UNIT-I
Introduction of Management Meaning and Definition
Nature of Management, Importance of Management, Functions of Management
INTRODUCTION
In the modern times one of the most important human activities is managing group of people. Ever since people began forming groups to accomplish aims they could not achieve as individuals, managing has been essential to ensure the coordination of individual efforts. As society has come to rely increasingly on group effort and as many organized groups have become large the task of managers has been rising in importance.
Management is the process of designing and maintaining an environment in which individuals working together in groups efficiently accomplish selected aims. The basic definition of Management explain that
* As managers, people carry out the managerial functions of planning organizing, staffing, leading and controlling.
* Management applies to any kind of organization.
* It applies to managers at all organizational levels.
* The aim at all managers is the same to create a surplus.
* Managing is concerned with productivity, which implies effectiveness and efficiency.
Thus it may be concluded that management plays a key role in improving standard of living of the people in the society through developing an ideal organizational structure and making economic use of available resources. The knowledge of management theory and practice enables managers to take more realistic view about organizational and social problems and to find out their effective solution.
DEFINITION OF MANAGEMENT
It is very difficult to give a precise definition of the term
‘management’.Different scholars from different disciplines view and interpretmanagement from their own angles. The economists consider managementas a resource like land, labour, capital and organisation.
Thebureaucrats look upon it as a system of authority to achieve businessgoals.
The sociologists consider managers as a part of the class elite inthe society.
The definitions by some of the leading management thinkers andpractitioners are given below:
(i) Management consists in guiding human and physical resourcesinto dynamic, hard-hitting organisation unit that attains itsobjectives to the satisfaction of those served and with a highdegree of morale and sense of attainment on the part of thoserendering the service. —Lawrence A. Appley
(ii) Management is the coordination of all resources through theprocess of planning, organising, directing and controlling inorder to attain stated objectives. —Henry L. Sisk.
(iii) Management is principally the task of planning, coordinating,motivating and controlling the efforts of others towards a specificobjective. —James L.
Lundy
(iv) Management is the art and science of organising and directinghuman efforts applied to control the forces and utilise the materialsof nature for the benefit of man.
—American Society of Mechanical Engineers
(v) Management is the creation and maintenance of an internalenvironment in an enterprise where individuals, working ingroups, can perform efficiently and effectively towards theattainment of group goals.
—Harold Koontz and Cyrill O’Donnell
(vi) Management is the art of knowing what you want to do andthen seeing that it is done in the best and cheapest way.
—F.W. Taylor
(vii) To manage is to forecast and to plan, to organise to command,to coordinate and to control. —Henry Fayol
(viii) Management is the function of executive leadership anywhere.
—Ralph C. Davis
(ix) Management is concerned with seeing that the job gets done; itstasks all centre on planning and guiding the operations that aregoing on in the enterprise.
—E.F.L. Breach
(x) Management is a distinct process consisting of planning,organising, actuating and controlling performed to determineand accomplish the objectives by the use of people and resources.
—George R. Terry
THE CONCEPT AND DEFINITION OF SPORT
There are many definitions of sport, often contradictory and paradoxical. In particular it contributes to an indefinite term "sports game" and claims that sport is played. One group of researchers says that sport is a struggle of man with himself, another man and natural barriers (the forces of nature).Others point out that sport is a social institution imbued with an educational game aimed at a physical and spiritual development of personality. The third sport as rational activity, the totality of the achievements in a particular area of social life and so on. Marjanovic believes that sport in general does not exist, but there are just different kinds of sports, and given that each complex has a special social structure that is different from the structure of other sports.
Sports are considered to be sports education and sports activities, aimed at achieving results in sports competitions and: physical development activities and games for all ages,’ sports and rejuvenation ,corrective sport, business professionals who prepare participants for sporting competitions, activities of persons involved in organizing and managing sports events and other sports events.
Sports and other forms of physical activity not seen in isolation from the whole socio-cultural phenomena, but, rather, within them or about them. Sociological approaches to sport can be varied. Sports, for example, can be seen as an activity in a number of other activities in the structure of society(the structural approach). It can also be viewed as a developmental process (historical approach), as well as interaction (interaction of) individuals and groups (inter
actionist approaches). Approach that only wants to describe the sport, called the phenomenological approach, while the functionalist approach to stress the elements of cohesion and equilibrium of society, the role and function of sport in the processes. Sport is a multidimensional and complex phenomenon.
Besides competition, the field of sports includes social, psychological, economic, political, educational, scientific, medical, religious, cultural, legal and other valuables.
MANAGEMENT IN SPORT
Managers need to govern the special skills and knowledge. Manage, lead, coordinate, decide - it must know. Management, in addition to science, it is also art. The success of any organization, as business systems, and public sectors, culture, sports, art, depends on the skills of managers. Art of creating, governing, managing, organizing, forecasting, planning, designing, can be considered a kind of art. Management is, de facto, the Sciences and Arts.
Science and art are complementary, as they work in synergy, not excluded. No art by science, or science with creation, the dose of art. Human resource management in sport is a new theoretical, scientific and pragmatic approach, which on the one hand, refers to the management of athletes by coaches, team of experts and sports scientists, on
the other hand, the efficient and effective management of the entire sport organization by control in sport, sports managers, marketing managers and sports volunteers. Management of sports involves the study of disordered and
proven knowledge of how a sports organization achieves its goals, procuring, distributing and the use of limited human, material, information and financial sources of its success .Sports Management as the art and craft-empirical, unstructured experience of talented managers of individual athletes, teams and clubs emerged with the appearance of the first professional sports organization.
