Professor Challenges Basic Assumption about Planning and ControlProfessor A. Van Cauwenbergh of Antwerp University, in a paper presented at the Tenth AnniversaryConference of the European Institute for Advanced Studies in Management, presented four revisionsto traditional Management Theory. In summary, the revisions are:(1) The initiative for the renewal and adjustment of the activities of a firm should come from thedifferent levels in the management hierarchy. “Strategy is not a privilege of top management”.(2) Firms, especially big firms, are incoherent systems (goals of the different component systemsare not simply subdivisions of an overall goal; there are individual, conflicting goals as well).Some of these differences are manifestations of organizational initiative and vitality. Usinginformation systems and central planning and rule making to suppress all differences isdestructive to organizations.(3) The most vital “fluid” of an enterprise is the aggregate of its entrepreneurial values. The mostfundamental and motivation and control come through these shared values relative to work,quality, efficiency, etc. Management often neglects these values and assumes that thecollection and dissemination of information will provide sufficient motivation and control.(4) Enterprises are open systems; their structure and operating processes are determined bytheir environment. This means organizations must be designed to continually adjust to theenvironment.Questions:a. If these revisions are correct, how is planning to be organized? How should the information

system support the planning organization?b. Can the information system aid in achieving shared values?c. How might a comprehensive system be used o stifle initiative?

ANSWERS1. According to me these revisions are very suitable for any organisation. Through these

revisions we can plan in a organized way. As Professor A. Van said if we are going to take suggestions from all the management department for the execution of renewal and adjustment of the activities of the firm instead making it one man show i.e. top management then every employee will feel privileged and motivated which will help in proper management of firm.With the help of information system we can organize the things in a proper manner as it will be helpful in decision making because it provide a accurate data base to us.

2. Information system can be a aid in achieving shared values as with the help of managemant information system –

As we can enhance entrepreneurial activities by making employees updated with the current marketing strategies.

We can olso provide them assistence with the help of management information system as to provide them accurate data base.

3. A comprehensive system can be used to take stifle initiative as it provide entire information to every employee so that he can work effectively.