Effective Planning As A Tool For Managing Business Organizations

Effective Planning As A Tool For Managing Business Organizations In Enugu Metropolis (A Case Study Of Calipak Nig. Ltd)



  • Background Of The Study

The word effective planning is a indispensable tool in business management. The first step a business takes is to  define its missions,  secondly, it sets its goals and thirdly, it pursues the goals or objective. Planning is involved in each of these steps. Hence, we say that planning precedes all the other management function.




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One can talk of effective planning as the sum of activities involved of necessary to select course of action that will lead to the attainment of a certain goals or objectives.

Business in Nigeria is characterized by small scale business, but that can not withstand the corporate objective of the business, that is the business objectives must be achieved to ensure its further existence. This calls for effective planning. A business without an effective plan can not survive its size not withstanding it.

S.T Onwualah (1990) said, if you investigate the cause of the failure (of the small scale business) on, it is likely to discover that a critical one is bad business plan or the complete lack of it. A business firm without an effective business plan is comparable to a ship or an aircraft without a tided. It is incondensable that its captain or pilot, should embark on any journey if in a previously charted course barring  an act of God, it is clear that it will be impossible to steer or pilot any of those crafts in one place to its intended destination”. The effective planning programme of the organization should be in bold points so that the organization will see them, since they will act as a stepping stone to the attainment of achieving the organization goal or objective.

1.2     Statement Of The Problems

          The major problem which this project is the problem of ineffective planning in business organization in Enugu Metropolis with a case of study CALIPAK NIG LT. They are as follows:

  1. A problem of the Caliber of management personnel to be employed in order to achieve the firms objective through effective planning.
  2. There is also the problem of lack of programme of planning.
  3. Weather the customer of the organization are satisfied with the programme plan of the organization.
  4. Weather effective planning is necessary in the running of the business in order to achieve the needed goal.

1.3     Objective/Purpose Of The Study

The research work seeks to find out weather the organization drives a lot of benefits from the effective planning in the organization.

  1. It also seeks to find out of the firms or organization growth depends on effective planning as a function.
  2. To determine why business organization existing in Enugu Metropolis are making adequate profit and also why high rate of decline in infant industries in Enugu Metropolis.
  3. Effective planning and management in order to achieve pre-determined goals.

1.4     Significance Of The Study

It is a fact that this study would be of immense benefit to a number of individuals organization and government in the following ways.

  1. The study is going to provide its numerous researcher a clear insight into the problems militating against the effective planning and development of business organization in Enugu metropolis.
  2. It would equally provide basis for future studies into other aspects of problem of managing business organization.
  3. This study would benefit the businessmen and organization in particular, since it would expose to them the possible cause of ineffective planning and managing of business organization.
  4. It is also a fact that business consultants would benefit from this study since it would give them a clear insight into the problem of ineffective planning in business organization and possible solutions to such problem.
  5. Student of financial students and business studies in general will find the study very interesting since it cuts all aspect of managing business organization.
  6. Finally is also viewed that this study would be significant to all since it would provide the necessary information needed in an effective planning in managing organization or business organization.

1.5     Scope Of The Study

This study titled effective planning as a tool in managing business organization in Enugu metropolis could have been extended to cover so many towns, and all aspect of problem of managing business organization, but in view of huge requirement involved couple with the period which the study would be completed the project writers is compelled to limit the scope of the study to the effective planning as a tool in managing business organization in Enugu metropolis case study of Calipak. Secondly, financial constraints some of the areas that should have been covered where not covered because of the huge amount of money. Involved lack of co-operation, the staff and management of some of the organization were co-operation at first, some other respondent were also unwilling to co-operate in answering the questionnaires inspite of the fact that assurance was give by the research to keep every suitable information gathered confidential

  • Research Questions
  1. Does the caliber of management personnel employed help in achieving the effective planning objective?
  2. Do the management employed acquainted with the effective planning objective.
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iii.      Are the management personnel capable of handling the effective planning of the organization.

  1. Are they problem of lack of programme plan in a organization?
  2. Do staff benefit form the programme plan of the organization.
  3. Do customers of the organization satisfied with the programme plan of the organization.

vii.     Does the programme plan affect the growth of the organization.