The appearance of a systematic, scientific-structured knowledge of sports management is connected with the growth of professionalization of sport and its rules determination -service market economy, and the emergence of management science, first in the profit sector, corporate business, and then, and it's spreading to the sector of non-profit public and private sector. Start sports management as a scientific field associated with the 1980s for years (Bittel, 1988). This was preceded by the development of research in the field of business management capabilities driven by new information technology. In the 1960s and 1970s age system based on computer models developed in connection with the functions of planning and control, dominated the literature on management. How to extend the company of " industrial-based economy" to
"service-based economy, management techniques have become of growing dependent on the sophisticated / subtle forms of data processing and transmission of information. During the 1980s years, management theorists have developed new models of strategic planning and decision making with the growing emphasis on entrepreneurship and the use of marketing techniques.
With this development is related to the period of establishing the academic
discipline of sports management. Although the sports management programs emerged in the late 1960s and early 1970s, university curricula have begun to include extensive programs for the preparation of sports managers only since the 1980s years. Development of the North American Society for Sport Management (NASSM) and the founding of the Journal of Sport Management in 1986 were additional indicators that the sports management taken seriously in the academic environment.
So,What is Sport management?
Sport is the unalienable right of every person European Sports Conference
Sport is the most precious commodity we can hand on to the next generation Ron Pickering
The level of participation and degree of excellence attained within a given sport is dependent, at least in part, on how that sport is organized. Sport has traditionally been organized in an ad hoc way, relying on volunteers who are committed to their particular sport. It is now clear that to encourage higher levels of participation and international excellence, new ideas about organizing need to be diffused to those involved in the management of sport.
Sue Newell and Jackie Swan from Warwick University Journal of Sports Management, 1995, published by Human Kinetics
Unique Features of Sport
➢ Sport has its field of activity, subjects of activity, object of activity and its final goals – achieving top results – assuming not only achievements related to mental state within the society or the individuals, but also the achievements of society and individuals, with deepest economical manifestations.
➢ Sport have the phenomenon of people developing irrational passion for sporting teams, competitions and sportspersons.
➢ Sport has a symbolic significance in relation to performance outcomes, success and celebrating achievement that dose not occur in other area economic and social activity.
➢ Marked differences between sport and other organizations in evaluation of performance.
➢ Competitive balance is also a very important feature.
➢ Sport also enjoys a high degree of brand loyalty.
➢ Sport fans also exhibit high degree of optimism.
➢ Sport has its limited availability.
“... Management in sport can be defined as a process of organizing and managing sport or sport organization in order to achieve sport and other goals with rational use of limited resources.”
“coordination of different activities and processes directed toward effective creation of sport results and creativity”.
“Sport management is a specific management concerning sport activities whose fundamental task is to coordinate the sport activities”.
“Organizational, qualified and adequate management of sports organizations, with a goal to accomplish legally economical profit though sport competitions, contests, whether on the level of region, area or country”.
Progressive Concept of Sport Management
Essential skill for sport management
In modern business the job management has become very difficult. Several skills are required to manage successfully a large organization in a dynamic environment. These skills of managers have been classified into four categories, namely technical, human, diagnostic and conceptual skills.
(i) Technical Skills
Technical skills refer to the ability and knowledge in using the equipment, technique and procedures involved in performing specific tasks. These skills require specialized knowledge and proficiency in the mechanics of particular job. Ability in programming and operating computers is, for instance, a technical skill. There are two things a manager should understand about technical skills. In the first place, he must know which skills should be
employed in his particular enterprise and be familiar enough with their potentiality to ask discerning questions
of his technical advisors. Secondly a manager must understand both the role of each skill employed and interrelations between the skills.
(ii) Human Skills
Human skills consists of the ability to work effectively with other people both as individual and as members of a group. These are required to win cooperation of others and to build effective work teams. Such skills require a sense of feeling for others and capacity to look at things from others point of view.
Human skills are reflected in the way a manager perceives his superiors, subordinates and peers. An awareness of the importance of human skills should be part of a managers orientation and such skills should be developed throughout the career. While technical skills involve mastery of ‘things’ human skills are concerned with understanding of ‘People’.
(iii) Conceptual Skills
Conceptual skills comprise the ability to see the whole organization and the interrelationships between its parts. These skills refer to the ability to visualize the entire picture or to consider a situation in its totality. Such skills help the manager to conceptualize the environment, to analyze the forces working in a situation and take a broad and farsighted view of the organization. Conceptual skills also include the competence to understand a problem in all its aspects and
to use original thinking in solving the problem. Such competence is necessary for rational decision-making.
(iv) Diagnostic Skills
Diagnostic skills include the ability to determine by analysis and examination the nature and circumstances of particular conditions. It is not only the ability to specify why something happened but also the ability to develop certain possible outcomes. It is the ability to cut through unimportant aspects and quickly get to the heart of the problem. Diagnostic skills are probably the most difficult ones to develop because they require the proper blend of analytic ability with common sense and intelligence to be effective.
Event Management
Organizing a sport or recreation event can be a daunting task, particularly for an individual or committee planning an event for the first time. While the scale of the events varies dramatically, the principles of event management essentially remain the same. This information sheet provides an overview of some of the major issues to consider when planning and running an event.
