IMPACT OF PLANNING ON ORGANIZATIONAL PERFORMANCE

(Case Study of Kam-Wire Manufacturing Company, Ilorin)

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 CHAPTER ONE
INTROUDCTION
1.0 BACKGROUND OF THE STUDY
Organizations today are facing a number of challenges arising out of competition in the
business environment. This scenario demands that organizations put in place the best
management practices in place. The essence is to achieve planning in order to avoid power
vacuums created by transfers, promotion, and other job related issues. This practice has been
used for many years without giving it the emphasis it deserves in most organizations; however,
in the recent times it has become an important tool for organizational success. Organizations are
now realizing that there is need to expand the scope of succession planning, not only to cover the
top executives but also the key persons in the entire organization. More recently planning has
expanded yet again whereby enlightened corporations are integrating this practice into their
planning processes and corporate policies. The current economy has made it extremely important
for every organization to minimize cost, risks and losses especially those generated with the
organization in the normal course of operations. To minimize all possible losses, it is essential
for management to have an effective planning system in all areas of operations in an
organization.  More so to provide direction and a sense of purpose for any organization and to
reveal future opportunities, threats and provide a unifying framework for decision making in the
organization.
However, since planning is the most important management tool for performance and for
organizations to perform well, resources must be well utilized and customers well served. To
achieve such ends, all of an organization’s human and materials resources must be well utilized
in the right way and the right time to create high quality products at minimal cost. Planning can
be a very difficult exercise because it requires that we consciously determine a course of action
and base our decisions on hope, purpose, and knowledge on estimates. Planning gives overall
direction to areas like financial strategy, marketing strategy, organizational development strategy
and human resources strategy, to achieve success. Planning betters decisions making.
Information communicated through vision and strategy allows people to make the best decisions
in hiring and rewarding the right people, adopting and developing the right systems, and making
the right investment decisions. In addition, planning increases energy resulting from rallying

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behind a cause, and elimination of conflict and confusion of priorities. It also improves customer
satisfaction; a true test of value and leads to higher retention and growth.
Nevertheless, the performance of any organization depends on the extent to which the use
of planning is put in place in order to accomplish the set objectives and mission statement of that
organization. It is through planning that an organization can predict changes in the environment
and act pro-actively. Organization who are more concerned with the formulation of plan and not
how to implement them would definitely have an issue on their productivity level. As a result,
good planning leads to competitive advantage in doing what you do better than others. It will
also lead to better decision making, uncovering the enormous intellectual and creative capacity
of an organization that collectively works toward solutions rather than relying on selected few.
Over time, good planning will lead to market recognition, increase organizational effectiveness,
efficiency, service quality and competitive edge such that a person can “own” a position and
space in the marketplace. This greatly enhances the chance of success. These therefore, allows an
organization to make planning as one of the important and pivotal elements needed in an
organization. It is against this background that the study seeks to examine the impact of
planning on organizational performance as it is believed that the findings will generate strategic
ideas that will enhance organizational effectiveness, efficiency, service quality and competitive
edge.

1.1 STATEMENT OF THE PROBLEM

Planning is a very important management strategy that enables organizations to achieve
organizational goals and objectives effectively and efficiently. The current scenario in most
organizations is that this component has been ignored. This is evidenced by at times managers
being politically appointed and in most cases they have been picked from fields that are not
related to organizations where they are meant to manage. Many studies have been conducted on
how planning affects organization performance. For planning have significant effects on business
and significantly contributes to growth but has no influence on the realization of organizational
performance. It is evident that limited studies have been conducted on planning practices like
strategic planning, contingency plan, target settings and directions with how they affect
organizational effectiveness, organizational efficiency, service quality, and competitive edge.

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The study therefore sought to fill this gap by assessing how planning practices affects
organizational performance with reference to Kam-Wire Manufacturing Industry in Ilorin.

1.2 RESEARCH QUESTION

i To what extent has strategic planning affects the organizational performance?

ii To what extent has operational plan on efficiency of the organization?
iii To what extent has functional planning affects the service quality of the organization?
iv To what extent has corporate planning affects the competitive edge of the organization?

1.3 RESEARCH OBJECTIVE

The aim of this is to investigate the impact of planning on organizational performance while
other objectives are to;

i evaluate the extent to which strategic planning affect the organizational performance.
ii investigate the extent to which operational plan affects the efficiency of the organization.
iii assess the extent to which functional planning affects the service quality of the organization.
iv identify the extent to which corporate planning affects the competitive edge of the
organization

1.4 RESEARCH HYPOTHESIS

The following research hypothesis will be formulated for the study

HO1: Strategic planning has no effect on organizational performance.

HO2: Operational planning has no effect on the service quality of the organization.

HO3: Functional Planning has no effect on service quality of the organization.

HO4: Corporate planning has no effect on the organizational competitive edge.

1.5 SIGNIFICANCE OF THE STUDY

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 The present study has great significance. First of all, the study findings will provide an
idea about planning and organizational performance in order to provide key information to
further research work in such areas. In the same way, the study will provide knowledge and
guidelines to reveal if planning can have a significant impact on the overall goal of the
organization.
This research work shall serve as a supplement to existing literatures relating to this
research topic. The study would also reveal the extent to which planning could have a positive
impact on the overall performance of an organization.

1.6 SCOPE OF THE STUDY

This research work, Impact of planning on organizational performance shall be focusing

on Kam-Wire manufacturing as the case study, This research tends to cover from the last five
years of Kam-Wire Manufacturing, this case study was used base on easy and accessible means
of information.

1.7 CLARIFICATION OF TERMS

Corporate Planning:
Corporate planning is undertaken at the top level, also known as corporate level, and covers the entire
organizational activities.

Competitive edge

Competitive edge is a piece of information, a skill, a process, a product or a resource that

competitors, usually business ones, don't have and that gives you an advantage.

Directing
Refers to a process or technique of instructing, guiding, inspiring, counselling, overseeing and
leading people towards the accomplishment of organizational goals.

Efficiency

This is the ratio of the useful work performed by a machine or in a process to the total energy
expended or heat taken in.

Functional Planning:

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Functional planning is of segmental nature and is undertaken for each major function of the organization
like production/operations, marketing, finance, human resource Effectiveness

This is the degree to which something is successful in producing a desired result; success.

