DEPARTEMT OF BUSINESS ADMINSRATION, PROJECT TOPIC, The effect of Planning on Organizational Productivity

The effect of Planning on Organizational Productivity

TABLE OF CONTENTS

TITLE PAGE

CERTIFICATION

DEDICATION

ACKNOWLEDGEMENT

TABLE OF CONTENTS

PROPOSAL

CHAPTER ONE

1.0   Introduction

1.1   Scope of the study

1.2   Statement of the problem

1.3   Objectives of the study

1.4   Significance of the study

1.5   Historical background of the study

1.6   Definition of terms

CHAPTER TWO

2.0   Literature Review

2.1   The concept of planning

2.2   The nature of planning

2.3   Types of planning

2.4   Types of plan

2.5   Steps in planning

2.6   Importance of planning to the organization

2.7   Criteria for effective planning

2.8   Meaning of productivity

2.9   Productivity improvement factors

2.10 Planning and productivity

CHAPTER THREE

3.0   Research methodology

3.1   Method of data collection

3.2   Instrument used

3.3   Population size

3.4   Sample size

3.5   Data analysis techniques

3.6   Validity and reliability of the research instrument

3.7   Company profits of 0km Biscuit Company limited Offa, Kwara state.

CHAPTER FOUR

4.0   Presentation and Analysis of Data

4.1   Analysis of the responses gives by the staff of 0km Biscuit company limited

CHAPTER FIVE

5.0   Summary of the major findings, conclusion and recommendation of the study

5.1   Summary

5.2   Summary of the major finings

5.3   Conclusion

5.4   Limitations of the study

5.5   Recommendations References

   PROPOSAL

EFFECT OF PLANNING ON ORGANIZATIONAL PRODUCTIVITY

The main theme of this study is to evaluate the significance of planning on the organizational productivity choosing OKIN BISCUITS COMPANY LIMITED OFFA as the

 case study.

Chapter one deals with the general study, background of the study, statement of the problems, objectives of the study, significance of the study, scope and limitation of the study as well as the definition of the terms, company profile of 0km Biscuit Company limited Offa, Kwara State.

Chapter two centres on literature review, the concepts of planning, nature of planning, types of plan, types of planning steps in planning, importance of planning to the organization criteria for effective planning, meaning of productivity, productivity improvement factors, planning and productivity.

Chapter three deals with the research methodology which include introduction, method of data collection instrument used, population size, sample size data analysis techniques, validity and reliability of the research instrument.

Chapter four deals with presentation and analysis of data, it consists of the introduction, interpretation of the data.

Chapter five is the concluding chapter; it entails the summary of the major findings, conclusion and recommendation of the study.

CHAPTER ONE

SCOPE OFSTUDY

0kin Biscuits Offa branch has been chosen as a case study. The purpose of this project efforts have been made also to understand the management and cooperate performance of the company relating to the under listed products introduces into their customers.

The existing products of about a dozens stated over the years are these three mention below:

(a)    A laminated small card to facilitate easy withdrawal of cash from individual customer accounts from the same Union Bank Branch.

(b)    This is also a subsidiary servicing the Mortgage purpose. It is a product that deals with the aspect of providing house for low income earners, loaning money out to customers to build their own houses.

(C)    As a product established by the bank in order to finance (loan) small and large scale agricultural project.

1.1 STATEMENT OF THE PROBLEM

Planning is one of the complex and difficult intellectual activities companies engages in, planning has been a great pre-requisite to achievement of higher productivity in an organization. There are varieties of factors that affect organization productivity, some of the factors are explained below:

(a)    Management in attention: It has been reached that management has neglected productivity improvement

strategies in favour of such goals as increasing market shares mergers and acquisition.

(b)    Lack of productivity Goal: There is an old axiom that “if you do not know where you are going, there is no way you can get there”. Goals are necessary for a number of reasons it is basic tenets of psychology that most behaviour are directed. Today, it is unfortunate for granted.

(c)    Management focuses on short term result: Managers are pressured remove generated immediate productivity so that they can be rewarded. Because of this year’s profit or this quarter market share in the basis for pay increase bonus, managers focus on short term financial results at expense of total productivity gain over the longer time and long range consequences of management decision are often given little or no priority.

(d)    Government Regulations: Manager blames government regulation especially in heath, safety equal employment quotas, energy and be environment for showing productivity growth.

1.2 OBJECTIVES OF THE STUDY

This study is centered on the impact of planning on organizational productivity. Other objectives are as follows:

(a)    To find out whether an organization can succeed without adequate planning

(b)    To determine the extent to which planning can affect the position of a firm in an industry.

(c)    To examine whether planning has a significant role to play in building a good image for the company, its effect on the productivity of the worker.

1.3   SIGNIFICANCE OF THE STUDY

The study is directly related to the advantages to be derived from this research.

The Nigerian economy has witnessed dynamic approaches to granting ‘of financial assistance to their customers. For instance, industrialist, property developers and manufacturers alike. Business in the financial institution today, are offering new and diverse services,

operating wider and unique forms of managerial skills and competing vigorously for genuine customers on many new frontals.

Method of improving upon the services of and functions of 0kin biscuit Company would be and serve their research needs independently examined outside its own source of management information services.

The study also would show other company itself stand to gain from the newly introduced product high services.

Concluding the significant inherent is the enlightenment area this study is going to boarding the new customers about the product.

1.4   HISTORICAL BACKGROUND OF THE STUDY

It’s true that no organization operates in a vacuum. Rather, every organization transacts business within the environment. Environment dictates the operations of all the organizations either private or public and it is subjected to changes. The type of products in the market today might not be the same tomorrow. These customers that patronize one’s product today may decide to change their demands to another product next period.

Since environment is not static but dynamic, there is need for the management to plan the organizational activities so as to achieve higher productivity planning, is basic to decision making. It involves selecting the course of actions that organizations will follow and deciding in advance what to do, how to do it, when to do and who to do it to achieve their goal and objective, it bridges the gap from where we are to where we want to be in a defined future.