Planning and preparation
Effective planning and preparation are crucial to the success of an event. There are numerous elements involved in planning and preparation.
Purpose of the event
In planning an event it is important to understand why the event is being held, who it is for and who it will benefit. Having a clear focus and defined objectives will help direct the planning process.
Timing and location of the event
When and where an event takes place can have a significant impact on its overall success. When considering the best time of the day, month or year to hold an event, it is important to consider other events that may compliment or compete with the event you are organizing. With regard to location, there are many variables to consider, including the availability of facilities, accommodation, transport, and the support of local stakeholders.
The organizing committee and event manager
There is usually more than one person involved in organizing a sport or recreation event. In many cases it is useful to establish an organizing committee and clearly assign roles and responsibilities to committee members. There should be an event manager appointed who has overall control of the event and is ultimately responsible for the major decisions and directions of the committee.
Event checklist
In order to allocate responsibilities to individuals on the organizing committee, the committee must have a clear idea of all the different aspects of the event,
including venue, equipment, staffing, communication, catering, garbage, toilets, money handling, medical, hospitality, transport, prizes, trophies and ceremonies.
It is useful to compile an event plan, or checklist, which will ensure that all aspects of the event are considered and adequately addressed in the planning stages. See the example event checklist at the end of this document to help you organize your event.
Finances and budget
When preparing for an event it is important that all sources of income and all costs are accounted for, including hidden costs and in-kind support. Developing an event checklist before the budget will ensure that all costs are considered.
The event manager or organizing committee should work closely with a financial manager or club treasurer to ensure the event follows the relevant financial procedures.
Sponsorship
Once the event manager and organizing committee have a clear understanding of the finances and budget, they may wish to secure sponsorship for the event.
When looking at sponsorship it is important that the organizing committee has a clear idea of what it is that they would like from potential sponsors (e.g. money, free publicity, discounts, goods and services). The committee must also be clear
on what the event can offer potential sponsors (e.g. free advertising, publicity, naming rights, media coverage and exposure for new products).
Developing a profile of the event (e.g. a brief history of the event, number and type of participants, media coverage and publicity) will help the committee to target relevant sponsors and to highlight the benefits of being involved with the event.
Any attempt to secure sponsorship should be based on a definite sponsorship strategy that targets specific organizations and tailors the approach to each organization. A general mail out requesting sponsorship from many different organizations is generally unsuccessful.
Promotion and publicity
Regardless of the size of the event it is important to consider the level of publicity and promotion required. While some events may require minimal publicity or promotion (depending on the aim, target audience and existing profile), in most cases event organizers will aim to maximize the profile of the event through promotion (controlled and paid for by organizers) and publicity (media coverage).
Unfortunately, it is not uncommon for this aspect of the event organization to be overlooked or left to the last minute, which can result in poor exposure for the event, a poor turn out of participants and unsatisfied sponsors. When looking at
publicity, it is important to consider various forms of media (print, radio, online and television) and different ways to approach each of these.
Implementation and evaluation
Event delivery
If sufficient time and effort has been put into planning and preparation, the event should run smoothly. The event manager should have a checklist of tasks with time frames to keep the event on track. Effective communication is essential to ensure the event goes to plan. There will always be minor difficulties and challenges; however, hopefully most of these will have been considered and there will be contingency plans to address problems as they arise. During the event it is important to take the time to publicly acknowledge the contribution of staff, volunteers and sponsors.
Post event
After the event has been held, the following should occur:
• formally thank all those involved in organizing and running the event
• provide sponsors with a report on the event and thank them for their involvement
• contact the media with any final results and media releases
• pay any outstanding accounts
• review the event and keep an accurate record of the organizing committee’s methods and activities in order to learn from any mistakes and to make the process of organizing future events easier.
Event Checklist
Planning
• Event overview
• Event plan
• Event manager and staff
• Event description
• Event objectives
• Timeline
• Budget
• Identify targeted audience
Operations
• Police contact
• Liquor license
• Permits
• Public liability
• Insurance
• Security
• Health and Safety permits
• Emergency access
• Ambulance / First Aid
• Venue cleaning
• Parking
• Transport
• Risk Management
Consultation with key stakeholders
• Consultation register
• Planning meeting
• Briefing – before event
• Debriefing – after event
Planning for the event
• Selection of a venue
• Site Plan
• Noise
• Weather
• Inclement weather contingency plan
• Information centre and communication
• Food
• Water
• Lighting and power
• Toilets
• Fencing
• Entry and exit details
• Vehicle access
• Catering
• Disability access
• Seating
• Ticketing
• Contract suppliers
• Develop run order or event schedule
Publicity and promotion
• Pre-event promotion: newspapers, local radio
• Media releases and media kits
• Invitations
• Programs
• Posters
• Flyers and postcards
• Signage
• Website
Sponsorship and merchandise
• Suggested Sponsorship Strategy
• Potential sponsors
• Evaluation of a Sponsorship Program
• Merchandise
Management of alcohol
• Permit conditions
• BYO and non-BYO events
• Responsible service of alcohol
• Minors
• Beverage options
• Beverage containers
• Trading hours
• Alcohol consumption areas
Compile a file
• Documents to be kept
Different Types of Leadership Styles
The total pattern of leaders’ actions as perceived by their employees is called leadership style. It represents the leaders’ philosophy, skills and attitudes in practice. It is necessary to study the different leadership styles from which an appropriate style can be selected, depending upon the situation in which leadership is to be exercised and the nature of the followers involved.
