FORM SIX COMMERCE – ORGANIZATION AND MANAGEMENT OF A BUSINESS

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BENEFITS OF PLANNING:-

Sound planning is the foundation of efficient management because it results the following

Advantages:-

1. Emphasis on objectives:- The whole planning process is based and directed towards achieving organization objectives.
2. Minimizes uncertainty:- Planning is for future which anticipate future events
3. Facilitates control: Plan lay down objectives and standards of performance which are essential for performance control.Control is the act of checking performance against the agreed standard.
4. Improves coordination: Planning ensures unity of direction towards organizational goals.Coordination: is the unifying integrating and harmonizing the activities of different departments and individuals.
5. Planning secures economy: Since planning leads to good location of resources thus lead to optimum utilization of resources
6. Ennglish-swahili/courage” target=”_blank”>courages Innovation: Planning is basically a deciding function. It therefore helps in innovation and creative thinking to be put into use because new ideas must be accommodated and applied to achieve results.
7. Improve competitive strength because planning means looking a head into the futures therefore an organization give competitive advantage to the enterprise that do not have planning.

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LIMITATIONS OF PLANNING

Planning may fall short of it objectives due:-

1. Expensive process: Money and effort should be spent in forecasting collection of information evaluation of alternatives i.e. Services of experts may be necessary in order to have a good plan.
2. Non –availability of data: There are may be lack of enough historical and current data which plans may be based.
3. In-ability of planners: If planners fails to use available information for the purpose of planning he may not be able to produce a good plan.
4. Inaccuracy: Plan is based on certain premises relating to forecasts about the future this may fall short and hinder prediction of changes in environment performance of objectives.
5. Time consuming:- Planning require much time. Therefore not suitable for sudden/immediate action.
6. Psychological: Planning often implies changes which the executives may like to ignore hoping changes may affect their position.
7. External limitation: Changes in business environment may restrict free planning e.g: Changes in technology, Government policies.

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CHARACTERISTICS OF PLANNING

1. Planning is an intellectual activity involved vision and foresightedness to decide the things to be due in future.
2. Planning is basic to all management function:- All other managerial functions come after a firm has plans.
3. Planning is related to objectives: An efficient plan details out the methods to achieve the objectives with minimum cost and consequences.
4. Planning is a continuous process.The process of production and nglish-swahili/distribution” target=”_blank”>distribution of plans is continuously implemented and prepared. Plans have to be reviewed or modified to suit the business environment.
5. Plan is selective in nature:- Planning involves decision making or choosing of the best alternatives out of the many available alternatives.

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STEPS IN PLANNING

A systematic approach to plan involves the following steps:-

1. Definition and description of objectives or problems: Need for planning arises for solving problems or exploiting an opportunity that may arise in the future. I.e the problem to be solved or opportunity to be utilized should be clearly defined with the help of policies, programmes, procedures, rules, budgets and strategies.
2. Determination of planning premises.Planning premisses are the assumption about the future they provide boundaries in which plans will be implemented.

                                i.  Tangible and intangible premises: Assumptions which can be expressed in quantitative terms e.g: capital investment, time available (tangible) and qualitative
   in nature e.g:- Employees morale, goodwill of the business (Intangible premises)

     ii.Internal and External premises. Assumptions about internal working condition of the business like capital and machine (internal premises) and assumptions
   factors outside the business like in technology, population growth, government policy (external premises).

     iii.Controllable and Uncontrollable premises.Controllable premises are policies and programmes of the organization which can be fully regulated by the
   management.e.g: Price policy.

   ·        Uncontrollable premises are the external factors like political changes which are beyond the control of the management.
   iv.Discovering and developing alternative: Collect and analyze all relevant information so as to identify all possible alternatives.
   v. Choose among the alternatives after detailed cost and benefit analysis.
   vi.Distribution of a plans.
   vii.Followup, make changes in plans.

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                             2.STAFFING

Is the managerial function that involves the determination of manpower requirements of the business and providing it with the adequate competent people at all levels.

Personnel Management: Is the planning, Organizing, Compensation, integration and maintenance of people for the purpose of contributing to organizational, personal and societal goals.

A personnel Manager therefore performs the staffing functions of manpower planning, recruitment selection, training, performance appraisal and compensation.

                    NATURE/SCOPE OR STAFFING

Staffing is a function which is done by Managers at all levels in the business organization. The scope of staffing is as follows

i)       Manpower planning. Determining the number and kind of personal required in various position in he organization.

ii)     Recruitment, selection and placement of personnel.

iii)   Training and development of employees.

iv)   Appraisal of performance of employees and taking corrective measures (steps) e.g: transfer from one job to another.

v)     Remuneration of employees.

vi)   Motivation of workforce by providing financial incentives and promotion.

