EFFECT OF CORPORATE PLANNING MANAGERIAL EFFICIENCY IN AN ORGANISATION (A STUDY OF THE BANKING & MANUFACTURING SECTORS OF THE ECONOMY).

ABSTRACT

Organizations do not exist in a vacuum but are subject to large environment in which they find themselves on its own part, the environment is dynamic, that is it changes with time. As a result organizations cannot afford to be static, but has to evolve with the environment. In the face of the changing nature of the external environment, organization make plans to enable them adapt and respond to the external environment. An organization is to move with the tide of change which is mainly a function of the organization’s ability to plan. Every organization tries to give reason for its existence and to ensure its continued existence. This is only possible if organizational goals and objective are achieved within specified limits. Corporate planning is a systematic study of long term company objectives and goals and the strategy required to achieve their managerial efficiency on it own relates to how well resources are utilized in pursuing various goals and performing various activities. Thus, corporate planning tries to establish those things an organization need to be able to manage its resources effectively and efficiently. In this study, it is taken for granted that most, if not all organizations engage in corporate planning: as such we concentrate on the extent of corporate planning in these organizations. A number of hypothesis have been postulated.

1.  Clearly stated objectives help the company to know where it is going and where it is coming from thereby ensuring that organizational objectives are achieved. 2. Monitoring and controlling  of  a  company’s  plans  to  reduce  derivations  from

planned courses of action. 3.  Flexibility is necessary if a plan is to stand test of time. The research project has been divided into five parts-chapter one has the general introduction, chapter two which is literature review tried   to look into already known work on the subject  while  chapter  three  takes  off  the  methods  used  in gathering data. The main trust of the paper comes in chapter four where the collected data are analyzed and interpreted. The last part of the research summarized and concludes the assertion that good corporate plan aids managerial efficiency.

CHAPTER ONE: INTRODUCTION

1.1    BACKGROUND OF THE STUDY

An   organization   is   a   combination   of   people   or individual efforts, machines and money, working together for the achievement of organizational goals and objectives.

An organized enterprise does not exist in a vacuum, but is dependent on its external environment.  It is a part of large systems such as the industry to which it belongs, the economic system, and the society at large.

Thus, the enterprise receives inputs, transfer them and export the outputs to the environment.  The inputs from the external environment may include people, capital and managerial skill as well as technical knowledge and skills managers have little or no power to change the external environment but to respond to it.   How able they are to respond to these external variables is the main thrust of this research.

Akpala (1990:7) defines management as the process of combining and utilizing, or of allocating an organizations inputs (man, material and money) by planning, organizing, directing and controlling for the purpose of producing outputs (goods and services) desired by customers to achieve organizational objectives.   The ability of a company to achieve its aims and objectives within specified limits is what is known as managerial efficiency.   How well a company uses its available resources to achieve desired goals is a source of concern for managers especially in this era of scarcity of resources.

Planning, which is one of the managerial functions is seen by most people as the most basic of all.   Since the managerial operations in organizing, staffing, directing, and controlling are designed to support the accomplishment of enterprise objectives, planning logically precedes the execution of all other managerial functions. Although in practice  all  the  functions  meet  as  a  system  of  action,

planning is unique in that it involves establishing the objectives necessary for all group efforts.  It is a process of using related facts and assumption about the future to arrive at courses of action to be followed in seeking specific organizational goals.

Planning becomes easy in a stable environment where for example, competitors are well known. However, planning has been made more complex in the 80’s where companies are faced by a radically different environment.

Step changes and irreversible trends makes detailed plans draw up one year scarcely relevant the next year. Industry invaders now technology, deregulation and stock cost changes demands a  different kind of  a planning process which takes into consideration view of the business, its competitive environment in the future and also of the immediate short runs steps which must be achieved.

Corporate planning involves planning for an organization as a whole or as a body.   It is a systematic

approach to strategic decision-making. Corporate planning involves the acceptance that the company is not operating in a vacuum and that it is affected by what goes on in the world around it.  It also question – what do we have to do today to be ready for an uncertainly tomorrow?  Thus, a company’s ability to understand the external environment, make good forecasts and then choose a proper course of action that companies have been able to do this is the main thrust of the research, Imaga (2000:1)

1.2    STATEMENT OF THE PROBLEMS

The future is a problem for every business. All responsible managers see the continued existence of their organization as a prime management task.  None of us can really known what the future holds, however good forecasts, carefully we lay our plans, there still remains the thousand and one thing which we are unable to predict.

