process. Support your answer with examples drawn from real organisations, using

textbooks, journals, newspapers, business magazines, and periodicals.

Managing companies in the 21st century has changed in many ways compared to the

managing system used in the olden days. Starting from the structure of the organization

itself, how they plan, how they make decision, up until how they doing things; but one

thing that has not changed is that organizations which perform with an outstanding result

never neglect their planning. Each organization competes with each other to perform

better in accordance to others. These changes are made in order to form a better

organization each day as well as better results at the end of all progress. This essay will

examine why organizations that fail to plan are in essence planning to fail, as well the

types of organizational plans; hence the link between planning and strategic

management process.

“Organizations that fail to plan are in essence planning to fail”. From this statement it is

clearly understood that organizations which do not plan their future organizational goals

are more likely to fail. Not only is this applicable in the context of management. Anything

that is done without planning is very unlikely to succeed.

A well defined plan in academic term means “a drawing or diagram showing the

arrangement in horizontal section of a structure, piece of ground” (Webster’s New World

College Dictionary 2001). In planning, the very first step is to set a goal which is defined

as “statements of intended results that are general in nature and are measureable on a

naming or ranking scale of measurement” (Kaufman 1988).

It is crucial to plan every single step and thing that is needed to be done to avoid failure.

Hence, the importance to understand the purposes to plan; which is providing a direction

about what the organization does, and what and why it needs to be achieved so that the

organisation, as a whole, knows exactly what they are required to do. Therefore when

they know what to do, they can work together with other staff to accomplish the goals

that been set. For instance when the plan is set, the staff can easily refer to the master

plan and remind themselves what each of them are required to do.

Planning reduces uncertainty and makes sure everybody is committed to the achieving

the goal. It also forces the staff to anticipate any changes so they can construct an

appropriate response. In simpler terms, planning makes it easier to deal with

uncertainty. For example, where there is uncertainty or any problem in an organization,

they know what to do and are faster to react.

To minimize waste or redundancy is another one of the vital reasons to plan. This mean

that the organisation makes sure that nothing is left out or wasted in order to reach an

efficient result at the end of the day. These include time and financial resources. For

example when dealing with the food industry where the stocks are bound to the expiry

date, companies have to make sure of the amount needed in a certain period of time so

it does not result in waste of stock, expired food stock.

The last reason is to set a standard. This keeps things on track, or in the terms of a

managerial role it is known as controlling, as well as being a reference in competing with

other companies. This ensures us of what we are trying to achieve, and whether or not

we achieved it yet. For example, companies keep track of the progress of their plan by

determining their position in accordance to the plan daily, weekly, monthly or annually.

Even though many cases show that performance organizations that plan are mostly do

well, cannot be said that organizations that did not plan always fail. One of the real life

Page 1 Management and Organisational Planning of 6 7/24/2008

examples for the organization that did well planning where lead to outstanding outcome

is Sunrise Confectioners. In 1987 when Ken Klooger took over the confectionary after

his father in law retired, the company had annual revenues of approximately $4 million

which did not increase or decrease much in the last ten years. He then realized that he

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needed some planning in order to increase the revenues. After the changes that he

made through new products and methods in producing the products themselves as well

some ongoing research about the consumers’ preference and awareness, he did some

appropriate response to it such as spending $300,000 on television advertising for two

months due to consumers’ unawareness that their product contains no artificial colouring

and flavouring which one of the way to attract most health conscious consumers. This

resulted in the increase of revenues from $1.5 million to $15 million in 2000-2001

periods, as well as the market share that ...

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