Drucker (1977) as quoted by ICMA study pack defines strategic corporate planning as the continuous process of making present risk taking decisions systematic and within the greatest knowledge of their futurity organizing systematically, the effects needed to carry out these decision and measuring the result of their decisions against the expectation through organized systematic feed back.

Since there are a lot of environmental challenges that militate against the achievement of higher productivity, management needs to employ the concept of planning.

Productivity has become a day-to-day concern for organizations because it indicates the overall efficacy of the door to the management actions and reward programme.

Managers today must make some important choices on one hand, they are face with bad news about foreign competition increase govern regulations and changing nature of labour force. On the other hand, technology, capital investment and other substitute for labour are not always the optional solutions to productivity problems. But what can be optional solution is good planning.

It has been discovered that about ninety percent (90%) of the companies in advance countries are enjoying higher productivity. Why? It is because they plan every resource they are using within the organization and also plan against any variable effect can after organization negatively.

There is a common saying that “he who fails to plan surely plans to fail” companies are winding up in Nigeria nowadays because of poor productivity. This arises as a result of management failure to plan. Planning seeks to improve company performance in the course situation analysis and for the future activities with the help of planning.

Management will be able to know the strength and weakness of the company activities and specified the action needed to overcome its inadequacies and utilize the resources much more effectively to achieve higher productivity.

1.5   DEFINITIONS OF TERMS

For the clearer understanding of the research, some terms need to define

They are as follows

PLANNING

Planning which involves a systematic and formalized process for purposely directing and controlling future operations towards desired objectives for period extending beyond one year short term planning or budgeting and the other hand, must accept the environment of today and the physical, human and financial sources and present available to the firm.

PRODUCTIVITY   

Productivity is a comparative to management industrial engineering economic and politicians it compares production at different level of economic system and resources concerned

HIGHER PRODUCTIVITY

Higher productivity is accomplishing more with the amount of resources of achieving higher out put in term of volume and quality for same in put

INTERNAL FACTORS   

Internal factors are factors within the control of an organisation before productivity can be improved, there is need for management to put those factors into consideration during the planning face of program

EXTERNAL FACTORS

External factors are those which are beyond the control of individual enterprises

CHAPTER TWO

LITERATURE REVIEW

2.1 THE CONCEPT OF PLANNING

It is imperative to start with an insight into planning. Planning means different things to different people at different times. Before doing that, however, we should note that all management activities start with planning. It is the foundation upon which the office of management practices is built.

According to Apply by (1980), planning is defined as a mean of forecasting future circumstance and requirements, deciding objective, making long-term and short-term plans, determining policies to be followed and standards to be set.

He concluded by making choices, that is, making decision. Size (1990) defines planning as a long range planning which involves a systematic and formalized process for purposely directing and controlling future operations towards desired objectives for period extending beyond one year short-term planning or budgeting on the other hand, must accept the environment of today and the physical, human and financial sources at present available to the firm. These are to a considerable extent determined by the quality of the firm long range planning efforts. However, planning, we must say goes beyond selecting enterprise goals, departmental objectives and finding ways of achieving them. It is also depend on the existence of alternatives as well as decision which needs to be made with regards to what to do, how to do it, when to do it, and by whom it is to be done.?

This in essence is to say that it involves an advance consideration and arrangement of what is to be done and how to do it.

According to Oyedijo (1990), planning is defined as “future oriented and as such should have a built in flexibility so as to find out the level at which planning takes place in an organization Apple by  ..C. paid more attention to planning particularly in setting goals and strategies for a long period ahead, higher up the hierarchy only deals with sections of the total plan and they are usually conceived with shorter period of involved in planning activities that planning must then be a continues process because changes in business environment are continuous.

According to Peter Drucker, planning is “the continuous process of making present entrepreneurial decision systematically are with the best position knowledge of their futurity organizing systematically the effort needed to carry out the decision and measuring the result of these decision against expectation through an organization systematic feed back”. According to Kioby Wairen (1982) planning is defined as “a vast cobweb of short term interrelationships between marketing production finance, industrial relations, executive development an all the nest. All these plans are built on certain assumption. The importance of planning cannot be derived yet, there are many managers who are pleased that the future arrives day by day who are contented to deal with it on that time schedule.

To organize and maintain an effective planning, mechanism is exceedingly difficult in large company and to develop effective plan required and demanding mental work planning must be based upon identification of the basic missions of the business. Its long range objectives and its short range goals.

The national industrial conferences board survey manufacturing companies that grow rapidly from 1960 to 1965. The rate of growth was most impressive for some of the companies. Fifty-seven reported an increase of over fifty percent (5O%) in volume of business during the period. Thirteen reported more than one hundred percent (100°/o) growth and five said one grow over two hundred percent (200%) only eleven (11%) companies reported sales growth under twenty-five percent (25%) this was measured as a result of deliberate planning for growth and nearly half gave planning virtually full credit for the increase volume of business.

2.2 THE NATURE OF PLANNING

According to Oyedijo (1990) the essential nature of planning can be highlighted by the four major aspects, they are:

(a)    Contribution both purpose and objectives

(b)    Privacy of Planning

(C)    Pervasiveness of Planning

(d)    Efficiency of Planning

CONTRIBUTION BOTH PURPOSE AND OBJECTIVES

The purpose of every plan and all derivative plans is to facilitate an accomplishment of enterprise. Purpose and objective, Goetz (1987) said in his book that “alone cannot make enterprise must operate”. Plan can focus; action will likely tend towards ultimate objectives which will likely affect one another and which are merely irrelevant.

Managerial planning seeks to achieve a consisted, ordinated structure of operation focused on desirable ends without plan; action must become merely random activity will produce nothing but chaos.

PRIVACY OF PLANNING

Since managerial operation in organizing staffing heading and controlling is designed to support the accomplishment of enterprise objectives, planning logically precedes the execution of all office management function.

Although all functions interplay as a system of action planning is unique in that it established the objectives necessary for all groups’ effort. Besides, plan must be made to accomplish these objectives before the managers know that of organizational relationship and personal qualification are needed along which course sub-ordination are to be directed and led and what kind of control is to be applied, aid of course all other managerial functions must be planned if there are to be efficient of planning and control are inseparable the Siamese twins to management unplanned action cannot controlled involves keeping activities on course by correcting derivation horn planned. My attempt to control without plan would be meaningless since there s no way for the people to tell whether they are going where they want to go to the task of control unless they first know where they want to go to the tasks of planning plan, thus furnish the standard of control.

