This research study is centered on the impact of planning on the efficiency of an organization. Effective planning is economic efficiency of enterprise. Every business has a set goal.  This study is designed to motivate employees and provide a sense of unity to the various groups in the organization, since an individual unit is an integral part of the total organizational objectives. In other to achieve the purpose, the primary and secondary methods of data collection was used which consist of textbook, journals, newspapers and library archive. Simple percentage was used in presenting and analyzing the data and to test the hypotheses. It was therefore concluded that the attainment of the set objective of every organization depends on the effectiveness of management of such an organization. It was also recommended among others that the management should set to proper funding of the organization in order to enhance liability, liquidity, effective administration and going concern concept of the organization.




Title Page                                                                         i

Certification                                                             ii

Dedication                                                               iii

Acknowledgements                                                  iv

Table of Contents                                                     v

Abstract                                                                   vii

Chapter One: Introduction

1.1      Background to the Study                                                 1

1.2      Statement of the Problem                                        4

1.3      Research Questions                                                 4

1.4      Research Hypotheses                                               5

1.5      Purpose of the Study                                                       6

1.6      Scope of the Study                                                   7

1.7      Significance of the Study                                         7

1.8      Limitations of the Study                                          9

1.9      Operational Definition of Terms                                       10

Chapter Two: Literature Review 

2.1      Introduction                                                             12

2.2      Current Literature Review                                        13

2.3      Basic Element of Planning                                       14

2.4      Nature of Planning                                                   15

2.5      The Planning Process                                              17

2.6      Types of Planning                                                    21

2.7      Effective Planning                                                    23

2.8      Planning Precedes all other Managerial Functions 24

2.9      Characteristics of Effective Planning                                26

2.10  The Role of Effective Planning in an Organization   28

2.11  Factors Militating Against Effective Planning in an Organization                                                             30

        Chapter Three: Research Methodology

3.1      Research Design                                                      33

3.2      Population of the Study                                           33

3.3      Sample Size/Sampling Technique                           33

3.4      Instrumentation/Materials                                      34

3.5      Data Collection/Analysis                                         34

Chapter Four:  Data Analysis, Interpretation and Discussion  

4.1      Data Presentation                                                    35

4.2      Test of Hypothesis                                                   46

Chapter Five: Summary, Conclusion and Recommendation

5.1      Summary                                                                 51

5.2      Conclusion                                                              53

5.3      Recommendations                                                   54

References                                                               58

Appendix I                                                               59

Appendix II                                                              60











1.1      Background to the Study

Planning is the most basic aspect of all management functions. It involves selecting the best course of actions from the alternative available to the organization. Every organization has set goals or objectives and planning identifies the course of action that will lead to the attainment of the set goals.

It is imperative for managers to plan how to achieve objectives after establishing them. It should be realized that objective are necessary perquisite for planning if we must realize our desired goal. Especially when a person is confronted with alternative courses of action he is forced to make a choice.

Planning bridges the gap between where one is and where one is likely to be in future. It makes it possible for things to happen which would not otherwise happen. The manager is able to anticipate the possible effect of forces which could change the objective of the organization. Planning is therefore the blue-print for action. A businessman who wishes to enter into any business has to engage in detailed planning in order to identify the source of raw material, equipment, determine delivery, source of manpower supply and in most cases, source of working capital etc.  

Planning is an intellectual demanding process. It requires the conscious determination of action, and the basing of decision on purpose, knowledge and considered estimates. Planning is particularly very important in developing nations where resources are relatively scarce. In Nigeria for example, where many of the businessmen are inexperienced and their academic perception is low, planning helps to prevent waste of resources.

Many projects have failed in most developing countries because adequate plans were not made to identify all the various unforeseen obstacles likely to affect the business. some people have narrow concept of their business and consider it unimportant to plan, because they believe they cannot control most of the variables. To these groups of people, planning is not a necessity; failure to plan therefore gives rise to inefficiency and lack of direction. It thus makes a businessman to be a fire-fighter instead of preventing its occurrence. Planning for a Nigeria enterprise could mean identifying what business plans to do in terms of growth, developing its share of the volume, nature of investment, identifying operating strategy for marketing plans. For example, planning helps a manager to determine how many employees he must have, the level of skills and experience, the salary levels and the best way to utilize them efficiency. Planning, therefore, is a pre-condition for better result.

The concept of planning is to identify what the organization wants to do by using the four questions which are; where are we today in term of our business or strategic planning? Where are we going? Where do we want to go? How are we going to get there?   


