Managerial Planning and Its Effectiveness

Abstract

The main aim of this study was to explore the effectiveness of managerial planning in the performance of the organization. This study used the deductive approach of the research technique, whereby the theory and the hypotheses were formulated after going through the relevant literature. Also, a quantitative research method was used to test the hypotheses that were formulated. The data were collected from a sample of 450 respondents, and analysis was done using statistical tools. The findings of this study have revealed that management planning has an impact on the performance of the organization.

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With proper managerial planning in place, the organization is bound to have a high return on assets. In addition, proper managerial planning is associated with high profits and efficient use of resources. Managerial planning also helps an organization to manage risk and uncertainty and also creating a competitive advantage for the organization.

Introduction

Overview

This chapter covers the background to the study, problem statement, research objectives, and hypotheses and the significance of the study.

Background to the study

The topic of managerial planning started to be explored by researchers in the 1940s; this has extended to the present-day studies. Hart (1967, p. 32), in his study, attributed the concept of managerial planning to have emerged during the industrial revolution. The theory of the SWOT analysis was later introduced in managerial planning. SWOT analysis entails the analysis of ‘Strengths’, ‘Weaknesses’, ‘Opportunities’, and ‘Threats’ of an ideology. The concept of the SWOT analysis is still adopted today in strategic planning.

Planning is a concept that has very many benefits to the organization. Planning gives direction to the managers and guides them towards the correct path to follow in order to realize the short term and long term goals of the organization. This enables the organization to grow and expand in an advanced manner. Planning enables the managers to forecast or predict the future position of the business because it reduces uncertainty.

With a proper plan in place, the managers will be able to stick to the plan and predict the likely outcomes. In a nutshell, planning enables the managers to look ahead as they expect changes in the organization. They are in a better position to evaluate the impact of the anticipated changes and come up with the relevant responses. Planning has the effect of helping the organization to reduce the wastage of resources in the workplace (Shuman, Shaw & Sussman, 1985, p. 50).

This is by ensuring that the operations of the business are in conformity with the strategies and the mission of the business. Planning makes it possible to identify and eradicate the inefficiency of the employees at the place of work. Planning is also responsible for setting up standards in the organization. These standards define the way in which the organization can be controlled so as to ensure that the goals of the organization are met.

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Statement of the problem

Managerial planning involves setting up of goals of the organization. In addition, it entails outlining in detail the strategy to employ in order to realize the set goals for the organization. Planning involves creating activities that are in conformity with the activities in the organization. These activities normally justify the end result that has been created by the means. Planning can be divided into two categories, for instance, informal planning and formal planning.

Informal planning is abstract planning that is executed without being written down. Normally it focuses on the short term as it is so specific to an area of the organization. Formal planning, on the other hand, is the kind of planning that is written down in advance. It focuses on the long term objectives of the organization as it entails the shared goals of the organization.

Objectives of the study

The general objective of this study was to determine the effectiveness of managerial planning in the performance of the organization. In line with the general objective, the study examined the following specific objectives:

  1. To explore the effect of managerial planning on higher profits;
  2. To determine if managerial planning has an effect on managing risk and uncertainty;
  3. To ascertain whether managerial planning influences the efficient use of resources;
  4. To ascertain whether managerial planning influences the return on assets;
  5. To explore the effect of managerial planning on creating a competitive advantage.

Research Hypotheses

In order to meet the above objectives, the following hypotheses were tested:

  1. Ho1: Managerial planning does not contribute to higher profits;
  2. Ho2: Managerial planning has no impact on managing risk and uncertainty;
  3. Ho3: Managerial planning cannot contribute to the efficient use of resources;
  4. Ho4: Return on assets is not determined through managerial planning;
  5. Ho5: Managerial planning does not create a competitive advantage for the organization.

Justification of the Study

The findings of this study are of great value to policymakers. It provides the policymakers with a wide exposure with regard to the assessment on the effectiveness of managerial planning in the performance of organizations, thus enabling them to adopt the relevant strategies in line with the situation. The findings of this study also add to the body of knowledge of related studies concerning the effectiveness of managerial planning.

