EFFECT OF STRATEGIC PLANNING ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF FIRST BANK PLC)

Abstract:

The study investigated the effects of strategic planning on organizational performance with First Bank of Nigeria Plc Ilorin branch, as a case in hand; the aim is to know whether strategic planning has effect on the overall performance of the organization. The methodology that was used for the study is survey design and the target population was 100 members of staff of First Bank of Nigeria Plc Ilorin while the sample size was 89 which were determined using SPSS. The result of the analysis indicate that there is relationship between effective strategic planning and organizational performance and also that lack of accountability, lack of commitment and lack of understanding of the role in the execution process are challenges in the implementation of strategic planning and therefore recommend among others that Nigerian firms should give more serious attention to strategic planning and finally, employee welfare should also be given adequate attention for efficiency and effectiveness in organization.

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY:  

There is a purpose for existence of every organization whatever their type and composition. As such, its relevance within an environment or a larger society is to accomplish its goals, tasks, mission and function and reach its target. The level at which organization enhances its performance can be determined by the form of management tool adopted. This assertion was supported by the fact that a well coordinated management theory as a tool will help in understanding whether organization can enhance its effectiveness and productivity (Oyedijo, 1998). For enhancing organization performance, a strategic management and policy implementation as one of the key management theories play a major role. From this, the strategic management and policy implementation as tool is important as any other relationship, process or resources within the organization. An organization according to Hodge and Anthony, (1994) can b thought of as a group of two or more people working co-operatively towards a common objective or set of objectives. Schein (1993) also defined organization as the rational coordination of the activities of a number of people for the achievement of some common explicit purpose or goal through division of labour and function, through a hierarchy of authority and responsibilities. The main characteristics that are common to all types of organization are: objectives, task or activity, division of labour, hierarchical structure of authority and responsibility and input/output process.

The responsibility of improving organization performance rests on the type of management. Therefore, strategic management has the potential to drastically increase any organizations competitive position. Strategic decision making significantly affects the organization and often requires widespread changes, (Oyedijo, 1998). Strategic management and policy implementation on organizational effectiveness according to Cole (2000), focuses on the relationship of existing and emerging system and technologies to the manufacturing strategy and function related to operations planning and control. For organization to enhance high level performance, strategic management must be involved with its attendant role of formulating, implementing and evaluating cross functional decisions that enable    organization to achieve its goals and objective. Effective strategic decision making, therefore requires ability to understand the dynamic interrelationship of concept and the non-linear nature of complex system and an ability to see the long-term implication of decision critical to enhance organization performance through strategic management. Commonly employed strategy are those which employs a production plan that maintain  stable inventory level and the level employs varying the production rate to meet demand. Capacity utilization rates can be optimized when company combines the two capacity strategies (Ansoff, 1988). Crucial to the organization performance through the use of strategic management and numbers of variables. These variables could range from broad range of strategic issues, operational systems, the work force and organizational development. However, there are variations of these challenges from one organization to another. In pursuance to these performances, the organization and the management are challenged by variety of situation in material and human relations. These challenges are part of the variables related to enhancing organization performance and effectiveness prevalent (Lomash and Mishra, 2003). The impact of strategic management and policy implementing on organization effectiveness are relevant to this study.