ABSTRACT
Planning and forecasting are two sides
of a coin that an organization that wants to be successful must imbibe. There
are needed in the achievement of an organizational goals and objectives.
Planning is the
process that involves going through the current activities of an organization,
checking lapses that occurred in the previous year and setting measures to
avoid them in subsequent years.
This
research project is thus a search for the role of planning
and forecasting in business organization.
Chapter one of the
study lays a theoretical framework for subsequent chapters. Following the
general introduction, the problem statement and the objective of the study
which provided basis for the significance of the study and the hypothesis were
stated. The limitation of this study was also highlighted.
In the literature
review as contained in chapter two, works of various authors, international and
local journals were reviewed to elicit views on the roles and relevance of the
account in business and economic development.
Chapter three,
research methodology, description of population and sampling procedure for data
collection were discussed. Methods of questionnaire design, determination of
sampling size and questionnaire distribution were also highlighted.
Chapter four was
based on analysis of data collected. This chapter was sub-divided into data
analysis, hypothesis testing and summary. Percentage table, figure and
narration were carefully employed for proper understanding and testing of
hypothesis.
Finally, chapter five
was divided into summary of findings, recommendation and conclusion.
CHAPTER ONE
INTRODUCTION
1.0 Background of the Study
Planning and forecasting
are two sides of a coin that an organization that wants to be successful must
imbibe. There are needed in the achievement of an organizational goals and
objectives.
Planning is the
process that involves going through the current activities of an organization,
checking lapses that occurred in the previous year and setting measures to
avoid them in subsequent years. It involves mapping out the goals an
organization wants to achieve in a year, ways to achieve such goals and the
necessary resources to achieve them. It is the first step a manager must take
in deciding what to do and how to go about it.
Planning takes an
organization to where it wants to be in the nearest future. In planning, the
past and present state of an organization is considered in other to bounce back
better and stronger.
Forecasting involves looking
into the future by noting the available resources, making an estimate of the
resources required and considering if more hands will be needed in achieving
the organization’s goals (Needle, 1999: p178).
Forecasting is
carried out when an organization wants to look into what the future would be
like; in order to put necessary measures in place. An organization can be
effective if it can predict its environment, identify problems and solve them (Steiner,
1979).
Planning and
forecasting are vital tools needed in an organization for performing management
functions and in decision making to ensure all departments of the organization
functions well. Planning and forecasting walk hand in hand, as forecasting
helps unify and coordinate plans.
1.1 Statement
of the Problem
Organizations
that fail to plan, plan to fail. Organizations that wait for rainy days are
bound to crumble as this is evident in many organizations today.
Many
organizations fail because of the notion that planning and forecasting should
center on a part of an organization.
In
addition, some business organizations crash due to poor timing of planning and
forecasting.
1.2 Objectives of the Study
The
major objective of this research is to discover the role of planning and
forecasting in business organization.
Other
specific objectives include;
1. To
determine if planning and forecasting should be the duty of just the managers.
2. To determine
if planning and forecasting boosts business organizations.
3. To discover
if a business organization can strive without planning and forecasting.
4. To
determine if there is a relationship between planning/forecasting in business
organizations and Gross Domestic Product.
1.3
Research Questions
1. Is planning and forecasting just the
duty of the manager?
2. Does planning and forecasting boosts
business organizations?
3. Can a business organization strive
without planning and forecasting?
4. Is there a relationship between
planning/forecasting in business organizations and Gross Domestic Product?
1.4 Research Hypotheses
Ho:
Business organizations cannot strive without planning and forecasting.
Hi:
Business organizations can strive without planning and forecasting.
1.5 Significance of the Study/ Justification of
the study
This study is meant to bring to the
knowledge of the management of business organizations that planning and
forecasting is needful in the overall success of an organization.
This study will be of immense benefit
to other researchers who intend to know more on this topic and can also be used
by non-researchers to build more on their work. This study
contributes to knowledge and could serve as a bench mark or guide for other
work or study.
1.6 Scope/Limitations of the Study
This
study isbroad since it is studying on the role of planning and forecasting in
business organizations generally.
Limitations of study
1.
Financial constraint- Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
and interview).
2.
Time constraint- The researcher will simultaneously
engage in this study with other academic work. This consequently will cut down
on the time devoted for the research work.
1.7 Definition of Terms
Plan:Is a detailed proposal for achieving something or a decision about
what one is going to do.
Planning is the process of making plans for
something.
Forecasting:Is
the process of making predictions of the future based on past and present data
and analysis of trends.
References
Steiner, George A.: Strategic Planning, Free Press, New York, 1979