Operational Planning
Operational planning, also known as tactical planning, is the process of deciding the most
effective use of the resources already allocated though strategic planning and to develop a
control mechanism to ensure effective implementation of the actions so that organizational
objectives are achieved
Planning

Planning is the process of thinking about the activities required to achieve a desired goal. It is the

first and foremost activity to achieve desired results. It involves the creation and maintenance of
a plan, such as psychological aspects that require conceptual skills.

Strategic planning

Strategic planning is the process of documenting and establishing a direction of your small
business by assessing both where you are and where you’re going.

Service quality 

Service quality generally refers to a customer's comparison of service expectations as it relates to

a company's performance. A business with a high level of service quality is likely capable of
meeting customer needs while also remaining economically competitive in their respective
industry.

1.8 OPERATIONALIZATION

Topic: Impact of Planning on Organizational Performance

The two construct Include:

1. PLANNING

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 2. ORGANIZATIONAL PERFORMANCE

Y=f (X)

x= (x1,x2,x3,x4......xn) Y=(y1,y2,y3,y4.......yn)
Where Y = Dependent Construct (Variable)

Where X = Independent Construct (Variable)

Where:

X= Planning Y= Organizational Performance

x1 Strategic Plan y1 Effectiveness

x2 Operational Planning y2Efficiency

x3 Functional Planning y3Service Quality

x4 Corporate Planning y4Compettitve Edge

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 CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

This Chapter discuss the foundation for this study in relation to existing body of
knowledge in the field. Different theories have been employed to help bring clarity to the
study of planning and organizational performance. It also present theoretical review,
empirical review, and gaps in literature

2.1 CONCEPTUAL REVIEW

2.1.1 CONCEPT OF PLANNING
Planning occupies a central position in management and obviously, it is difficult to talk
about management without planning. However, a plan is concrete in nature, does not allow
deviation, and is not flexible, but strategic planning is very flexible and open for adaptation and
change when needed as a result of real-time strategic issues. Real time management issues
translate to surpriseful changes arising from many sources while implementing strategic plan.
Planning is one of the fundamentals of life especially modern life. Planning is one of the
management functions which is the process of setting goals and objectives in an organization and
determining how to achieve such goals and objectives (Joel & Mitchel, 2019). Other important
management functions include organizing, coordinating, directing, and controlling. An
organization can be successful in effective utilization of its human financial and material
resources only when its management decides in advance its objectives, and methods of achieving
them. Without it purposive and coordinated effort is not possible, and what results are chaos,
confusion and wastage of resources. Akinyele & Fasogbo (2020), planning involves

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determination of objectives of the business, formation of programmes and courses of action for
their attainment, development of schedules and timings of action and assignment of
responsibilities for their implementation. Planning thus precedes all efforts and action, as it is the
plans and programmes that determine the kind of decisions and activities required for the
attainment of the desired goals. It lies at the basis of all other managerial functions including
organizing, staffing, directing and controlling.
In the absence of planning, it will be impossible to decide what activities are required,
how they should be combined into jobs and departments, who will be responsible for what kind
of decisions and actions, and how various decisions and activities are to be coordinated. And, in
the absence of organizing involving the above managerial activities, staffing cannot proceed, and
directing cannot be exercised. Planning is also an essential prerequisite for the performance of
control function, as it provides criteria for evaluating performance. Planning thus precedes all
managerial functions.

2.1.2 TYPES OF PLANNING

The implementation of planning varies from one organization to the other depending on the
available resources. However, Imade (2018), listed out some of the types of planning available
that can be implemented for achievable results.

2.1.2.1 Long-Range Planning:

Imade (2018), sees long-range planning as the activities to be performed that will lead to the
accomplishment of official goals. It involves identifying those activities to be performed over an
extended period of time. Long range plan may extend for several decades. Long range planning
is different from strategic planning, which is primarily concerned with how the organization will
position itself among competing firms in a market.

2.1.2.2 Intermediate Planning:

Intermediate planning is critical in most cases to the success. It tends to identifies activities to be
carried out over a period of five years at the middle levels of the organization.

2.1.2.3 Short-range Planning:

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Nichoe (2018), defines short range plan requires developing plans for implementation within a
planning horizon of less than one year is often referred to as short-range planning. Short-range
plans may specify activities to be carried out that will achieve certain production levels each
week. While short-range plans are necessary for most organizations, they can have set backs
(Imade, 2018). Often managers become so focused on short-range plans.

2.1.2.4 Corporate Planning:

Corporate planning is undertaken at the top level, also known as corporate level, and covers the
entire organizational activities. It is of integrative nature and integrates entire planning process of
the organization. As cited by (Joel & Mitchel, 2019), the basic focus of corporate planning is to
determine the long- term objectives of the organization as a whole and to generate plans to
achieve these objectives bearing in mind the probable changes in the environment. Corporate
planning, generally, has long-term orientation and provides basis for functional planning.

2.1.2.5 Functional Planning:

Functional planning is of segmental nature and is undertaken for each major function of the
organization like production/operations, marketing, finance, human resource, etc. At the second
level, functional planning is undertaken for sub-functions within each major function (Joel &
Mitchel, 2019). For example, marketing planning is undertaken at the level of marketing
department and to put marketing plan in action, planning at sub-functions of marketing like sales,
product promotion, marketing research, etc. is undertaken. A basic feature of functional planning
is that it is derived out of corporate planning and, therefore, it should contribute to the latter. This
contribution is achieved by integrating and coordinating functional planning with corporate
planning.

2.1.2.6 Strategic Planning:

Strategic planning involves setting long-term direction of the organization in which it wants to
proceed in future (Imade, 2018). It is the process of deciding long-term objectives of the
organization and defining where the organizational resources and efforts should be put to achieve
organizational objectives. Strategic planning deals with strategic issues like type of business to

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be undertaken, diversification of business into new lines, type of products to be offered, and so
on. Also Imade (2018), suggested that way, strategic planning encompasses all the functional
areas of business and is effected within the existing and long-term framework of environmental
factors. Strategic planning also involves rigourous analysis of various environmental factors to
relate the organization relates to its environment.

