INTRODUCTION TO EVENT MANAGEMENT.

Event management is the process by which an event is planned, prepared, and produced.Event management involves studying the intricacies of the brand, identifying the target audience, devising the event concept, planning the logistics and coordinating the technical aspects before actually executing the modalities of the proposed event. Post-event analysis and ensuring a return on investment have become significant drivers for the event industry.

The recent growth of festivals and events as an industry around the world means that the management can no longer be ad hoc. Events and festivals, such as the Asian Games, have a large impact on their communities and, in some cases, the whole country.

The industry now includes events of all sizes from the Olympics down to a breakfast meeting for ten business people. Many industries, charitable organizations, and interest groups will hold events of some size in order to market themselves, build business relationships, raise money or celebrate.

Events are gatherings of people and occasions- the key is to have a good gathering where people are not uncomfortable and where they leave the party or event feeling satiated.

Events need to be understood from step one.

Events need to be looked into from every angle and one needs to know that events are different and differ from one another. Meaning, or in other words, events that are conducted for corporate will of course be different and the profiling of the party or event for a corporate

launch will of course be different and unique from say, for instance, a birthday party or an event related to any kind of celebration.

From the people who stand to welcome the guests in formal clothing, to the food and beverage list, to the arrangements of flowers and also to checking if the speakers and the microphone are working and in good condition, it all encompasses and comes under the purview and the watchful eye of an event manager.

An event management firm always looks at handling a to z of the event, from inviting people for the event to making the invitation worthy of a compliment as well as all of the get together handling until the last guest is ready to leave. Even post that, the costing is often worked out by the event management firm. The event manager has to be on alert mode at all times. Food and beverages should be more than sufficient and should be served well and with classy outlooks and the ambience is a large part of the deal. A good event should look and feel good and give out

those same vibes to people who attend it and are present.

Now we have a basic idea about the challenges an event planner may encounter. Yet, we still did not reach the heart of the matter. What activities does Event Planning cover and what are the main themes associated with these events?

Celebrations: There are several reasons to celebrate, from weddings to birthdays, through graduations, reunions and anniversaries.

Education: This category of events may include school reunions, teacher meetings, conferences

and trainings.

Commemorations: (memorial events)

Promotions: A company's PR arsenal often includes organizing events accompanying the launch of a new product. Political causes may also carry a heavier weight within the framework of a well organized event. On the brighter and lighter side, fashion shows promoting new or celebrity cloth lines are the ultimate eye-candies for audiences of all types.

This brief summary emphasizes the versatility of the event planning field, as events may be social, political or purely business-related. Event Planning activities encompass a series of steps that include preliminary research; finding location; planning transportation as well as arranging accommodation in case required. Possessing all the necessary skills for this field will make our life easier, but would definitely not make us event management experts. Holding a relevant business degree and on-going attendance to trainings would certainly help event planners handle the workload and further guarantee quality work.

Event Management in India:

Event-management companies are those organisations that take on the project of managing a particular event of their client from the beginning to end. A relatively new breed of companies in the Indian corporate line, these companies are however, getting increasingly important with the

rise in corporate and personal events needing professionals to manage them.

Scope: With the Indian economy opening up and throwing open its doors to global MNCs, there has been a sea change in the way large corporate houses do business. Bigger is increasingly becoming better, and who better to manage their ambitious public-relations events than professionals who have the expertise and resources of making every announcement, event big. Their scope includes these broad heads:

Corporate: High-level meetings, conferences, exhibitions, product launches, seminars or even employee outdoor activities of mega companies.

Social:Family functions particularly weddings, birthday celebrations, house-warming rituals etc.

Celebrity Circuit:Celebrity shows, international artists shows, road shows, competitions and social-causes shows.

Sports: Every kind of popular sport whether cricket or Formula One race.

Cultural: This includes events which are cultural or are heritage, art based.

Still a largely un-organised sector, reports and studies are few. However, the structure of the event management market in India is slowly changing from an unorganized framework towards an organized market. The market for event management in India is expected to witness growth of 25% p.a. and reach INR 23 billion by 2012. The number of event management companies is under 5000 presently.

The key drivers in the growth of event management companies in India are:

Growth in consumer spending and disposable income. Increase in below the line promotion among establishments. Rising need of organised and structured event. Rise in the number of institutions offering course/specialization in event management.

However, some of the pertinent issues faced by entrepreneurs desirous of in setting up a eventmanagement venture are:

Lengthy procedure for import of equipment. High levels of entertainment tax imposed by the state/central governments.

