All 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 eight reasons out of them all are itemized below for our understanding:
- failure to develop throughout the company an understanding of what strategic planning really is; how it is done properly in the company, and the degree of commitment from the top management level to do it well.
- failure to accept and balance inter-relationships among intuition, judgement, managerial values and the formality of the planning system.
- failure to encourage managers to do effective strategic planning by basing performance appraisal and rewards solely on the short-range performance measure.
- failure to tailor strategic planning system as a condition within the company change.
- failure to modify the strategic planning system as a condition within the company change.
- failure to keep the planning system simple and to monitor constantly the cost-benefit balance
- failure to secure within the company a climate for strategic planning that is necessary for its success.
- 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 top management level in an organizational system is more critical to the successful implementation of corporate planning. However, top management level needed to be more committed 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.
THE RECOMMENDATION TOWARDS THE SUCCESSFUL IMPLEMENTATION OF PLANNING SYSTEM.
As the planning system may be the style chosen by the top management level to run the company’s affairs, it needs to be flexible, and alert to every change on which it is based. A rigid adherent to plans written on mere tablets of stone and handed down from generation to generation are not likely to lead to the best future of the company success in the long run.
Secondly, the major value in planning system must focus towards the process of thinking through business/environment interface and it needs to be base on the real dialogue between the board and planners on one hand and operating companies on the other hand.
Thirdly, the system needs to be tailored towards adopting SMART goal principles, to observe and realized fully the objectives e.t.c
Fourthly, the system should be based on the systemic approach i.e on broader sense outlook by the top management of the company for a long term thinking approach e.t.c
Fifthly, the system needs to be tailored towards sharing the managerial responsibility to the subordinate levels of the organization without jeopardising the interest, aim of the top management in the organization.
Sixthly, the system must create a smooth line of communication channels among all levels about objectives, strategies, and detailed operational plans that will achieve the desire results.
Seventhly, the system must be able to give more chance for the introduction of creativity and innovation principles in the organization.
Last but not the least, the system must embrace the principle of team building i.e the system aims to improve the effectiveness of the group working together for common goals and objectives of the organization as a whole.