2.1.2.7 Operational Planning:

Operational planning, also known as tactical planning, is the process of deciding the most
effective use of the resources already allocated though strategic planning and to develop a
control mechanism to ensure effective implementation of the actions so that organizational
objectives are achieved. Usually operational planning covers one year or so. It aims at sustaining
the organization in its production/generation and distribution of current products (goods and
services) to the existing markets.

2.1.3 STEPS INVOLVED IN PLANNING

The various identified by (Moses, 2018; Ruvel & Krist, 2018 and Adamson, 2018) are
2.1.3.1 Gathering Information:
The first step in planning is the gathering of information, i.e., relevant facts and figures. In fact,
before objectives are formulated and ways and means to achieve them are developed, it is
important for the manager to have relevant information.
Thus, a company constantly asks itself questions like:
i. Who are our customers?
ii. Why?
iii. Under what circumstances does a customer become a non-customer?
iv. What are the functions and values of our product to our customers?
v. What is our main strength?
vi. Are we making the product or selling it?
Answers to such questions provide vital information based on which the company sets itself
realistic objectives and seeks the most promising courses of action to achieve them. McGraw-
Hill which is in the publishing business, for instance, may decide to publish fiction. But before it

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can plan its activities, it would need specific information such as the reading habit, the buying
capacity, the level of education, etc. of its customers. Only then can realistic plans be drawn.

2.1.3.2 Identifying and Studying Vital Factors Affecting the Company’s Growth and
Efficiency:
Ruvel & Krist (2018), suggest that just as the most scientifically-prepared manpower inventory is
of little use to a company unless manpower audit is carried out to project the trend, a company
having information may not be able to plan its future activities unless it identifies and makes a
careful study of the factors which may limit a company’s growth and efficiency. In fact, an
organization which behaves in scientific planning does involve itself in such an exercise. It
constantly seeks to find out its strengths and weaknesses, where the opportunities exist and what
could be regarded as potential threats to the company’s survival and growth.

2.1.3.3 Laying Down Plan Objectives:

Objective-formulation is the third logical step in the planning process. Objectives specify the end
results which a plan seeks to achieve and determine as to what is to be achieved by the complex
of policies, rules, programmes and procedures (Adamson, 2018). Objectives should be
formulated at every level. From the corporate objectives emerge the unit-level objectives.

2.1.3.4 Determining and Evaluation of Action Patterns:

The next step in planning obviously is to find out the various courses of action that are available
for the accomplishment of the plan objectives. Of course, several alternatives may be available to
realize the plan but what is important is to narrow down the number of alternatives available and
then to select the most promising courses of action. Herein lies the task of evaluating the courses
of action against the plan objectives and the planning assumptions before the final choice is
made.

2.1.3.5 Selection of a Course of Action:

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The fifth step in planning is to select the best course of action. The evaluation of various courses
of action would reveal that of the different alternatives available, one or two prove to be the most
suitable for the accomplishment of the plan objectives.

2.1.3.6 Setting up of a Timetable:

Setting up of a timetable is as important as any other step in planning. Though not often
mentioned in the textbooks on management, its importance need hardly be emphasized. Today,
constantly an enterprise operates in an environment which is highly dynamic and changing.
Thus, when the future is uncertain, it is important to determine in advance the plan period
(Moses, 2018; Ruvel & Krist, 2018 and Adamson, 2018). No plan period should be longer than
what is economically desirable. On the other hand, the plan period should not be too short.
Hence, the manager must ensure that the plan period is long enough to enforce, through a series
of actions, the fulfilment of commitments involved in a decision. As elusive as this may be, this
perhaps is the only realistic standard available. The plan period thus must take into account
certain factors such as- (i) lead time, (ii) length of time required to recover the capital funds
invested in plant and equipment and in training personnel, (iii) expected future availability of
customers, and (iv) expected future availability of raw materials and components

2.1.4 ADVANTAGES OF PLANNING TO AN ORGANIZATION

Planning is one of the crucial functions of management. It is basic to all other functions of
management (Scholes, 2019). There will not be proper organization and direction without proper
planning. It states the goals and means of achieving them.

2.1.4.1 Facing Complexities of Modern Business:

The business is becoming more and more complex. There is a globalization of business,
competition is increasing, and constant need for creativity and many more issues crop up in day
to day working. There is a constant need to plan the things to face complex situations. Planning
helps as a tool in anticipating emerging business situations and suggesting ways to take
advantage from it. Planning helps a businessman to face emerging situations in a systematic way.

2.1.4.2 Forewarn against Business Failures:

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Scholes (2020), business failures may be due to wrong and unscientific planning. A bad planning
may cause wastage of resources and loss of opportunities. The business may fail to face
competition from efficiently run units. The indications of future failures will be visible from the
current situation. Better planning and proper implementation will be able to save the business
from failures.

2.1.4.3 Attention on Objectives:

Planning helps in clearly laying down objectives of the organization. The whole attention of
management is given towards the achievement of those objectives. There can be priorities in
objectives, important objectives to be taken up first and others to be followed after them.

2.1.4.4 Minimizing Uncertainties:

Planning is always done for the future. Nobody can predict accurately what is going to happen.
Business environments are always changing. Planning is an effort to foresee the future and plan
the things in a best possible way. Planning certainly minimizes future uncertainties by basing its
decisions on past experiences and present situations (David & Crunz, 2019).

2.1.4.5 Encourages Innovations and Creativity:

A better planning system should encourage managers to devise new ways of doing the things. It
helps innovative and creative thinking among managers because they will think of many new
things while planning (David & Crunz, 2019). It is a process which will provide awareness for
individual participation and will encourage an atmosphere of frankness which will help in
achieving better results.
2.1.4.6 Management by Exception Possible:
Management by exception means that management should not be involved in each and every
activity. If the things are going well then there should be nothing to worry and management
should intervene only when things are not going as per planning.

2.1.5 LIMITATIONS OF PLANNING

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Planning has some limitations, though most of the limitations are related with the uncertainties of
the future. Smith, Spiff, Rich & Allman (2018), the reasons why people fail in it, planning
emphasize the practical difficulties encountered in planning. Efficient planning is not an easy
task. Managers encounter various barriers in making and implementing plans despite the primacy
of management process. Managers should develop awareness of these limitations.

