ABSTRACT
Planning is the most basic managerial
function. When done properly, it sets the direction for the organizing,
leading, and controlling function. planning is the formal process of (1)
choosing the organisation’s vision, mission and overall goals for both short
run and long run, (2) devising divisional, departmental and even individual
goals based on organizational goals, (3) choosing strategies and tactics to
achieve those goals, and (4) allocating resources (people, money, equipment,
and facilities) to achieved the various goals, strategies and tactics.
If undertaken properly, planning
should assist in (1)identifying future opportunities, (2) anticipating and
avoiding future problems, (3) developing courses of action (strategies and
tactics), and (4) understand the risk and uncertainties associated with various
options. Thus, the organisation will have a better chance of achieving its
general goals.
In some organisations such as Lapo
Microfinance Bank, the strategic planning process includes contingency planning
which helps the bank prepare for unexpected and rapid changes in the
environment which can be positive or negative.
CHAPTER ONE
1.1 GENERAL INTRODUCTION
One prominent scholar and writer on management “Mary Packer
Follet” defined management as “the act of getting things done through people”.
Thus management carry out their functions of planning, organizing, directing,
controlling, staffing, etc of both human and material resources in an organization through people.
In modern days management has metamorphosed into strategic
management with emphasis on how strategic management which involves strategic
planning and can be used to foster organisational growth. There has to be
proper planning, controlling, staffing, etc of activities to ensure the
judicious use of resources and to operate efficiently, producing the desirable
result and this has to be done strategically. This is necessary because without
the proper use of their functions the organization will not survive, and in
survival, two strong and opposite view must exist, which are the classical and
the non classical views.
Also with the introduction of strategy to management roles,
we will now see how these strategies will greatly impact on the organization
goals and achievements. As management performs its role strategically,
organisational growth is enhanced in the process.
In this write-up, the researcher intends to identify the
problems and views of how some managers look at the term organisational growth,
looking at the models and making recommendation on the best of the models.
Finally, in the managerial aspect the researcher will
concentrate on the basic strategic roles which will yield good result in an
organization.
In promotion, we shall see how these strategies applied leads
to the promotion of organisational growth. We shall see how strategic planning
is the prerequisite of management to discharge its functions in Lapo
Microfinance Bank.
1.2 PURPOSE OF THE STUDY
The specific purpose of the study is to examine the role of
the strategic planning on the promoting organisational growth. To this end the
researcher shall examine the basic strategic roles or responsibility that
management would apply in the implementation of strategic planning, the reason
and those aspects of strategic planning that should be embarked upon by the
company.
Secondly, organizations should bear it in mind that it is to
foster organisational growth without which the activities of the industries may
not be enhanced and profit may be slow. This involves the entire top management
including the board of directors of the company to ensure all hands are on
deck.
Thirdly, every business organization
like Lapo Microfinance Bank engage in some form of planning or the other which
is crucial to any business success. Planning is the most fundamental aspect of
management, without which the organisation will fail and objectives will not be
achieved. The scope and complexity of strategic planning, strategy formulation,
and strategic decisions vary from organisations to organisation. They depend
primarily on the amount of diversification and level within the organisation
which strategic planning takes place and strategic decisions are made.
With these assertions, this will
create an avenue to some managers and directors who do not regard strategic
planning as a vital function of management.
Finally, the philosophy behind the
concept of strategic planning is that the private sectors will have to change
their model of operation. Management effectiveness requires a conscious
orientation which will be governed by the strategic plans which will in turn be
of great advantage to the firms.
1.3 STATEMENET OF THE RESEARCH PROBLEM
There is no unanimity of agreement over the meaning attached
to the concept of business strategic planning. This lack of oneness in the
interpretations of the concept is reflected in the different countries that
understood it.
In some studies and opinion surveys in Britain and North
America, some people’s views about their understanding of business strategic
planning were bought. Naturally, some businessmen see strategic planning as
delivering the goods and making a profit, others regard it as obeying strictly
the laws of the land in the course of their business activities.