Scope of the Study

The scope of this study was in line with the general objective, which was to determine the effectiveness of managerial planning in the performance of the organization. Using primary data and applying statistical techniques, the study explained the variables to meet the research objectives.

Literature Review

Introduction

The main aim of this study is to explore the effectiveness of managerial planning on the performance of the organization. This chapter will, therefore, explore managerial planning and provide a clear understanding of the same. This chapter will, therefore, review the related literature and empirical data in regard to the subject matter.

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Managerial planning

Managerial planning has a direct effect on the performance of the organization. The high profits that are gained by an organization are attributed to well-executed managerial planning. Therefore, formal planning in business is associated with progressive financial results (Glaister & Falshaw, 1999, p. 110). There are two aspects of planning, for instance, the quality of the planning and the extent of the planning. Various scholars have argued that it is the quality of planning that impacts the organization more than the extent of planning impacts it. Planning in an organization can be affected by external factors like government regulations. These regulations have an effect of suppressing the influence of planning to the performance of the business.

Elements of planning

Various scholars have identified two elements of planning, for instance, the goals or objectives of the organization, and the plan of the organization. The goals of an organization refer to the outcome statement that indicates clearly what the organization is to achieve. The goals can either be in line with the programs of the organization or the structure of the organization. The objectives of the organization on the other hand refer to the activities within the organization that support the attainment of the goal. It is mandatory that the objectives of the organization be linked to the goal. In addition, the objectives should also be precise and easy to comprehend (Glaister & Falshaw, 1999, p. 111).

The objectives should also give a timeline for the attainment of the goals and also be measurable. Therefore, this implies that the goals of the organization cannot be attained if there are no clearly defined objectives.

Other scholars argue that a goal is an anticipated result that is wished-for by an organization. Many organizations set deadlines for the attainment of the goals. Many organizations have the goal of providing the best quality services or goods to the final consumers by using the minimum cost of production and in the process earning greater revenue (Shuman, Shaw & Sussman, 1985, p. 52). The goals of the organization, therefore, reflect the anticipated results of the organization. With this, the organization will be provided with a clear direction towards the attainment of the objectives. It is therefore important for the organizations to identify the targeted results before devising plans to meet them.

An organizational plan is a framework that outlines the various preferred ways of attaining the goals of the organization. The organizational plan involves setting up of the objectives of the organization (both long term and short term) and then advances an approach for meeting the goals. Organizational plan is an element of planning which provides direction for the organization to adhere to (Ruocco & Proctor, 1994, p. 26).

The plan also stipulates on how to share the organization’s resources or allocate them to realize an optimum production, thus, achieving the set goals within the set time frame. Managerial planning therefore entails setting up of organizational goals and devising the organization’s plans to act as a roadmap to give direction on how to meet the goals. The figure below outlines the various types of plans that can be adopted by an organization.

Types of organizational plans.
Figure 2.1 Types of organizational plans.

Types of organizational goals

The types of organizational goals vary from one organization to the other. Organizational goals are the anticipated outcomes that an organization envisions to realize (Sapp & Seiler, 1981, p. 34). In a privately owned business, the goals are set individually by the owner of the business. On the other hand, when it comes to a big organization, the goals are set by the members of the organization through a unified agreement. Therefore the goals cannot be the same across all organizations.

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Official goals

The official goal of an organization is the formal statement that is stipulated in the motto of the organization. The statement identifies the long term goal of the company; it is what the company is known for in the market. The management of the organization normally gives emphasis to this statement every now and then as it is associated with the culture of the organization (Sapp & Seiler, 1981, p. 34). The official goal is recognized to be the primary goal of the organization and there are other secondary goals that help to achieve this primary goal.

Operative goals

An operative goal is the result that an organization seeks to attain through the stipulated policies of operations in the organization. Every organization has different policies of operations that provide varied results to them. It is worthy to note that in large organizations, there is a likelihood of conflicting goals because large organizations are associated with many goals (Sapp & Seiler, 1981, p. 34).