Areas of expertise required for Event Managment:

Almost every big event-management company boasts of a complete bouquet of expertise all assimilated under one roof so that the client need not worry about any aspect of the event. They specialise in:

Organisational skills, co-ordinating across service areas. Technical knowledge of the event in question, so that all nitty-gritties are addressed. Public Relations expertise in order to get maximum participation and eyeballs. Marketing and Advertising. Logistics planning. Catering and decor planning.

 Knowledge of laws relating to permits and licenses in different states. Human Resource planning for both the managerial and ground staff. Risk assessment and management. Budgeting of monetary and non-monetary resources. Knowledge of associated media like television and print.

PRINCIPLES OF MANAGEMENT

The Evolvation Of Management:

The origin of management can be traced back to the days when man started living ingroups. History reveals that strong men organized the masses into groups accordingto their intelligence, physical and mental capabilities. Evidence of the use of the well recognized principles of management is to be found in the organization of public life in ancient Greece, the organization of the Roman Catholic Church and the organization of military forces. Thus management in some form or the other has been practiced in the various parts of the world since the dawn of civilization. With the onset of Industrial Revolution, however, the position underwent a radical change. The structure of industry became extremely complex. At this stage, the development of a formal theory of management became absolutely necessary. It was against this background that the pioneers of modern management thought laid the foundations of modern management theory and practice.

Henri Fayol: The Father of modern operational theory:

Perhaps the real father of modern management theory is the French industrialist, Henri Fayol. His acute observations on the Principles of general management first appeared in 1916 in French,

under the littleadmistration industrielte in generale .This monograph, reprinted in French several times, was not translatedinto English until 1929. No English translation was made or published in the US until1949.Industrial Activities:Fayol found that industrial activates could be divided into six groups:

1. Technical (Production)

2. Commercial (buying, Selling and exchanging).

3. Financial (Search for, and optimum use of capital).

4. Security (Protection of property and persons).

5. Accounting (including Statistics).

6. Managerial (Planning, organization, command, contribution and control)

What is A Principle:

A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought & actions. Therefore, management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions. These principles are derived: -

a. On the basis of observation and analysis i.e. practical experience of managers.

b. By conducting experimental studies.

14 Principles of Management:

There are 14 Principles of Management described by Henri Fayol.These principles are:

1. Division of Work: The full work of the organisation should be divided among individuals and departments. This is because a division of work leads to specialisation, and specialisation increases efficiency, and efficiency improves the productivity and profitability of the organisation.

2. Discipline: Discipline means a respect for the rules and regulation of the organisation. Discipline may be Self-discipline, or it may be Enforced discipline. Self-discipline is the best discipline. However, if there is no self-discipline, then discipline should be enforced through penalties, fines, etc. No organisation can survive without discipline.

3. Authority and responsibility: According to Henri Fayol, there should be a balance between Authority (Power) and Responsibility (Duties). Authority must be equal to Responsibility. If the authority is more than responsibility then chances are that a manager may misuse it. If responsibility is more than authority then he may feel frustrated.

4. Subordination of Individual Interest to General Interest: In an organisation, there are two types of interest, viz., the individual interest of the employees, and the general interest of the organisation. The individual interest should be given less importance, while the general interest

should be given most importance. If not, the organisation will collapse.

5. Remuneration: Remuneration is the price for services received. If an organisation wants efficient employees and best performance, then it should have a good remuneration policy. This policy should give maximum satisfaction to both employer and employees. It should include both financial and non-financial incentives.

6. Centralisation: In centralisation, the authority is concentrated only in few hands. However, in decentralisation, the authority is distributed to all the levels of management. No organisation can be completely centralised or decentralised. If there is complete centralisation, then the subordinates will have no authority (power) to carry out their responsibility (duties). Similarly, if there is complete decentralisation, then the superior will have no authority to control the organisation. Therefore, there should be a balance between centralisation and decentralisation.

7. Order: There should be an Order for Things and People in the organisation. Order for things is called Material Order. Order for people is called Social Order. Material Order refers to "a place for everything and everything in its place." Social Order refers to the selection of the "right man in the right place". There must be orderly placement of the resources such as Men and Women, Money, Materials, etc. Misplacement will lead to misuse and disorder.

8. Equity: The managers should use the equity while dealing with the employees. Equity is a combination of kindness and justice. Equity creates loyalty and devotion in the employees.

9. Initiative: Management should encourage initiative. That is, they should encourage the employees to make their own plans and to execute these plans. This is because an initiative gives

satisfaction to the employees and brings success to the organisation.

10. Esprit De Corps: Esprit de Corps means "Team Spirit". Therefore, the management should create unity, co-operation and team-spirit among the employees. They should avoid the divide and rule policy.

11. Stability of Tenure: An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become efficient. When he becomes efficient, he should be made permanent. In other words, the employees should have job security.