Positive and Negative Leaders or Bosses
There are different ways in which leaders approach people to motivate them. If the approach emphasizes rewards, the leader uses positive leadership. If the approach emphasizes penalties, the leader is applying negative leadership.
Negative leaders should be called bosses rather than leaders.
There are three classes of supervisory techniques – autocratic, participative or consultative and free-rein and corresponding to these three techniques, there are three management styles – autocratic, democratic and laissez-faire. To these one more may be added-paternalistic style.
1. Autocratic or Authoritarian leadership
An autocratic leader centralizes power and decision-making in himself. He gives orders, assigns tasks and duties without consulting the employees. The leader takes full authority and assumes full responsibility.
Autocratic leadership is negative, based on threats and punishment.
Subordinates act as he directs. He neither cares for their opinions nor permits them to influence the decision. He believes that because of his authority he alone can decide what is best in a given situation.
Autocratic leadership is based upon close supervision, clear-cut direction and commanding order of the superior. It facilitates quick decisions, prompt action and unity of direction. It depends on a lesser degree of delegation. But too much use of authority might result in strikes and industrial disputes. It is likely to produce frustration and retard the growth of the capacity of employees. The employees work as hard as is necessary to avoid punishment. They will thus produce the minimum which will escape punishment. This leadership style is less likely to be effective because (i) the new generation is more independent and less submissive and not amenable to rigid control; (ii) people look for ego satisfactions from their jobs and (iii) revolution of rising expectations changed the attitude of the people.
Autocratic leadership may be divided into three classes:
(A) The hard-boiled autocrat who relies mainly on negative influences uses the force of fear and punishment in directing his subordinates towards the organisational goals. This is likely to result in employees becoming resentful.
(B) The benevolent autocrat who relies mainly on positive influences uses the reward and incentives in directing his subordinates towards the organisational goals. By using praise and pats on the back he secures the loyalty of subordinates who accept his decisions.
(C) The manipulative autocrat who makes the employees feels that they are participating in decision-making though the manager himself has taken the decision. McGregor labels this style as Theory X.
2. Democratic or Participative leadership
Participative or democratic leaders decentralise authority. It is characterised by consultation with the subordinates and their participation in the formulation of plans and policies. He encourages participation in decision-making.
He leads the subordinates mainly through persuasion and example rather than fear and force. Sometimes the leader serves as a moderator of the ideas and suggestions from his group. McGregor labels this style as Theory Y.
Taylor’s scientific management was based on the inability of the ordinary employees to make effective decisions about their work. Hence the decision- making power was vested with the management. But recent studies indicate the need for participation by subordinates. The modern trend favours sharing the responsibility with the employees.
This will foster enthusiasm in them. The employees feel that management is interested in them as well as in their ideas and suggestions. They will, therefore, place their suggestions for improvement. Advantages for democratic leadership
are as follows: (i) higher motivation and improved morale; (ii) increased co- operation with the management; (iii) improved job performance; (iv) reduction of grievances and (v) reduction of absenteeism and employee turnover.
3. The Laissez-faire or Free-rein leadership
Free-rein leaders avoid power and responsibility. The laissez-faire or non- interfering type of leader passes on the responsibility for decision-making to his subordinates and takes a minimum of initiative in administration. He gives no direction and allows the group to establish its own goals and work out its own problems.
The leader plays only a minor role. His idea is that each member of the group when left to himself will put forth his best effort and the maximum results can be achieved in this way. The leader acts as an umpire. But as no direction or control is exercised over the people, the organisation is likely to flounder.
An experiment conducted among Boy Scout Clubs of the USA in 1940 shows autocratic leadership is likely to rouse antagonism in the group and produce hostility towards the leader. In democratic groups, the absence of the leader made little difference, while in autocratic groups productive work dropped to a minimum, when the leader was out of the room.
Democratic leadership is more likely to win the loyalty of the group. The laissez-faire groups also developed friendly approaches to the leader as in the democratic group. But suggestions from the groups were very low and they were also less productive.
4. Paternalistic leadership
Under this management style the leader assumes that his function is fatherly or paternal. Paternalism means papa knows best. The relationship between the leader and his group is the same as the relationship between the head of the family and the members of the family. The leader guides and protects his subordinates as members of his family.
As the head of the family he provides his subordinates with good working conditions and fringe benefits. It is assumed that workers will work harder out of gratitude. This leadership style was admirably successful in Japan with her peculiar social background.
This leadership style has still been widely prevalent in small firms in India.
However, this paternalistic approach is unlikely to work with mature adult employees, many of whom do not like their interests to be looked after by a
“godfather.” Instead of gratitude, it might generate antagonism and resentment in the subordinates.
QUALITIES OF ADMINISTRATIVE LEADER
Companies and organizations rely on good administrators to supervise employees, delegate assignments and ensure that productivity is up to standard.
An effective administrator wears many hats, including that of a counselor and motivator, and must know how to deal with a variety of personalities. Good administrators possess skills and qualities that enable them to provide effective leadership.
Staying Objective
• A good administrator treats all people with the same respect and fairness and does not play favorites. She makes decisions about an employee based on job performance and not on whether she likes or dislikes someone. She handles each problem with objectivity and doesn't allow personal feelings to dictate her course of action. When a situation requires discipline, she ensures that the action she takes is consistent with similar cases, so that no one can accuse her of favoritism.