Product goals

An organization can also have production goals whereby it clearly defines the allowed quality standard of its products and services, the standard price of the products and services, the variety of products or services to be offered, and the presentation of the products or services (Sapp & Seiler, 1981, p. 34).

Financial goals

The financial goals of an organization are concerned with the anticipated financial position of the organization in regards to its performance. The management always plans in advance the future financial capacity of the organization. This is in regards to the total assets and total liabilities. For a good financial position, many organizations aspire to have assets greater than the liabilities (Ackoff, 1970, p. 33).

Strategic goals

The strategic goals of an organization are in line with the performance of the organization, subject to various constraints, for instance, government regulations, competition from other organizations, and other external factors (Alreck & Settle, 1985, p. 26). Strategic goals are well calculated and timed for the sustainability of the organization.

Types of plans

Organizational plans can be described according to various ways, for instance, according to the scope of the plan, according to the set deadline, according to the specificity, and according to the regularity of use (Gitman, 2000, p. 47). A summary of the organizational plan is detailed in Figure 2.1 above.

Strategic plans

Strategic plans are pertinent to the entire organization. These plans are very important due to the fact that the primary organization’s goals stem from it. Strategic plans are useful for the organization as the plans position the organization in the right place at the right time in regards to the nature of the operating environment. The strategic plans are normally extensive and always are long term in nature (Alreck & Settle, 1985, p. 33).

Operational plans

The operational plans of an organization are very important as well. These plans normally provide a framework that stipulates how the primary goals will be attained. The operational plans are not as broad as the strategic plans as they are on a short term basis (Alreck & Settle, 1985, p. 34).

Long term plans

The long term plans of an organization are scheduled with timelines that span more than 3 years (Alreck & Settle, 1985, p. 34).

Short term plans

The short term plans of an organization are scheduled with timelines that do not go beyond one year (Alreck & Settle, 1985, p. 35).

Specific plans

Specific plans of an organization are plans which are unmistakably well-defined; they can never be misinterpreted neither can they be misunderstood. These plans are very specific and precise in nature as they are on point (Alreck & Settle, 1985, p. 35).

Directional plans

Directional plans are unlike the specific plans. These plans can be changed from time to time in the course of the implementation. The main aim of the directional plans is to provide a general outlook and allows for freedom of choice in the implementation process (Alreck & Settle, 1985, p. 35).

Single use plan

The single use plan is a type of a plan that is generated and aimed to sort out an exclusive situation. The plan is solely intended for the particular situation at hand (Alreck & Settle, 1985, p. 35).

Standing plans

As opposed to the single use plan, a standing plan is a plan that is ongoing, and it is meant to sort out the activities that are carried out repeatedly in the organization (Alreck & Settle, 1985, p. 37).

Developing organizational goals and plans

The top management is responsible for setting the goals of the organization. Normally, it is not an individual decision, but the board members in the organization set the goals through a consensus (Shuman, Shaw & Sussman, 1985, p. 55). After setting the primary goal, the management divides it into sub-goals and assigns each sub-goal to a particular level in the organization’s structure. The top management participates fully in this process due to the fact that they have the future of the organization at heart.

The management uses the goals to offer guidance to the organization in order to provide a clear direction in regards to the sustainability of the organization. At the lowest level of the organization’s hierarchy, the employees at this level tend to lose focus on the clear interpretation of the goals (Shuman, Shaw & Sussman, 1985, p. 55). Figure 2.2 provides a summary of a traditional goal setting.

Traditional goal setting.
Figure 2.2. Traditional goal setting.

In order to achieve the organizational goals in the higher level, it is required that the organizational goals in the lower level should first be achieved. This is because, when the lower level goals are achieved it provide a means to achieve the highest level goals (Ruocco & Proctor, 1994, p. 28).