12. Unity of Direction: All activities which have the same objective must be directed by one manager, and he must use one plan. This is called Unity of Direction. For example, all marketing activities such as advertising, sales promotion, pricing policy, etc., must be directed by only one manager. He must use only one plan for all the marketing activities.

13. Scalar Chain: Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom. Every member must know who is his superior. He must also know who is his subordinate. Scalar Chain is necessary for good communication. Scalar Chain must not be broken in norm circumstances. However, if quick action is necessary, then this chain can be broken. This is done using "Gang Plank" / "Bridge" / "Direct Contact".

Scalar Chain is shown in diagram below with Gang plank as dotted line FP.

The Scalar Chain is shown by a double ladder A to G and A to Q. A is the head of the organisation. B and L are the next level, and so on. If quick action is necessary, then a "Gang

Plank" "FP" is made. Now F and P can contact each other directly but they should inform E and O about their decisions.

14. Unity of Command: According to this principle, a subordinate (employee) must have only one superior (boss or manager). A subordinate must receive orders from only one superior. In other words, a subordinate must report to only one superior. According to Fayol, if one subordinate receives orders from more than one superior then there will be disorder. This will affect the discipline, efficiency, productivity and profitability of the organisation.

Unity of Command is a very important principle of management. This principle is based on the rule "Too many cooks spoil the soup."

Features Of Principals Of Management:

1. Principles of Management are Universal: Management principles are applicable to all kinds of organizations - business & non business.They are applicable to all levels of management.Every organization must make best possible use by the use of management principles.Therefore, they are universal or all pervasive.

2. Principles of Management are Flexible: Management principles are dynamic guidelines and not static rules.There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of the situation.Modification & improvement is a continuous phenomenon in case of principles of management.

3. Principles of Management have a Cause & Effect Relationship: Principles of management indicate cause and effect relationship between related variables. They indicate what will be the consequence or result of certain actions. Therefore, if one is known, the other can be traced.

4. Principles of Management - Aims at Influencing Human Behavior: Human behavior is complex and unpredictable. Management principles are directed towards regulating human behavior so that people can give their best to the organization.Management is concerned with integrating efforts and harmonizing them towards a goal. But in certain situations even these principles fail to understand human behavior.

5. Principles of Management are of Equal Importance: All management principles are equally important. No particular principle has greater importance than the other.They are all required together for the achievement of organizational goals.

Importance Of The Principles Of Management:

1. Improves Understanding - From the knowledge of principles managers get indication on how to manage an organization. The principles enable managers to decide what should be done to accomplish given tasks and to handle situations which may arise in management. These principles make managers more efficient.

2. Direction for Training of Managers - Principles of management provide understanding of management process what managers would do to accomplish what. Thus, these are helpful in identifying the areas of management in which existing & future managers

should be trained.

3. Role of Management - Management principles makes the role of managers concrete. Therefore these principles act as ready reference to the managers to check whether their decisions are appropriate. Besides these principles define managerial activities in practical terms. They tell what a manager is expected to do in specific situation.

4. Guide to Research in Management - The body of management principles indicate lines along which research should be undertaken to make management practical and more effective. The principles guide managers in decision making and action. The researchers can examine whether the guidelines are useful or not. Anything which makes management research more exact & pointed will help improve management practice.

FUNCTIONS OF MANAGEMENT

v What is Management?

The concept of management has acquired special significance in the present competitive and complex business world. Efficient and purposeful management is absolutely essential for the survival of a business unit. Management concept is comprehensive and covers all aspects of business. In simple words, management means utilising available resources in the best possible manner and also for achieving well defined objectives. It is a distinct and dynamic process involving use of different resources for achieving well defined objectives. The resources are: men, money, materials, machines, methods and markets. These are the six basic inputs in management process (six M's of management) and the output is in the form of achievement of objectives. It is the end result of inputs and is available through efficient

management process. The term 'management' is used extensively in business. It is the core or life giving element in business. We expect that a business unit should be managed efficiently. This is precisely what is done in management. Management is essential for the conduct of business activity in an orderly manner. It is a vital function concerned with all aspects of working of an enterprise.

v Definitions of Management:

According to Henry Fayol, "To manage is to forecast and to plan, to organise, to command, to coordinate and to control". 2. According to Peter Drucker, "Management is a multi-purpose organ that manages business and manages managers and manages workers and work". 3. According to Harold Koontz, "Management is the art of getting things done through and with people in formally organized groups. 4. According to Mary Parker Fallett, "Management is the art of getting things done through people".

v Characteristics of Management:

Management is a managerial process: Management is a process and not merely a body of individuals. Those who perform this process are called managers. The managers exercise leadership by assuming authority and direct others to act within the organisation. Management process involves planning, organising, directing and unifying human efforts for the accomplishment of given tasks.