PERVASIVENESS OF PLANNING

Planning is a function of all managers. Although, the character ax reach of planning will vary with their authorities and with the nature of policies and plans outlined by their superior. It is virtually impossible to describe their areas of choice that they have some planning description and unless they have same planning responsibility it’s doubtful that they are truly managers. Recognition of the pervasiveness of planning goes for clarifying the attempt on the part of some students of management to distinguish between policy making (the setting of guides for thinking in decision making) and administrators or supervisors. One manager because of this authority delegation or position in the organization may do more planning or

more important planning than others or the planning of one may be more basic and applicable to a longer or large portion of the enterprises than that of another.

However, planning involves all managers from president to supervisor. The supervisor of a road gang or factory crew plan in a limited area under fairly strict rules and procedures, a supervisor at the lowest level of organization and their ability to plan.

EFFICIENCY OF PLANNING

The efficiency of planning is measured by amount it contributes t the purpose and objectives as offset by the costs and other unwrought consequences required to formulate and operate it.

Plan can contribute to attainment of objective but at too high s, this concept of efficiency implies the normal rate of input to output but goes beyond the useful understanding of inputs and outputs in term of naira, labour hours or units of production including such values as individual and group satisfaction.

Without effective planning, there is a great probability that individual action will be random not directed towards organizational goals and therefore not functional.

Planning normally considered a formal process which specific goals are set and detail plan established. To establish goal, the planner must look at both internal and external characteristics of the organization (that is change needed how faster can this change be implemented, what are the attitude at various hierarchical level of the goal will be accepted) and at external environment that is economy, Se customers new and existing market technological change government regulation labour relation are social pressure. By making analysis of this factor, the planner will be able to formulate a goal which realistic and which take into consideration. The strength and weakness of the organization without such a diagnoses and subsequent planning mainly become worthless The term planning encompasses everything from broad corporate policy setting monthly budgets to one year plan. However, at any level, planning should be as dynamic tool.

According to Ailet (1984), the major activities of planning are separated into five categories.

(a)    Developing objective (commitment to achieve a result)

(b)    Scheduling (develop the time sequence necessary to carry out the programme step)

(c)    Budgeting (allocate corporate resources)

(d)    Developing procedures (specifying standards for the way work is to be performed)

(e)    Developing policies (specifying the broad mans to accomplish the desired ends)

McCaskey (1947), states that “planning with specific goal, miming goals can be stated and accepted to narrowing focus in order to effectively use energy, it places limit on the organizational flexibility since goals are accepted as one by individual within the organization.

2.4   TYPE OF PLANS

As said earlier, no matter at what level of planning activities takes place, the main point is that, activities must produce a specific plan to be followed by the organization.

This is so because without the resultant plan(s) planning activities would have a real effect.

In any event, what then are the various types of plans? The first point, to note is that basically we have long and short term plan.

According to Oyedijo (!990), plans are classified according to:

(a)    Duration, that is, in term of the time span a plans designed too cover.

(b)    Function or use, that is, in terms of the uses of which they are put(e.g. production, marketing, finance, personnel)

(c)    Scope that is, in terms of department, inter-departmental or corporate plan.

By the time spend; they relate to the period the plan will cover plans are outlines of activities over a formal period of time. That is there must be a time frame from any plan. There are three categories of time elements namely:

(a)    Short terms plans

(b)    Medium plans

(c)    Long term plans

(a)    Short term plan: Is the type of plan usually annual basis or less than a year. It involves the determination of goals and means of their attainment for the fiscal year immediately ahead. It is used to establish specific goals and strategies for the company and is specific unites. It is concerned with operational targets; seasonality the fashion industry makes short-terms plans on a seasonal basis.

What Oyedijo called short-range plans is what Appleby called tactical planning which involves deciding upon how resource will be used to help organization achieve its strategic goals. In doing this, the planners rely on past records and involves short term period. He explained further that short term a tactically plans are normally spread over a year and are concerned with how specific task are to be carried out effectively and efficiently. The focus of such plans would then be on individual rather than broader task.

(b)    Medium term plans: This is a medium term plans as the name suggest, it falls in between short term and long term plan. The time frame is between two years and five years. It is the decision of the management and operation management, its concerned with the timing of movement as per the long term plan with particular regard to meet ultimate objectives of the company.

(c)    Long term plan: This is type of plan according to Oyedijo (1990), is a strategic plan which is extend over more than period of five years, this is explained extensively by Appleby (1980). To him, strategies planning involve deciding upon major goals of organization and what policies will be used to forecast and occurs at senior level in an organization. Example of such plans could be determining sources of capital organizational structure and determining specific market to be scanned. This types of plans are generally formulated by top management establishes the basic objectives and strategies that will guide company effort. That is, long term plans set out to determine direction which the organization should face and move towards. The long term plan provides a framework for more functional short-term plans. It is important that the plan should not in any way constrained by the nature of the resources which the company presently posses.

According to the scope, plans are grouped that is by organizational level management functions including planning which is done according to levels of management.

These levels of management include:

i.      Corporate or top management

ii.     Middle or Administrative level

iii.    Operations or non-management

CORPORATE OR TOP MANAGEMENT: Is the management level or top executives who are responsible to outline the scope and infinities of corporate planning. The plans involved at this level of management cover not only the whole organization or a firm business, it also take into account the full environment in which the business operates.

MIDDLE OR ADMINISTRATIVE LEVEL: These are the middle level managers who formulate functional and departmental plans for their various departments or functions. The departmental plans are similar to the corporate plans, but only limit its activities to the unit that is concerned. It describes productions, personnel marketing financial and other departmental plans.

OPERATIVES OR NON-MANAGEMENT LEVEL: This is the level of management that carries out tactical plans. Tactical plans deal   with determining the most efficient use of resource that can be allocated for achieving any given or specific objectives. Tactical’ planning is usually of short term nature and is largely concerned with the problems of creating new operative facilities.