Management by objectives

Management by objectives is an instance whereby both the employees and the management participate together in formulating the organizational goals. There is always a constant progress in regards to the efforts to achieve the goals. All the stakeholders at the various levels are rewarded according to how they attain the goals. Management by objectives stipulates specific goals and encourages everyone to participate in the decision making process. In addition, this type of management creates an avenue for assessing the performance of the organization and generates feedbacks.

Management by objectives first starts with the formulation of the general goals and the objectives of the organization. The next step is to allocate the main objectives to the various heads of departments or units. The heads of the units or departments, then streamline the overall objectives with their specific objectives at the departmental level. These specific objectives are set in consultation with the other members of the unit or department.

The managers and the employees then devise the action plans which clearly stipulate on how to attain the set specific objectives. After that, the action plan is rolled out, which is followed by a constant review of the implementation process in order to generate appropriate feedbacks. The management finally takes the initiative to reward the effective performers who have achieved the same (Ruocco & Proctor, 1994, p. 27).

Management by objectives normally has the full support of the top management. In as much as management by objectives is effective, it has certain problems that arise. First, in a flexible environment where the organization resets the organizational goals, from time to time, management by objectives cannot apply smoothly. In addition, the team work spirit in the organization can be compromised due to the fact that management by objectives largely gives more emphasis to the achievements of a specific individual. Also the management by objectives entails a lot of review and assessment every now and then, thus, making it to be prone to much paperwork (Ruocco & Proctor, 1994, p. 25).

Distinct characteristics of goals

A well designed goal should be stated in terms of results, rather than the process. Goals normally concentrate on the end result, rather than the formula to achieve it. Secondly, a well-designed goal can be calculated or counted; the goals will outline how the results are calculated and what to anticipate. Thirdly, a well-defined goal should be precise in regards to the set deadline; it clearly stipulates how much time it should take before the evaluation process begins.

The fourth point is that the goal should be puzzling, but achievable. Highly set goals provide a sense of motivation for the organization, as opposed to lowly set goals that discourage rather than motivate. Lastly, a well-designed goal should be conversed to all the relevant stakeholders in the organization. Everybody in the organization should be well versed with the goals to avoid conflicts and confusion (Glaister & Falshaw, 1999, p. 110).

Steps in setting of organizational goals

Setting of organizational goals is not just a one-time thing; it is a complex process that involves various stages. The first step is to analyze the mission statement of the organization. The identified goals should clearly reflect the mission of the organization. The next step is to assess the available resources if they are in a position to support the attainment of the goals. The third step is to decide the goals on a personal level or together with the colleagues.

The goals must be specific, quantifiable and appropriate. After that, the goals are written down and conversed to the appropriate stakeholders who are supposed to be versed with them. Writing the goals down emphasizes the relevance and the value of the goals of the organization. The final step is to examine the results in regard to the performance of the organization. This will provide an opportunity to change or reset the goals that are not performing (Glaister & Falshaw, 1999, p. 111).

Research Methodology

Introduction

Methodology is the process of instructing the ways to do the research. It is, therefore, convenient for conducting the research and for analyzing the research questions. The process of methodology insists that much care should be given to the kinds and nature of procedures to be adhered to in accomplishing a given set of procedures or an objective.

Research design

There are three types of research design: exploratory research, descriptive research and causal research. Exploratory research mainly explores on the nature of the problem in order to draw inferences. In this scenario, the researcher is in a good position to understand the problem under investigation. The flow of exploratory research involves identifying the problem and seeking to find the appropriate solutions and new ideas (Anderson, 2000, p. 198). Exploratory research is mostly applicable in circumstances where the structure of the research problem is not definite.

On the other hand, descriptive research is mostly applicable in circumstances where the structure of the research problem is explicit. This kind of research is used when the researcher expects to distinguish the various observed facts in a sample or a population (Glaister & Falshaw, 1999, p. 114). In addition, descriptive research is normally used by the researcher when he has a prior understanding of the problem under investigation.

Causal research is the kind of research whereby there is a clear structure of the research problem. In this case the researcher is interested to explore on the cause-effect relationship. The causes are identified, analyzed and the extent of the effects is reviewed (Anderson, 2000, p. 198).