Management is a social process- Management takes place through people. The importance of human factor in management cannot be ignored. A manager's job is to get the things done with the

support and cooperation of subordinates. It is this human element which gives management its special character.

Management is action-based: Management is always for achieving certain objectives in terms of sales, profit, etc. It is a result-oriented concept and not merely an abstract philosophy. It gives importance to concrete performance through suitable actions. It is an action based activity.

Management involves achieving results through the efforts of others: Management is the art of getting the things done through others. Managers are expected to guide and motivate subordinates and get the expected performance from them. Management acts as an activating factor.

Management is a group activity: Management is not an isolated individual activity but it is a collective activity or an activity of a group. It aims at using group efforts for achieving objectives. Managers manage the groups and coordinate the activities of groups functioning in an organisation.

Management is intangible: Management is not directly visible but its presence is noticed in the form of concrete results. Management is intangible. It is like invisible spirit, which guides and motivates people working in a business unit. Management is like government, which functions but is not visible in physical form.

Management is all pervasive: Management is comprehensive and covers all departments, activities and employees. Managers operate at different levels but their functions are identical. This indicates that management is a universal and all pervasive process.

Management is an art, science as well as a profession: Management is an art because certain

skills, essential for good management, are unique to individuals. Management is a science because it has an organised body of knowledge. Management is also a profession because it is based on advanced and cultivated knowledge.

Management aims at coordination of activities: Coordination is the essence of management. It gives one clear direction to the whole organisation and brings unity and harmony in the whole business unit. For such coordination, effective communication at all levels is essential.

Management is innovative: Management techniques are dynamic and innovative. They need to be adjusted as per the requirements of the situations. Another manager need not repeat the decisions of one manager. Similarly, a manager has to change his decisions under different situations.

11. Management has different operational levels: Every Organisation needs managers for managing business activities. The manager's job is basically the same at all levels. The managers at the higher levels have more important duties while managers at the lower levels have to perform routine functions i.e duties.

Management is different from ownership: Management is concerned with the management of business activities. Managers are not the owners but they manage the business on behalf of the owners. Separation of ownership and management is a special feature of modem business organisation.

Management has vast scope: The scope of management is quite comprehensive. It covers all aspects of business. The principles of management guide managers while managing various business activities.

14. Management is dynamic: Business is influenced by changes in economic, social, political technological and human resource. Management adjusts itself to the changing atmosphere making suitable forecasts and changes in the policies. Hence, management is treated as a dynamic activity.

Management aims at achieving predetermined objectives: Management is a meaningful activity. All organisations are essentially groups of individuals formed for achieving common objectives. An Organisation exists for the attainment of specific objectives.

v Need of Management:

Direction, coordination and control of group efforts: In business, many persons work together. They need proper direction and guidance for raising their efficiency. In the absence of guidance, people will work as per their desire and the, orderly working of enterprise will not be possible. Management is needed for planning business activities, for guiding employees in the right direction and finally for coordinating their efforts for achieving best/most favorable results.

Orderly achievement of business objectives: Efficient management is needed in order to achieve the objectives of business activity in an orderly and quick manner.

Performance of basic managerial functions: Planning, Organising, Co-ordinating and Controlling are the basic functions of management. Management is needed as these functions are performed through the management process.

Effective communication at all levels: Management is needed for effective communication

within and outside the Organisation.

Motivation of employees: Management is needed for motivating employees and also for coordinating their efforts so as to achieve business objectives quickly.

Success and stability of business enterprise: Efficient management is needed for success, stability and prosperity of a business enterprise.

v Meaning of Management Process:

The term management is explained in different ways. For example, it is said that management is what management does. Management is explained with reference to its basic functions which include planning, organising, coordinating and controlling. Similarly, management is described as a process which involves various elements. Management process is a continuous one and is run by the managers functioning at different levels. Management is now recognised as a distinct process in which managers plan, organise, lead, motivate and control human efforts in order to achieve well defined goals. In fact, process means

a series of activities/operations undertaken/conducted for achieving a specific objective. Process is a systematic way of doing things. For example, in a factory there is a production process. Similarly, in the management process, resources and human efforts are used in an orderly manner for achieving specific objectives. The management process suggests functions to be performed by the managers.

v Definition of Management Process:

According to D. E. McFarland, "Management is the distinct process by which the managers

create, direct, maintain and operate purposive organisation through systematic, co-coordinated and cooperative human efforts.

