The Four Managerial Function

Topics: Management, Sales, Control Pages: 9 (3597 words) Published: May 13, 2013
In simple words, planning is deciding in advance what is to be done, when, where, how and by whom it is to be done. Planning is the primary function of management. According to Koontz and O’Donnell, "Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen”. The planning process, identifies the goals or objectives to be achieved, formulates strategies to achieve them, arranges or creates the means required and implements, directs, and monitors all steps in their proper sequence. So as for the planning process in Tumpuan Auto Company, Mr.Nasir practices the SMART model. SMART is a short form for specific, measurable, actionable, realistic, and time. ‘S’ is for specific which means that objectives need to be clearly defined so that it is easy to understand what is to be achieved and what will be considered successful. ‘M’ is for measurable means that the exact measure must be stated and the objective must be able to be measure through some means. ‘A’ is actionable which an organization needs to ensure that its business-unit managers have the authority and resources to take actions necessary to attempt to achieve the objectives that are set. Then, ‘R’ is realistic. There is no point setting unrealistic objectives. Unrealistic objectives are disincentive. Lastly, ‘T’ is for timetabled which objectives should have deadlines at which progress towards achieving them will be measured (Arina, 2010). Based on the interview, he said that there are few advantages on using SMART model and one of them are SMART objectives provide a structure and track ability for implementation. Then, if a SMART objective is written properly, it gives a very clear vision of what success looks like. However, there are few types of planning such as operational, tactical, strategic and contingency plans (Schermerhorn et al. 2011). The types of plans used in Mr. Nasir’s company are tactical and contingency plans. Tactical plans are concerned with shorter time frames and narrower scopes. These plans usually span one year or less because they are considered short-term goals. Long-term goals, on the other hand, can take several years or more to accomplish. Based on the interview, Mr. Nasir just wants to maintain the business sales for now and his expectation is, by one year the sales will increase more. According to Schermerhorn et al. (2011), contingency plans are identifying alternative courses of action that can be implemented if and when the original plan proves inadequate because of changing circumstances. Anticipating change during the planning process is best in case if things do not go as expected. So, according to Mr. Nasir, if there is situation like in 3 months there are no sales at all, he will change his original plan by giving new plan for that situation such as do a roadshow and lower down the cars’ price. These are to attract buyers and clear out the ‘dead stock’ in the warehouse. This can prevent excessive loss as well as regain profit. Besides that, Mr. Nasir also plans to expand his business that includes sales of other car brands such as BMW and Volkswagen. By extending his business, it will continue to grow successfully.

Based on the interview, we found out that in Mr Nasir who is the CEO of the company manage and organize the company by himself. Organization is the process of establishing the orderly use of resources by assigning and coordinating tasks. “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s” (Henry Fayol, 1916). Organizing at the level of the organization involves deciding how best to cluster jobs into departments to effectively coordinate effort. There are many different ways to departmentalize, including organizing by function, product, geography, or customer (Sree Rama Rao, 2010). Based on the interview, Mr. Nasir’s organize his...
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