Purchasing and Supply Chain Management

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Name : Rehen Padayachee Student No. : 71511547 Programme in Purchasing and Supply Management Module : PPSM015 – Semester 1

Assignment 01 The fundamental management tasks that I will look at is planning and organizing. Planning Planning is the fundamental element of management that predetermines what the business proposes to accomplish and how it intends realizing its goals. Planning involves those activities of management that determine the mission and goals of an organization, the ways in which these are to be attained and the utilization of the correct resources to realize them. Planning involves the following three dimensions : The determination dimension - Where a specific future date is determined by when an organization must achieve its goals. This must serve as a guideline for the business and its various departments. The decision making dimension - Here, management must determine what resources should be deployed in order to achieve the goals of the organization. A choice must be made between alternative ways of accomplishing the goals. The future dimension - A goal is something that an organization is yet to achieve. Planning establishes a connection between what has to be done now in order to achieve future goals. Planning is not just the starting point of the management process but also the point around which their activities revolve. It is clear that planning forms the basis of all the tasks of management as it gives the organization direction and determines the action of management. It is for the following reasons that planning is therefore crucial : Planning gives direction - On one hand it gives the organization direction in the form of goals and on the other, in the form of plans shows how these goals must be achieved. Planning promotes coordination between departments and people in the business - Once goals are determined and plans formulated, resources may be allocated so that everybody is contributing to the goal. This is necessary for the productivity and profitability of the business. Planning ensures that businesses keep abreast of technology - The influences of advancement in technology can make heavy demands on planning.

Planning ensures cohesion - by enabling top management to the see the business as a total system in which the objectives of the different functions are reconcilable with each other. Planning promotes stability - A factor that makes planning vital is rapid change in the business environment. Planning encourages proactive management and plays an active part in the future of the business. The planning process consists of the following elements : Goal Setting - Identification of mission and formulation of goals Developing Plans - Choices between alternative plans of action to achieve goals Implementation - Execution of the plan throughout the rest of the management process Planning is by no means an isolated process it works closely with the other elements of the management process. Organizing cannot be done without definite goals; resources will not be utilized in the most effective ways to produce the business’s desired results. Leadership will also fail without effective planning. People cannot be instructed and encouraged to work productively. With regards to control, if there is a deviation from the plan, control will reveal this and then reactive planning is necessary. A goal is a desirable state of affairs that a business aims to achieve in the future. The plan is the means by which the goal is realized. Goals serve important purposes, they provide direction for everyone in the organization, they affect other aspects of planning, they serve as motivation for people to achieve, and finally, they provide a benchmark for performance measurement and control purposes. Goals are set in relation to the factors that form the basis of planning i.e. the mission of the organization, the environment in which they operate, the values held by management and the experience that management...
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