IMPACT OF PRODUCTION PLANNING AND CONTROL AS A MANAGEMENT FUNCTION ON THE SURVIVAL OF SMALL SCALE BUSINESS

CHAPTER ONE

1.1     BACKGROUND OF THE STUDY

This project is all about assessing the impact of planning and controlling as a management function on the survival of small scale business.

Management is universal in the modern world. Every organization requires the making of decision, the coordination of activities, deciding in advance when, why how and who does what, setting of standards, measuring performance against standard and reviewing the standards.

Numerous managerial activities have their own particular approach to specific types of problems which fall under headings such as production and operation management human resources management, management of health delivery system and others

According to Nwachukwu (2007) management is the act of getting things done through and with others.

Another definition by Launer (1999) he refers to management as the corner stone of organization effectiveness and is concerned with arrangements for the carrying out of organizational processes and the execution of work.

Kountz (2006) management is an operational process initially best dissected by analyzing the management functions. The five essential managerial functions are planning, organizing, staffing, directing, leading and controlling.

These tasks of management are interrelated and actually dove tail into each other. Planning sets the stage by helping the organization to determine where it wants to go (objectives) and how to get there (strategies and tactics). These objectives and strategies determine the type of organizational structure most suitable for the organization.

Organization structures are designed to fit the strategies which are meant to achieve the objective and both strategies and objectives are the outcome of planning.

There is no human endeavour that does not require proper management for it to function efficiently. For every type of organization either government establishment or private enterprise, there is need for qualified managers to handle its activities.

Management and organizations are seen as the product of their historical and social times and place and to understand the evolution of management theory in terms of how people wrestled with matters of relationship at a particular time in history. The lesson here is to learn from the trials and tribulation of those who have preceded us in steering the fortunes of formed organization.

It is now obvious to every one that, of the factors that are necessary for economic take off, none is to be stressed more often than management  characteristically, the developing countries are known  for their low technological progress and extremely low labour productivity. A realistic approach to the development of these countries call for qualified high level manpower especially at the management level. In present day organizations it is the manager that determines the appropriate technology required and the best way to efficiently and effectively utilize all types of resources, be it physical or human.

The Nigeria scene portrays the situation very adequately. Despite her abundant natural resources and rich environment, the economy of Nigeria has not quite taken off most organization do not operate smoothly and efficiently. The management cadre which is a sine qua non for economic development is lacking. The government in many instances has assumed the function of entrepreneur and taken over the management functions, instances abound to convince everyone that the government has not faired well as a good manager, and has even performed worse than private entrepreneurs.

The need for management is essential to the development of organizations, be it small scale or large scale industries, therefore, when ever people work together, there is generally a need for the coordination of efforts in order to attain expected result in reasonable time, and with minimum amount of money, discomfort or energy. A manager is expected to be vast in knowledge and to possess special talents or abilities quite different from non manages.

1.2     STATEMENT OF THE PROBLEM.

No organization matter its size can survive without on effective managerial function (planning and control). Therefore, three is need for sound and qualified man and women to operate in every organization and also there should be capable hands to manage the financial affairs in order to ensure a sound system of operation in the enterprise.     

It is important to note that, effective operation is not exclusive concern of only one person or department within an organization, it must involve every staff who should have the interest of the organization at heart in order for it to achieve it set goal and objectives.

• Does effective management enhance workers performance?
• Does the organization has capable hands to manage the financial affairs?
• Does the activities of managers focuses towards the attainment of goods and objective of the organization.

1.3     OBJECTIVES OF THE STUDY

This project intends to assess the impact of planning and control as a management function in the survival of small scale industrial towards the achievement of the overall goals and objectives of the organization.

          Specifically this project has the following objective:

1. To find out the present management practice of planning and control and its effects on the organization
2. To examine some strategies for the attainment of goals and objectives set out by the organization.
3. To find out the role of management in ensuring the smooth running of the organization.
4. To ensure that organization at any given time is capable of carrying out its activities that could aid in achieving its goals.

1.4     STATEMENT OF HYPOTHESIS

A hypothesis is a conjectural proposition and informed intelligent guess about the solution to a problem. It is an assumption or proposition whose variety and validity is to be established.

          The researcher wishes to states his hypothesis as follows:

Ho: Effective management function of planning and control has no significance impact on the survival of small scale business.

H1: Effective management function of planning and control has  significance impact on the survival of small scale business.

1.5     SIGNIFICANCE OF THE STUDY

The significance of this project cannot be over emphasized because it is prerequisite for the award of bachelors of arts and science in management studies and effective management is the yardstick and bedrock of every organization. Thereby, enhances the achievement of organizational and objectives.

Furthermore, it will guide and give a sense of direction to the entire organization in the area of channeling resources and enhancing productivity and also giving status to the organization.

1.6     SCOPE OF THE STUDY

This research work is restricted only to an enterprise in Kaduna state. Timruth Nigeria enterprises. This is due to the fact that, it is not easy to have a study of all small  scale business in Nigeria, due to this fact, this project will be concern with Timruth Nig. Enterprise.

Timruth Nigeria enterprise started its operation on the 19th of February, 1995, as a one man business with the aim of providing employment to reduce the rate of unemployment in the society. During its inception period the capital invested is the total sum of 150,000 including machinery and equipment used for production in the organization. Timruth Nigeria enterprises are sited at AX 32 Nnamdi Azikwe Way Bakin Ruwa Kaduna.

The organization went into operation, with about six employees which later increased to about eighty five employees engaged in supervising, marketing, sealing and packaging of the product. And the main products of the company include beverages and Yoghurt.

Since the company came into operation the management has been experiencing a very high rate of profit until  early 2000 when the profit rate began to reduce due to the presence of several competitions in the market producing similar product. 

The company has over thirty dealers who help in the distribution of the products to various parts of the state in order to ensure that a larger part of market is covered adequate preparation has also been on ground to ensure that the demand of the market is met. 

The main problem encountered during the vital stage of the business is that of financial constraint, there is shortage of finance in the early stage of the business. Other problem faced by the business is the activities of its competitors where did not allow the product to gain a better ground portion of the market.

The main source of finance to this company was from personnel savings and loan from cooperative society.

1.9     Definition of Terms

Entrepreneur: One who organizes manages and assumes the risk of a business firm or venture.

          Assets: Anything of value that the business owns

Management: The process of planning, organizing directing, coordinating and controlling the activities of a business enterprises so as to attain stated objectives by the use of people and other resources requires decision making and leadership.

Liabilities: The claims of creditors against the assets of the business i.e. what the business owns.

Small Business: One that is actively managed by its owners highly personalized local in its area of operation of relatively small size within the industry, and largely dependent upon internal source of capital to finance its growth.

Business: This is all activities directly or indirectly concern with production and distribution of goods and services which is aimed principally at making profit.

Organization: An entity that is constructed and deliberately reconstructed to achieve specific goals and objectives.

Planning: Setting future goals, developing action plan and monitoring performance against the plan.

Controlling: Is a part of the management process that involves ascertaining the extent to which expectation’s are being met taking action to ensure that they are met and making some modification in view of realities that emerge during execution.