According to Gemp R. Terry, "Management is a distinct process consisting of planning, organisisng, actuating, and controlling, performed to determine and accomplish objectives by the use of people and other resources".

v Functions of Management:

The essential elements/components of Management Process are four. Planning , organizing ,directing and controllinng

We may add some more elements in the management process. Such elements are:- motivating ,coordinating ,staffing and communicating

The elements in the management process are actually the basic functions of management these functions constitute the management process in practice. Management process is in fact, management in practice. This process suggests what a manager is supposed to, do or the basic functions that he has to perform while managing the job assigned to him.

Management process may be indicated by the word "PODSCORB. Here, P' states for 'planning'. "O" for 'organising', "D" for 'directing', "S" for 'Staffing', "CO" for 'Coordinating, "R" for 'Reporting' and "B" for 'Budgeting'. Gullic coined the word "PODSCORB" to suggest seven functions of management.

Planning: Planning is the primary function of management. It involves determination of a course of action to achieve desired results/objectives. Planning is the starting point of management process and all other functions of management are related to and dependent on planning function. Planning is the key to success, stability and prosperity in business. It acts as a tool for solving the problems of

a business unit. Planning plays a pivotal role in business management It helps to visualize the future problems and keeps management ready with possible solutions.

Organising: Organising is next to planning. It means to bring the resources (men, materials, machines, etc.) together and use them properly for achieving the objectives. Organisation is a process as well as it is a structure. Organising means arranging ways and means for the execution of a business plan. It provides suitable administrative structure and facilitates execution of proposed plan. Organising involves different aspects such as departmentation, span of control delegation of authority, establishment of superior-subordinate relationship and provision of mechanism for co-ordination of various business activities.

Staffing: Staffing refers to manpower required for the execution of a business plan. Staffing, as managerial function, involves recruitment, selection, appraisal, remuneration and development of managerial personnel. The need of staffing arises in the initial period and also from time to time for replacement and also along with the expansion and diversification of business activities. Every business unit needs efficient, stable and cooperative staff for the management of business activities. Manpower is the most important asset of a business unit. In many organisations, manpower planning and development activities are entrusted to personnel manager or HRD manager. 'Right man for the right job' is the basic principle in staffing.

Directing (Leading): Directing as a managerial function, deals with guiding and instructing people to do the work in the right manner. Directing/leading is the responsibility of managers at all levels. They have to work as leaders of their subordinates. Clear plans and sound organisation set the stage but it requires a manager to direct and lead his men for achieving the objectives. Directing function is quite comprehensive. It involves Directing as well as raising the morale of subordinates. It also involves communicating, leading and motivating. Leadership is essential on the part of managers for achieving organisational objectives.

Coordinating: Effective coordination and also integration of activities of different departments are essential for orderly working of an Organisation. This suggests the importance of coordinating as management function. A manager must coordinate the work for which he is accountable. Co-ordination is rightly treated as the essence of management. It may be treated as an independent function or as a part of organisms function. Coordination is essential at all levels of management. It gives one clearcut direction to the activities of individuals and departments. It also avoids misdirection and wastages and brings unity of action in the Organisation. Co-ordination will not come automatically or on its own Special efforts are necessary on the part of managers for achieving such coordination.

Controlling: Controlling is an important function of management. It is necessary in the case of individuals and departments so as to avoid wrong actions and activities. Controlling involves three broad aspects: (a) establishing standards of performance, (b) measuring work in progress and interpreting results achieved, and (c) taking corrective actions, if required. Business plans do not give positive results automatically. Managers have to exercise effective control in order to bring success to a business plan. Control is closely linked with other managerial functions. It is rightly treated as the soul

of management process. It is true that without planning there will be nothing to control It is equally true

that without control planning will be only an academic exercise Controlling is a continuous activity of a supervisory nature.

Motivating: Motivating is one managerial function in which a manager motivates his men to give their best to the Organisation. It means to encourage people to take more interest and initiative in the work assigned. Organisations prosper when the employees are motivated through special efforts including provision of facilities and incentives. Motivation is actually inspiring and encouraging people to work more and contribute more to achieve organisational objectives. It is a psychological process of great significance.

Communicating: Communication (written or oral) is necessary for the exchange of facts, opinions, ideas and information between individuals and departments. In an organisation, communication is useful for giving information, guidance and instructions. Managers should be good communicators. They have to use major portion of their time on communication in order to direct, motivate and co-ordinate activities of their subordinates. People think and act collectively through communication.

v Importance of Management:

Optimum utilisation of resources: Management facilitates optimum utilisation of available human and physical resources, which leads to progress and prosperity of a business enterprise. Even wastages of all types are eliminated or minimized.

Competitive strength: Management develops competitive strength in an enterprise. This enables an enterprise to develop and expand its assets and profits.

Cordial industrial relation: Management develops cordial industrial relations, ensures better life and welfare to employees and raises their morale through suitable incentives.

