the affairs of cashier,
store manager and restaurant department and report to the GOM. Eastern shop is
made up of five (5) departments/ units.
Cold room department
Eastern shop deals mostly on consumer’s goods like
cosmetics, wears, candy foods, baby wears and toys. The problem of proper
planning and forecasting is among the major problem that limits the more
expansion of the business these can be clearly seen from an adage that says “
that business is full of risks”.
Besides, the researchers were able to note the sum of
N500 Naira was used as initial capital of the business and today the property
of the business is on millions and it have more than twenty people as
employees, this simply means that it is no longer small- scale business as the
law required. But as a result of inadequate application role of good
understanding in the techniques of forecasting and planning integration in
business; he cannot make good pricing quality and quantity of product sales.
Since improper planning is as good as not planning at
all based on the above promising and manifesting problem, these calls for the
researchers to investigate the project topic to help the present situation that
is facing the business.
1.2 STATEMENT OF RESEARCH PROBLEM
obviously been proved that “He who fails to plans to fail” And it is also
believed that he who fails to put records and recognizance of past event should
not predict/ forecast future. If anybody that fails to envisage the future is
bound to crash. Planning and forecasting have been integrated to be wonderful
tools for effective management. Since planning and forecasting are like touch
light used in darkness. We also believed that business dwell in the world of
dynamism and unsteady setting, which called for effective use of planning and
forecasting. It can also be seen as an eye at every business that wants to grow
in a competitive environment.
In attempt to plan as may think they do only half bake
planning which is as good as not planning at all in which most of their
Found wanting because it lacks the basic elements of
planning as regards as follow.
Futuristic in outlook that is planning some
future problem of business at today’s doorsteps beside that future can never be
predicted with hundred percent efficiency. This is why provision has to be made
to accommodate future uncertainties.
Most people in their planning lacks action,
all planning need to imitate action since mere stating of the expected income
and expenditure during fiscal year calls for action to make sure that the
objectives are realized.
1.3 AREA OF
problems planning and forecasting encounter in an organization affects its
productivity. Over the years, business organization has tried a lot to
eradicate these problems that sometime engulf managerial progress in Eastern
problems are stated thus:
To know how planning and forecasting in
Eastern Shop Ltd. Carryout tasks.
To know both the internal and external affairs
of the company.
Whether the problems are caused as a result of
What other variable could explain why the
problems have not been eradicated?
To know whether the working environment is
conducive for planning and forecasting.
These problems also attached itself with the research
questions and we will use the same opportunity to discuss the research
1.4 OBJECTIVES OF THE STUDY
know that planning is organic function of management; it bring much good to
business in various arrived and get to arrive will benefit from these topic, if
well utilized especially in areas of pricing, quality, man-power, money,
capital control and so on.
This study is meant to examine the problems of
planning and forecasting in a business organization. It will examine the role,
which manager’s tries to implement by using planning and forecasting to achieve
effective and efficient management of the organization and society at large.
The research will also find solution to some of the problems manager’s
encounter by implementing planning and forecasting in their day- to- day
activities. However, the importance of the research to management of any
organization both profit and non-profit organizations students both graduate
and undergraduate will not be over emphasized. Family will also benefit from
it, since management is alone by all and planning is first born and major
aspect of management.
Government agency, and parastatals will also benefit
from this topic by applying knowledge of planning and forecasting in service of
civil servant. Politicians of these 5th republic and others to come
well benefit from it by planning their political manifesto ideology.
Generally, everybody or anybody and all that want to
survive in these ever dynamic business world must learnt to plan and forecast
in these perilous or risk evil days of ours.
1.5 SIGNIFICANCE OF THE STUDY
1.6 RESEARCH QUESTION
questions were also raised to scrap out issues that manager is born not made
and since proper planning and forecasting has brought increase in productivity
that is immeasurable and quantifiable in today’s business.
Why is planning and forecasting needed in an
What impact can it create in progress of
Does planning and forecasting has any
theoretical backups and background?
Can we really do without planning and for
What makes planning and forecasting organic
function of management?
Is information an effective tool for planning
and forecasting in business organization?
On the reason why, is planning and forecasting needed
in an organization, both charitable and none-profit organization had fail,
because of inadequate planning and forecasting.
research was supported by some assumption which will be tested at the end of
this research work.
H1: Planning and forecasting are significantly
related to the growth of business management.
H0: Planning and
forecasting are not significantly related to the growth of business management.
H1: Effective planning is significantly
related to forecasting and directly proportional to the managerial
effectiveness in any company
H0: Effective planning
not significantly related to forecasting and not directly proportional to the
managerial effectiveness in any company
1.8 LIMITATION OF THE STUDY
the course of performing/researching this project work, the researcher
encountered a lot of challenges as well as opposition which ranges from
financial constraints, time factor, sourcing of material etc. this factors in
their own ways, slowed down the speedy progress of this work that resulted to
the researcher not being able to finish the research work on time as is
1.9 DEFINITION OF TERMS
Management:- This is the application of human and material
resources in achieving the objective of an organization effectively and
efficiently through planning and forecasting.
Manager: – This is a person that makes use of the material
and human resources of an organization in achieving their objectives.
Planning :- It is the act or process of making plan. Planning is a major component of the
management process, which is concerned with defining ends, means and conduct at
every level of organizational life.
Forecasting:- To say what one think will happen in the
future base on information that he has
Organization:- It is a system of
behaviour designed to enable humans and their machines accomplished goals.
Organization is also defined as the sum total of the ways in which it divides
the labour distinct takes and then achieves co-ordination between them.
Business:- This is any economic
activity oriented towards producing goods and services at a profit for the
satisfaction of mankind