2.1.5.1 Lack of Accurate Information:

Planning involves forecasting and future is quite uncertain and complex and loses its value if
information is not accurate. Planning concerns future activity and quality of information
determines the basic output of planning. Sometimes, managers do not know how to use the
information efficiently; in that case planning may pose problems in operations (Smith, Spiff,
Rich & Allman, 2018).

2.1.5.2 Resistance to Change:

Resistance to change is another factor which puts limits on planning. Most people resist change
due to fear of failure and uncertainty. However, planning changes the attitude of people to make
planning more effective. Planning gives a false sense of security to the people in the
organization.

2.1.5.3 Inflexibility:
Allmen (2018), planning gives the spectrum of every activities and generally planning results in
rigidity in the internal working of the organization. Managers are required to follow the
procedures rigidly. Internal inflexibilities that may limit planning are related to human
psychology, organizational policies and procedures, and long-term capital investment. Beside
this, managers are confronted with much external inflexibility, and they do not have control over
men. These factors are social, legal, technological, etc. The managers have to formulate their
plans keeping in view the demand of these factors. Thus, their scope of action is limited for
planning effectively in many cases.

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2.1.5.4 Inadequate Planning:
There are many reasons why people fail in planning, both at the formulation level as well as
implementation level. Smith, Spiff, Rich & Allman (2018), some of the drawbacks are lack of
commitment to planning, ambiguous objective, tendency to overlook planning premises, reliance
on past happenings, lack of management support, lack of controlling techniques and resistance to
change, etc. These factors are responsible for either inadequate planning or wrong planning in
the concerned organizations.

2.1.5.5 Time and Cost Factors:

Time and cost factors are considered as real limitations to planning. Managers should also take
into account both time and cost factors. Planning suffers because of time and cost factors. Time
is a limiting factor for every manager in the organization, because enough time may not be
available to go through the entire planning process.

2.1.5.6 Power & Influence:

The way in which organizations usually conduct its businesses provide some people in
organization with power and influence. O’Neil & Alex (2018), any strategy that could result in a
change within organization and which might disrupt their power and influence is generally
opposed. People have their interest with status co, sometime such change is also threaten to top
management because unfamiliarity with new rolls, analytical techniques (Allmen, 2018). When
organizations are divided in different business units then some of top managers feel that their
control over firm and their influence will be diminish that’s why they create hurdles in
implementation of strategic plans.

2.1.5.7 Culture:
In order to successfully implement a strategy we have to change our culture. As in organizations
usually culture is no support the risk taking, on the other hand for success entrepreneurial ship
and risk taking is very much necessary. O’Neil & Alex (2018), we need a culture which support
risk taking, business cannot avoid risk by saying that we will not address it. If culture is not

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supporting then implementation will be restricted only toward generic strategies instead of a
specific strategy required by firm to cope with challenges.

2.1.6 IMPORTANT PRINCIPLES
Planning is a rational approach. It is usually characterized by choosing appropriate means for
desired results (Smith, Spiff, Rich & Allman, 2018), To make planning effective, it is supported
by important principles:

2.1.6.1 Principle of Contribution to Objectives:

Managerial planning facilitates the realization of organizational objectives. A plan should be
prepared and put into operation to contribute to the achievement of organizational objectives.
Plans only seek to achieve pre-determined goals by meshing long-term plans and short-term
plans.

2.1.6.2 Principles of Limiting Factors:

Managerial planning must take into account the limiting factors and managers must concentrate
on them while developing plans and their components. Organizations have limited resources to
achieve the objectives and these constraints must be considered by the management.

2.1.6.3 Principle of Flexibility:

Allmen (2018), the principle of flexibility states that management should be able to change an
existing plan because of change in environment. Planning should be flexible enough to
incorporate unforeseen future events as the organization is an open system and it interacts with
the external environment. When some types of changes take place in the external environment,
this forces the organization to change their strategies, when managers take all these into account,
they will be in a position to incorporate these in future, they are in a better position to plan and
execute their action.

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2.1.6.4 Principles of Navigational Change:
This principle is based on a Navigator’s example of checking periodically where his ship
is going in the vast ocean, whether his ship is following the right direction as scheduled.
Similarly, a manger, like a navigator, should constantly check his plans that these are proceeding
in the right way, and if these are proceeding in the right way; what type of actions are required to
achieve the desired objectives of the organization. They should change the direction of plans to
achieve the pre-determined targets.
2.1.6.5 Principles of Commitment:
Principle of commitment helps in determining the length of the planning period. Planning should
cover a time frame taking into account the future risk and fulfillment of commitments.

2.1.6.6 Principle of Primary of Planning:

Planning is the basic and primary function of management process. Planning precedes all other
managerial functions (Smith, Spiff, Rich & Allman, 2018). Every function and activity of an
organization basically depends upon planning. It is planning that provides the area of
implementation. Other managerial functions have to follow planning. So managers should devote
their attention to make an effective planning premise.

2.1.7 ORGANIZATIONAL PERFORMANCE

Allmen (2018), opines that an organizational performance can be measured by how well it
achieves the goals it has set itself. The principle functions of performance measurement are to
ensure that organizations are held accountable for their performance and actions and to facilitate
learning and improve performance. Even though organizations lack pressure from shareholders
to show the value created by the organization there is a pressure to show how well they perform
that derives from a wide range of stakeholders. In an organization, its analysis can be compared
to goals and objective of filling the gaps left by other employees who have left the organization
for whatever reason.
Past studies have used financial and non-financial metrics to measure organizational
performance. The financial measures include profit, sales, and market share (Min, Yun & Hunny,
2018). Non-financial measures include productivity, quality, efficiency, and the attitudinal and

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behavioural measures such as commitment, intention to quit, and satisfaction. The interest in
performance measurement in organizations is also due to the evolving pressure on showing
effectiveness which is experienced by managers.
2.1.8 VARIABLES OF ORGANIZATIONAL PERFORMANCE
2.1.8.1 Effectiveness

Messay (2018), defines effectiveness is the capability of producing a desired result or the ability
to produce desired output. When something is deemed effective, it means it has an intended or
expected outcome, or produces a deep, vivid impression. Effectiveness, in business, refers to the
level of quality with which a task or process is carried out that ultimately leads to higher overall
business performance. To be effective means the ability to choose appropriate goals and achieve
them, while efficient means the ability to make the best use of available resources in process of
achieving goals (Aderson, 2019). Cause an effective organization also must be efficient but an
efficient organization may be not effective.

