ABSTRACT
The
Nigeria
business is so volatile, to the extent that only those who can scan it
successfully, forecast the possible charges in it and thereafter marshal all
available resources in accordance with the dictates and demands of the
environment can operate successfully in it.
This
project work is to asses and examine the effectiveness of corporate planning as
the management process and also to evaluate its contribution as a catalyst to
the survival, growth and profitability of the organization.
The
study examined corporate plan formulation and implementation in the
organization. It highlighted how consultations, deliberations and condition for
effective planning were properly taken care of. The project work also showed
the dependence of the management functions like organizing, staffing, coordinating,
reporting, leading and budgeting on effective corporate planning.
The
dynamic of planning in Diamond Bank was appraised. The evolution ,
implementation, success and benefits of corporate planning in bank was
discussed. The fundings showed that corporate planning process and
implementation in Diamond Bank is quite impressive. The workers embrace it,
contribute fully to its success and show loyalty and commitment to the plan.
Management in turns encourages them through motivation and effective
communication.
This
in conclusion planning is greatly helping the bank to maintain its competitive
edge in the country.
TABLE
OF CONTENTS
Title Page
Certification
Acknowledgement
Dedication
Abstract
Table of Contents
CHAPTER ONE
1.1
Introduction
1.2
General description of Area of
Study
1.3
Problem Analysis
1.4
Purpose of the study
1.5
Research Question
1.6
Statement of Hypothesis
1.7
Definition of Unfamiliar Term/Concept
1.8
Delimitation or Scope of the
Study
1.9
Significant of the Study
1.10 References
CHAPTER
TWO
LITERATURE
REVIEW
2.0 Historical Background of Diamond Bank Plc
2.1 Fundamental of Corporate Planning
2.2 Intuition and Planning
2.3 Guides to Planning
2.4 Climate Planning
2.5 Responsibility for Planning
2.6 Principles of Planning
2.7
Theories of Planning
2.8
Method of Planning
2.9
The Planning Process
2.10 Approaches to Formal Corporate Planning
2.11 Operational Planning
2.12 Forecasting Techniques for Planning
2.13 Medium Range Programming
2.14 Advantages AND Disadvantages of Corporate
Planning
2.15 Strategic Planning
2.16 Planning and Management Process
2.17 Concept of Business Organization
2.18 Corporate Planning Responding to Today’s Need
2.19
The
Need for Corporate Planning
2.20. The
Impact of Comprehensive Planning on Financial Performance
2.21 The Process of Strategic Planning in Banking
2.22 Planning in Financial Institution: The Case
for Awareness
2.23 Management by Objective
2.24. Barriers to Planning
2.25
Common Problem in Strategic Planning
2.26 Problem of Corporate Planning in Nigeria
2.27 Obstacles
to Effective Implementation of Strategic Plans
2.28 Pitfalls of Strategic Planning
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.0
Introduction
3.1
Restatement of Research Questions and
Hypotheses
3.2
Study of the Population
3.3
Research Design
3.4 Data Collection Instrument
3.5
Data Collection Administration
3. 6 Data Analysis Techniques
3.7 Limitation of Methodology
CHAPTER
FOUR
DATA
PRESENTATION, ANALYSIS AND DISCUSSION
4.1.
Introduction
4.2 Rate of Response
4.3 Subject
Description
4.4 Data on Corporate Planning and Management
Process
4.5 Involvement in Planning and Implementation
4.6 Goals and Objectives Stated and Achieved
4.7 Effective of Corporate Planning on
Organizational Structure
4.8 Framework for Decision Making and Resources
Allocation
4.9 Effective use of Information System
Communication Technology and
Forecasting Techniques
4.10
Effects of Organization Politics
4.11 Integration
of Budgeting and Corporate
Planning
4.12 Workers Contributions and Motivation
4.13
Effect of Corporate Planning on Management Process
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
BIBLOGRAPHY
CHAPTER ONE
1.1 Introduction
Corporate
planning is the process of selected objectives, purpose or goals and deciding
generally and specifically what should be done to attain these objectives. It
is done at corporate level which covers the entire organization with due
attention to various departments, sections, division and branches that up the
organization. Corporate planning is also called strategic planning as a tool to
aid management in strategic decision-making. The purpose of strategic planning
thus to accomplish a sufficient process of innovation and change in the firm.