Motivation of employees: It motivates employees to take more interest and initiatives in the work assigned and contribute for raising productivity and profitability of the enterprise.

Introduction of new techniques: Management facilitates the introduction of new machines and new methods in the conduct of business activities. It also brings useful technological developments and innovations in the management of business activities.

Effective management: Society gets the benefits of efficient management in terms of industrial development, justice to different social groups, consumer satisfaction and welfare and proper discharge of social responsibilities.

Expansion of business: Expansion, growth and diversification of a business unit are possible through efficient management.

Brings stability and prosperity: Efficient management brings success, stability and prosperity to a business enterprise through cooperation among employees.

Develops team spirit: Management develops team spirit and raises overall efficiency of a business enterprise.

Ensures effective use of managers: Management ensures effective use of managers so that the

benefits of their experience, skills and maturity are available to the enterprise.

Ensures smooth functioning: Management ensures smooth, orderly and continues functioning of an enterprise over a long period. It also raises the efficiency, productivity and profitability of an enterprise.

12. Reduces turnover and absenteeism: Efficient management reduces labour turnover and absenteeism and ensures continuity in the business activities and operations.

Creates sound organisation: A dynamic and progressive management guarantees development of sound Organisation, which can face any situation - favorable or unfavorable with ease and confidence.

The very survival of an enterprise depends on its management. Ineffective management leads to disastrous consequences.In brief, management occupies a unique position in the functioning of business enterprises. Its importance and positive role is accepted in all sector-private, public, joint and cooperative. Management is like a human brain. It is an integral aspect of business itself.

The importance of management is not fully realised in many developing countries. The economic progress of western countries is not merely due to abundant material resources but because they are efficiently managed and utilised. In other countries, resources are not utilised fully and properly due to lack of managerial skills. This suggests that management is a key factor in the working of business enterprises. There is no substitute to efficient management. An inefficiently managed business enterprise has no place in the present complex and competitive business world groups.

FORMS OF ORGANISATIONS

Almost every country consists of two business sectors, the private sector and the public sector. Private sector businesses are operated and run by individuals, while public sector businesses are operated by the government. The types of businesses present in a sector can vary, so lets take a look at them.

Private Sector

Sole Traders: Sole traders are the most common form of business in the world, and take up as much as 90% of all businesses in a country. The business is owned and run by one person only. Even though he can employ people, he is still the sole proprietor of the business. These businesses are so common since there are so little legal requirements to set up. The owner must register with and send annual accounts to the government Tax Office. They must register their business names with the Registrar of Business Names.They must obey all basic laws for trading and commerce. There are advantages and disadvantages to everything, and here are ones for sold traders:

Pros:

There are so few legal formalities are required to operate the business.

 The owner is his own boss, and has total control over the business. The owner gets 100% of profits. Motivation because he gets all the profits. The owner has freedom to change working hours or whom to employ, etc. He has personal contact with customers. He does not have to share information with anyone but the tax office, thus he enjoys complete secrecy.

Cons:

Nobody to discuss problems with. Unlimited liability. Limited finance/capital, business will remain small. The owner normally spends long hours working. Some parts of the business can be inefficient because of lack of specialists. Does not benefit from economies of scale. No continuity, no legal identity.

Sole traders are recommended for people who: Are setting up a new business. Do not require a lot of capital for their business. Require direct contact for customer service.

Partnership

A partnership is a group consisting of 2 to 20 people who run and own a business together. They require a Deed of Partnership or Partnership Agreement, which is a document that

states that all partners agree to work with each other, and issues such as who put the most capital into the business or who is entitled to the most profit. Other legal regulations are similar to that of a sole trader.

Pros:

More capital than a sole trader. Responsibilities are split. Any losses are shared between partners.

Cons:

Unlimited liability. No continuity, no legal identity. Partners can disagree on decisions, slowing down decision making. If one partner is inefficient or dishonest, everybody loses. Limited capital, there is a limit of 20 people for any partnership.

Recommended to people who: Want to make a bigger business but does not want legal complications. Professionals, such as doctors or lawyers, cannot form a company, and can only form a partnership. Family, when they want a simple means of getting everybody into a business (Warning: Nepotism is usually not recommended).

Note: In some countries including the UK there can be Limited Partnerships. This business has limited liability but shares cannot be bought or sold. It is abbreviated as LLP.

Private Limited Companies

Private Limited Companies have separate legal identities to their owners, and thus their

owners have limited liability. The company has continuity, and can sell shares to friends or family, although with the consent of all shareholders. This business can now make legal contracts. Abbreviated as Ltd (UK), or Proprietary Limited, (Pty) Ltd.