2.1.8.2 Efficiency

Efficiency is the (often measurable) ability to avoid wasting materials, energy, efforts, money,
and time in doing something or in producing a desired result (Messay, 2018),. In a more general
sense, it is the ability to do things well, successfully, and without waste. Efficiency is thus not a
goal in itself. It is not something we want for its own sake, but rather because it helps us attain
more of the things we value. In more mathematical or scientific terms, signifies the level of
performance that uses the least amount of inputs to achieve the highest amount of output. It often
specifically comprises the capability of a specific application of effort to produce a specific
outcome with a minimum amount or quantity of waste, expense, or unnecessary effort.
Efficiency refers to very different inputs and outputs in different fields and industries.

2.1.8.3 Service Quality

The term service quality refers to degree and direction of discrepancy between the consumer’s
perceptions and expectations, or the extent to which a service meets or exceeds customer
expectations Imara (2018). Messay (2018), stated services are identifiable, intangible activities
that are the main object of a transaction designed to provide want satisfaction to customers”.

2.1.8.4 Competitive Edge

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Joan & Smith (2019), defines competitive edge refers to factors that allow a company to produce
goods or services better or more cheaply than its rivals. These factors allow the productive entity
to generate more sales or superior margins compared to its market rivals. Competitive edge are
attributed to a variety of factors including cost structure, branding, the quality of product
offerings, the distribution network, intellectual property, and customer service.

2.1.9 PLANNING AND ORGANIZATIONAL PERFORMANCE

Planning contributes to organizational success because it ensures that organizations
always have a concept of the job market and how it relates to its failure. A company that refuses
to engage in planning in order to be proactive may find itself with a number of unfilled positions.
Planning management practices significantly contribute to organizational performance. Planning
management practices are set of practice used by organization to manage planning through
facilitating the development of competencies that are firm specific, produce complex social
relation and generate organization knowledge to sustain competitive advantage.
Some studies have presumed the connection between planning management practices and
organizational performance (Smith, 2018). There is a growing body of work on planning
practices and organizational performance which shows linkage between planning practices and
organizational performance. Planning functions such as motivation process, planning, education
program, employees’ relation, compensation, rewards and benefits, performance appraisal,
education and development affect organizational performance from various aspects such as
replacement, productivity and financial performance.

2.2 THEORETICAL REVIEW

2.2.1 System Theory
A system is a collection of parts unified to accomplish an overall goal. If one part of the system
is removed, the nature of the system is changed as well. A system can be looked at as having
inputs (resources such as raw materials, raw data, money, technologies, and people), processes
(planning, organizing, motivating, and controlling), outputs (products, services or coherent
information) and outcomes (enhanced quality of life or productivity for customers/clients,
productivity, appropriate decision making). Systems share feedback among each of these four
aspects of the system. The Systems theory is a management methodology as of analyzing and

20
thinking about organizations continuity. It puts forth the premise that organizations, like living
organisms, are made up of numerous component subsystems that must work together in harmony
for the larger system to succeed. Systems theory states that organizational success relies on
synergy, interrelations and interdependence between different subsystems. As arguably the most
valuable component of a company, employees make up various vital subsystems within an
organization.

Rothwell, (2010) indicates that departments, work groups, business units, facilities and
individual employees can all be considered component systems of the organizations. This chain
creates a succession chain link for the organizational survival. The theory applied in this study in
the sense that, it points on how systems play an important role when it comes to succession
management by allowing clear growth and succession paths for employees which will create a
synergy that will work towards creating complimentary or supplementary roles for performance
achievement through having the right organizational strategy that supports the systems in place
and being ready for any requisite change whenever necessitated.

2.2.2 Contingency Theory

The contingency theory of leadership was proposed by the Austrian psychologist Fred Edward
Fiedler in his landmark 1964 article, "A Contingency Model of Leadership Effectiveness.
Contingency theory is integral proponent in the sense that, it puts forth the premise that an ideal
structure and form of any system depends on the dynamics of its internal subsystems.
Organizational structure can have far-reaching effects on companies' relationships with its future,
making contingency theory highly relevant to succession management and organization
performance (Paauwe, 2008). No single organizational structure is inherently better than another.
Structures are architectural models that will allow success of succession management and give
formulas for performance through the right leadership being applied in every situation. Rothwell
(2010) emphasized that the best structure for different companies depends to a great degree in
whether the structure will meet future challenges in management. He contributed to the
contingency theories by focusing on the leadership bit of an organization. He emphasized a
Leader-Match meaning, the theory tries to match leaders to appropriate situations and their
effectiveness depends on how well the leaders‟ style fits the context within which they operate.
The theory informed the study by allowing analysis of how leadership in form of competence

21
and commitment played a role in contributing towards successful succession management and
hence effects on performance of the organization through the systems and practices in place if at
all.

2.2.3 Resource Based Theory

The Resource-Based View (RBV) is a business management tool used to determine the strategic
resources available to a company. The fundamental principle of the RBV is that the basis for a
competitive advantage of a firm lies primarily in the application of the bundle of valuable
resources at the firm's disposal (Rumelt, 2004). To transform a short-run competitive advantage
into a sustained competitive advantage requires that these resources are heterogeneous
(dissimilar) in nature and not perfectly mobile (Peteraf, 2003). Resource-Based View (RBV
theory is also one of the theories to give support to the study in that an organization lies in a
fundamental heterogeneity in its production processes. Given certain inputs, each organization
will apply these inputs in different ways, resulting in different outputs or products. As a
consequence, sustained competitive advantage will result from those organizations whose
production process proves to be most efficient and whose outputs best meet demand. Inputs are
usually divided into three categories: physical resources, organizational resources and human
resources. Within the resource-based theory of an organization, human capital is one of the major
resources with a factor indicator of succession management (Paauwe, 2008). The theory
enlightened the study by giving emphasis on the importance of HR resource to the success of
organizational performance so as to cement practices leading to high performance into the
culture of the organization.

