Organizational System whether large or small have limited resources. The planning process provides the kind of information to top management need & aspiration to make effective decisions about how to allocate these scarce resources in such a way as to reach there existing goals and objectives. The organization planning system is the process of identifying organizations immediate and long term objectives and formulation and monitoring specific strategies to achieve them.
Planning helps the organization to achieve its goals and objectives but there are lots of reasons which caused it to fail in an organizational system and seven reasons out of them all are itemized below for our understanding:
1. failure to develop throughout the company an understanding of what strategic planning really is, and how it is done properly in the organization, and also the degree of commitment input from the top management level to doing it very well.
2. failure to encourage managers to do effective strategic planning by basing performance appraisal and rewards solely on the short-range performance measure.
3. failure to tailor strategic planning system to the unique characteristics of the company and its management.
4. failure to keep the planning system simple and to monitor constantly the cost-benefit balance efficiently and effectively.
5. failure to secure within the company a climate for strategic planning that is necessary for its success.
6. failure to balance an appropriately link between the major elements of the strategic planning and implementations process.
While each of this above failure of the planning system in an organization is important. The role, commitment and time allocated by the chief executive officer CEO in an organizational system is more critical to the successful implementation of corporate planning. CEO needed to commit to planning structure as a way the company is to be managed in general. Bad planning management becomes bureaucratic and restrictive in nature and can slow down the decision-making process in an organizational system.
As the planning system may be the style chosen by chief executive officer CEO to company affairs, it needs to be flexible, and alert to every change in the assumption on which it is based. A rigid adherent to plans written on mere tablets of stone and handed down from generation to generation is not likely to lead to the best future of the company success.
The major value in planning is in process of thinking through the business/environment interface and as such, it needs to be based on real dialogue between the board and planners on one hand and operating companies on the other.
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