2.1     The Nature Of Effective Planning

          The important nature of effective planning can be seen from the following four points discussed below:

  1. The ability of effective planning to contribute to the attainment of objective. This suggest that any plan or supporting plan made at each time must not be such that will lead to deviation from the company’s overall objective. Effective planning must be such that contributed favourably to the objective  for such contribution to be made, absolute co-operation by workers is deemed very necessary.
  2. The primary of effective planning should be given priority attention in whatever venture a manager wants to embark upon. This is because it precedes the execution of all other managerial function. In effect, it is the resulting plan that provide a rational approach to pre-selected objectives. It is the plan of objectives and how to achieve them that makes necessary decision of the kind of organization structures, the organization has to adopt. This then helps the organization to know the kind of people needed. As a result, the leadership method to be adopted is determined as to how most effectively to wad the people in order to ensure success of plans by furnishing standards of control.

The above shows that although all the management functions are interwoven, effective planning unique. This is because it involves establishing the objectives necessary for all group effort. It will be difficult for mangers to know how to go about the other steps explained above moreso the other managerial function need also effective planning for them to be effective.

Effective planning, it should be noted is not separable from control. Planning without controlling is not meaningful. People cannot know whether they are going the right direction unless the direction is predetermined.

iii.      The pervasiveness of effective planning. The next fact that should be noted about effective planning is that it is not a one man job. Most of our administrators make the mistake of trying to limit effective planning to themselves alone. Effective planning is pervasive. This means it should be the function of all managers. A manger, no matter what he is managing is not a manager. If he is not allowed a certain degree of discretion and effective planning responsibility.

A sound understanding of the pervasiveness of effective planning is necessary. It helps us to understand more about the difference between policy making (setting guideline for decision making) and administration. A manager’s position of audlioity in an organization may make him do more of more important planning them others. All manager’s must plan, be it those at the public works department or a crew of laboureres. The duty of the higher level executive is to plan the general direction while managers at the middle and lower levels consistently plan in their respective areas of responsibilities.

  1. The efficiency of effective planning. The must important aspect of effective planning can be said to be its efficiency. Manger who plan without considering the cost of their plans take great risks. It is necessary to make plans to be efficient. This means that the benefit derived from any plan should be more than the cost of initiating plan. This cost is not only measured in naira values but also in the values of individual or group satisfaction derived from such plans.

The Plan: We have defined effective planning as the selection of missions and objectives and the action to achieve them, this requires decision making, choosing from among alternative future course of actions. Now the chosen alternative is the plan. To produce a flying car at a very cheap cost is a plan. But that is not only what should be referred to as plan. There are other fact which most managers scarcely  acknowledge, such are the ones we are to discuss here. Plan are varies since it encompasses any form of future course of actions.

Plan can be conveniently classified into:

  1. Purpose or Mission: The purpose of an organization therefore tend to show why the company exists but its mission is its practical validity to the populace. A company that has a social purpose of producing and distributing goods and services that can accomplish by its mission by producing lines of products.
  2. Objectives or Goals: This refers to the final company’s actions. Plan should also cover this objective or goals do not only represent the end result of it, but also that of the entire managerial functions. While the entire organization has definite objectives or goals, each department, objectives or goals must be to contribute efficiently to the overall objective of the enterprise by carrying out its duties and responsibilities ad due.

iii.      Strategies: Koontz (1980) gave three definitions to this which is apply in business management. He said that strategies are (a) The general Programes of action and deployment of resources to attain comprehensive objectives, (b) The program of objective of an organization and their changes, resources used to attain these objective and policies governing the acquisition, use and disposition of those resources and (c) The determination of basic long term objective of an enterprise and the adoption of courses of action and allocation of resources necessary to a goal. An organization has to ask questions live what its mission is going to be. By producing tangible goods or mere services rendering, what quality? What growth goals should it have and what is its possible profitability other question like whether it has no concentration in a  certain area a it has to disperse in last areas strategies therefore, have the purpose of determining and communicating, through a system of major objectives and  polices, a picture  of what kind of enterprise it has in mind. Strategies tend to find of furnish the framework for guiding, thinking and action rather than ways of achieving objective. To achieve, objectives needs other major and minor plans.

