Planing and Forcasting - Research Paper Example

Key words: Forecast, management, planning, analysis, tools and techniques. Quality and performance. Introduction and scope of implementation: The two tools of planning and forecasting are not limited to any specific field or circumstances; rather they find their application in small scaled organization, and small scale projects, to large scale. Apart from the scale parameter, they find their application in different forms of organizations namely private, public, governmental, nonprofit, services industry, educational, planning commissions, human resource management nay they are broad in their scope and application and are equally effective regardless of the size or nature of organization.

The need and realization for these two modes of operations grew further in the post world war two scenario when scientific management and other advanced methods of operations and businesses were introduced. Generic interpretation of the two terms: Apart from their technical details, specifications and usage in technical jargon, each of these have generic interpretation to their usage. Planning in any circumstances within the organizational ambit pertains to the organizing of activities or personnel.

It is to plan and administer the scheme of actions, evaluating the availability of resources and man power (Caruth,et.al, 2008, 117), limitations of the organization and based on that make decisions that would allow for better outcomes with regard to the planned actions. Forecasting in the same parameter pertains to the foreseeing and assessing the situation and variables in accordance with the future prospect. It is the scientific and rational assessment of the upcoming events, activities, and resources.

Forecasting allows for keeping the financial factor in check and preventing any increased spendings or prolonged activity time span which would go against the preplanned program. Modes of Planning and Forecasting: Both these functions may be performed in a formal manner or a regular in parallel on job activity. Informal planning of forecasting may not be as effective as the formally conducted processes in each category (Boyle, 2006, 8). Informal operations in these categories may result in extra resources inclusion and extra activities performance.

Under the formally undertaken measures, the two work on separate lines, in a specific measure and allow better outcomes extraction. Forecasting: Within a managerial process and business, forecasting can be implemented in different categories. It may be implemented in the marketing sector, finance department, control processes, manufacturing and production activities (Stair et.al, 2010, 375). In the category of marketing, it allows for interpreting the future trends in the market and based on that the formalizing of strategy with regard to resources and expertise allocation.

In the category of Finance management, handling of assets, determination of profit rates, interest rates evaluation and overall stocks values handling is enabled through the techniques of forecasting (Keown et.al, 2005). Similarly in the production processes, it allows giving an insight of the number of items to be produced, the need that would arise in long term, the costs that would be incurred in future against the present value of costs for a given process. Forecasting may be done in number of ways.