strategic planning on organizational performance
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Planning has both been an organizational necessity and a managerial responsibility. Since no organization is free from change, all must plan effectively for survival and growth. We may define planning as the activity by which managers analyze present conditions in order to determine ways of reaching a desire future state. It is a process, rather than behavioural of a given point. Strategic planning is a systematic objective and comprehensive process of long-range planning, taking into consideration the organization’s resources capabilities and environment in totality (Eyre, 1982). In recognition of the unstable macro-economic policy experiencing in the Nigerian business environment and the increase level of risk among entrepreneurs, strategic planning will be imperative for corporate organizational performance. Since, it is a top management function which covers a long time span, generally one to five years and usually focuses on a very broad range of information. Steiner 1994 refers to strategic planning as the process of determining the major objectives of an organization, policies and strategies that will govern the acquisition, use and disposition of resources to achieve those objectives. Objectives in the strategic planning process includes mission or purposes.
Thompson and Strickland (1997) defined strategic planning as the formal process adopted in determining long run objectives and how to achieve them. Since organization are regularly facing challenges on how business managers must be capable of competing under rapidly shifting conditions with turbulent environment, and to stay in the business, they need sharp tools or a proven management techniques to forecast the major changes which could affect their business, choose the future direction and dimension of the business and plan the deployment of resources needed to attain selected goals (see Oyedijo, 1995; Oshionebo, 2002; Johnson
INTRODUCTION
1.1 Background to the Study
Planning has both been an organizational necessity and a managerial responsibility. Since no organization is free from change, all must plan effectively for survival and growth. We may define planning as the activity by which managers analyze present conditions in order to determine ways of reaching a desire future state. It is a process, rather than behavioural of a given point. Strategic planning is a systematic objective and comprehensive process of long-range planning, taking into consideration the organization’s resources capabilities and environment in totality (Eyre, 1982). In recognition of the unstable macro-economic policy experiencing in the Nigerian business environment and the increase level of risk among entrepreneurs, strategic planning will be imperative for corporate organizational performance. Since, it is a top management function which covers a long time span, generally one to five years and usually focuses on a very broad range of information. Steiner 1994 refers to strategic planning as the process of determining the major objectives of an organization, policies and strategies that will govern the acquisition, use and disposition of resources to achieve those objectives. Objectives in the strategic planning process includes mission or purposes.
Thompson and Strickland (1997) defined strategic planning as the formal process adopted in determining long run objectives and how to achieve them. Since organization are regularly facing challenges on how business managers must be capable of competing under rapidly shifting conditions with turbulent environment, and to stay in the business, they need sharp tools or a proven management techniques to forecast the major changes which could affect their business, choose the future direction and dimension of the business and plan the deployment of resources needed to attain selected goals (see Oyedijo, 1995; Oshionebo, 2002; Johnson
References: 1) Philip, K. (1990), Strategic Planning Management: Theory and Practice. London, Macmillan Press. 2) Raymond, M. (1999), Theory of Organizational Policy, New York, McGraw Hill. 3) Question 13 of questionnaire: Strategic Planning is pre-requisite for organizational performance.