Short-Term, Medium-Term & Long-Term

Planning in Business
Business owners develop plans to reach their overall goals, and they usually find it useful
to separate planning into phases. This allows you to track immediate improvements while
evaluating progress toward eventual goals and targets. The different time frames of the
planning process place the focus on time-sensitive aspects of the company's structure and
environment. You can differentiate planning based on the time frames of the inputs and
expected outcomes.
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Planning Characteristics
Many businesses develop strategic planning within a short-term, medium-term and longterm framework. Short-term usually involves processes that show results within a year.
Companies aim medium-term plans at results that take several years to achieve. Longterm plans include the overall goals of the company set four or five years in the future
and usually are based on reaching the medium-term targets. Planning in this way helps
you complete short-term tasks while keeping longer-term goals in mind.

Short-Term
Short-term planning looks at the characteristics of the company in the present and
develops strategies for improving them. Examples are the skills of the employees and
their attitudes. The condition of production equipment or product quality problems are
also short-term concerns. To address these issues, you put in place short-term solutions to
address problems. Employee training courses, equipment servicing and quality fixes are
short-term solutions. These solutions set the stage for addressing problems more
comprehensively in the longer term.

Medium-Term
Medium-term planning applies more permanent solutions to short-term problems. If
training courses for employees solved problems in the short term, companies schedule
training programs for the medium term. If there are quality issues, the medium-term
response is to revise and strengthen the company's quality control program. Where a
short-term response to equipment failure is to repair the machine, a medium-term
solution is to arrange for a service contract. Medium-term planning implements policies
and procedures to ensure that short-term problems don't recur.

Long-Term
In the long term, companies want to solve problems permanently and to reach their
overall targets. Long-term planning reacts to the competitive situation of the company in
its social, economic and political environment and develops strategies for adapting and
influencing its position to achieve long-term goals. It examines major capital
expenditures such as purchasing equipment and facilities, and implements policies and
procedures that shape the company's profile to match top management's ideas. When
short-term and medium-term planning is successful, long-term planning builds on those
achievements to preserve accomplishments and ensure continued progress.
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Henri Fayol
From Wikipedia, the free encyclopedia
For the French singer, see Lily Fayol.

Henri Fayol
Henri Fayol (Istanbul, 29 July 1841 Paris, 19 November 1925) was a French mining
engineer, mining executive, author and director of mines who developed a general theory
of business administration that is often called Fayolism.[1] He and his colleagues
developed this theory independently of scientific management but roughly
contemporaneously. Like his contemporary, Frederick Winslow Taylor, he is widely
acknowledged as a founder of modern management methods.

Biography
Fayol was born in 1841 in a suburb of Istanbul. His father (an engineer) was in the
military at the time and was appointed superintendent of works to build Galata Bridge,
which bridged the Golden Horn.[1] The family returned to France in 1847, where Fayol
graduated from the mining academy "cole Nationale Suprieure des Mines" in Sainttienne in 1860.
In 1860 at the age of nineteen Fayol started working at the mining company named
"Compagnie de Commentry-Fourchambault-Decazeville" in Commentry as the mining
engineer. During his time at the mine, he studied the causes of underground fires, how to
prevent them, how to fight them, how to reclaim mining areas that had been burned, and
developed a knowledge of the structure of the basin.[2] In 1888 he was promoted to

managing director. During his time as director, he made changes to improve the working
situations in the mines, such as allowing employees to work in teams, and changing the
division of labor.[2] Later, more mines were added to his duties.
Eventually, the board decided to abandon its iron and steel business and the coal mines.
They chose Henri Fayol to oversee this as the new managing director. Upon receiving the
position, Fayol presented the board with a plan to restore the firm. The board accepted the
proposal.[2] When he retired in 1918, the company was financially strong and one of the
largest industrial combines in Europe
Based largely on his own management experience, he developed his concept of
administration. In 1916 he published these experience in the book "Administration
Industrielle et Gnrale", at about the same time as Frederick Winslow Taylor published
his Principles of Scientific Management.