Providing Motivation
• An effective administrator is able to motivate his staff to perform beyond company standards. To achieve this goal, a good administrator must know the strengths and weaknesses of his employees. He must praise an employee and give recognition when an assignment or project is executed well and find tactful ways to bolster areas that need improvement. A good administrator must also find creative ways to keep morale high, whether it's arranging after-work gatherings or providing incentives and bonuses for exceeding goals.
Keeping Communication Flowing
• Good communication is not just expressing a viewpoint clearly, but also requires listening to what others are saying. A skilled administrator speaks clearly and ensures that her words are specific so there is no confusion. She should listen to everything an employee tells her and write it down to avoid misunderstandings if the issue comes up in the future. Keeping an open-door policy is an effective way to help employees feel comfortable in expressing honest opinions.
Mentoring Others
• An effective administrator doesn't keep aloof from employees, but rather seeks a mentoring relationship to help them move up the corporate ladder. Mentoring requires requires a willingness to share past experiences and insider tips that only come from having been in the same position as the employee. It's also important to exhibit kindness toward employees and remember that they have lives outside the office. Good administrators don't overwork their employees, and they make allowances for personal situations which may require flexibility.
Management of Sport and Physical Activity at Schools, Colleges and Universities
Essential Concepts and Theories
•
The management processManagement is a process in which people and organisations achieve the target results. It includes a number of steps. A manager needs to
➢ Plan
➢
Determine the task requirements➢
Conduct SWOT analysis➢
Set working objectives➢
Decide working strategies and action plans➢
Organise➢
Develop efficient management structures➢
Assign duties to appropriate persons➢ Lead
➢
Set good examples for others➢
Foster colleagues’ morale➢
Give support to colleagues➢
Control➢
Evaluate and ensure smooth working procedure➢
To assess whether the job targets are achieved and evaluate the effectiveness of work➢
Facilities and equipment➢
To ensure effective use of facilities and equipment, the management personnel should take the following measures:➢
Have a clear concept of the objectives that determine the appropriate use of the particular facilities. Facilities should be scheduled for use in accordance with an established priority system to avoid conflict or misunderstanding.➢
Keep a detailed and updated inventory to ensure the availability of optimal quantity of facilities and equipment for use.➢
Maintain facilities and equipment on a regular basis but to minimise interruptions of use.➢
Closely stick on to the rules and regulations that govern the purchase of service / equipment and keep all relevant documents for auditing.➢
Consider both quality and costs when purchasing service / equipment and compare quotations from different suppliers.➢
Ensure that facilities and equipment are properly stored and protected from theft, vandalism, fire, etc.➢
Funding➢
When preparing budgets, the following principles should be noted:➢
Ensure that the budget aligns with the goals and objectives of the strategic plan.➢
The budget should be supported with justifications.➢
It should be self-explanatory, easy to follow and with detailed information.➢
It should be cost-effective. The amount should reflect the significance of the proposed items.➢
Collect information such as previous financial reports of the same or similar activities, the facilities and equipment currently available, the views of stakeholders, etc for reference; and make a realistic estimation.➢
Apart from the basic expenditures, the following items should be considered:▪
Expenditure on insurance▪
Contingency for unforeseeable factors▪
Income estimates such as revenues, subsidy, sponsorship, etc.➢
Obtain approval for the budget before any expenditure.➢
Make adjustments regularly according to the actual expenditure.➢
Staffing➢
When managing staff, the following should be stressed:➢
Train staff regularly to enhance their performance.Clearly define duties and responsibilities to minimise duplication and confusion.
What is planning?
There are numerous definitions of planning. A simple approach is to suggest that planning is ‘a process of setting objectives and deciding how to accomplish them’
While many definitions are more comprehensive than this, most tend to share a number of common elements, which suggest that the planning process:
• is forward thinking
• involves decision making
• is goal oriented
• is systematic.
Planning is a primary function of management. Because plans set the basis for leadership, organisational structure and evaluation, it is important to establish a sound planning foundation. Such an approach depends on the organisation’s view of sport and its role in the community. This view or philosophy can often be ascertained by examining the overall goals and purpose of the organisation.
What are the advantages of planning?
Planning is beneficial to sporting organisations in many ways. The main aim of planning is to maintain a positive relationship between the organisation and its environment. Specifically, planning enables an organisation to:
• become proactive rather than reactive — to clarify organisational purposes and direction
• initiate and influence outcomes in favour of the organisation
• exert more control over its destiny — deciding where it wants to be in the future
• adopt a more systematic approach to change and reduce resistance to change
• improve financial performance and use resources effectively
• increase awareness of its operating environment (for example competitors, government policy, threats)
• improve organisational control and coordination of activities
• develop teamwork off the field.
Without adequate planning, the organisation frequently deals only with immediate problems and fails
to consider future needs. Consequently, the organisation:
• tends to function on a random ad hoc basis
• will never seem to have time to anticipate tomorrow’s problems
• does not create conditions to deal effectively with the future.
Therefore, to overcome these limitations, a plan is necessary.
What types of plans are required?
Planning occurs at different levels in sporting organisations. A sporting organisation should undertake one planning process (as described later in Figure 4) to achieve a common strategic direction, but may require this common direction to be represented through various planning documents. The major plans are a long-term (for example four or more years) strategic plan and a one- year fully costed operational plan. However, additional plans (that is, supplementary) for particular program or project areas may be required to provide detail on a specific area. These areas may include:
• high performance
• sport development
• marketing/communication
• risk management
• disability.
