THE IMPACT OF CORPORATE PLANNING ON ORGANIZATIONAL PERFORMANCE
1.1 BACKGROUND OF THE STUDY
The management of an organization is the action of several people in
designing and maintaining an environment in which individual working
together in-group to accomplish selected missions and objectives.
Planning is a primary task of management which concerns the future and
relies upon information from both external and internal sources to the
organization for it to be successful.
The performance of an organization can be determined by
the corporate planning embarked upon in any given managerial decision at
a particular time. For management of such organization to achieve its
aims and objectives some planning strategies need to be laid down and
followed in order to enhance the smooth running and overall success of
the business organization in question. It is pertinent to know that, for
any business organization to record any meaningful achievement certain
function need to be performed and reckon with within the society among
these functions are planning, controlling, coordination, motivating and
PLANNING:- This is the establishment of
objectives and the formulation, evaluation and selection of polices
strategies, tacties and action required to achievement these objectives.
Planning comprises of short term or operational planning and long term
or strategic planning the letter can be regarded as corporate planning
for it covers a long range period. It sets out the organizational
objectives how to do it? How bill do it? And where to do it? All these
are the focus planning.
CONTROLLING:- Control is the process of
compelling event to conform to a plan, therefore, controlling involves
setting standards for the work to be performed, measuring performance
against the set standard, taking corrective action where needed. All
these are aimed at measuring the level of performance.
MOTIVATING: This means to energized or
set in motion for effective performance. It is an activity which put the
employees at the centre by meeting the social, physical and
psychological needs of the work force as a way of achieving the overall
objective of the organization.
STAFFING:- This comprises of effective
recruitment, selection placement, appraisal and development of people to
occupy the roles in the organization structure.
Hence, the performance of any given organization can be
enhanced by the afore-mentioned managerial functions. More so,
management of any given organization can be classified into these 3
categories they are:
Middle Management: These include head of department and
also comprises of plant, manager, production manager, sales manager and
other managers in the organization.
Top Management:- Who are regarded as the policy maker,
goal-setters and decision makers of the whole organization and this
initiate all major changes.
Lastly, the bottom level of Management:- These are the
lower workers of the organization, these are directing involved with the
day to day running of the business within the guidelines set by the top
Therefore, it could be summarily inserted that for the
achievement of organizational objective and good performance all these
functions must be well carried out.
1.2 STATEMENT OF PROBLEM
It has been undeniably observed that much business organization fails
because of ineffective planning of the management, planning as one of
the management functions must be given a serious attention and critical
priority for the accomplishment of the organization set goals and
objectives. For the management to solve this planning problem, the
factors that affect the effective management planning need to establish
the effective management planning need to establish the objective and
formulate policies, strategies, tactics and action required to achieve
1.3 RESEARCH HYPOTHESIS
In order to enhance this study, the following hypothesis are going to be used.
Ho: That corporate planning cannot offset uncertainty and change.
Hi: That corporate planning offset uncertainty and change.
Ho: That corporate planning has no impact on organizational performance.
Hi: That corporate planning has impact on organizational performance.
Ho: That corporate planning is not important in an organization.
Hi: That corporate planning is important in an organization.
1.4 THE PURPOSE OF THE STUDY
This study is set out to examine the concept of corporate
planning and this impact in an organization. To examine how corporate
planning formulation can be use in planning of an organization.
To evolve the effect of failure to plan and why people fails in planning and lastly
To make recommendation with corporate planning options available to an organization.
1.5 SCOPE OF STUDY
Two study, impact of corporate planning on organizational performance
is selected in order to know and evaluate the corporate planning
process of Okin Biscuits Nigeria Limited, Offa, Kwara State which
engages in production eatable items and transportation services.
The study shall also examine the meaning of corporate
planning from different authors, nature, types importance, purpose and
hierarchy of planning shall be discussed. Benefits accruing to the
organization from the corporate planning and impacts if there is failure
or the plan fails also not be left untouched.
Also covered, are the factors of corporate planning process in the organization, useful advice and recommendation.
1.6 LIMITATION OF THE STUDY
There are many factors which serves as the obstacles for the success of the study.
COST: This was a barrier to the fulfillment of the
operation due to sources of finance and transportation for the
researchers from their terrain to the field of data sources.
TIME: This was another hindrance to the study the time scheduled by the company was no convenient to the researchers.
ACCESSIBILITY TO MATERIALS:- The materials needed for the research work was not easily accessible to the researcher.
RESPONSE FROM THE RESPONDENTS:- Some of the response or given information was not correct and were untrue.
1.7 SIGNIFICANCE OF THE STUDY
The study will be of tremendous significance to the researcher that
may want to make use of this project work for the following reasons:
- It will help to reveal and evaluate the corporate planning process.
- It will help to examine the meaning of corporate planning.
- It will reveal the purpose and hierarch of planning.
- It will help to see the benefits derivable from the concept of corporate Planning.
- Finally, the impact of corporate planning especially when it fails will also be revealed.
1.8 DEFINITION OF TERMS
These following terms shall be defined one after the other, organization performance, corporate and planning.
ORGANIZATION:- This is a social system
of cooperation design to maximize accomplishment. That is, an
organization can be defined as two or more people working co-operatively
towards the achievements of a common goal through set aside objectives.
It also means ways to administer both human resources and materials
PERFORMANCE:- By performance we mean a
way in which the organization carry on his duties faithfully or the way
in which an organization is performing. Either to the business detriment
or progress. Organizational performance depend largely on corporate
planning stipulated by the organization and how well motivated the
workers are, the organizational co-ordination and the organization
management as a whole.
CORPORATE:- This can be refers to as a
company organization of any institution of people who come together
under stipulated act of government to transact a business. Therefore,
the word corporate means business of enterprises.
1.9 HISTORICAL BACKGROUND OF OKIN BISCUIT NIGERIA LIMITED OFFA
The name of the organization understudy is Okin Biscuit
Nigeria, Limited which is situated at Ijagbo Via Offa in Kwara State.
Been a private limited liability company. It is owned bu Chief E.O.
Adesoye who hails from Offa in Kwara State.
The company was corporate on December 21st 1979 and
commenced production on June 2nd 1980. it engages in production of
biscuits and transportation service. The company started production with
200 bags of flour as the main raw material. As at present, they use
nothing less than 500 tones. It was made clear the level of production
depend on thousand distribution. The present managing director with
other principal staff are the ones paddling the canoe of company. The
company has about eight departments namely public relation, purchasing,
store administration, production and security.
Among the objectives of the company is to provide
employment opportunity to the people in the operation to make the
business a going concern. The main target is to reduce price and provide
customers need profitably.
The pricing technique used in the company, are full most
pricing method and acceptance pricing for both their manufacturing
products and transportation service. It is the policy of the company to
settle dispute and crisis by making dialogue or constitution ambudism in
order to make workers to be satisfied with their job and also to make
them have a sense of belonging.