2.3 EMPIRICAL REVIEW

In a study by Imade (2018), which article analyses impacts of formal planning, strategic
types, stakeholder involvement, and their interactions on performance in Norwegian
municipalities. Internal stakeholders often overstate their organization’s performance. Therefore,
the analysis complements subjective survey data on strategic planning, strategy content and the
senior officials’ perceptions of the impacts of the strategic planning, with more objective
administrative data of municipal production, efficiency and change in efficiency. Moderated
multiple regression analyses show that strategic planning and a defender strategy had positive

22
perceived impacts. The analyses with administrative data for performance showed little
significant positive impacts of strategic planning, strategy content and stakeholder involvement.
In a study titled The influence of planning on the organizational performance of
agricultural state owned corporations in Kenya by Felistus, Theuri & Misiko (2018), opines that
the origin of agricultural state owned corporations in Kenya can be traced back to the colonial
period. Despite them being into existence for a long period of time, the performance of these
state owned corporations have been faulted as poor. This study therefore sought to find out how
planning influenced the performance of these state corporations. The objective of this study was
to explore the effects of planning on the organizational performance of agricultural state owned
corporations in Kenya. A descriptive research design was used. The target population consisted
of 42 agricultural state owned corporations. A simple random sampling technique was used to
select a sample of 30 corporations out of the 42 agricultural state owned corporations in Kenya.
Data was collected through administration of questionnaires which were administered through
the ‘drop and pick later method’. The questionnaire was divided into six sections to cover the
objective of the study thoroughly and consisted of structured questions. Data was coded and
analyzed using descriptive statistics of frequency, percentage, mean and standard deviation
which was achieved by use of Statistical Package for the Social Sciences and Microsoft Excel
2007. Findings were presented in graphs charts, pie charts and tables. They indicated that
planning has a bearing on organizational performance of state corporations but according to the
data collected, it is inferred that the management of these corporations do not perform this
functions of planning appropriately and effectively. The study therefore recommends that
effective planning to be made a culture of these corporations if they are to improve on their
performance.
Another study by Efi, Udofia & Imagha (2018), titled the impact of Planning on
Organizational Performance of University of Uyo, measures of organizational performance were
non-financial. Population of the study was 134 principal officer staff of the university with
sample size of 100 selected using Taro Yamene’s formula for sample size determination. Survey
research design was employed in carrying out the study. Data for the study were generated from
field survey using questionnaire to elicit information from the respondents. Data collected were
analyzed using descriptive statistics. Hypotheses were tested to establish the level of influence of
mission statement on performance using Linear Regression Analysis and Multiple Regression

23
Model was used to test the overall Impact of strategic planning on performance. The result of the
finding revealed that both mission statement and strategic planning have a significant influence
on organizational performance of University of Uyo. We concluded that Strategic planning is
vital for the overall existence, management and proper functioning of University of Uyo and
other educational institutions alike. We recommended that since the available resources of
University of Uyo do not conform to what the mission statement stipulates, policies on resources
should be revisited, revised and better strategies for prompt sourcing, marshalling, allocation and
utilization of resources should be evolved to catch up with current realities and the mission of the
institution, if the University must achieve its objectives.
In another study by Adetowubo (2018), which study examines the impact of strategic
planning on organizational performance using a study of selected manufacturing organizations in
Lagos, Nigeria. It appraises the effect of the concepts on the Nigerian manufacturing industry,
using Unilever Nigeria Plc. and May & Baker Nigeria Plc. as case studies. A sample size of one
hundred and seventy-one (171) respondents was used in this study, which was determined using
Yards formula. The objectives of the study areto examine how external orientation influences the
market share of an organization. To ascertain that internal orientation leads to improved market
share of an organization. To determine how functional areas coverage in planning affects sales
volume. To investigate if resources provided for the strategic planning affect sales volume. To
determine the role of organizational culture in moderating the correlation between strategic
planning and organizational performance. Research questions were set alongside five (5)
hypotheses that were formulated and tested, descriptive statistics comprising the simple
percentage and tables for a detailed presentation were used. The correlation and regression
analysis were adapted for this study. The findings reveals that there is a positive relationship
between the use of strategic planning and organizational performance in today’s corporate
environment. The researcher concluded by recommending that top management should be more
active in the strategic planning process for attainment of set organizational objectives which will
in turn facilitate the growth and development of organizations in Nigeria. It was also
recommended that it is necessary for organizations to pay close attention to the environment in
which they operate in and take it into full consideration when formulating and implementing
strategic plans.

24
 In a research tilted impact of strategic planning on organizational performance (Kim,
Muhaz & Mohammed, 2019), of selected manufacturing firms in Delta State, Nigeria. A set of
structural questionnaire was used as instrument for data collection and administered on 60
respondents of the firms under study randomly selected using Yaro yamane formula. Applying
the formula, the sample size from a population of 70 is 60 respondents at 95% confidence level.
Dataanalysis was made and the hypotheses formulated were tested using kruskal wallis one-way
analysis of variance by rank. The findings revealed that positive and significant relationship
exists between strategic planning and better organizational performance and organizational
survival. It was concluded that strategic planning is necessary for the performance and survival
of an organization. This study, however, recommend that organizations should accord priority
attention to the elements of strategic planning, establishing high core values that is organizations
rules of conduct, set realistic goals, establishment of long term objective, this has to be
measurable and specific, the development of action (strategic) plans and its implementation,
making adequate environmental analysis, suitable organizational structure and a host of other
measures for effective strategic planning kin organizations.