IMPORTANCE OF STAFFING

The importance of staffing has increased because of the following factors:

1. Advanced technology: Right type of workers for technology have to be identified and employed.
2. Increasing size of organization.Large firms require the employment of thousands of workers.
3. Long –range needs for manpower.Determination of manpower requirements in advance, develop existing personnel.
4. Staffing spend money so management must ensure staffing which will not lead to high cost unnecessarily, i.e ensure staffing function is done in an efficient manner
5. Motivation: Workers are to be motivated properly through financial and non-financial incentives.

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            3. MANPOWER PLANNING : Is the process of determining and assuring that the organization have adequate number of qualified personnel.

SIGNIFICANCE OF MANPOWER PLANNING

Manpower planning is essential activity due to the following:

1. Shortage of manpower will be revealed and corrective steps can be taken in time.
2. Manpower forecasting provides a base for recruitment, transfer and training of employees.
3. It reduces cost by avoiding over staffing.
4. It helps to identify talents available in the organization such that training for promotion can be given to the talented employees.
5. It helps in the growth and diversification of business i.e. Suitable manpower is made available to handle new jobs.

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STEPS IN MANPOWER PLANING:

             1.  Current manpower inventory: Analysis of current manpower supply should be undertaken by departments or by occupation.

             2.   Manpower forecasting. Management has to forecast manpower requirement. The following factors have to be considered.

                  a)     Expansion plans of business.

                  b)     Nature of technology to be adopted.

                  c)     Retirement schedule of employees.

                  d)    Expected separation of employees.

3.Employment programmes.Long-term employment program must be set out to deal with forecast difficult of manpower.It includes the steps like recruitment,
selection, placement, performance appraisal, transfer and promotion.

             4.Training and development program.Identify training needs in the organization because employees need appropriate training so that they may learn the required
skills.

4. RECRUITMENT: Is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.

         The process of recruitment involve

i.       Identification of different sources of supply of labor.

ii.     Assessing their validity

iii.   Choosing the most suitable sources

iv.   Inviting applications from the prospective candidates.

SOURCES OF RECRUITMENT: we have internal and external sources of recruitment.

External sources of recruitment: The commonly used external sources of recruitment are.

a)   Direct employment or recruitment at factory gate.This is done by placing a notice on the notice board of the organization specifying the details of the jobs available.

Advantages of external source of recruitment:

                                  I.        It involves no advertising costs.

                                  II.       It is the cheapest methods to fill up casual vacancies.

                                  III.      It helps to fill the vacancies or even get help if there is an emergency or rush work.

                b)     Unsolicited application: Applications received not in response to any advertisement but from individual who are looking for jobs. Firms can make use of these
applications to get workers.

                c)      Advertisements: These are placed in newspapers or trade and professional journals are used when qualified or experienced personnel are required by firms.

                                 Advantages

                    I.        More information about the firm is given, job description and job specification also made available.

                   II.        It allows self screening by the prospective candidates.

                   III.       Give a wider range of candidates to choose from.

                              Disadvantages

                   I.            It is very costly due to advertising cost.

                   II.           It gives in flood of responses end many times from unsuitable candidates.

d)    Employment agencies or Bureau.Employment agencies bring the job givers in contact with job seekers. They provide a national wide services attempting to match personnel demand and supply.

  5. SELECTION: This involves giving of various test to the candidates/intending employees and interviewing them in order to select the suitable candidates.

        Steps in staff selection/procedures:

1.      Preliminary interview.

2.      Application blank.

3.      Employment tests.

4.      Employment interview.

5.      Physical examination.

6.      Checking with references.

7.      Final selection.

8.      Induction or orientation.

1.PRELIMINARY INTERVIEW:- It consists of exchanging of information with respect to the organization interest in hiring and the candidate inquiry.It is performed in order
to screen and identify those who are suitable or to reduce the number of those who should move to the next step.

             2.Application blank: These are forms used to obtain information in the applicant’s own handwriting sufficiently to identify him and make decision regarding suitability for
employment.

             3.Employment test: They are given to all candidates in order to know the level of each one’s ability and knowledge his interest and aptitudes. This will require the the use of
intelligence test, aptitude personality test.

             4.Individual employment interview –Much information which could not be obtained from application blank and employment tests are easily revealed here.