There cannot be a single chief executive who has devoted no time to thinking about where his company is

going and what it will be doing in the years ahead.  Yet there are many who give insufficient though to the future, who perhaps look at it occasionally through posy spectacles or with fears of the pessimist. Most companies have been known to run the risk of straying from their goals, engaging in attractive and multiple but unattainable activities. They lose their sense of purpose and direction and are often not prepared for changes in their dynamic environment.  Such companies because of the difficulty in adapting to the environment phase out as they come while others just manage to survive.

It then follows that a company that falls to plan automatically plans for its failure.  Most business enterprises fail not because they lack good employees, adequate capital or even sufficient business opportunities, but because their management lack adequate planning mechanism.  Many of them go into business without taking a realistic view of their strengths   and   weakness   let   alone   giving   a   careful

consideration to the economic trends or business conditions in that particular sector. The problem then is how companies can successfully adapt to their environment to ensure their survival and continued existence.

1.3    OBJECTIVE OF THE STUDY

Due to the ever-changing nature of the external environment, companies  are  now  faced  with  the  task  of having to adapt to the external variables that make up the large system. Plans made a year ago become meaningless the next year.   For proper adaptation, an organization is expected  to  make  plans  today  that  will  enable  them  to survive in the future.  Thus the objective of this research is to bring to linelight the necessity for effective and efficient corporate plan in an organization.  We would now try to look at:

a.      The extent to which companies got involved in corporate planning.

b.      Why corporate planning falls in some companies.

c.       The relationship between corporate planning and the        achievement  of  organizational  goals  and objectives.

d.      The top management must identify and specify aims and objectives for the entire enterprise.

e.      The need for physical and financial resources.

A study on corporate planning must be carried with directors and senior executives mainly in mind, but this is not to forget those who aspire to that level, or all those who wish to increase their understanding of company policy.  It is the hope of the researcher that the work will be a helpful guide to those who want to move with time.

1.4    STATEMENT OF HYPOTHESIS

Ho:   Non-clarity of an organization business mission and objectives has no influence on its ability to achieve organizational goals,

HI:    Non-clarity of an organization business mission and objectives has influence on its ability to achieve organizational goals,

Ho:   Monitoring and controlling of companies plan do not  reduce deviation form  planned courses  of action   and   does   not   lead   to   managerial efficiency.

HI:      Monitoring and controlling of companies plan reduces deviation from planned courses of action already leading to managerial efficiency.

Ho:   Flexibility is not necessary if a plan is to stand the test of time.

HI:    Flexibility is necessary if a plan is to stand the

test of time.

1.5    SCOPE OF THE STUDY

This study tries to cover the concept and process of planning.  It dwells mainly on corporate planning and how it

affects the  ability  of  an  organization to  use  its  available resources to achieve its organizational goal and objectives.

1.6    LIMITATION OF THE STUDY

Due to the nature of the topic the research focuses mainly on top management.  This on its own proved to be a problem because it was difficult to get some of the senior executives on seat.

Time and financial constraints limited the study to breweries with corporate headquarters in the Eastern part of the recreation.   Three breweries were used for the study namely Nigeria Breweries Gulder, Guinea Plc – Umuahia and consolidate Breweries.

1.7    DEFINTION OF TERMS BUDGET:

A   statement   of   expected   results   expressed   in numerical terms.

CORPORATE GOAL:

A long term often multiple future state of affairs which the organization is aiming at in fulfilling its mission Hussey (1971).

CORPORATE MISSION:

Hanser et al (1999) defines corporate mission as the broad purpose which the society within which the organization is operating expects it to serve.

DECISION MAKING:

Drucker, P. (1964) defines decision making as the art of choosing between two or more possible courses of action. EFFICIENCY:

Burgers, C. (1960) puts it that it is how well resources are utilized in pursuing various goals and performing various activities.

FORECAST:

Steiner, George (1967), the quantitative and qualitative estimate events or trends are those that one believes may occur in future.

GAP:

Daftly, I. (1979) puts it that the difference between a target and a forecast shows the extent to which one must take action to achieve the target.

OBJECTIVE:

Daftly, I. (1979) defines an objective as a very specific concrete, time-board, clear and quantifiable state of affairs, which the organization is pursuing. It is a sub-goal. STRATEGIES:

Loranse, Peter (1977) states that it is the determination of the basic long-term objectives of an enterprise and the adaptation of courses of action and allocation of resources necessary to achieve these goals.

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