PLAN BASED ON ORGANIZATIONAL LEVEL

Plan according to the functions, plans may be based on functions within an organization. These types of plan are called functional plans. There are different functions such as production, personal marketing, finance, purchasing and administration; those functional areas must have plan. The plans of those areas must be short term in nature which is the responsibility of the middle or administrative level. For example, marketing plan within an organization is functional which is the responsibility of marketing manager.

2.4 TYPESOFPLANNING

Identifying the types of planning in the typical enterprises illustrate the breath of planning. The failure of some managers to recognize the variety of planning has often caused difficulty in making planning effective. According to Goetz (1989), planning may be classified as:

I.      Purpose or mission

II.     Strategies

III.    Policies

iv.    Procedure

V.     Programme

vi.    Budget

PURPOSE OR MISSION: Every kind of organized group has or at least should have if it is to be meaningful, purpose of mission. In every social system, enterprises have a basic function or task which is assigned to them in the society. The purpose of business generally, is    the production and distribution of economic goods and services, the purpose of a state high way department is the design, building and operation of a system of a state high way. The purpose of court is the interpretation of laws and their application. The purpose of the polytechnic is technical orientation and research and so on while business for example may have economic goods and services. It may accomplish this by fulfilling a mission of producing certain, lines of product. The mission of 0kin Biscuit Limited is the mission to arrive at target part or result. It is true that in some business and other enterprises, the specific purpose and mission often become fuzzy. In some of the larger conglomerate companies, such as Lipton Industry, a product line mission does not appear to exist. However, many of the conglomerates have regarded their mission as “ENERGY” which is accomplished through the combination of a variety of companies. Some companies never make clear to themselves or their organization what their purpose or mission is and non-business enterprises have likewise not always may this clear. It would for examples difficult to get a very clear notion of the mission.

STRATEGIES: These are broad programmes for achieving the organizations objective as thus, implementing its mission. They create unified directions for organization in terms of its many objectives and     they guide the deployment of resources that will be used to move the organization toward these objectives. Strategies have been increasingly used to reflect broad overall concepts of an enterprises operatives is strategies, therefore, could be said to often denote a

general programme of actions and implied deployment of resources to attain comprehensive objectives. The purpose of strategies is to determine and communicate through a system of major objectives and policies a picture of what kind of enterprises is envisioned strategies show a unified action and employment emphasis and resources they don’t attempt to outline exactly how the enterprise to accomplish its objectives.

POLICIES: A policy is a plan; it is a general guideline for decision making. It sets up burdances around decision including those that can be made, remove those that cannot. By doing so, it is consistent with organizational objectives. Some policies deal with every information matter, like those requiring strict sanitary conditions, where food and drugs are produced or packaged others are concerned with relatively has importance issue as the general appearance of employees. Policies are usually of the organization.

These managers may set a policy because:

I.      They feel it will improve the effectiveness of the organization.

ii.     They want some aspect of the organization to reflect their personal value.

iii     The need to clear-up confusion that has occurred at a lower level in the organization.

Policies limit an area within which decision is made and assure that decision will be consistent with and contribute to objectives. policies tend to pre-decide issue and avoid repeated analysis and give a unified structure to other types of plan thus, permitting manager to delegate authority while maintain control.

Policies ordinary exist in all level of organization and range from major company policies through major department policies to minor or derivative policies applicable the smallest segment of the organization. They may also be related to functions such sales, finance and so on, being guides to thinking decision-making. It follows that policies must allow for some discretion. Although, the discretion area is in some instance quite broad, policies should be regarded as a means of encouraging discretion and initiatives but within limit. The amount of freedom possible will naturally depend on the policy which in turn reflects position and authority in the organization.

        Making policies consistent and integrated enough to facilitate the realization of enterprises objectives is difficult for many reasons.

Firstly, policies are rarely written and their exact interpretation and too little known.

Secondly, the delegation of authority that policies are intended to implement heads through its decentralizing influence to widespread participation policy making and interpretation with almost certain variation among individual.

Thirdly, it is not always easy to control policies because actual policy may be difficult to ascertain and intended policy may not always be clear.

PROCEDURE: This provides a detailed set of instruction of performing a sequence of action that occurs often or regularly. Therefore, procedures are plans in that they are activities. They are truly guide to actions rather than to thinking and detail the exacts manner in which certain action must be accomplished their sense is chronological sequence of required action. Their pervasiveness in the organization is readily apparent. The board of directors factors may procedures quits different from those of supervisors. The expense account of the avoid description of work, set methods and rates   assures each employees a vacation and provides means applying for the vacation.

A company may have a policy of shipping order quickly particularly in a large company careful procedures will be necessary to assure that orders are handed in a specific way.

PROGRAMME: According to Kounte and Donwell (1987), programmes are complex of goals, policies, procedures, rules, task, assignment, steps to be taken, resources to be employed and other element, necessary to carry out a given course of action”. They are ordinarily supported by necessary capital and operation budgets. Programme needs to packed up by adequate capital finance because on seldom finds a progamme of any importance in enterprise planning standard by itself. It is usually a part of complex system of programme depends upon some and affecting others. This inter-dependence of plans make planning isolated for planning is only as strong as its weakness link.

BUDGET: A budget represents the most important plan of an organization. Budget indicates expected result stated in numerical ‘program’ budget comprises of logical arranged data representing reasonable expectation within a period of time. A budget may be expressed either in financial terms or in term of labour hours or any  other numerically measured term. It may deal with operations as the expense budget does, or it may show the flow of cash as the budget does. A budget is sometimes referred to as a “profit plan” and this establishes that it is a plan. However, budgets are also control devices because they help to determine whether anticipated cash are being adhered to. However, making a budget is actually planning. It is the fundamental planning instrument in many companies because it forces manager to plan and its involvement with number forces definiteness in planning. Budget it’s necessary for control but cannot serve as sensible standard of control unless it reflects plan. Therefore, budgets serve as consolidate enterprise plan.

2.5 STEPS IN PLANNING

In any form of business organization, either be large or small business organization, the planning activity of planning takes the same form. The difference is that, it must be based within the framework of the size of the company. This is because we must cut our cloth according to the available materials.