MAIN PURPOSE OF EMPLOYMENT INTERVIEW

1. To find suitability of the candidates (testing the qualities and capabilities of candidates)
2. To seek more information about the candidates.
3. To give the candidate the accurate picture of the job with details of the terms and conditions and some ideas of organization policies

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            Limitations of employment interview

1. Interview is an expensive device
2. Interview can test only personality the candidate and not his skills and ability for the job.
3. Interviewers may be not experts and may be not able to extract maximum information from the candidates
4. The device depends too much on personal judgement of the interviewers which may not always be accurate
5. Prejudice may affect results of the interview.

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          5.Checking references: Prior to final selection, the employer normally makes an investigation on the references supplied by the applicants and undertakes more thorough
search on the candidate past employment, education, personal reputation, police records etc.

  6.Physical/medical/examination.Pre-employment physical examination or medical test of the candidate is an important step in the selection process.Physical/Medical examination has the following objectives.

                   I.       It helps to ascertain the applicants physical capabilities to meet the job requirements.

                  II.      It help to protect the organization against the unwanted claims under workers compensation law or   against law suits for damages.

                  III.       It help to prevent communicable diseases from entering the organization.

NOTE: A proper medical examination will ensure higher standard of health and physical fitness of the employees and will reduce the rates of accident and absenteeism.

          7.FINAL SELECTION

A Candidate who has cleared all steps, he is finally appointed by issuing an appointment letter.The letter will give the date by which the candidate has to join the organization term and conditions of employment, nature of job and pay scale.

        8.INDUCTION OR ORIENTATION: This is concerned with introducing a new employee to the organization its procedures, rules and regulations and the people with whom he will interact in doing his job like supervisors and fellow employees.He also given orientation training before he is asked to occupy a particular position e.g: Being introduced an organization software programme.

 6.TRAINING: This is an organized activity of increasing the knowledge and skills of people for a definite purpose.Training makes newly recruited employees fully productive in the minimum of time.

NOTE Old workers may also attend refresher courses to update their knowledge and skills.

Advantages of training to an organization

1. Less learning period: Systematic training programmes helps to reduce the learning time to reach the acceptable level of performance i.e Employees need not to learn by trial and error or by observing others and waste time.
2. Better performance: Training increase knowledge and skills of employees leads to better performance.
3. Uniformity of procedure: With the help of training methods and standards can be made available to all employees.
4. Economy of materials and equipments: Trained personnel will make better use and economical use of materials and equipments.
5. Fill manpower needs. Training can be used to obtain manpower to fill the vacancies.
6. Less supervision: Training reduces the need of detailed and constant supervision.
7. Good human relations: With the help of training dissatisfaction complaints, absenteeism can be reduced among employees.

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Advantages of training to an employee

1. New skills: Employees acquires new skills, knowledge with will help them to improve their career.
2. High productivity: Efficiency of the workers increases as a result of training.
3. Less accidents: Trained workers can handle equipments carefully and able to use various safety devices.
4. Opportunity for promotion: After training workers can apply for higher job positions.
5. Increased mobility: Trained employees can shift from one organization to another is order to advance there career or greener pastors.
6. High morale: Trained employees know well their jobs and have greater job satisfaction this increases their morale.

   TYPES OF TRAINING PROGRAMMES

7. Induction or orientation training:Training concerned withe the problem of introducing or orienting a new employee to the organization and its procedures rules and regulation.

   Objectives of Induction training

   a)      To build up new employees confidence in the organization and in himself so that he may become an efficient employee.

   b)     To give a new employee the information he needs like location of rooms cafeteria and other facilities.

   c)      To promote a feeling of belonging and loyalty to the organization among new comers.

   d)     To ensure that new employee not form false impression regarding the new place of work because first impression is the last impression.

8. Refresher training or retraining:The basic purpose of refresher training is for existing workforce acquire the latest methods of performing their jobs and improve their efficiency.

   Importance of refresher training

   a)      New technology is associated with new work methods and job requirements i.e Existing workers need to learn new methods to use new technology in doing their jobs.

   b)     Workers require training to bring them up to date with the knowledge and skills and to learn what they have forgotten.

   c)      New jobs which are created due to change in demand are to be learnt by existing employees.

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1. Apprenticeship training:This involves imparting knowledge and skills in doing a craft or series of related jobs.

   ·   This training combines on job training and class-room instructions in particular subjects.

   ·   The trainee is placed under supervision of experienced person who teaches him the necessary skills and observes his performance

2. Internship training:This is where vocational Institutes enter into arrangement with the business organization for providing practical knowledge to its students by gaining actual work experience.Internship training is usually meant for vocations where advance theoretically knowledge is to be backed up by practical experience on the job.E.g: Medical students are sent to big hospitals to get practical knowledge OR Engineers students are sent to big Industries.