Work
Fayol's work became more generally known with the 1949 publication of General and
industrial administration,[3] the English translation[4] of the 1916 article "Administration
industrielle et gnrale". In this work Fayol presented his theory of management, known
as Fayolism. Before that Fayol had written several articles on mining engineering,
starting in the 1870s, and some preliminary papers on administration.[5]

Mining Engineering

Henri Fayol, ca. 1900

Starting in the 1870s, Fayol wrote a series of articles on mining subjects, such as on the
spontaneous heating of coal (1879), the formation of coal beds (1887), the sedimentation
of the Commentry, and on plant fossils (1890),

His first articles were published in the French Bulletin de la Socit de l'Industrie
minrale, and beginning in the early 1880s in the Comptes rendus de l'Acadmie des
sciences, the proceedings of the French Academy of Sciences.

Fayolism
Main article: Fayolism
Fayol's work was one of the first comprehensive statements of a general theory of
management.[6] He proposed that there were five primary functions of management and
fourteen principles of management[7]

Functions of Management
1.
2.
3.
4.
5.
6.

Planning[8]
Organizing
Staffing
Directing
Co-ordinating
Controlling

The control function, from the French contrler, is used in the sense that a manager must
receive feedback about a process in order to make necessary adjustments and must
analyse the deviations. Lately scholars of management combined the commanding and
coordinating function into one leading function.

Principles of Management
1. Division of work - The division of work is the course of tasks assigned to, and
completed by, a group of workers in order to increase efficiency. Division of
work, which is also known as division of labour, is the breaking down of a job so
as to have a number of different tasks that make up the whole. This means that for
every one job, there can be any number of processes that must occur for the job to
be complete.When an individual does the same job repeatedly he acquires speed
and accuracy in performance. In words of Fayol," The worker always on the same
post, the manager always concerned with the same matters, acquires an ability,
sureness and accuracy which increases their output".
2. Authority and Responsibility - Authority is the right to give orders and obtain
obedience, and responsibility is the corollary of authority.
3. Discipline - Employees must obey and respect the rules that govern the
organization. Good discipline is the result of effective leadership.
4. Unity of command - Every employee should receive orders from only one
superior or behalf of the superior.
5. Unity of direction - Each group of organizational activities that have the same
objective should be directed by one manager using one plan for achievement of
one common goal.
6. Subordination - The interests of any one employee or group of employembmes
should not take precedence over the interests of the organization as a whole.

7. Remuneration - All Workers must be paid a fair wage for their services.
8. Centralization - Centralization refers to the degree to which subordinates are
involved in decision making.
9. Scalar chain - The line of authority from top management to the lowest ranks
represents the scalar chain. Communications should follow this chain.
10. Order - this principle is concerned with systematic arrangement of men, machine,
material etc. there should be a specific place for every employee in an
organization
11. Equity - Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel - High employee turnover is inefficient.
Management should provide orderly personnel planning and ensure that
replacements are available to fill vacancies.
13. Initiative - Employees who are allowed to originate and carry out plans will exert
high levels of effort.
14. Esprit the corps - Promoting team spirit will build harmony and unity within the
organization.
While Fayol came up with his theories almost a century ago, many of his principles are
still represented in contemporary management theories.[9] Many of todays management
texts including Richard L. Daft's[10] have reduced the six functions to five: (1) planning;
(2) organizing; (3) leading; (4) controlling (5) forecasting. Daft's text is organized around
Fayol's six functions.

Publications
Books, translated
1930. Industrial and General Administration. Translated by J.A. Coubrough,
London: Sir Isaac Pitman & Sons.
1949. General and Industrial Management. Translated by C. Storrs, Sir Isaac
Pitman & Sons, London.
Articles, translated, a selection
1900. "Henri Fayol addressed his colleagues in the mineral industry 23 June
1900." Translated by J.A. Coubrough. In: Fayol (1930) Industrial and General
Administration. pp. 7981 (Republished in: Wren, Bedeian & Breeze, (2002)
"The foundations of Henri Fayols administrative theory")
1909. "Lexposee des principles generaux dadministration". Translated by J.D
Breeze. published in: Daniel A. Wren, Arthur G. Bedeian, John D. Breeze, (2002)
"The foundations of Henri Fayols administrative theory", Management Decision,
Vol. 40 Iss: 9, pp. 906 918
1923. "The administrative theory in the state". Translated by S. Greer. In: Gulick,
L. and Urwick. L. Eds. (1937) Papers on the Science of Administration, Institute
of Public Administration. New York. pp. 99114
IN 1960 Henry Fayol published a book name " Morden Management ".