In the findings of Maryam & Nasiru(2019), through their research which finds out that
regardless of the relevance and applicability of strategic planning practice to business
organization, the literature indicates very few studies have attempted to investigate the effect of
strategic planning practice on the performance of enterprises mainly the relationship between
strategic planning practice and performance of entrepreneurs. The literature suggests that there is
not only limited information on the strategic planning practice of Enterprises but also little
research in this important area of study. By using structural questionnaires, the data for the study
were collected from 52 Enterprises. The findings of the study indicate a significant positive
relationship between strategic planning practice an performance of Enterprises. The result of the
study seems to demonstrate that the practice of strategic planning in Enterprises will not only be
to improve their financial performance but also to increase its non-performance as well.
Olusanya, Awotungase, & Ohadebere (2019) conducted a research which study takes a
look at the impact of effective Planning on Organizational Productivity using Sterling bank
Nigeria Plc as a case study. However, the research study makes use of primary data of
questionnaire analysis and the estimation technique adopted in the study is spearman’s rank
correlation coefficient and the objectives of the study is to determine the relationship between

25
effective planning and organizational productivity and to also to examine whether effective
Planning leads to employees performance in an organization. More over, two hypotheses were
tested using the spearman’s rank correlation coefficient and the results revealed that effective
planning has a relationship with organizational productivity and that effective planning lead to
employee’s performance in an organization. Therefore, the study concludes and recommends
that managers time and attention is that of improving productivity in Sterling bank is very
important for both survival and maintenance of profit margins in the bank, therefore the bank
should measure productivity on how well resources are combined and utilized to accomplish
specific desirable results to be able to achieve its objectives on organizational need, articulate its
strategies and carefully pursue them.
Further more, Akinyele & Fasogbo (2021), in their study titled impact of strategic
planning on organizational performance and survival. The effectiveness of strategic planning can
be measured in terms of the extent to which it influences organizational performance, which
affects its survival rate. The main objective of this study is to re-evaluate the planning-
performance relationship in organization and determine the extent to which strategic planning
affects performance in an organization, of which First Bank of Nigeria, Plc (FBN) will be used
as case study. Based on the above objective, relevant literatures were thoroughly reviewed and
three hypotheses were formulated and tested in this study. A survey technique was used with the
administration of questionnaires to 100 respondents (of which 80 was retrieved) comprising of
both the senior and junior staff in various First bank branches in Lagos metropolis. The data
collected were analyzed using the Statistical Package for Social Sciences (SPSS). Also, T-Test
and Chi-square statistical methods were used in testing the hypotheses using the SPSS. The three
hypotheses were confirmed. For the purpose of testing for reliability of the instrument, ‘The
Split-Half Technique’ from SPSS was used. The implication of this study is that Strategic
planning enhances better organizational performance, which in the long run has impact on its
survival and that strategic planning intensity is determined by managerial, environmental and
organizational factors.

Odongo & Datche (2019), was able to find out through their research topic which main
objective was to determine the effects of strategic planning activities on organizational growth.
Issues had been raised by employees that the planning process tended to be inflexible and rigid
since it operated in changing environment and poor adaptation to changing environment usually

26
affected organization adversely. Descriptive research design was used which included
questionnaires to be distributed and filled with various top managers, heads of department,
middle level managers and general staff members of KEMRI. Target population in this research
was Kenya Medical and Research Institute Management. The target population was divided into
various management groups including Heads of departments, middle level managers and general
staff members. Stratified random sampling method was used. The target population was two
hundred employees. Stratified sampling method was used to draw the Sample size of 50
employees and data analyzed by use of Spss. The findings of the study revealed that strategic
planning if well implemented in the organization is effective towards growth. Strategic planning
was appropriate, suitable, and reasonable and accepted to the organization. The researcher
recommendations are that set objectives be clear, precise and measurable, organizations to seek
more funds which should be directed to research instead of administration, create structures that
enable individual teams deal with specifications, Performance review process should enable the
actual performance be easily measured and reviewed and in future KEMRI should strive to attain
ISO standards to support continuing improvement.

In view of Richardson (2020), which article aims to analyze Strategic Planning As an

Effective Tool on Organizational Performance in Nigeria, The research is set by the single case
study research strategy and data were collected through the following instruments:
bibliographical research, documentary research, semi-structured interviews and systematic
observation. The conclusion indicates that the phases of the strategic planning process influence
and are influenced by the elements of the organizational structure and highlights the confluences,
the impacts and similarities between the stages of formulation and implementation of the
strategic process.

2.4 GAPS IN LITERATURE

From the careful examination of several studies made by researchers in the preceding
sections, there are vast literatures on leadership style, but none has been written on
Manufacturing industry by placing this study within the review of existing literature, most of this
literature focuses on general business but this study noted that the results of most of these
researches conducted have not been all conclusive. This study also found that in Nigeria effort

27
has not been made in the past, particularly in Kwara states. Therefore, this study aims at
assessing planning on the orgaozational performance of manufacturing industry with a particular
focus to Kam-Wire Manufacturing from 2017 to 2020 in order to fill up this gap.

CHAPTER THREE

METHODOLOGY

3.0 PREAMBLE

The chapter describes the methodology which discuss the methods that will be employed for the
research work. It deals totally with the objectives and procedures of carrying out the study. This
chapter shall explain the research procedure that will be use in gathering and analyzing data
which will include research method, research design, sampling and sample frame, methods of
data collection, instruments of data collection and methods of data analysis. Finally, it will
explain the validity of the instrument that will be adopted, reliability level of the work not
neglecting the ethical consideration.

3.1 RESEARCH METHODS

The study will adopt survey methods to explore impact of planning on organizational
performance. The purpose of adopting survey research is to generalize from a sample to a

28
population so that inferences can be made. Quantitative method will be adopted to get exact and
objective data, thus providing a valid generalization of research findings. The justification for the
use of survey research method is that it has been widely and commonly used in a similar research
of this nature and it’s better adoption, excellent, detailed texts provide information about survey
research (Creawell, 2012)

3.2 RESEARCH DESIGN

The study shall adopts survey method approach using descriptive research design statistics to
explore the impact of planning on organizational performance. A major reason of adopting
descriptive research design is because it gives a value generalization of research findings. The
descriptive design will necessitated by the understanding to verify estimated hypothesis that
referred to the positive in order.