Pros:

The sale of shares make raising finance a lot easier. Shareholders have limited liability, therefore it is safer for people to invest but creditors must be cautious because if the business fails they will not get their money back. Original owners are still able to keep control of the business by restricting share distribution.

Cons:

Owners need to deal with many legal formalities before forming a private limited company:

o The Articles of Association: This contains the rules on how the company will be managed. It states the rights and duties of directors, the rules on the election of directors and holding

an official meeting, as well as the issuing of shares. o The Memorandum of Association: This contains very important information about the company and directors. The official name and addresses of the registered offices of the company must be stated. The objectives of the company must be given and also the amount of share capital the owners intend to raise. The number of shares to be bought b each of the directors must also be made clear. o Certificate of Incorporation: the document issued by the Registrar of Companies that will allow the Company to start trading. Shares cannot be freely sold without the consent of all shareholders. The accounts of the company are less secret than that of sole traders and partnerships. Public information must be provided to the Registrar of Companies. Capital is still limited as the company cannot sell shares to the public.

Public Limited Companies

Public limited companies are similar to private limited companies, but they are able to sell shares to the public. A private limited company can be converted into a public limited company by: 1. A statement in the Memorandum of Association must be made so that it says this company is a public limited company.

2.

All accounts must be made public.

3.

The company has to apply for a listing in the Stock Exchange.

A prospectus must be issued to advertise to customers to buy shares, and it has to state how the capital raised from shares will be spent.

Pros:

Cons:

Many legal formalities required to form the business. Many rules and regulations to protect shareholders, including the publishing of annual accounts.

Limited liability. Continuity. Potential to raise limitless capital. No restrictions on transfer of shares. High status will attract investors and customers.

Selling shares is expensive, because of the commission paid to banks to aid in selling shares and costs of printing the prospectus. Difficult to control since it is so large. Owners lose control, when the original owners hold less than 51% of shares.

Control and ownership in a public limited company:

The Annual General Meeting (AGM) is held every year and all shareholders are invited

to attend so that they can elect their Board of Directors. Normally, Director are majority shareholders who has the power to do whatever they want. However, this is not the case for public limited companies since there can be millions of shareholders. Anyway, when directors are elected, they have to power to make important decisions. However, they must hire managers to attend to day to day decisions. Therefore: Shareholders own the company Directors and managers control the company

This is called the divorce between ownership and control. Because shareholders invested in the company, they expect dividends. The directors could do things other than give shareholders dividends, such as trying to expand the company. However, they might loose their status in the next AGM if shareholders are not happy with what they are doing. All in all, both directors and shareholders have their ownobjectives.

Co-operatives

Cooperatives are a group of people who agree to work together and pool their money together to buy "bulk". Their features are: All members have equal rights, no matter how much capital they invested. All workload and decision making is equally shared, a manager maybe appointed for bigger cooperatives

 Profits are shared equally.

The most common cooperatives are: producer co-operatives: just like any other business, but run by workers. retail co-operatives: provides members with high quality goods or services for a reasonable price.

Other notable business organizations:

Close Corporations:

This type of business is present in countries such as South Africa. It is like a private limited company but it is much quicker to set up: Maximum limit of 10 people. You only need a simple founding statement which is sent to the Registrar of Companies to start the business. All members are managers (no divorce of ownership and control).

A separate legal unit, has both limited liability and continuity.

Cons:

The size limit is not suitable for a large business. Members may disagree just like in a partnership.

Joint ventures

Two businesses agree to start a new project together, sharing capital, risks and profits.

Pros:

Shared costs are good for tackling expensive projects. (e.g aircraft) Pooled knowledge. (e.g foreign and local business) Risks are shared.

Cons:

Profits have to be shared. Disagreements might occur. The two partners might run the joint venture differently.

Franchising

The franchisor is a business with a successful brand name that recruits franchisees(individual businesses) to sell for them. (e.g. McDonald, Burger King)

Pros for the franchisor: The franchisee has to pay to use the brand name. Expansion is much faster because the franchisor does not have to finance all new

outlets. The franchisee manages outlets All products sold must be bought from the franchisor.

Cons for the franchisor: The failure of one franchise could lead to a bad reputation of the whole business. The franchisee keeps the profits.

Pros for the franchisee: The chance of failure is much reduced due to the well know brand image. The franchisor pays for advertising. All supplies can be obtained from the franchisor. Many business decisions will be made by the franchisor (prices, store layout, products). Training for staff and management is provide by the franchisor.

Banks are more willing to lend to franchisees because of lower risks.

Cons for the franchisee: Less independence May be unable to make decisions that would suit the local area.

Licence fee must be paid annually and a percentage of the turnover must be paid.

