Thursday, October 10, 2019
Planning Functions of Management Essay
WorldCom was a large telecom company that rose during 1990s up to early 2000s when the company encountered some shortcomings which finally led to its collapse.            The collapse arouses questions on the planning role of its management. The Management function basically plans for the company’s future based on the expectations of stakeholders. They expect to make high profits.            This critical role may have been avoided by the management in favour of taking out excessive salaries and other benefits for themselves leading to company collapse.            Legal issues, ethics and corporate social responsibility have an impact on management planning. Management planning ought to take a legal perspective. For example when the organization collapses, it takes a legal dimension to determine the failure of management planning. This can lead to long legal battles.            Ethically, management planning operates within ethical frameworks. For example it was unethical for WorldCom to loan executive’s money to purchase shares of the company stock. These could have contributed to the company’s collapse. The failure of corporate social responsibility impacts on the functioning of management planning negatively because it shifts the focus away.            Various factors influence the company’s strategic, tactical operational and contingency planning. They include legal, ethical and business responsibilities, government law, the desire for more profit, nature and size of the business, the workforce and size of customers, among others.            For example if the target of the profit is high then the planning ought to be more involving. There is also a variation in planning in connection with the nature of market and the size of the esteemed customers. Also the higher the workforce the more intense is the planning. References Carol, A., (1993) Three Types of Management Planning Making Organizations Work. Management quarterly, 34 Ewing, D. (1969). The Human side of Planning Tool or Tyrant? London: Macmillan Foley, P., Howes, p. (1993) Strategic Human resource Management: An Australian case study. Human Resource Planning, 16.
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