Biography

Live

Taylor was born in 1856 to a wealthy Quaker family in Germantown, Philadelphia,

Pennsylvania.
Educated early by his mother, Taylor studied for two years in France and Germany and
traveled Europe for 18 months. In 1872, he entered Phillips Exeter Academy in Exeter,
New Hampshire.
Upon graduation, Taylor was accepted at Harvard Law. However, due to rapidly
deteriorating eyesight, Taylor had to consider an alternative career. After the depression
of 1873, Taylor became an industrial apprentice patternmaker, gaining shop-floor
experience at a pump-manufacturing company, Enterprise Hydraulic Works, in
Philadelphia. Taylor's career progressed in 1878 when he became a machine shop
laborer at Midvale Steel Works. At Midvale, Taylor was promoted to gang-boss, foreman,
research director, and finally chief engineer of the works. Taylor became a student of
Stevens Institute of Technology, studying via correspondence and obtaining a degree in
mechanical engineering in 1883. On May 3, 1884, he married Louise M. Spooner of
Philadelphia.

On October 19, 1906, Taylor was awarded an honorary degree of Doctor of

Science by the University of Pennsylvania. Taylor eventually became a professor
at the Tuck School of Business at Dartmouth College. Late winter of 1915 Taylor
caught pneumonia and one day after his fifty-ninth birthday, on March 21, 1915
he died.

Work
Taylor was a mechanical engineer who sought to improve industrial efficiency.
Taylor is regarded as the father of scientific management, and was one of the
first management consultants and director of a famous firm.

Criticism of Taylor
Management theorist Henry Mintzberg is highly critical of Taylors methods. Mintzberg
states that an obsession with efficiency allows measureable benefits to overshadow less
quantifiable social benefits completely, and social values get left behind.
Taylor's methods have also been challenged by socialist intellectuals. The argument put
forward relates to progressive defanging of workers in the workplace and the
subsequent degradation of work as management, powered by capital, uses Taylor's
methods to render work repeatable, precise yet monotonous and skill-reducing.

Frederick Winslow Taylor

From Wikipedia, the free encyclopedia

Frederick Winslow Taylor

Born
Died
Cause of
death
Resting place
Nationality
Occupation
Known for
Home town
Religion
Spouse(s)
Children
Parent(s)
Awards

Taylor circa 1900

March 20, 1856
Philadelphia, Pennsylvania, U.S.
March 21, 1915 (aged 59)
Philadelphia, Pennsylvania, U.S.
Pneumonia[1]
West Laurel Hill Cemetery
Bala Cynwyd, Pennsylvania, U.S.
American
Efficiency expert
Management consultant
"Father" of the
Scientific management
& Efficiency Movement, Father of
Industrial Engineering
Germantown, Philadelphia,
Pennsylvania
Quaker
Louise M. Spooner
Kempton, Robert and Elizabeth (all
adopted orphans)
Franklin Taylor
Emily Annette Winslow
Elliott Cresson Medal (1902)

Frederick Winslow Taylor (March 20, 1856 March 21, 1915) was an American
mechanical engineer who sought to improve industrial efficiency.[2] He was one of the
first management consultants.[3] Taylor was one of the intellectual leaders of the
Efficiency Movement and his ideas, broadly conceived, were highly influential in the
Progressive Era (1890s-1920s). Taylor summed up his efficiency techniques in his 1911
book The Principles of Scientific Management. His pioneering work in applying
engineering principles to the work done on the factory floor was instrumental in the
creation and development of the branch of engineering that is now known as industrial
engineering. Taylor was also an athlete who competed nationally in tennis and golf.

