AN EVALUATION OF THE NATURE AND IMPACT OF PLANNING ON ORGANISATIONAL PERFORMANCE (A CASE STUDY OF DANGOTE GROUP OF COMPANIES)


Department Of Business Administration


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AN EVALUATION OF THE NATURE AND IMPACT OF PLANNING ON ORGANISATIONAL PERFORMANCE (A CASE STUDY OF DANGOTE GROUP OF COMPANY)

ABSTRACT

This study was centered on the nature and impact of planning on organizational performance. This study was guided by the following objectives; To examine the relationship between corporate planning and organizational performance; To determine the corporate planning strategies used by beverage sectors for effective organizational growth; To ascertain whether corporate planning will improve the growth of an organization. The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the correlation statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 115 employees of Dangote Group of Company Lagos branch. The study majorly focuses on the relationship between corporate planning and beverage sectors organizational growth.

The study findings revealed that there is a significant relationship between corporate planning and beverage sectors organizational growth; Based on the findings from the study, organizations should be vigorously involved in corporate planning as it helps in the development of the organization.

TABLE OF CONTENT   

Title Page

Certification

Dedication

Acknowledgment

Table of content

Abstract

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

1.2 STATEMENT OF THE PROBLEM

1.3 OBJECTIVES OF THE STUDY

1.4 RESEARCH QUESTIONS

1.5 RESEARCH HYPOTHESIS

1.6 SIGNIFICANCE OF THE STUDY

1.7 SCOPE AND LIMITATION OF THE STUDY

1.8 DEFINITION OF TERMS 

CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

2.1 MEANING OF CORPORATE PLANNING

2.2CORE AREAS OF COPORATE PLANNING 

2.3APPROACHES TO CORPORATE PLANNING 

2.4CORPORATE PLANNING AND STRATEGIC MANAGEMENT

2.5OBJECTIVES OF CORPORATE PLANNING 

2.5STEPS IN LONG RANGE OR CORPORATE PLANNING

2.6BENEFITS OF CORPORATE PLANNING AND ORGANIZATIONAL GROWTH

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION

3.1 RESEARCH DESIGN 

3.2 AREA OF STUDY

3.3 POPULATION OF THE STUDY

3.4 SAMPLE SIZE TECHNIQUE

3.5 DATA COLLECTION METHOD

3.6 VALIDITY AND RELIABILITY OF THE RESEARCH INSTRUMENT

3.7 METHOD OF DATA ANALYSIS

3.8 SCORING OF THE RESEARCH INSTRUMENT

3.9 DECISION RULE

CHAPTER FOUR

ANALYSIS OF DATA AND PRESENTATION OF RESULTS

CHAPTER FIVE 

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF FINDING

5.2 CONCLUSION

5.3 RECOMMENDATION

BIBLIOGRAPHY

APPENDIX

QUESTIONNAIRE

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 organizationalobjectives 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 profer an evaluation of the impact of planning on organizational performance..

1.2 STATEMENT OF THE PROBLEM

Goetz (1949), Koontz and his colleagues assert thatthe 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 effectivethat 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 Dangote Group of Company 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 Dangote Group of Company PLC

1.4 OBJECTIVE 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 Dangote Group of Company PLC

1.5 SIGNIFICANCE OF THE RESEARCH

      The research shall profer effective principles and methods for planning. It shall also serve as a source of information for planners and managers.

1.6 STATEMENT OF THE HYPOTHESIS

1     Ho   Planning is not given significant attention in NBL

       Ho   Planning is given significant attention in  NBL

2     Ho   The performance of NBL is   Low

      Ho    The  performance of NBL is  High

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 Dangote Group of Company

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 andcontrolling 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.

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.

REFERENCES

Asika, N. (1991) Research Methodology in the Behavioral Services, a textbook 2nd edition, pg

33-45, Longman Publication Limited, Lagos.

Amaratunga, D., Baldry, D., Sarshar, M. and Newton, R (2002), Quantitative and qualitative

research in the built environment, Work Study, Vol. 51, No.1. 

Aldag, R.J and Stearus, T.M. (1991) Measurement Skill, a textbook, 4th edition pg 122-135 SoutWestern Publishing Company, Cincinnati, Ohio USA.

Bernard M. (1960) Bass in Leadership, Psychology and Organizational Behaviour, a textbook 2nd edition, pg 88-89, New York Harper and Brothers Publication.

Bowditch J. and Buono, A. (1997) A Primer of Organizational Behaviour, textbook 3rd edition, Pg 22-38, John wiley and sons Publication limited, New York.

Davenport T. (1993) Process Innovation Re-engineering Work through information Technology, a Journal of Social Sciences, vol 3 pg 143-156, Massachusetts Harvard 

Press.

Dawson (1996) Analysing Planning in an Organization, a Journal of Management, university of London, Macmillan Press, Lagos.

Dixon G. (1979) Planning and Management Organization, Sweden business School Publication 

Wiley and sons Press limited, New York

Drucker, P.F (2003) The Theory and Practice of Management, a broader perspective, 4th edition, pg 98-114, New York Press

Drucker, P.F (2004) Management, Task, responsibilities and Practices, a textbook 3rd edition, Pg 45

-63, New York Harper and Row Publication limited.

Druckr P.F. (1974) Management, Task, responsibilities, and Practices, 1st edition, pg 26-35, London Williams Heinemann Publication.

Drucker P.F. (1995) The theory and Practice of Management, 4th edition, Oxford Butter North Heinemann Publication limited

.



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