These different types of plans vary in comprehensiveness and scope. For example the strategic plan may focus on the broad direction over a four-year period (‘are we doing the right things’) whereas operational plans focus on implemented issues for the current year, while a supplementary plan may include elements of both a strategic and operational plan. Figure 2 indicates the links between a supplementary plan and the organisation’s strategic and fully costed operational plan.
The planning process
An organisation may produce separate documents for strategic, operational and supplementary
plans for presentation purposes. It is important to recognise that the organisation in fact, should
have one planning process to achieve a common strategic direction. The four step planning process described in this guide is based on developing a common
strategic direction for the organisation and providing an indication of the role of the strategic plan versus the operational plan.
Steps involved in an effective planning process
1. Pre-plan position: Firstly obtain a pre-plan position for the organisation. This is a combination of the information in the annual report and annual review, which should include various financial, statistical and background information for both the internal operations and external influences of the organisation. This will help objectively describe the current position
Of the organisation.
2. Strategy formulation: Secondly one of the key activities will be either to review or identify
the vision, mission and objectives for both long and short-term and the key performance indicators to form the strategic plan. This stage should be derived from an inclusive approach with key stakeholders to assist with buy-in from them during the implementation stage
3. Strategy implementation: Thirdly to ensure a planning document is relevant to the people within the organisation using it as a management tool. The detail of what, who, when, where how and the financial implications will need to be worked through. This is particularly important to help formulate the fully coasted annual operational plan.
4. Strategy evaluation: The final stage, and commonly the most neglected stage of the planning process, is the monitoring, evaluation and review of the plan. If you can’t monitor something, then how can you manage it? Monitoring systems need to be put into the plan to enable management to evaluate and review the progress of the organization’s planning documents.
The planning process should be seen as a continual process rather than compiling documents that once finished remain on the shelf untouched. The organisation’s strategic and operational plans should be documents that are
referred to regularly, and reviewed and changed at various times in the future as internal and external influences change and various objectives are achieved.
Process of Purchasing Management
Purchasing management is concerned with the planning and controlling of the acquisition of suppliers' goods and resources, to fulfill the administrative and strategic objectives of the organization. In practice, purchasing managers have to deal with both customers internal as well as external. He/she has to respond creatively to internal customers' need on the one hand and to maintain a mutually profitable relationship with suppliers on the other. This dual-role perspective of purchasing management has, in recent years, been increasingly recognized as comprising complex tasks in the integration of internal/external and upstream/downstream supply chain management activities. (Fung, 1999) The part of supply chain management that focuses on the management of inbound goods and services into a firm.
1.3 Importance of Purchase Management For Cost Effective Production
Purchasing is responsible for learning of the internal requirements, locating and selecting suppliers, obtaining the materials, parts, supplies and services needed to produce a product or provide a service. A purchase manager is responsible for negotiation of price with suppliers too. You can get some idea of the importance of purchasing when you consider that in manufacturing industry more than 60 percent of the cost of finished goods comes from purchased parts and materials.
Furthermore, the percentages for purchased inventories are even higher for retail and wholesale companies, sometimes exceeding 90 percent.
Nonetheless, the importance of purchasing is more than just the cost of goods purchased; other important factors include the quality of goods and services and the timing of deliveries of goods or services, both of which can have a significant impact on operations. (Joyce, 2006) The
industries like construction, petroleum refineries, sugar, automobile have more than 75 percentages of materials cost as an input percent cost.
For Strategic Purpose
Purchasing is a strategic issue. The manufacturers have to procure capital items like plant and machinery for manufacturing facilities. It requires heavy investment. So, purchasing is an important function.
But in some organisations, especially small scale, purchasing is considered as a clerical activity. They assign this job to the persons simply who are loyal to the organisation. But it is a wrong way. In purchasing, the executives must by dynamic, innovative, creative and must have analytical decision making. The emergence of the supply chain management concept has enlightened managers about the strategic role played by purchasing. Purchasing helps to determine a firm's cost structure through negotiations with suppliers. If the executives are efficient in bargaining then they can save for the organisations and this will help the organisations to cut costs and helpful in getting competitive advantage in the market. Purchasing initiatives can lead to reducing inventory and improving the quality of incoming parts and components through vendor selection and supplier development. Purchasing also supports new product development by encouraging supplier involvement in product development.
Organization can realize major benefits from their focus on purchasing management as mentioned below:
From a Top Management Perspective:
There are five rights that every management expects from their purchasing executives: Right Quantity
• Right Quantity
• Right quality
• Right Time
• Right Supplier
• Right Cost
From Functional Perspective:
Uninterrupted flow of materials and services
Buying at competitive prices
Avoiding under-inventory and over-inventory
To have good relationship with other departments Public Purchasing or Procurement
Public purchasing is also called Government Purchasing or Government Procurement.
Public purchasing can be defined as the procurement of raw materials, parts, goods, services, works, projects, construction etc. by the Government departments, agencies, statutory corporations (e.g. STC, MMTC), public sector undertakings (e.g. HPCL, BPCL, Indian Coal, Indian Oil), municipalities in the centre and all the states governments within stipulated terms and conditions. It amounts to a great share of the public sector’s overall budget.
