Planning Functions of Management

1530 WordsNov 7, 20087 Pages
Planning Functions of Management “Planning is concerned with the future impact of today 's decisions. It is the fundamental function of management from which the other four functions stem” (Erven, 1999). Considering planning is the first of the four functions of management, one can appreciate the importance and impact it has on the other functions. Production cannot begin and staff cannot be mobilized unless the planning phase has been completed. Factors however, do exist which affect the planning phase and if not considered can set the organization on a detrimental course. This paper will examine to what degree different management planning functions impact the Tyco Corporation as well as factors that influence the planning phase.…show more content…
While corporate responsibility can be negative if presented in the wrong context, corporate responsibility can also be a positive influence on the planning phase. If Tyco has been synonymous for honesty, integrity and responsibility one will find it likely those in charge may have taken a more productive path. Once respect for corporate responsibility is lost, one will find it difficult to reestablish it. One additional step to establishing the value of corporate responsibility at Tyco was to “remove Kozlowski, Swartz, Belnick and other members of its board of directors, and replace them with outside professionals, Edward Breen, David Fitzpatrick, and William Lytton (Einstein Industries, 2008). Understandably, corporate responsibility carries with it a level of implied social responsibility. To promote a management plan that is legal, ethical and corporately responsible, the organization must consider how society in general will be affected. Social Responsibility “A former Tyco International Ltd. executive agreed to pay $450,000 to settle financial reporting and record-keeping charges connected to a fraud case in which Tyco overstated income by more than $500 million” (Reuters, 2006). Instances such as these have caused Tyco to rethink their commitment to social responsibility. Considering many stockholders lost money in Tyco while the stock was in decline,
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