Management Planning

Abstract

In this paper I will evaluate the planning functions of management at WorldCom. I will also analyze the legal issues, ethics, and social responsibility for this company. In this paper I will give three factors that influenced the strategic, tactical, operational, and contingency planning for WorldCom.

WorldCom, then known as MCI once was one of the world’s largest phone company’s, next to AT&T. By 2000, WorldCom had more than 20 million consumer customers in more than 200 countries, and more than 80,000 employees. Today, WorldCom is known for its massive accounting scandal that led the company to file for bankruptcy in 2002 (Investopedia, 2010). The WorldCom scandal is regarded as one of the worst corporate crimes in history. After bankruptcy, the company agreed to pay $750 million to the SEC in cash and stock in the new MCI, which was intended to be paid to the wronged investors (Investopedia, 2010).

The planning function of management can be defined as often having set forth performance goals, and expectations for groups and individuals to channel their efforts toward achieving those specific objectives. There also could be SWOT Analysis done to see what would be the best outcome for the company. The planning function in management deals with scheduling, forecasting, and having meetings about company policies, and making sure that the employees are enforcing those policies within the company. Another form of the management planning function would be implementing changes throughout the corporation. In the case of WorldCom, the plans from the managers were to commit a crime and falsify information and the parties involved had to suffer the consequences because of it.

The audit committee team of WorldCom was not accurately accounting all of the figures that they were supposed to put in the record. They were leaving amounts from the books that should have been included to make it seem as if everything was fine....