3.3 POPULATION OF THE STUDY

Population can be referred to as a full set of case from which a sample is taken from. The
entire study population is limited to staff of KAM-WIRE Manufacturing in Ilorin. The entire
population is 315 source (field survey, 2021)

3.4 SAMPLE SIZE DETERMINATION

The study selected a sample size of which was determined using the Taro Yamane formula.
Sample size affects the generalizability of the result; Yaro Yamane was used with the assumption
of a confidence level of 95%. The formula is given below;

Taro Yamane Formula:

S= N
1+N (e)2
N = population size
e = tolerance error
1 = constants

29
Therefore:
S= 315
1 +315 (0.05)2
= 315
1+315 (0.0025)
= 315
1+0.7875
= 315
1.7875

= 176.2 = 176 respondents

3.5 SAMPLING TECHNIQUES

Sampling is the process of selecting a position of the entire population. Probability sampling
method will be adopted using simple random sampling techniques for the purpose of the study.
Probability sampling method that allows all elements in the population have some known chance
or probability of being selected as sample subjects. The random sampling technique has a high
generalization of endings.

3.6 SOURCE OF THE DATA

The source of data collection for this study will be primary source which entails the use and
administration of questionnaire. The reason for using primary source is because the study wants
to obtain firsthand information from the respondents.

3.7 RESEARCH INSTRUMENT

The study shall employ the use of structural questionnaire in order to draw response from the
identified respondents (staffs of Kam-Wire). The questionnaire shall consist of a number of
questions printed in a definite order on a form or sets of forms distributed to the respondents
using 5 points likert scale, strongly agree(SA)., agree(A), neutral(N), disagree(D), and strongly
disagree(SD). It is divided into two sections: section A comprised of the bio-data of the
respondents, that is demographic representation which entails sex, marital status, age,
educational status, farming experiences, year of existence while section B shall contain twenty-

30
four(24) questions relating to impact of planning on organizational performance. The study
ensures the use of adequate words or phrases to make the respondent understand questions
appropriately before giving their response.

3.8 METHOD OF DATA ANALYSIS

The data gotten from the research field work will be analyzed using frequency distribution as a
descriptive statistics in displaying the percentage of the demographic data and to show the level
of agreement and disagreement to the research statement in the closed ended questionnaire with
the help of statistical package for social sciences (SPSS) of version 20.0. in addition linear
regression analysis method and multiple regression analysis method an ANOVA was adopted in
testing the relationship and effects of the independent variables on the dependent variables as
provided in the hypothesis of this study.

3.9 VALIDITY OF RESEARCH INSTRUMENT

Validity test connotes the degree to which the test actually measures what it is intended to
measure. A test of validity is therefore designed to know whether a measure of a concept actually
measure the concept. It also represent the degree to which the work measures how statistically
strong the hypothesis formulated were.

The face and content validity was done by expert at the field (satisfaction, research, analysis) as
well as input from the supervisor to determine whether the instrument measures the concepts
expected of it, and whether the behavior expected from the researcher’s measure or predicts the
actual observed behavior.

3.10 RELIABILITY OF RESEARCH INSTRUMENT

For the purpose of this study, all items used in the questionnaire for each variable incorporated in
to one variable in order to measure the reliability. The Crobachs Alpha will be adopted to test for
the reliability of the questions. Crobach’s Alpha shows the internal consistency among each of
the questions explaining the variables that was used in the study.

31
3.11 ETHICAL CONSIDERATION

The study has no impending injury to thee people. However, it followed the laid down ethical
standards in management sciences. Respondents were not being forced to give options about the
questionnaire but were provided explanation of the research purpose. The confidentiality of the
respondents will be strictly maintained for this study. Besides, this research work will not violate
any ethical precept of the entrepreneurial confidential information will be used wisely with out
disclosing it to any ground, unless with the permission and authorization of the concerned
organization. The information gathered will be analyzed without any form of biased and
misrepresentation of information.

The study shall conform to the laid down procedures in carrying out researches. All materials
used in this study will be duly sourced before making recommendations. Furthermore, all the
authors consulted in this study well fully acknowledged in order to run fowl of the ethics of
plagiarism.

REFERENCE

Akinyele, S.T., & Fasogbo, O.I. (2021). Impact of Strategic Planning on Organizational
Performance and Survival. Journals of science management. 1(3) 1-13.

Adetowubo-King, S. A.(2018). Impact of strategic planning on organizational performance: a

study of Unilever Nigeria plc and may & baker Nigeria Plc. International Journal of
Scientific & Engineering Research, 9(2), 1256-1262.

Efi, A.E., Udofia, N.S., & Imagha, O.A.(2018). Impact of Strategic Planning on Organizational
Performance of University of Uyo. International Journal of Management Studies,
Business & Entrepreneurship Research. 3 (3), 94-110.
Felistus, C., Theuri, M., Misiko, A.(2018). The influence of planning on the organizational
performance of agricultural state owned corporations in Kenya. International Academic
Journal of Human Resource and Business Administration, 3(1), 68-80.

32
Richardson, M.C. (2020). Strategic Planning As an Effective Tool on Organizational
Performance in Nigeria: An Empirical Study of Some Firms in Delta State. Global
journal of interdisciplinary social sciences, 4(6), 68-72

Imade, J.(2018). Impacts of planning and management in Municipal government: an analysis of

subjective Survey and objective production and efficiency Measures in Norway.
Journal of management science, 2(3), 21-43.
Joel, U., & Mitchel,O. (2019). Understanding Human Resource Management in the Context of
Organizations and their Environments.” In M. R. Rosenszweig & L.W. Porter (Eds.),
Annual Review of Psychology, 46: 237-264.

Kim, H., Muhaz, U., & and Mohammed. R. (2019), Strategic Planning-Firm Performance
Linkage: Empirical Investigation from an Emergent Market Perspective, Business
Journal, Vol.3 (5), 55-63.

Maryam A.K., & Nasiru, L.(2018). Strategic Planning and Performance of Enterprises in
Nigeria. International Journal of Research and Innovation in Social Science, 3(10),
417-420.
Olusanya, S.O., Awongase, S.A., & Ohandebere, E.C.(2019). Effective Planning and
Organisational Productivity. (A Case Study Of Sterling Bank Nigeria Plc). Journal of
Humanities And Social Science, 5(5), 31-39.
Smith, (2018). Strategic Management in some Nigerian Businesses: A business reality”. Journal
of Management Research and Development, 1, 17-23

Odongo, M., & Datche, O.(2019). Effects of Strategic Planning on Organizational Growth. (A
Case Study of Kenya Medical Research Institute, Kemri). International Journal of
Scientific and Research Publications, 5(9), 1-15.

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