  1. Policies: Policies are another plan to be made. It takes the form of general pattern of doing things. It exists on all levels of the enterprise top, middle and lower levels. It is the policy defined as areas within which decision should be taken and ensures its consistency with and its contribution to objectives. Policies should encourage discretion to managers at all levels though within their area of operation.
  2. Rule: Rule are those plans that spell out specific action or non-action required but allowing no discretion. Its essence is to reflect any management decision that actions must or must not be taken. It is quite necessary to differentiate rules from policies or procedure. Rule differ from procedure because rules guide action without specification of time sequence. Procedure are a sequence of rules. A rule may or may not be part of procedures. To clear this further, a company may have a rule that no worker who reports for duty five minutes later than the normal time shall be paid full day wage but it may have a procedure for handling cases of management problems. Rules differ from policies because the purpose of policies is to guide decision making by making off areas where managers can utilize personal discretions. Now one can rightly observe that rules perform guiding function but they do not allow any discretion in their application.

Errors arise in an organization when the fall the danger of misinterpret spelled-out rules for polices “Rules and procedures, by their very nature are designed to repress thinking. We should use them only when we do not want people in an organization to use their discretion.

  1. Programs: programs are the basic element necessary to execute a course of action. This may include a complex goal, policies, procedures rules, task assignment, steps to be taken, resources to be acquired etc programs can take the form of a company making an effort to produce new lines of product or training its manpower or even acquiring complex implements for work. This may also be in the form of a supervisor or operational manger formulating minor programs to boost his workers morale and increase productivity. Primary programs may require supporting programs. A program of producing a flying car may need the program of gathering components, assembly components, planning areas of flight and other programs like how it give it publicly etc. The just enumerated programs need timing. Any failure of any program to beat the time causes are unnecessary delay as well as unnecessary cost.

2.2     Steps In Effective Planning

          Due will see the steps involved in effective planning. There are in all sight step viz. being aware of opportunity setting objective or goals, considering effective planning premises, identifying alternative, company alternative, choosing alternative, formulating supporting plans, and numberizing plans by men of budgeting.

  1. Being Aware Of Opportunities Or Problems

One will rightly observe that awareness of opportunities is not a part of the step in effective planning. But critical views of it will now convince one that external environment and the internal environment influence the operations of an organization. The awareness of opportunities in those environment are the real starting points of effective planning possible future opportunities have to be taken notice of observed closely, given due consideration to our ability by means of trying feasibility test, take into consideration out major motives of trying to embark upon whatever awareness of opportunity. We dream it. It is necessary that we give through effective planning, a proper diagnosis of the opportunity situation. There upon is based on our ability to set realistic objectives.

  1. Establishing Objectives: The second step in effective planning is the establishment of objective for the entire organization and for each subordinate department and so it continues hierarchically to the lowest operational department. Better explanation will be give to the objectives of the lower department if so division mangers understand the overall enterprise objective and the implied derivcation goals, depending on the opportunity to contribute their ideas to setting their own goals and those of the organization.

iii.      Considering or Developing Premises: Premises are the assumptions about any environment in which any business wishes to carryout it plans. Examples of premises include forecasts of different types. The principle guiding premises is that when the people involved in making a plan agree unanimously to make use of consistent effective planning premises, the enterprise planning will be better coordinated.

  1. Determining Alternatives: Every plan has an alternative or alternatives. In most cases the alternatives that seem unnoticed come to be the best. But the planner must take care as it is difficult to choose from many alternative courses of actions.
  2. evaluating Alternative: Any alternative chosen must undergo criticisms to determine its strong and weak points. The returns from the cost of the following, each alternative must be determined. One cause may appear to be most profitable but requires a large cash outlay with a slow pay-back, another may look less profitable but involve less risk still another may better suit the organization long-range objective. Alternatives should not only be weighted of measured by their naira values. A company decides a course of action because of the prestige and consequent goodwill it can attract a loss in naira value may be recorded by the goodwill value which may be high. Good name, they say, is better than silver and gold.
  3. Selection of Alternative: After the above step have been taken, the planner then select an alternative

Effective Planning As A Tool For Managing Business Organizations In Enugu Metropolis


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