Research techniques

There are two principal techniques that are popular in the field of research. These approaches are deductive approach and inductive approach (Glaister & Falshaw, 1999, p. 114). The distinguishing factor between the two approaches relates to the building of the theories. In the deductive approach, the hypotheses and theory are constructed after exploring on the available relevant literature. In the inductive approach, the theory is constructed after the data has been explored and analyzed. This study used the deductive approach; whereby the theory and the hypotheses were formulated after going through the relevant literature.

Data collection

In any research that is conducted, there are basic stages that are involved in regards to the shaping of the research. These stages include: understanding the research problem, the conceptual framework of the research, data collection, data analysis and interpretations, and drawing of inferences and making recommendations. In this study, quantitative research method was used to test the hypotheses that were formulated.

Sources of data

There are two broad categories of data sources, for instance, primary data and secondary data. This study used both primary and secondary data. Primary data is whereby the researcher collects first-hand information which does not already exist in any form. Secondary data is whereby the researcher uses information that is already in existence. Secondary data were used in the literature review whereby the past data/information was used to present the theories of this research. The data were collected from textbooks, journals, relevant articles and the internet. Primary data on the other hand was used through the administering of questionnaires, interviews and observation.

Reliability and validity

The validity of the data represents the data integrity and it connotes that the data is accurate and much consistent. Validity has been explained as a descriptive evaluation of the association between actions and interpretations and empirical evidence deduced from the data. Reliability of the data is the outcome of a series of actions which commences with the proper explanation of the issues to be resolved (Glaister & Falshaw, 1999, p. 114).

Questionnaire construction

The first three questions in the questionnaire sought to find information in regards to the demographic attributes of the respondents. The questionnaires were issued to 450 respondents who were mainly employees in the organization under study. The participants’ responses were treated with much confidentiality.

Focus group

A focus group consists of a small number of respondents (for instance a group of six to ten respondents) who have the same interest of seeking information on some given issues. In this study each respondent in the focus group was asked to describe their perceptions on employees’ resistance. The responses were recorded by the researcher for further analysis.

Interviews and coding

Interviewing is another mode of gathering information. The advantages of using the interview for data collection are that it can get full information, know the respondent, and it is really pliant. On the other hand, the disadvantages are that it consumes time, it is expensive, and it may result in bias since it is subjective (Glaister & Falshaw, 1999, p. 114). An unstructured interview is an interviewing process whereby the interview questions are not scheduled in advance; the interviewer asks random questions in the course of the interview process. Out of the sample of 450 respondents, 100 respondents who were mainly the top managers were interviewed. The interview process lasted for 30 minutes.

Coding is the process of categorizing both quantitative and qualitative data in the process of analysis. The data is converted for processing by statistical software in the computer such as SPSS and SAS together with spreadsheets, for instance, Excel. The data is converted into a form that can be taken in by the statistical software. Different codes are allocated to different categories in a consistent manner (Glaister & Falshaw, 1999, p. 114).

Sampling procedure

There are two popularly used procedures for sampling. The sampling procedures include prospect sampling and non-prospect sampling. In a probability sampling procedure, the samples are representative of the population. This is because all the entries have a chance of being selected. On the other hand, items in the non-probability sampling do not have an equal chance. In this scenario, all the items in the population do not have equal chances of being selected.

The data for the study was collected among the employees of the organization under study. Due to the fact that all the employees could not be accessible, a non-probability sampling procedure was employed in this study. In total, 450 questionnaires were issued in this study for data collection. Out of all the issued questionnaires, only 237 got a positive response.

Pre-test study

A pilot test was conducted in order to ensure that the questionnaires were reliable and valid. The test was conducted with a sample of fifty respondents. The respondents were not aware that it was a pre-test. After the pre-test, the questionnaire was edited by removing and changing some words. A pre-test was done again to ten additional respondents just to be sure that the questionnaire was now very reliable and very valid.