In general, two strong opposite views exist: there is the
classical notion that strategic planning means that business should strive to
be efficient in their production. It is argued that lack of effectiveness
threatens the survival of business and that business liquidation represents a
loss on national income and a waste on natural resources.
In other words, the core of business responsibility calls for
business using the resources entrusted on them by society so well that more
socially desirable resources are generated. One measure of the desirability of
product is the price consumers are willing to pay for it. In many business
situations profit will be a good indicator of “value added”. For the sake of
brevity, we shall style this core concern of strategic planning as “business
growth”.
Finally, In some organisations such
as Lapo Microfinance Bank, the strategic planning process includes contingency
planning which helps the bank prepare for unexpected and rapid changes in the
environment which can be positive or negative. And can have a large impact on the organisation and require
a quick. This process begins with managers developing a scenario of major
environmental events that could occur. A contingency plan for a negetiv
dramatic event could be developed for responding to a disaster (e.g, an
earthquake, flood, or fire outbreak in the firm). Similarly, a contingency plan
for a positive dramatic event could be developed for responding to customer
demand for products that overwhelms the firm’s current capacity. Contingency
planning forces managers to be aware of possibilities and outline strategies to
respond to them. It supports orderly and speedy adaptation, in contrast to
panic-like reactions, to external events beyond the organisation’s direct
control.
1.4 RESEARCH HYPOTHESIS
Two hypothesis have been formulated in the course of this
research,
Ho: That there is no significant
relationship between strategic planning and the promotion of organisational
growth.
Hi: That strategic planning promotes
organisational growth.
1.5 SCOPE AND LIMITATION OF THE STUDY
This study has been designed so as to concentrate on an
explanation of the activities of Lapo Microfinance Bank. It therefore covers
the following specific areas:
·
The
strategy implementation by management.
·
To
find out how management promotes strategic planning.
·
The
category of people who engage in strategic planning.
·
The
organizations strategic planning style.
·
Types
of strategic planning and strategy.
·
Our
study is limited to the roles of strategy planning in promotion of
organisational growth.
1.6 SIGNIFICANCE OF THE STUDY
The study will highlight the importance attached to the
strategic way of promoting strategic planning to any organization.
The study will purposely serve as an instrument in the
improvement of strategic planning which will ensure the profit generation and
company expansion of a firm and its ability to use its strength to overcome its
weaknesses as well as manage the changes within ots external environment.
The study will be most beneficial to corporate firms in
learning the various ways strategic planning can be applied. Managers and
directors of firms will learn the various corporate, business and functional
level strategies that are applicable to ensure and guarantee growth.
Finally, the general public that would read this project will
find it beneficial and understand the importance of the strategic planning on
organisational profit of which they are stakeholders.
1.8 DEFINITION OF TERMS
1. STRATEGY
(Roberts and Edward (1999) is a broad based plan to achieve the goals objective
of organization as the most generated plan. Another definition (Sharon M. Oter
Professor, Yale University) it is a commitment to undertake one set of action
rather than other.
2. STRATEGIC
MANAGEMENT (According to Author A. Thompson Jr. strategy management) it is
management game plan for strengthening the organization position, pleasing
customers and achieving performance target.
ANSOFF AND DONNEL (1990) Define strategic management
as a systematic approach for managing strategic changes which leads to a goal
achievement.
3. MANAGEMENT
(William F. Chuck) in principle of management as the effective utilization of
human and material resources to achieve organization objective. Management also
is defined by Mary packer Follet as the way of getting things done by people.
4.
PLANNING A
formal process of choosing an organisational mission and overall goals for both
the short run and long run, devising divisional, departmental and even
organisational goals; formulating strategies and tactics to achieve those
goals; and allocating resources (people, money, equipment, and facilities) to
achieve the various goals, strategies and tactics.
5. STRATEGIC PLANNING Strategic
planning is the process of (1) analyzing the organisation’s external and
internal environments (2) developing a mission and a vision, (3) formulating
overall goals, (4) identifying general strategies to be pursued, and (5)
allocation resources to achieve the organisation’s goals.