Therefore, planning process takes the same business as it go large scale organization.

Appleby (1980), highlighted logically related steps of planning.

(i)     AWARENESS OF OPPORTUNITY OR PROBLEM

This is a real starting point of planning. It is an act of awareness of opportunity and problem in the environment. The planning is a systematic procedure that proceed from general to specific, that is from an assessment of the business environment to a determined summary of the business target. This step deals with the examination of the past and present performance of the company and analysis of the conditions affecting the operations.

(ii)    ESTABLISHMENT OF OBJECTIVES

Perhaps, this can be regarded as the first step in the actual sense of it. It involves where one wants to be what he wants to accomplish and when to accomplish the objectives. Objectives are pre-determined aim which an organization will like to achieve at the end of a specified time. For example, the objectives of company ‘X’ might be to increase its market share from 30% to 40% in the year 2000.

(iii)   DETERMINATION OF THE PERFORMANCE REQUIRED BY THE COMPANY

The company needs to determine the performance required by the whole company that is, what is going to take to achieve the stated objectives. Here, you have to design and determine what is going to be an individual responsibility and contribution towards the realization of the objectives.

(iv)   ASSESSMENT OF COMPANY’S ABILITY TO MEET THE REQUIREMENT PERFORMANCE LEVEL

The company needs to assess it ability to meet the performance level required. This can be done by assessing both human and material resources available within the company because there are materials to be used to carry out the performance. The assessment of the company’s relevant physical assets, the capacity of the company’s staff, the financial resources of the company.

(v)    EXAMINATION OF THE EXTERNAL ENVIRONMENT

External environment can be defined as those elements institutions, organization and services organization but are not   subject to control of the organization. Hence, the organization must adopt or adjust to their demand, such environmental factor include: technology, state of economy, law and politics, socio-cultural factors and so on. Therefore, the business organization need to examine the influence of these environmental factor to their activities know how to adopt or adjust their demand.

(vi)   FORECASTING FUTURE PERFORMANCE

This involves production or speculation of what will happen in the future if the organization takes a passive role in the light of changes in the environment. It describes the procedures used by executives to describe as closely as possible the nature of the general level of business economic and company activity expected in the future careful forecasting helps the executive to select the right objectives and chart the route of progress towards these objectives. Forecasting as a special tool of planning necessary for making decision that are economically sound.

(VII) ANALYSIS OF THE GAP BETWEEN THE PERFORMANCE LEVEL REQUIRED AND THE FORECAST LEVEL

It is pertinent during the planning process to analyze the gap exist between the performance level required and the forecast level.

(viii)         DEVELOPMENT AND EVALUATION OF STRATEGIES TO THE GAP

The strategy of a company refers to the way that the resources of a company are deployed in relations to the need and dynamic nature of the term. Strategy is used to describe a decision as to how the objectives are to be accomplished.

(ix)   SELECTTION OF APPROPRIATE STRATEGY

There are normally two or more alternative methods or course of actions from which the company can make a selection if there is any one strategy available to the firms, though, this is uncommon, and there is no choice to make strategy.

(x)    BUDGETING

The next step is to quantify the activities involved in plan by converting them into budget. This consists of converting the plan into financial terms in order to know the cost of the resources required for the implementation. The overall budgets of a company represent the sum total of income and expenses with resultant profit or surplus and the budgets of major balance sheets items such as cash and capital expenditure.

(xi)   IMPLEMENTATION OF PLAN

Before the necessary process is carried out, there is need to calculate or coordinate all the process to ensure that they are effectively carried out. The plan is until the stage in the sheet of paper or on the drawing board.

Implementation is physical otherwise carrying out of activities indicated in plans particularly in the action program.

(xii) EVALUATION AND CONTROL

The implementation of the plan is not final stage of total planning process. The company’s effort must be monitored against the specified aims and goals.

STRUCTURE OF PLANNING PROCESS

2.6   IMPORTANCE OF PLANNING TO THE ORGANIZATION

Company derives service of benefits from engaging planning activities; some of the importance of planning to the company is as follow:

·        Planning produces guidance for future company activities, it enables the owners of the companies and employees to develop their managerial ability, reasoning power and critical insight to identify the most importance future development in various company activities

·        Planning seeks to improve company performance in the course of situation analysis and forecasting the future activities. Management of the company will be able to know the strength and weakness of the company activities are try to specify the action needed to overcome its inadequacies are utilize the resources of the company much more effectively.

·        Planning permits an organization to bring together in one place all development fact, conclusion and operating decision which search on the organization problems and its solution.

·        It forces the management or author of the plan to dig dipping into the organization activities that need attention. These may include products of the organization in the market. Those may include staff of the organization, that is to say planning provide clearer definition and understanding of the product, its market staff and any problem and opportunity associated with these.

·        Planning establishes a target and gives sense of direction. In planning process, objectives are set which serve as target which enables those who will implement the plan to know where they are heading to. This helps them to answer the question “where are we heading to”, the moment you know where you are heading to, you have a direction or you have a focus.

·        It provides a complete operating guide to all staff of the organization. There are many personnel working on different activities within an organization toward achieving a common goal. Planning will harmonize their effort toward the realization of their goals.

·        Planning establishes bench marks against which various activities within an organization can be dug. During planning process, an objective must be set which will serve as standard in the course of implementation of these various activities. Actual performance is in conformity with the standard.

·        Planning enhances management and employee maturation and commitment to duties planning specific what is expected of each employee in form of result, this will mortgage them to work hard in order to achieve this.

2.7 CRITERIAL FOR EFFECTIVE PLANNING

Once completed, a plan should meet the following if it is to be effective, according to the Ralph and Allan (1986), the plan should state clearly the nature of the mission and objective.

(i)     The plan should provide measures of a satisfactory accomplishment of the objectives in terms ol quantity, quantity time and expenses or it should indicate where they may be obtained.

(ii)    The plan should indicate what department of organizational units will be involved in the accomplishment of mission.

(Hi)   The plan should take the policies which should guide people in accomplishment of the mission or it should indicate where they may be found.