Limitations of the study

There have been a lot of concerns on additional budgetary expenses for collection of the data, regardless of whether the gathered data is really genuine or not and whether there may be an explicit conclusion when interpreting and analyzing the data. In addition, some employees were reluctant to offer some information they deemed confidential and unsafe.

Findings, Data Analysis and Interpretation

Introduction

This section covers the analysis of the data, presentation and interpretation. The results were analyzed using SPPS, ANOVA, regression and correlation analysis.

Descriptive statistics

Biographical information

237 respondents (52.6%) of the expected 450 respondents completed the questionnaires. The respondents had varied age distribution which is summarized in the Figure 4.1 below. The respondents were the employees in an organization.

Age distribution of respondents.
Figure 4.1 Age distribution of respondents.

The figure indicates that many respondents were from the age group 40-49 years (43%, n=101). This was followed by respondents in the age group 30-39 years (24%, n=57). The third largest age group was 50-59 years, which had 55 respondents (23%). The age group under 30 years had the lowest number of respondents (10%, n=24).

An analysis of the gender of the total respondents was made. The gender distribution is summarized in Figure 4.2 below.

Gender distribution.
Figure 4.2 Gender distribution.

The figure indicates that many respondents (60%, n=142) were female, whereas only 40% (n=95) were male employees.

An analysis of the employee qualification was made. The qualification level is summarized in Figure 4.3 below.

Employee qualification distribution.
Figure 4.3 Employee qualification distribution.

The figure shows that many employees (54%, n=128) hold Bachelors degrees. This was followed by employees who had Higher diplomas (18%, n=42), Diploma holders (16%, n=39) and Masters degree holders (12%, n=28) in that order.

An analysis of the employment category of the respondents was done. The employment category is summarized in Figure 4.4 below.

Employment category distribution.
Figure 4.4 Employment category distribution.

The figure shows that the majority of the respondents (55%, n=130) was employed on a permanent basis. This was followed by 89 respondents (37%) who were temporarily employed. Only 8% (n=18) of the respondents were employed on contract.

Summary of descriptive statistics

Descriptive statistics using the measures of central tendencies were computed from the results gathered from the questionnaires. The questionnaires focused on the effectiveness of managerial planning on the performance of the organization.

Summary of results

Respondents who were majorly employees in the organization were issued with questionnaires in order to express their responses regarding the methods of handling the employees’ resistance. The summary of the results is in Table 4.1 below. The results show that from the sample of 237 respondents, the mean for the relationship between managerial planning and higher profits is 113.20 with a standard deviation of 14.30.

From this computation, it can be deduced that many employees believe that effective managerial planning has a long term effect of increasing the profits and revenue of the organization; this is indicated by the higher value of the standard deviation. In addition, the calculated arithmetic means for the relationship between managerial planning and return on assets, efficient use of resources, and creating competitive advantage are less than the calculated arithmetic mean for the relationship between managerial planning and managing risk and uncertainty.

Managerial planning has more effect in managing risks and uncertainty (Mean=127.20, SD=15.30) than creating competitive advantage (Mean=114.35, SD=14.22), efficient use of resources (Mean=103.10, SD=10.80), and return on assets (Mean=102.12, SD=11.30).

Table 4.1 Summary of the descriptive statistics.

Mean Standard deviation
Higher profits 113.20 14.30
Return on assets 102.12 11.30
Efficient use of resources 103.10 10.80
Managing risk and uncertainty 127.20 15.30
Creating competitive advantage 114.35 14.22

Inferential statistics

The results of inferential statistics were used to establish the relationship that exists between managerial planning and the performance of the organization; inferential statistics was used to ascertain the connection among the variables. The results are summarized in Table 4.2 below.

Table 4.2 Pearson correlation matrix for the variables.

Managerial planning
Pearson correlation Sig (2-tailed)
Higher profits 0.273 0.044*
Return on assets 0.598 0.000**
Efficient use of resources 0.268 0.042*
Managing risk and uncertainty 0.585 0.000**
Creating competitive advantage 0.386 0.003**

NOTE:

  1. * = p<0.05
  2. ** = p<0.01

The results in the table above show that there are major correlations between managerial planning and return on assets (r = 0.598, p < 0.01), managerial planning and managing risk and uncertainty (r = 0.585, p < 0.01), managerial planning and creating competitive advantage (r = 0.386, p < 0.01) and between managerial planning and efficient use of resources (r = 0.268, p < 0.05). There was also a significant relationship between managerial planning and higher profits (r = 0.273, p < 0.05).