Public Sector

Public corporations:

A business owned by the government and run by Directors appointed by the government. These businesses usually include the water supply, electricity supply, etc. The government give the directors a set of objectives that they will have to follow: to keep prices low so everybody can afford the service. to keep people employed. to offer a service to the public everywhere.

These objectives are expensive to follow, and are paid for by government subsidies. However, at one point the government would realise they cannot keep doing this, so they will set different objectives: to reduce costs, even if it means making a few people redundant. to increase efficiency like a private company. to close loss-making services, even if this mean some consumers are no longer provided with the service.

Pros:

Some businesses are considered too important to be owned by an individual. (electricity, water, airline) Other businesses, considered natural monopolies, are controlled by the government. (electricity, water) Reduces waste in an industry. (e.g. two railway lines in one city) Rescue important businesses when they are failing.

 Provide essential services to the people (e.g. the BBC)

Cons:

Motivation might not be as high because profit is not an objective. Subsidies lead to inefficiency. It is also considered unfair for private businesses. There is normally no competition to public corporations, so there is no incentive to improve. Businesses could be run for government popularity.

Municipal enterprises

These businesses are run by local government authorities which might be free to the user and financed by local taxes. (e.g, street lighting, schools, local library, rubbish collection). If these businesses make a loss, usually a government subsidy is provided. However, to reduce the burden on taxpayers, many municipal enterprises are beingprivatised.

Importance of ceremonies:

A ceremony is an event of ritual significance, performed on a special occasion. Ceremonies are powerful in the role they play in our lives and in the messages they communicate. They announce and create change. They help us enter a new stage of life. They connect us to our past while reaching into the future.

When we gather in a supportive community to mark an important occasion, we are reminded that we are not alone as we move through life. We are connected. We belong.

But not all ceremonies are authentic. When we say words we dont mean or carry out rituals because "thats just how its always been done," we lose the opportunity to grow, change, and reflect upon what really matters to us.

Ceremonies and Event Planning believes that tradition, ritual, and ceremony should reflect the values, beliefs, and integrity of the people being celebrated. It is grounded in the philosophy of Humanism.

Ceremony is important.

It connects people.

It declares the values most important to us.

It helps us accept and integrate important changes.

It recognises the specialness of the people at its centre.

A ceremony may mark a rite of passage in a human life, marking the significance of, for example:

birth (birthday)

college orientation week

graduation

awarding

retirement

death (Day of the Dead)

burial (funeral)

Wedding

History & introduction to event planning:

Event planning can be defined as the systematic management of events and gatherings. It is one of the emerging sectors with a promising future. Event planning that we see in the current scenario has come through various developmental stages during the last century. From small board room meetings to large wedding parties and birthday blasts are being taken care of by event planners.

When we look in to the history of event planning some 100 years ago, it was hardly considered as a profession even. Now event planning is one of the most successful professions in the service sector where individuals are responsible for planning the entire requirements of a social event. Event planners take the responsibility of all the aspects of a function. This can be from the setting up of time, date, location to the arrangement of stage, flower decoration, catering services, stationary supplies, budget creation, advertising, audio visual requirements and any such needs of a function. This all in one concept is one of the reason for the tremendous establishment in event planning industry. People were running here and there to arrange their needs during a function. They had to rely on one contract for food services, another for stage arrangements and one another for decoration purposes and so on. With the development of event planning through the last century, people are able to find solution for these issues by approaching an event planner for all their event necessities and services.

In the current scenario event planning has become largely dependent on the economic conditions prevailing in a country. Since there has been a rapid development in the lifestyle of people all around the world during the past century, the extent of social events being set up has increased tremendously. As a result of this people are ready to spend huge amounts of money

for the services of event planners. Event planning has come a long way from a non specialized profession to a highly focused one with the introduction of various education programs in the field. Now there are universities and private colleges around the world offering various certificate and degree programs in event planning. Even masters and post graduate programs are being discussed in this context. The career prospectus of an event planner is also considered to be high in the 21st century. They can start their event planning career as secretaries or assistants in setting up various events. The presence of numerous event planning associations throughout the globe is another remarkable development in the industry. As a result of all these developments, event planning has become highly competitive and this paves way for an overall increase in the efficiency of service as well as for quality innovations in the industry.

Event planning has come to a stage of extreme exposure and utilization in means of its business developments. The last century has witnessed the massive developments faced by all nations. The uplifted lifestyle of individuals and businesses has been the root causes for the development of many industries. This was impacted on event planning or event management too. Even though the last twenty years takes the credit of massive growth in the sector, the whole of the century can be considered important in the history of event planning. And now, event planning continues to grow in the same direction with more strength and power, towards achieving a goal of service excellence among other service sectors too.