Assignment

1. 1
Botswana College of Distance & Open Learning
Diploma in Business Management
Principles of Management
Assignment: 2
Mmoniemang Motsele
Student No: 201060155

2. 2
Question 1
Define the term planning and discuss the main barriers to organizational planning
Planning: The process of settinggoals,developingstrategies,andoutliningtasksandschedulesto
accomplishthe goal

3. 3
Question 2
Explain what constitutes good organizational goals

4. 4
Question 3
Explain the main consideration when choosing an approach to coordination

5. 5
Question 4
Discuss the main characteristics of effective control systems in an organization
1. A focus on critical points. For example,controlsare appliedwherefailure cannotbe tolerated
or where costscannot exceedacertainamount.The critical pointsinclude all the areasof an
organization'soperationsthatdirectlyaffectthe successof itskeyoperations.
2. Flexible.Controlsmusthave flexibilitybuiltintothemsothatthe organizationscanreactquickly
to overcome adverse changesortotake advantage of new opportunities.
3. Accuracy. Effective control systemsprovide factual informationthat'suseful,reliable,valid,and
consistent.
4. Acceptedby Organization Members.Fora control systemtobe acceptedby organization
members,the controlsmustbe related tomeaningful andacceptedgoals.

6. 6
Question 5
Explain the advantages and disadvantages of budgeting in an organization
Budgeting: A formal statement of the financial resources set aside for carrying out
specific activities in a given period of time.
 It helps to co-ordinate the activities of the organization.
 An example would be an advertising budget or sales force budget.
Advantages of budgeting
1. Compels management to think about the future, which is probably the most
important feature of a budgetary planning and control system. Forces
management to look ahead, to set out detailed plans for achieving the targets for
each department, operation and (ideally) each manager, to anticipate and give
the organization purpose and direction.
2. Promotes coordination and communication.
3. Clearly defines areas of responsibility. Requires managers of budget centres to
be made responsible for the achievement of budget targets for the operations
under their personal control.
4. Motivates employees by participating in the setting of budgets.
5. Improves the allocation of scarce resources.
Disadvantages of budgeting
1. Developing budgeting can be time consuming.
2. Whilst budgets may be an essential part of any marketing activity they do have a
number of disadvantages, particularly in perception terms.
3. Budgets can cause perceptions of unfairness.
4. Budgets can create competition for resources and politics.
5. The major problem occurs when budgets are applied mechanically and rigidly.