(iv)   The plan should indicate time which should be allowed for each phase of the activity.

(v)    It should design executive leader who will be held accountable for the accomplishment of the mission and each phase of it.

(vi)   The plan should indicate what department or organization unit will be involved in the accomplishment of mission.

2.8   MEANING OF PRODUCTIVITY

According to the Mukherice (1990), productivity is defined as the relationship between results one time it takes to accomplish them. Time is often a good denominator since it is universal measurement and it is beyond human control, the less time taken to achieve the desire result, the more productivity the system. A general definition is that, productivity is the relationship between the outputs provided to create this output.

Higher productivity means accomplishing more with the same amount of resources or achieving higher output in term of volume and quality for the same input.

This usually stated as:

Output     =      Productivity

Input

Regardless of the type of production, economic political system, the definition of productivity remarks the same, thus, though productivity may mean different things to different people, the basic concept is always the relationship between the quality and quantity of goods and serviced and the quality of resources used to produce them.

Productivity is a comparative to management industrial engineering economist and politicians; it compares production at different level of economic system and resources concerned. Sometimes, productivity is viewed as a more intensive use of such measures as labour and machines which will reliably indicate performance and efficiency of measured accurately. However, it is important to separate productivity from intensity of labour because while labour productivity reflects the beneficial result of labour, its intensity means excess effort and not more than work.

2.9   PRODUCTIVITY IMPROVEMENT FACTORS

Productivity improvement is not just doing things better, more importantly, is doing the right thing better.

According to Mukherice and Singh (1990m) there are two major categories of productivity factors namely:

i.      External (not controllable)

ii.     Internal (controllable)

EXTERNAL FACTORS: There are those which are beyond the control of the individual enterprises.

INTERNAL FACTORS: These are the factors within the control of an organization.

Before productivity can be improved, there is need for management to put those factors into consideration during the planning phase of the program.

INTERNAL FACTORS OF ENTERPRISES PRODUCTIVITY

According to Mukherice and Singh (1990), internal factors are classified into two groups, namely:

-       Hard (not easily changed)

-       Soft (easily changed

HARD FACTORS

The hard factors include product psychology, equipment and raw materials.

Products: Product factors productivity means, the extent to which the product meet output requirement.

Plant and Equipment: These play central role in productivity improvement programme through good maintenance.

Material and Energy: Even small effort to reduce national and energy consumption to bring remarkable results.

These vital sources of productivity include raw materials (process chemical, lubricants, fuel, spare parts, engineering and packaging)

SOFT FACTORS

People: As the principal resourced a central factor in productivity improvement derive, the people in an organization all have a role to play as workers engineer, managers, and entrepreneur’s one true union member.

Organization and system: The well-known principles of good organization such as a unity of command delegation of authority space of control and intended to provide for specialization and division of work and coordination within the enterprises. An organization needs to be dynamically operated and led toward objectives and must be maintained serviced and organized from time to time to meet new objectives. One reason for low productivity of many organizations is their rigidity.

Work method: Work method relinquishes aim to make manual work more .productive by improving the way in which the work is lone.

Management Style: This is one of the factors that affect productivity. There is no perfect management style. Effectiveness depends upon when, where, how and to whom and manager applies style.

EXTERNAL FACTORS AFFECTING ENTERPRISES PRODUCTIVITY

Government Policies: This is one of the external factors that hinder company’s productivity. Any ability or attempt by the government to restrict importation of raw materials will surely affect higher productivity.

Business climate: This will also determine organizational productivity. A country where there is enough of money in circulation. Uninterrupted communication network service, regular power supply and good transportation network, there is higher productivity.

2.10 PLANNING AND PRODUCTIVITY

Planning is the most basic of the management function because it involves the determination of organizational mission, strategies ad objective.

Since productivity is a major objective for the most organization, t is logical to support that this goal is a part of the organizations planning strategy, more organization realize this every day and are making efforts to integrate productivity improvement into strategies plan.

More so, people being the principal resource and central factor in productivity improvement derived the people in an organization all have a role to play as worker, engineer, entrepreneurs and trade union members. It is necessary if planning to provide guidance for future company’s activities for the people in an organization. It enables the owner of the company and the entire employee to develop their managerial ability, reasoning power, a critical insight to identify the most important future development in various companies’ activities in order to have increase.

CHAPTER THREE

RESEARCH METHODOLOGY

3.1   METHOD OF DATA COLLECTION

Data were collected mostly from two main sources for this project. These are primary and secondary sources.

PRIMARY DATA: They are data collected from field work of the researcher. This has been mainly through:

(a)    Personal Interview: Personal and face to face discussions were made with managers and staff of the case study.

(b)    Questionnaire Administration: Questionnaires were distributed to some selected manager and staff to find out the impact of planning on the organizational productivity.

SECONDARY DATA: These are data collected from the newspaper, pamphlet and texts on planning and productivity. Also, company records would be examined for data relating to past performance of the organization relating to planning and productivity.

3.2   INSTRUMENT USED

The researcher employs the questionnaire method as a major instrument. This is supplemented with oral interview method. The researcher deems its fit to use questionnaire method in order to collect information and data for the study.

The questionnaire was drawn to collect information on the effect of planning on the organizational productivity, also questionnaire method is used because it saves time, it is easy and cheaper to administer, it could cover a wide respondents within a short period of time. The questionnaire method also ensures independent judgment of respondents. It also limits the probability of irrelevant information as it specifies adequately the scope of responses to the respondents.

Furthermore, the researcher uses oral interview so that more detailed objectives facts could be collected from the respondents, though, it is costly and time consuming both instrument put together enable the researcher to collect useful data.

3.3   POPULATION SIZE

According to the Chisnal (1985), population refers to many groups of people or objects, which are similar in one or more ways and which form the subject of study in a particular survey.

Before research is possible, the population to be surveyed must be clearly defined.

To this research, the study population is the entire members of staff of the 0km Biscuit Limited, Offa Kwara State. In any ideal situation, the entire members of the staff of the company would be the respondents not only to have good representation not only that but also to obtain more accurate information.