It is a process a corporation follows thinking through before hand what is to
be accomplished and to large extent how to accomplish it. This greatly
simplifies the task of the manager and enables him to make most effective use
of time, manpower and equipment, facilities and money.
Corporate planning is a systematic study,
which is designed to help identify the of any organization. It is also a
determined effort to attain the desired target and needed effort to attain the
desired Target and examine the likely constraints as well as device a plan in
which a set of objectives can be
achieved. Corporate planning is done on a long-term basis and it involves an integrated approach to all
aspects of the company’s activities by treating the company as a corporate
entity where all the different branches, department and units, which make up tile organization are collectively
taken care of rather than a collection of separate outfits. Any activity that does not aid in
the strategic decision making of the firm is not corporate planning, even though it may seem
to involve many of the ‘’right’’ elements of
planning such as elaborate five years plan often does not influence
strategic decision making aids.
Effective corporate planning does not have to elaborated or complicated, but
must be logical and focused on the strategic decision that will be taken
(Lorange, 1980).
A
very important aspect of corporate planning is the study of the environment in
which the organization operates. This kind of study will include the past
history, the present activities as well as the projection into the future. The
ultimate objective of the process is to match company’s strength and weakness
with environmental opportunities and threats, this is in order to be able to complete favorably and
efficiently in the environment and consequently
lead to accomplishment of organizations objectives and goals. Corporate
planning consists of two major components. They are operational and strategic
planning.
Operational
planning deals with the day to day activities of the business and done along
the Functional area like production planning, marketing planning, financial
planning, manpower planning Etc. It also consist of single use plans which are
developed to achieve specific purpose and dissolved when these have been accomplished for handling
recurrent and predictable situations.
Strategic planning on the other hand is the process of selecting an
organization goals and also established, the methods necessary to ensure that
the policies and programs are implemented. It is the formal process of
determining long run objectives and how to achieve them.
Corporate
strategic planning in the pattern of decision in a company that determines and
reveals its objectives, purpose or goals produces and the principal policies
and plans for achieving these goals and define the range of business the
company is to pursue the kind of economic and human organization, it is or it
intend to be and the nature of economic and non- economic contributions. It
intends to make to its shareholders, employees, customer and communities. It is
the type of plan that embodies time span and strategic formulation. It is a
long term planning that has a time horizon of at least three years. It is also
a clever device with the potential of evolving in the long run creation of
additional resources that will facilitate and
hasten
the attainment of long-term objectives and enable the organization to gain some
relative advantages of current position and competitions.
Corporate
strategic planning consists of nine steps as follows (Steiner, 1979):
1. Goal formulation and selection of missions
and objectives.
2. Identification of current objectives and
strategies.
3. Environment analysis.
4. Corporate appraisal or resource analysis.
5. Identification of strategic opportunities and
threat.
6. Determination of the extent to which the
strategic change is required.