Public purchasing is subject to special rules in order to secure that goods and services acquired at competitive prices in a transparent and fair way. It usually requires the procuring authority (purchasing executives) to float public tenders if the value of the procurement exceeds certain fixed limit. Public procurement is efficient if it provides value for money, good quality and timely delivery of product/services/works in a transparent, accountable and fair manner. The public procurement system depends upon the procurement laws, rules & regulations, instructions, procurement processes &
methods, the organizational structure and the purchasing employees/managers. The Government of India has issued various manuals on policies and procedures for the
purchase of goods/services, procurement of works, employment of consultants, tendering, etc. Major ministries including Defence, Railways, Public Works, Telecommunication and Central Purchase Organization (Directorate General of Supplies and Disposals) have also released particular instructions regarding procurement practices in their sectors.“When comparing public and private sector procurement it appears that the demands on public procurement are greater and more highly varied than those on private sector procurement. Still, many of the items and services bought and produced in the public sector could be delivered by the private sector, although conditions for the two sectors differ substantially with regard to regulations and transparency.” (Arlbjorn & Freytag, 2012).
Procurement Process
The procurement process refers to the steps followed by government departments to purchase goods or services from suppliers/contractors/service providers/bidders. When the value of procuring goods or service is above the fixed limit of the purchasing officers, the requirement of a competitive bidding process is generated. The government department is required to follow certain rules, regulations and guidelines designed to ensure that the goods or services are genuinely purchased from a quality and genuine suppliers/contractors/service providers/bidders within a time frame with transparent and fair process. The general stages of this process are:
➢ Pre-tendering
At this stage, first of all the requirements of the goods or services are assessed then the time frame, mode of tendering and the budget for tender are considered. The guidelines for the tendering are typically considered and followed at this stage.
➢ Tendering
It is a very important stage of tender process. At this stage, the tenders are invited from the competent suppliers/contractors/service providers/bidders. Tenders may be technical bids or financial bids. The sealed tenders are opened at public place following a transparent process. The bids are evaluated and awarded to the lowest supplier/contractor/service provider/bidder who is going to fulfil all terms and conditions.
➢ Post-award
At this stage the goods or services are received as per the order or tender. The samples are taken and checked physically and technically. After getting the quality goods or services, the process of payment is started.
Fundamental Principles of Public Buying
Indian government has given various guidelines which are found in the General Financial Rules, 2005 (GFR) and Delegation of Financial Powers Rules (DFPR). The very fundamental principle of government purchasing is Rule 137, GFR 2005 which states that, “Every authority delegated with the financial powers of procuring goods in public interest shall have the responsibility and accountability to bring efficiency, economy, and transparency in matters relating to public procurement and for fair and equitable treatment of suppliers and promotion of competition in public procurement.”
The procedure to be followed in making public procurement must conform to the following fundamental principles:
➢ Transparency
The tenders should be invited following a fair, transparent and reasonable procedure. Contracting authorities shall treat all the suppliers/contractors/service provider/ bidders equally and without discrimination. They must act in a transparent and fair manner;
➢ Specifications
The specifications in terms of quality, quantity, colour, technology, size, shape, design, type etc. regarding the goods/services to be procured must be clearly spelt out keeping in view the specific needs of the procuring organizations;
➢ Competition
The healthy environment for competition must be generated among suppliers/contractors/service provider/ bidders; and
➢ Legal Procedures / Guidelines
The procuring authority must be satisfied that all the guidelines of the manual are strictly followed in all respects.
Tendering: An Introduction
Tendering refers to the process whereby the governments invite bids for goods, services, works, various projects that must be submitted within a finite deadline. It is the most important method to manage the qualified suppliers and ensuring a consistent as well as desired quality supply. Such suppliers make a direct contribution to the firm’s success. To begin this process, an organisation issues a procurement notice in newspapers, official government publications and over the internet for purchasing goods or services. The tenders are generally widely advertised to offer opportunities to
a number of suppliers and to encourage healthy competition. It provides a greater pool of offers to select from.
“Tendering is the process of making an offer, bid or proposal or expressing interest in response to an invitation or request for tender. Tendering is the purchasing procedure whereby potential suppliers are invited to make a firm and unequivocal offer of the price and terms which an acceptance shall be the basis of the subsequent contract.”
(Okello & Richu , 2016)
Terminologies used in Tendering
Tendering is one of the most important methods of managing supply and to ensure that the best as well as qualified suppliers are selected and to sure that they perform consistently at the designed levels. The terminologies used in tendering are as follows:
➢ RFT/RFP
It means ‘Request for Tender’ / ‘Request for Proposal’. It is an invitation to submit a tender to enter into the contract with the principal. These documents outline the particular requirements, criteria, and instructions that are to be followed by the tenderer.
➢ Tender
It is a document submitted by a tenderer in response to RFT/RFP.
➢ Tenderer
Tenderer is a person/organisation who has been invited to submit a tender in response to RFT/RFP.
Tendering Process
Tendering is a public purchasing procedure whereby potential suppliers (who are agreed on the terms, conditions, rules, regulations and price) are invited to make a firm and unequivocal offer on the price and terms in which they will supply specified goods, services or works which on acceptance shall be the basis of a subsequent contract.
Tendering process consists of the following stages: Prequalification; Invitation to Tenders; Submission and Receipt of Tenders; Opening and Changes to Tender;
Evaluation of Tenders; Award of Contract; Notification of Contract Award; Debriefing;
Post-Tender Negotiation; and Contracts.
e – Tendering
e – Tendering is the carrying out of the tendering cycle/process using electronic means such as internet. It is also called online tendering. It is done through websites and through special e – tendering software applications. It is very helpful in saving time.