However, this is not possible as a result of time and financial constraint. The respondents would have limited time to spare the researcher and there are limited resources within the disposal of the researcher. Due to the time and financial constraints, the researcher would not be able to cover the whole population size of five hundred (500).

3.4   SAMPLE SIZE

A sample is defined by Robert (1890) as a subset of the population and it is chosen as a representative of the population.

A sample is any number of causes in the population from which it is drawn. The selected samples is one hundred (100) in this regard, the researcher employs a combination of the different sampling techniques viz: Stratified and random sampling technique.

STRATIFIED SAMPLING TECHNIQUE

The company (case study) has a total of eight departments; production, administration, account, sales, purchasing, personnel, ware house, and quality control.

Each of the departments is taken as a strategies unit so at to ensure adequate coverage and representation of all financial units. Therefore, in order to ensure a realistic and objective representation of those units, the following methods are employed:

For instance, the total employees in the production department is one hundred and forty (140) which is about (28%) twenty eight percent of the total work force. That is number of sample study in production department X 100 total study population.

140 X 100

5000        =      28%

Therefore, the number of respondents to be selected from production unit is twenty eight percent (28%) of the total sample of one hundred (100) which is twenty eight (28) employees.

The above shows that twenty eight (28) workers are chosen from the production department. The same procedure was employed to get the figures for other department as shown in the table below. Table 1 shows the staff distributing and sample size of various departments.

RANDOM SAMPLING TECHNIQUES

In order to give all the population elements equal change of selection, random sampling technique method is used:

3.5   DATA ANALYSIS TECHNIQUES

For the purpose of this study, the technique that will be used to analyze the data collected and its sample percentage method.

3.6   VALIDITY AND RELIABILITY OF THE RESEARCH INSTRUMENT

Validity is defined as the extent to which the data measures what it is intend to measure. There are four general procedures for estimating validity of questionnaire, each is discussed below:

(a)    Content Validity: This concerns the attempts made to understand why a measurement is what it is.

(b)    Construct Validity: This concerns the attempt made to understand and why a measurement is what it is.

(c)    Concurrent Validity: This essence of this is to compare the results obtained from two different measurements of the same characteristics concerning the same object which have been administered at the same time.

(d)    Predictive Validity: This involves how a current measurement can be used as a basis for predicting the future occurrence of another variable.

For the purpose of this research, content validity has been used to test the degree of appropriates of the questions in the questionnaire.

RELIABILITY TEST: This refers to the consistency of method of measurement repeated measurement under same condition will give the same results.

Reliability is defined as the extent which a measurement is free of variable error. This is reflected when repeated measure error. This is reflected when repeated measure of the same stable characteristics in the same object show variations. It is not enough for a researcher to collect information in good faith, the must also make sure that the information rendered by respondents knowledge of the subject matter. In order to test the reliability of the data collected, the pre-test and retest method were used.

3.7 COMPANY PROFILE OF OKIN BISCUIT COMPANY LIMITED OFF KWARA STATE

0kin Biscuit Limited was incorporated in May, 1978, land clearing and building construction were done in 1979 while plant and machineries was imported in December, 1978.

The organization started operation fully in June, 1989, with more than 250 workers and with about two million naira (2,000,000) is working capital. The organization situated along Ajase-Ipo had about five kilometer to Ajase-Ipo town from Offa 0km Biscuit Limited is over a total land area of about thirty-five (35) kilometers part of which had been developed with building and administration area.

In 1980, when the organization began operation, it started production on varieties of biscuit such as Cabin, Gemi, Coaster, Short cake to mention but a few before the end of 1980 machineries for 0km foam a division of 0km Biscuits arrived and production commenced in 1981. This firm sold its products about three hundred (300) distributors in Nigeria at the beginning of the product but its product about shares in the market today.

The raw materials used in the production of the biscuits are namely wheat, flour, sugar, margarine, glucose, salt, baking chemical and water, since the majority of raw materials and packaging  materials were imported on availability of import license after the production target from 1983 and continue for years.

The adverse situation of foreign exchange led to close down for long period of 0kin Biscuit survived even through the capacity utilization had reduce to a level of 25% in 1987, when the federal government banned the importation of wheat which is the major ingredient for biscuit. The federal government policy of self-reliance wasted no time for alternative sourcing of raw material local means was tried out and was particularly successful. It was in light of these development that 0km Biscuit decide to go for experimental farming in Kwara State in October, 1987 and even since 1987 to 1990 wheat farming rails were conducted in Oyun local governments of Kwara state.

0kin Biscuit Limited also has wheat farms in Kano with certain efforts of the federal government on wheat production locally, the supply position has improved. The organization employed between five hundred and fifty employees directly, ninety percent (90%) Of them are skilled.

0kin Biscuits Limited acquired seventy percent (70%) share of kwara Breweries Limited with a view to reviewing the organization which is about to liquidate.

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1   ANALYSIS OF THE RESPONSES GIVEN BY THE STAFF OF OKIN BISCUIT COMPANY LIMITED

SECTION A: PERSONAL DATA

TABLE 4.1.1 SEX (4.2.1 TO 15)

Source: Field survey, 2011

From the table above, 60 respondents representing 66.7% of the respondents were male and 30 represent in 33.3% of the respondents were female. The larger proportion of male to female work force in the organization is a replace of what is happening in the manufacturing company where greater percentage of their duties is tedious and energy consuming.

TABLE 4.2.2 AGE

Source: Field survey, 2011

The above table indicate that 10 representing 11.1% of the respondents were between the age of 15 and 20 years, 20 representing 22.2% of the respondents were between the age of 21 and 30 years, 50 representing 55.6% of the respondents were between the age of 31 and 40 years and 10 representing 11.l°/c of the respondents were between the age of 41 and above years. Respondents between the age of 31 and 41 years constitute the greater percentage of the respondents, this simply means that those sets of people will be able to know the meaning of the question that were asked from them and able to give correct information.

TABLE 4.2.3   MARITAL STATUS

Source: Field survey, 2011

From the above table, 50 respondents representing respondents were single, and 40 representing respondents were married.

Respondents who are single were greater than those who are married, this imply that, these set of people would be able to devote more time for questionnaire.

