AN EVALUATION OF THE NATURE AND IMPACT OF PLANNING ON ORGANISATIONAL PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In majority of organization in Nigeria, planning is the most important management tool for performance and for organizationsto perform well, resources must be well utilized and customers well served. To achieve such ends, all of an organization‟s human and materials resources must be well utilized in the right way and the right time to create high quality products at minimal cost. Formally defined, productivity is a summary measure of the quantity and quality of work performance, with resources utilization taken into account. It can be measured at the individual, group, or organizations level, Productivity may be expressed as success into dimensions of organizations performance, effectiveness and efficiency.Organization has been collective in order to achieve group or individual objectives. They serve as the means by which goods and services are provided beyond the boundaries of an individual or small group‟s capacity of self-sufficiency. Such provision, also acknowledged, may be made for profit through some other more controlled framework of commercial or social provision (Dawson 1996).However, Planning on the other hand, is regarded as the most basic of all the management functions. It involves the selecting from among alternative future course of action for the organization as a whole and every department or section within it. Furthermore, it requires selecting organizational objectives and departmental goals, determines and provides a rational approach to pre-selected objectives. It strongly implies managerial innovation and the ability to create something (koontz 1980). The problem which underscores the need to undertake this study is aptly described by Koontz et al (1980) with all the interest in planning and all the sense of urgency brought about by modern super competition, is the danger that planning can become merely a costly fad, not very useful and even disillusioning. The implication of the above assertion is that not all organization that plan eventually reaps the desired benefits. Schermerhorn (1986) adds that most planning failures arise from their inability of managers to truly understand the planning and to implement it well.Problems have been identified in the planning process. For instance, insetting objectives, organizations find it difficult to involve employees, shareholders, customers etc. closely related to this is the issue associated with the likely environment different variables and events. The research therefore seek to proffer an evaluation of the impact of planning on organizational performance.
1.2 STATEMENT OF THE PROBLEM
Goetz (1949), Koontz and his colleagues assert that the purpose of every plan and all derivative plan is to facilitate the accomplishment of enterprise purpose and objectives.It is argued that since managerial operations is organizing, staffing, treating and controlling are designed to support the accomplishment of enterprise objectives, then planning should logically precede the execution of all other managerial functions. Although all the managerial functions are interlinked in practice as a system of action, planning is unique, in that it establishes the objective necessary for all group effort. Besides, it is argued that plans must be made to accomplish these objectives before the manager knows what kind of organization relationships and personal qualifications are needed, along which course subordinates are to be directed and led, what control is to be applied. Most important, all the other managerial functions must be planned if they are to be effective that a plan is efficient when it contributes to purpose and objectives as offset by the cost and other unsought consequences required to formulate and operate such plans. As such a plan too high attracts unnecessarily high costs.Also, even though the concepts of efficiency implies the normal ratio of input to output in terms of money, labor hours or units of production to include such values as individual and group satisfaction. In all, it can be concluded that if managers do not plan to some degree, they would have no idea of whether or not the organizationis accomplishing its purpose. Dixon (1970) provides four reasons why planning is important for good management. They are as follows:Planning aids the process of control, because mangers have a benchmark against which they can measure the actual results achieved.Planning helps to make the operations of organization more economical.Planning focuses attention on the organization‟s real objectives.Planning helps to offset the effects of uncertainty and change. However many organization pay little or no attention to planning. In some instance Planning is done without knowledge and accurate information on planning premise and principles.the resultant effect is a misdirection of the activities of the organization,improper use of resources and poor organizational performance. Therefore the problem confronting this research is to profer an evaluation of the nature and impact of planning on organizational performance with a case study of Nigerian breweries plc.
1.3 RESEARCH QUESTION
1 What is the nature of planning
2 What is the principle and process of effective planning
3 What is the impact of planning on organizational performance
4 What is the nature and impact of planning on the performance of Nigerian Breweries PLC
1.4 OBJECTIVES OF THE STUDY
1. To determine the nature of planning
2 To determine the principles and process of effective planning
3 To determine the impact of planning on organizational performance
4 To determine the nature and impact of planning on the performance of Nigerian Breweries PLC
1.5 SIGNIFICANCE OF THE RESEARCH
The research shall proffer effective principles and methods for planning It shall also serve as a source of information for planners and managers
1.6 STATEMENT OF THE HYPOTHESES
Hypothesis 1
Ho Planning is not given significant attention in NBL
Hi Planning is given significant attention in NBL
Hypothesis 2
Ho The performance of NBL is Low
Hi The performance of NBL is High
Hypothesis 3
Ho The impact of planning on NBL performance is low
Hi The impact of planning on NBL performance is high
1.7 SCOPE OF THE STUDY
The research focuses on the evaluation of the nature and impact of planning on organizational performance with a case study of Nigerian Breweries PLC
1.8 DEFINITION OF TERMS
Planning (also called forethought) is the process of thinking about and organizing the activities required to achieve a desired goal. It involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills. There are even a couple of tests to measure someone’s capability of planning well. As such, planning is a fundamental property of intelligent behavior. Planning is preparing a sequence of action steps to achieve some specific goal. If a person does it effectively, he can reduce much the necessary time and effort of achieving the goal.
Corporate Planning: The term corporate planning denotes planning activities for the entire enterprise.The basic focus of corporate planning is to determine the long-term objectives of the organisation as a whole
Primary of planning – It is argued that since managerial operations is organizing, staffing, treating and controlling are designed to support the accomplishment of enterprise objectives, then planning should logically precede the execution of all other managerial functions. Although all the managerial functions are interlinked in practice as a system of act ion, planning is unique, in that it establishes the objective necessary for all group effort. Besides, it is argued that plans must be made to accomplish these objectives before the manager knows what kind of organization relationships and personal qualifications are needed, along which course subordinates are to be directed and led, what control is to be applied. Most important, all the other managerial functions must be planned if they are to be effective. Long-range planning -Involves identifying those activities to be performed over an extended period of time. Long range plan may extend for several decades. Long range planning is different from strategic planning, which is primarily concerned with how the organization will position itself among competing firms in a market. Long-range planning identifies the activities to be performed that will lead to the accomplishment of official goals. One important feature, a long-range plan is necessarily different from shorter planning horizons in a plan covering 20 years.
Intermediate Planning- Identifies activities to be carried out over a period of five years at the middle levels of the organization. Intermediate planning is critical in most cases to the success. Intermediate planning is focused more on the activities that have to be carried out with a planning horizon that contains fewer uncertainties.
Short-range Planning: Developing plans for implementation within a planning horizon of less than one year is often referred to as short- range planning. Short-range plans may specify activities to be carried out that will achieve certain production levels each week. While short-range plans are necessary for most organizations, they can have drawbacks. Often managers become so focused on short-range plans. Ultimately, this can lead to failure in the accomplishment of organizational goals.