1.2      Statement of the Problem

Despite the obvious benefits planning brings to an organization, many obstacles to effective planning are still identified as follows;

1.          Many organizations as a result of absence of relevant data are accurate analysis of such data.

2.          High rate of business failure, ineffective planning lead in most cases to business failure.

3.          Low productivity; productivity is generally low in most organization with effective planning.

4.          Inadequacy of basic planning statistics with which planning processes would be based to facilitate stand in the forefront against effective planning in Nigeria. 

1.3      Research Questions

As a result of the drawback in management efficiencies and effectiveness, most organizations ask the following questions;

1.          Does planning actually provide a basis for directing and guiding enterprise?

2.          Does planning help to motivate employees and provide a sense of unity to the various groups in the organization?

3.          How does planning embodies the basic ideas and theories concerning organization?

4.          Will regular planning increase the efficiency of an organization?

5.          Is there any relationship between planning and efficiency in an organization?

1.4      Research Hypotheses

The following hypotheses would be tested based on the data collected.

Hypothesis 1

Ho:  The more planning organization do, the lesser the efficiency of employees.

HI:    The more planning organization do, the better the efficiency of employees.

Hypothesis 2

Ho:  The success of organization does not depend largely on the planning procedures adopted.

HI:    The success of organizations largely depends on the planning procedures adopted.

Hypothesis 3

Ho:  Adoption of planning technique will automatically decrease the productivity of workers.

HI:    Adoption of planning techniques will automatically increase the productivity of workers.

1.5      Purpose of the Study

The purpose of this research study is to ascertain the level of planning efficiency in an organization thus;

1.          Planning provides a basis for directing and guiding the enterprise and thus provides targets which enable efforts to be observed and aided.

2.          Planning helps to motivate employees and provide a sense of unity to the various groups in the organization, since an individual unit is an integral part of the total organizational objectives.

3.          Planning embodies the basic ideas and theories concerning what the organization is trying to accomplish.

4.          Planning improves business control by setting detailed standard for performances and detailed analysis of vacancies.

5.          Planning helps management to clarify focus and research their business or projects development and prospects.   

1.6      Scope of the Study

This research work focuses on the impact of planning on the efficiency of four (4) selected organizations in Edo State, Nigeria using questionnaire and direct interview. And also covers the relationship that exists between planning as a management tool and efficiency.

1.7      Significance of the Study

Effective planning helps organization to improve their performance and profitability thus;

1.          Planning helps organization to succeed: Organization that has introduced planning programmes has been found to significantly out-performed and better than when their planning was poor.

2.          Planning provides directions and sense of purpose: Without planning, organization would merely react to day to day events in their environment, but with effective planning, attention is focused on stated objectives.

3.          Planning helps managers cope with changes in the environment within which an enterprise is located. It also helps the organization to cope with change in government policies, consumer behaviour, technology etc. Through planning, a manager is able to anticipate and prepare for possible future changes.

4.          Planning contribute to the performance of other management functions. Planning sets the stage for the execution of all the other managerial functions.

5.          Planning makes activities orderly and purposeful; planning directs all efforts towards expected result. By do doing activities and event are sequentially achieved. This reduces unproductive efforts and creates a distinction between performance and actual success.    

6.          Planning facilitates the effective use of facilities; through planning, managers make a greater use of available resources and facilities planning enhance optimum utilization of available resources. 

1.8      Limitations of the Study

For the purpose of this research study; the researcher focuses its attention on the impact of planning on the efficiency of the organization. 

In the course of this research work, the researcher encountered series of problems ranging from time constraint, financial constrain and poor response from those interviewed.

·                    Time Constraint: The time allocated to carryout this research study was too short coupled with other logistic problems.

·                    Financial Constraint: having considered the financial involvement and other incidental expenses needed in sourcing for the necessary information. The researcher was constrained to progress further with the investigation.    

1.9      Operational Definition of Terms

1.          Planning: It entails deciding in advance what to do, how to do it, when to do it and for whom to do it.

2.          Management: It is a process of achieving desired results through the efficient utilization of human and material resources. 

3.          Effective planning: It involves selecting the best course of action from the alternatives available to the organization in order to produce a statistical result.

4.          Strategy: It denotes a general programme of action and a deployment of emphasis and resources towards the attainment of the over-all objectives.

5.          Efficiency: It is referred to as the ability to perform a duty well and produce a statistical result.

6.          Control: It is a process of measuring and correcting actual performance to ensure that plans for implementing the chose course of action are carried out.

7.          Organization: An organization could be seen as a process of coordinating individual effort to accomplish a common objective.  

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