A regression analysis to analyze how the variables predict the effectiveness of managerial planning and the results are summarized in Table 4.3 below.

Table 4.3 Summary of regression analysis.

Multiple R 0.602
R Square 0.361
Adjusted R Square 0.332
Standard Error 12.961
F 5.295
Sig F 0.00**
Variable Beta T Sig T
Higher profits -0.2164 -0.2670 0.03969*
Return on assets -0.2684 -2.4021 0.0108*
Efficient use of resources -0.3189 -3.0942 0.0029**
Managing risk and uncertainty -0.1537 -1.2951 0.0701
Creating competitive advantage -0.1806 -1.1092 0.0229*

NOTE:

  1. * = p<0.05
  2. ** = p<0.01

The result found out that the multiple R-value is 0.602. The R-Square value of 0.361 indicates that 36.1% of the variables explained the dependent variable. The F-statistic (5.295) is statistically significant at 0.01 level; meaning that the economic variables significantly enlighten 36.1% of the variance in addressing the effectiveness of managerial planning. Efficient use of resources is the best predictor of the effectiveness of managerial planning as it has a beta coefficient value of -0.3189 and is statistically significant at the 0.01 level.

In addition, return on assets, higher profits and creating competitive advantage are statistically significant at 0.05. The negative value of the beta coefficient of creating competitive advantage indicates that managerial planning has a greater effect in bigger organizations than in smaller organizations. In the same manner, the negative beta value of the higher profits coefficient shows that effective managerial planning is very important in uplifting the performance of the organization.

Conclusions and Recommendations

Introduction

This chapter presents the summary of the findings and discussion of the results in accordance to the objectives of this study. In addition, this chapter contains recommendations which can be applied to various organizations to address employees’ resistance.

Conclusion

Managerial planning is an important element in any organization. The findings of this study have revealed that managerial planning has an impact on the performance of the organization. With proper managerial planning in place, the organization is bound to have a high return on assets. In addition, proper managerial planning is associated with high profits and efficient use of resources. Managerial planning also helps an organization to manage risk and uncertainty and also creating a competitive advantage for the organization. Managerial planning is associated with setting of goals and objectives. Goals are very important to the organization due to the fact that they provide clear direction to steer the organizational progress.

Recommendations

Managerial planning is very productive for the sustainability of any organization. This study highly recommends that the goals and objectives of any country should be aligned with the mission statement. In addition, the top management should engage with the rest of the employees in setting up the goals of the organization.

REFERENCES

Ackoff, R. (1970). A concept of corporate planning. New York: Wiley-Interscience.

Alreck, P., & Settle, R. (1985). The survey research handbook. Homewood, IL: Richard D. Irwin.

Anderson, T. (2000). Strategic Planning, Autonomous Actions and Corporate Performance. Long-range planning, 33(2), 184-200.

Gitman, L. (2000). Principles of managerial finance. New York: Addison-Wesley Longman, Inc.

Glaister, W., & Falshaw, R. (1999). Strategic Planning: Still Going Strong? Long range planning, 32(1), 107-116.

Hart, L. (1967). Strategy. New York: Praeger.

Ruocco, P., & Proctor, T. (1994). Strategic Planning In Practice: a Creative Approach. Marketing intelligence and planning, 12(9), 24-29.

Sapp, R.W., & Seiler, R.E. (1981). The Relationship Between Long Range Planning and Financial Performance of U.S. Commerical Banks. Managerial planning, 29(1), 32-36.

Shuman, J.C., Shaw, J.J., & Sussman, G. (1985). Strategic Planning in Smaller Rapid Growth Companies. Long range planning, 18(6), 48-53.

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