Work
Taylor was a mechanical engineer who sought to improve industrial efficiency. Taylor is
regarded as the father of scientific management, and was one of the first management
consultants and director of a famous firm. In Peter Drucker's description,
Frederick W. Taylor was the first man in recorded history who deemed work deserving of
systematic observation and study. On Taylor's 'scientific management' rests, above all, the
tremendous surge of affluence in the last seventy-five years which has lifted the working
masses in the developed countries well above any level recorded before, even for the
well-to-do. Taylor, though the Isaac Newton (or perhaps the Archimedes) of the science
of work, laid only first foundations, however. Not much has been added to them since
even though he has been dead all of sixty years.[10]

Managers and workers

Taylor had very precise ideas about how to introduce his system:
It is only through enforced standardization of methods, enforced adoption of the best
implements and working conditions, and enforced cooperation that this faster work can
be assured. And the duty of enforcing the adoption of standards and enforcing this
cooperation rests with management alone.[11]
Workers were supposed to be incapable of understanding what they were doing.
According to Taylor this was true even for rather simple tasks.
'I can say, without the slightest hesitation,' Taylor told a congressional committee, 'that
the science of handling pig-iron is so great that the man who is ... physically able to
handle pig-iron and is sufficiently phlegmatic and stupid to choose this for his occupation
is rarely able to comprehend the science of handling pig-iron.[12]

Adam Smith
From Wikipedia, the free encyclopedia
For other people named Adam Smith, see Adam Smith (disambiguation).

Adam Smith
FRSA

Born

16 June 1723 NS
(5 June 1723 OS)

Kirkcaldy, Fife, Scotland

17 July 1790 (aged 67)
Died
Edinburgh, Scotland
Nationality Scottish[1]
University of Glasgow
Alma mater
Balliol College, Oxford
The Wealth of Nations, The Theory of
Notable work
Moral Sentiments
Region
School
Main
interests

Western philosophy
Classical economics
Political philosophy, ethics, economics

Classical economics,
modern free market,
Notable ideas
division of labour,
the "invisible hand"
Influences[show]
Influenced[show]

Signature

Adam Smith FRSA (16 June 1723 NS (5 June 1723 OS) 17 July 1790) was a Scottish
moral philosopher, pioneer of political economy, and a key figure in the Scottish
Enlightenment.[2] He is best known for two classic works: The Theory of Moral
Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations
(1776). The latter, usually abbreviated as The Wealth of Nations, is considered his
magnum opus and the first modern work of economics.[3]
Smith studied social philosophy at the University of Glasgow and at Balliol College,
Oxford, where he was one of the first students to benefit from scholarships set up by
fellow Scot, John Snell. After graduating, he delivered a successful series of public
lectures at Edinburgh, leading him to collaborate with David Hume during the Scottish
Enlightenment. Smith obtained a professorship at Glasgow teaching moral philosophy,
and during this time he wrote and published The Theory of Moral Sentiments. In his later
life, he took a tutoring position that allowed him to travel throughout Europe, where he
met other intellectual leaders of his day.
Smith laid the foundations of classical free market economic theory. The Wealth of
Nations was a precursor to the modern academic discipline of economics. In this and
other works, he developed the concept of division of labour, and expounded upon how
rational self-interest and competition can lead to economic prosperity. Smith was
controversial in his own day and his general approach and writing style were often
satirised by Tory writers in the moralising tradition of William Hogarth and Jonathan
Swift. In 2005, The Wealth of Nations was named among the 100 Best Scottish Books of
all time.[4]
The minor planet 12838 Adamsmith was named in his memory.[5]

