What is the relationship between planning and organisational performance

what is the relationship between planning and organisational performance

Though distinct in meaning, planning and organizing are two concepts that it is important to understand the relationship between planning and organizing. The literature addressing the empirical relationships between strategic planning and hard measures of organizational performance is examined. Distinctions are. PDF | The literature addressing the empirical relationships between strategic planning and hard measures of organizational performance is examined.

As in many other fields, strategic planning professionals often cloak their work in pseudo scientific jargon designed to glorify their work and create client dependence.

In reality, strategic planning processes are neither scientific nor complex. With modest, front-end assistance and the occasional services of an outside facilitator, organizations can develop and manage an on-going and effective planning program. Strategic planning consists of a set of underlying processes that are intended to create or manipulate a situation to create a more favourable outcome for a company.

How to develop planning and organisational skills

In business, strategic planning provides overall direction for specific units such as financial focuses, projects, human resource s and marketing. Strategic planning may be conducive to productivity improvement when there is consensus about mission and when most work procedures depend on technical or technological considerations.

This study goes beyond the observation of some research that questioned the existence of direct casual relationships between the use of strategic planning and improved performance.

This study draws from some of the many publications on the use of strategic planning in the private sector and from the growing number of those that deal with its uses and potential for the public sector. One of the major purposes of strategic planning is to promote the process of adaptive thinking or thinking about how to attain and maintain firm environment alignment Ansoff, Firms, however, appear to gain more because they can derive considerable benefits not only from adaptive thinking, but also from integration and control.

what is the relationship between planning and organisational performance

Small firms can derive considerable benefits from adaptive thinking but probably gain less than large firms from the integration and control aspects of strategic planning. Everedsuggested that the different uses of the term strategic planning vary from broad ones which include the purposes of defining purpose, objectives and goals to very narrow ones namely, those that deal with the means for achieving given objectives. Hence, according to Eadie,strategic planning may be defined broadly or narrowly.

what is the relationship between planning and organisational performance

How ever, this formulation still does not help managers in the public sector, for now they need to decide not only whether they want to develop strategic plans but also whether they should approach such plans with a global perspective or with a narrower one. Thus, what seems to be a problem of semantics masks a fundamental question about the inclusion or exclusion of goal definition from the strategic planning process.

According to Berry Strategic planning is a tool for finding the best future for your organization and the best path to reach that destination. The strategic planning process begins with an assessment of the current economic situation. First, examining factors outside of the company that can affect the company's performance.

In most cases, it makes sense to focus on the national, local or regional and industry economic forecasts. This part of the analysis should begin early, at least a quarter or so before the formal planning process begins. Since the case study used for this research study is a bank, there is a need to understand strategic planning and financial performance relationships in banks. Results also indicated a reciprocal relationship between strategic planning intensity and performance.

That is, strategic planning intensity causes better performance and in turn, better performance causes greater strategic planning intensity Hopkins and Hopkins, There is a constant need for organizations, especially financial institutions like banks to think strategically about what is going on Schmenner, This appears to be precisely what banks, in particular have begun to do in recent years.

In response to increasing complexity and change in the financial services industry, banks have turned to strategic planning.

The Relationship Between Planning & Organizing

The relatively new trend towards strategic planning in banks is viewed as a move designed not only to help them negotiate their environment more effectively, but to improve their financial performance as well Bettinger, ; Bird, ; Prasad, In consistent results of bank-related research, however, have not fully resolved the issue of whether strategic planning leads to improvements in banks financial performance.

The intensity with which managers engage in strategic planning depends on Managerial e. The effects of these factors on strategic planning intensity have been suggested by several studies Kallman and Shapiro, ; Unni, ; Robinson and Pearce, ; Robinson et al. As suggested by the inconsistent research findings, past studies have misspecified the relationship between strategic planning and financial performance in banks.

Subsequently, the consideration of such factors in the present study is viewed as a significant issue that holds implications for future research as well as for planning practices. Statement of Research Problem Past and recent research studies have made it clear that there is an increased internal and external uncertainty due to emerging opportunities and threats, lack of the awareness of needs and of the facilities related issues and environment and lack of direction.

Many organizations spend most of their time realizing and reacting to unexpected changes and problems instead of anticipating and preparing for them. This is called crisis management.

Organizations caught off guard may spend a great deal of time and energy playing catch up. They use up their energy coping with immediate problems with little energy left to anticipate and prepare for the next challenges. This vicious cycle locks many organizations into a reactive posture. Planning Planning for a business is a three-step process.

The Relationship Between Planning & Organizing | corrosion-corrintel.info

You first perform research on the issue at hand. For instance, if you're trying to establish a promotional plan, research the target market. Then you set S. Finally, you establish action steps for achieving each of the goals you've set. Organizing Organizing for a business is the process of arranging tasks or resources so that you can perform or use them optimally. Proper organizing facilitates an efficient work environment and increases the chance that employees achieve their goals at work.

Relationship Between the Two Because of the nature of business planning, the ability to effectively organize is of the utmost importance. Each step of the planning process is simplified when organized properly.

For instance, organizing your research tasks helps you come to reasonable conclusions more quickly. When establishing goals, organize them in order of importance and also classify them as either short- or long-term objectives.