Modes of Tendering
Broadly, there are three modes of tendering: Open Tendering; Limited/Selective Tendering; and Single/Restricted Tendering. Maximum government departments go for open tendering. Depending on the nature of the required goods, the quantity & value involved and the period of supply, the purchase committee (PC)/technical & purchase committee (T&PC) can adopt limited/selective or single/restricted tendering with the approval from concerned higher authorities.
➢ Open Tendering
In open tendering, all the interested suppliers/contractors/service providers/bidders are invited and free to submit their tenders as per the terms and conditions.
➢ Limited/Selective Tendering
In limited/selective type of tendering, only the relevant approved lists of suppliers /contractors/service providers/bidders are invited to submit tenders. The respective government departments may establish lists of qualified suppliers /contractors/service providers/bidders for particular services or articles. This type of lists is developed in those departments where there is a frequent need to invite tenders for goods, services, works or articles.
➢ Single or Restricted Tendering
In single/restricted type tendering the tenders are invited from only one or a very limited number of suppliers /contractors/service providers/bidders. Single or restricted tender procedures shall only be used in circumstances when open competitive tendering would not be an effective means of procurement of goods/service/works/projects.
Time Frame for Tendering
Every tender is time bound tender so a fixed time frame is given to the suppliers /contractors/service providers/bidders. The time frame is allowed to the suppliers /contractors/service providers so that they can quote their best possible price. In case of urgency or adequate availability of sources, the time period can be reduced with proper justification and acceptance from authorities. However, it should be ensured that adequate competition exists and fair chances are given to all the interested suppliers
/contractors/service providers/bidders to enable them submit their offers in time.
Generally, the time frame can be two-three weeks for limited/selective tenders; three weeks for open tenders; and four weeks for global tenders.
International Purchasing
In the time of globalisation, the companies have businesses in many countries. The multinational companies (MNCs) have business transactions in many countries. The MNC’s acquire valuable resources like man, material, machine, money from all over the world from where they are cheaper. In this scenario, the purchasing or procurement from international market takes important role. In today’s global economy, the company can get advantage when the supply base is competitive on a worldwide basis.
Successful companies do not limit their sourcing horizons to national boundaries but seek to find, establish and develop sound working relationships with the best suppliers/contractors/bidders all over the world. International purchasing can be a good strategy to beat the competition as the companies are able to procure the raw materials, parts, goods, services at lower cost from markets abroad. It will lowers down the cost of production ultimately. International purchasing cannot be considered a stand-alone process. It must be integrated with the overall purchasing strategies of the company.
The purchasing from international market must be aligned with the corporate policy.
“Global sourcing, which differs from international buying in scope and complexity, involves proactively integrating and coordinating common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations.” (Trent & Monczka, 2003)
Rationale behind Purchasing Internationally
➢ Increasing global Practices
Globalisation is the main reason because of which the business environment is changing in a very fast way. Now, the organisations can buy and sell anywhere in the world. The whole world is like a village. Moreover, all the restrictions, duties of trade are very relaxed for the members of the World Trade Organisation (WTO) and the trade among the countries is free and fair. So, in such scenario the importance of purchasing internationally has become very high.
➢ Emergence of Internal/IT/Social Media
The evolution of internet has contributed in international purchasing. Now, the tenders can be floated and invited globally through online.
➢ Accessibility of Natural Resources
Some countries are rich in natural resources and they are providing natural resources of better quality with better deliveries at lower prices. The companies are ready and cashing this phenomenon.
➢ Domestic Production and Supply
Insufficient domestic capacity is also the reason for purchasing internationally.
Summary
While making an institutional/organisational purchase, a set of legal formalities are required. The purchasing executives are required to understand all the types of commitment, pre-set financial limits, sections, guidelines, terms and conditions for
which they are permitted to enter into a contract for public procurement. It is a daily routine to sign purchase orders and contracts committing the organisation to the specific terms and conditions of purchase orders and contracts. The purchasing executives must have the knowledge of the legal issues that are likely to arise routinely as part of their jobs, especially, Law of Contract, Law of Agency, Law of Sale of Goods Act 1930, Companies act, Taxation Laws, Central Sales Tax 1956 etc. In particular, the purchase manager must know how and when the company may be legally bound and how contracts may be carried out or varied or terminated.
Public purchasing is also called Government Purchasing or Government Procurement.
Public purchasing can be defined as the procurement of raw materials, parts, goods, services, works, projects, construction etc. by the Government agencies of the centre and all the states within stipulated terms and conditions. It amounts to a great share of the public sector’s overall budget. The general stages of procurement process are: Pre- tendering, Tendering and Post-award. Indian government has given various guidelines for procurement which are found in the General Financial Rules, 2005 (GFR) and Delegation of Financial Powers Rules (DFPR).
Tendering refers to the process whereby the governments invite bids for goods, services, works, various projects that must be submitted within a finite deadline. To begin this process, an organisation issues a procurement notice in newspapers, official government publications and over the internet for purchasing goods or services. The terminologies used in tendering are: RFT/RFP, Tender and Tenderer. e – Tendering is the carrying out of the tendering cycle/process using electronic means such as internet.
It is also called online tendering. Broadly, there are three modes of tendering: Open