TABLE 4.2.4: EDUCATIONAL QUALIFICATION

Sources: field survey 2011

the above table, 10 representing 11.1% of the respondents were GCE/SSCE holder, 10 representing 11.1°/s of the respondents were ND/NCE holder, 20 representing 22.2% of the respondents were HND/B.SC holder, 40 representing 3ggo/ of the respondents were MSC/N1SA holder and 10 representing 11.1% of the respondents were holders of other professional certificates. Respondents that hold MSC/MBA constitute greater percentage of the respondents. This implies that these set of people would be able to administer the questionnaire properly and accurately.

SECTION B GENERAL QUESTION

Question 1  Is there any programme for the company on any planning

Source: questionnaire , 2011

From the above table, 70 respondents representing 77.8°/o of the respondents agreed that the company has planning programme 20 representing 22.2% of the respondents disagree that the company has a plan programme. Since the number of respondents who agreed that the company has plan programme is greater than those who disagreed, this implies that this company has planned programme.

Question .2 Do you know how the organization plans are prepared?

TABLE 2

Source: questionnaire, 2011

From the table above, 90 representing 100% for the whole respondents to know how the organization prepare their planning this  that there is proper coordination in the company.

Question 3. Does planning improve labour productivity in your company?

TABLE 3

Source: questionnaire , 2011

From the above table, 80 respondent representing 88.9°/o of the respondents agreed that planning improve labour productivity in the company while 10 representing 11.1% of the respondents did not agree, this implies that planning enhances labour productivity n the company.

Question 4. Does the management send staff members for external training to enhance productivity?

TABLE 4.

 Source: questionnaire , 2011

From the above table, 60 respondents represent 66.7% of the respondents agreed that management send staff members for external training, while 30 representing 33.3% of the respondents disagreed. Since the number of respondents who agreed is greater than those who disagreed, this implies that the management sends the staff members for external training to enhance productivity.

Question 5 Does planning really enhance overall company’s productivity?

TABLE  5

Source: questionnaire , 2011

From the above table, 90 respondent representing 100% of the whole respondents agreed that planning enhance overall company’s productivity, this implies that planning is the main determinant of overall company’s productivity.

Question 6 Does the company monitor the planning process to know whether it achieves what they want to achieve?

TABLE 6

Source: questionnaire , 2011

From the above table, 65 respondent representing 72.2% of the respondents agree that the company monitor the planning process while 25 representing 27.8% of the respondents did not agree that the company monitor planning process. Since the percentage of those who believe that company monitor planning process is greater than those who did not believe, it implies that the company undertakes proper control mechanism.

Question 8 Is there any other factor that contributes to the high productivity in the organization more than planning?

TABLE 8

Source: questionnaire , 2011

From the table above, 15 respondent representing 16.7°/o of the respondents believed that there is other factor that contribute to the higher productivity more than planning while 75 representing 83.3°/o of the respondents did not believe that there is any other factor that contribute more than planning, since the percentage of those who believe that there is another factor that contribute to the higher productivity more than planning is less than those who did not believe, this implies that, is panning that contribute immensely to the higher productivity of the company.

Question 9. Do you agree that without planning, company will not record large scale output?

TABLE 9

Source: questionnaire , 2011

From the above table, 75 respondent representing 83.3% of the respondents agreed that without planning the company will not record large scale output while 15 representing l6.7% of the respondents did not agree, since the number of respondents who agree that without planning the company would not record large scale output is more that those who did not agree, this implies that planning is the major factor that contribute to the large scale output of the organization.

Question 10 Does the staff members have problem with the company’s planning process?

TABLE 10

Source: questionnaire , 2011

From the above table, 90 respondent representing 100% of the whole respondents agreed that they do not have problem with the planning process of the organization.

Question 11 Does the top management staff involve middle and operating officers in the overall planning?

TABLE  11

Source: questionnaire , 2011

From the above table, 80 respondent representing 88.9% of the respondents believe that middle and operating officers are involved in the overall planning while 10 represent 11.1% of the respondents believed that middle and operating officers are not involved in the overall planning of the organization, since the percentage of those who did not believe is less than those that believe, this implies that the top management staff involves middle and operating officers in the overall planning of the organization.

CHAPTER FIVE

5.1 SUMMARY

This chapter puts the whole work in concise form with summary, conclusion and recommendations.

5.2 SUMMARY OF THE MAJOR FINDINGS

Planning is basic to decision making which involves selecting the cause of action that a company or other enterprises and every department will follow.

This project highlights planning in organizational productivity and shows that, it is inevitable in collimating of output maximization with reference to 0km Biscuit Company Limited, Offa, Kwara State.

This study examines the impact of planning in the achievement of the organizational productivity and the stage it undergoes before it can be effective. The study also revealed the importance of planning; it also enumerated some possible constraint in the course of the research. The researcher examined critically the perception and opinions of different authors in planning its effect in determining the success of failure of the organizational productivity and necessary comments-made.

The researcher also made use of percentage method to analyze the responses from the people to whom questionnaire were given the researcher thus strongly believes that planning is of utmost importance of company’s productivity.

5.3 CONCLUSION OF THE STUDY

Planning is the first step in managing an organization. To make planning process effective, two major bamers must be overcome, internal resistance of goal setting & reluctance to accept plans because of the changes they bring.

Planning is the most basic of the management functions because, it involves the determination of organization, mission, strategies and objectives. Since productivity is a major objective for the most organizations. It is logical to say that this goal is a part of the organization’s planning; most organizations realize this every day and are making efforts to integrate productivity improvement into strategic plan. People as the principal resource and central factor in productivity improvement drives, they all have a role to pay as workers, engineer, managers, entrepreneurs and trade union members. Thus  management needs to plan human resource effectively within the organization before labour productivity can be achieve In addition, both manufacturing and service industries need planning in order to service and also on must realize the need for flexibility in planning which is an important part of planning process and help determine whether or not the organization will succeed.

Because condition both within and outside the range may change, planning must be continuous.

However, one can realize from the findings that 0km Biscuit Company Limited has good planning because it is known to be one of the leading companies in the confectionery industries.

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