Early life
Smith was born in Kirkcaldy, in the County of Fife, in Scotland. His father, also Adam
Smith, was a Scottish Writer to the Signet (senior solicitor), advocate, and prosecutor
(Judge Advocate) and also served as comptroller of the Customs in Kirkcaldy.[6] In 1720
he married Margaret Douglas, daughter of the landed Robert Douglas of Strathendry, also
in Fife. His father died two months after he was born, leaving his mother a widow.[7] The
date of Smith's baptism into the Church of Scotland at Kirkcaldy was 5 June 1723,[8] and
this has often been treated as if it were also his date of birth,[6] which is unknown.
Although few events in Smith's early childhood are known, the Scottish journalist John
Rae, Smith's biographer, recorded that Smith was abducted by gypsies at the age of three
and released when others went to rescue him.[N 1] Smith was close to his mother, who
probably encouraged him to pursue his scholarly ambitions.[10] He attended the Burgh
School of Kirkcaldycharacterised by Rae as "one of the best secondary schools of
Scotland at that period"[9]from 1729 to 1737, he learned Latin, mathematics, history,
and writing.[10]

Formal education
Smith entered the University of Glasgow when he was fourteen and studied moral
philosophy under Francis Hutcheson.[10] Here, Smith developed his passion for liberty,
reason, and free speech. In 1740 Smith was the graduate scholar presented to undertake
postgraduate studies at Balliol College, Oxford, under the Snell Exhibition.[11]
Adam Smith considered the teaching at Glasgow to be far superior to that at Oxford,
which he found intellectually stifling.[12] In Book V, Chapter II of The Wealth of Nations,
Smith wrote: "In the University of Oxford, the greater part of the public professors have,
for these many years, given up altogether even the pretence of teaching." Smith is also
reported to have complained to friends that Oxford officials once discovered him reading
a copy of David Hume's Treatise on Human Nature, and they subsequently confiscated
his book and punished him severely for reading it.[9][13][14] According to William Robert
Scott, "The Oxford of [Smith's] time gave little if any help towards what was to be his
lifework."[15] Nevertheless, Smith took the opportunity while at Oxford to teach himself
several subjects by reading many books from the shelves of the large Bodleian Library.[16]
When Smith was not studying on his own, his time at Oxford was not a happy one,
according to his letters.[17] Near the end of his time there, Smith began suffering from
shaking fits, probably the symptoms of a nervous breakdown.[18] He left Oxford
University in 1746, before his scholarship ended.[18][19]

Teaching career
Smith began delivering public lectures in 1748 in Edinburgh, sponsored by the
Philosophical Society of Edinburgh under the patronage of Lord Kames.[21] His lecture
topics included rhetoric and belles-lettres,[22] and later the subject of "the progress of
opulence". On this latter topic he first expounded his economic philosophy of "the
obvious and simple system of natural liberty". While Smith was not adept at public
speaking, his lectures met with success.[23]

David Hume was a friend and contemporary of Smith.

In 1750, he met the philosopher David Hume, who was his senior by more than a decade.
In their writings covering history, politics, philosophy, economics, and religion, Smith

and Hume shared closer intellectual and personal bonds than with other important figures
of the Scottish Enlightenment.[24]

Later years
In 1766, Henry Scott's younger brother died in Paris, and Smith's tour as a tutor ended
shortly thereafter.[31] Smith returned home that year to Kirkcaldy, and he devoted much of
the next ten years to his magnum opus.[38] There he befriended Henry Moyes, a young
blind man who showed precocious aptitude. As well as teaching Moyes, Smith secured
the patronage of David Hume and Thomas Reid in the young man's education.[39] In May
1773, Smith was elected fellow of the Royal Society of London,[40] and was elected a
member of the Literary Club in 1775.[41] The Wealth of Nations was published in 1776
and was an instant success, selling out its first edition in only six months.[42]
In 1778, Smith was appointed to a post as commissioner of customs in Scotland and went
to live with his mother in Panmure House in Edinburgh's Canongate.[43] Five years later,
as a member of the Philosophical Society of Edinburgh when it received its royal charter,
he automatically became one of the founding members of the Royal Society of
Edinburgh,[44] and from 1787 to 1789 he occupied the honorary position of Lord Rector of
the University of Glasgow.[45] He died in the northern wing of Panmure House in
Edinburgh on 17 July 1790 after a painful illness and was buried in the Canongate
Kirkyard.[46] On his death bed, Smith expressed disappointment that he had not achieved
more.[47]