7. Strategic, decision making.
8. Strategic implementation.
9. Strategic measurement and control process,
Therefore,
it can be seen from the above that strategic planning is the formalized
long-range planning process used to define and achieve organization goals. It
actually provide consistent guidelines for the organization activities and
helps the managers to recognize risky and safe opportunities and
choose between them. It also minimizes the chance of mistakes an unpleasant
surprises as goals objectives and strategies are subject to careful scrutiny
and less likely to be faulty and unworkable. Thus in any planning process there
should be strategic planning deals with long term and basic nature of business
and provides overall framework for the business. It addresses the organization
aims and defines the strategies and polices to achieve them and also develops
the detailed plans to ensure that the strategies are implemented in order to
achieve the end result. Strategic planning provides the structure and
operational planning translates all into current and day to day activities and
take off from there. They both complement each other and from the corporate
planning process of the
organization. By this, it would be observed that corporate
planning is essential and fundamental to the discharge of management functions
and crucial to the achievement of its goals and objectives. It is often argued
that management without planning is incomplete and purposeless. This is because
it is through planning that management can recognize and also appreciate its
potentials, scan its environment and judiciously employ resources. Management
function which include planning, organization, coordinating, leading and
directing, controlling, staffing, motivating and budgeting are inter related
regardless of the manager skills. It is therefore particular revealing to note
that these activities are step in corporate planning. This is because before
managers can organize, lead, coordinate and motivate. They must make the plans
that give purposes and directions to the organization, deciding what needs to
be done and how it should be done and who is to do it. Therefore, manager must
engage in corporate planning which defines fundamental goals and objectives in
specific terms, determine the means to achieve them, provide a basic long range
framework into which other forms of planning
can fit, and all these action based on some method, plan or logic, rather than
on bunch in order to strongly influence, the survival and growth of an
organization in the contemporary, frequently volatile environment. This
undoubtedly enable it
to
carryout the management function of organizing, staffing, directing,
coordinating, controlling, effectively and efficiently.
1.2 Background of Study
The Nigeria business is so volatile to
the extent that only those who can scan it successfully, forecast the possible
change in it and thereafter all available resources in accordance with the
dictates and demands of the environment can operate successfully in it. The
study examined corporate plan and implementation in the organization. It
highlighted how consultations, deliberation and condition for effective
planning were properly taken care. The study also showed the dependence of
management function like organizing, staffing, coordinating, reporting, leading
and budgeting on effective corporate planning. The dynamics of planning in Diamond
Bank was appraised. The evolution, Implementation, success and benefits of
corporate planning in the bank was discussed. The findings showed that
corporate planning process implementation in Diamond Bank is quite impressive.
The workers embrace it, contribute fully to its success and show loyalty and
commitment to plan. Management in turn encouraging them through motivation and
effective communication
1.3 Statement of Problems
Corporate planning a formal,
systematic managerial process, organized by responsibility, time and
information to ensure that operational planning, project planning and strategic
planning are carried out by management to direct and control the future of the
enterprise. The planning process also involve decision making. The is the process of developing into, and
selecting a course of action to solve a specific problem. This is made at any point of the planning.
There is also a close relationship between planning and controlling, control
cannot take place unless a plan exists.
Therefore control compares actual information about what is really
happening during a plan’s implementation with the budget. In organizing and staffing corporate planning
determines how human and material resources are coordinated, the number of
people to be engage, the typed of equipment to be used, and the quality and
quantity of other resources that would be needed in order to attain
organizational goals. So having said this, one appreciate the rational for
corporate planning and expect a lot of
organization to embark on it with utmost seriousness. The sad thing is that the
situation in Nigerian organization is that, only the large organizations and
multinational companies embark on
corporate planning the small and medium sized companies mostly do not
[Adegbite, 1986].
This
introduced cutthroat competition and most of the organization faced
uninterrupted decline in their sale and level of profit [Bello and lyanda,1981]. These changes were mostly as a result of the
political, social-cultural, economic historical and technological setting of
the country. Many changes were created
in the environment of the organizations because many governments try to manage
the activities of given economies through the introduction of the various
fiscal and monetary policies.
This
led to a situation where organizations that were unable to participate and plan
for these changes and eventually collapse. Therefore these organizations
started realizing the in dispensation of a corporate plan, which will
effectively take care of these changes. Most importantly the political
Instability in the country which had led to and is still leading to frequent
changes of regime from time to time
make meaningful planning difficult task due to unpredictability of the
environments.
Closely
associated with these are:
i.
Lack of management commitment to plan.
ii.
Rapid changes in the environment.
iii.
Uncertainly about government long term
policies and legislation.
iv.
Over dependence on the budget,
companies wait and are practically on stand still till the budget is read.
v.
The roller coaster nature of the
economy and excessive government interference in the private sector.
vi.
Lack of cohesiveness in general policy and
inconsistency policy implementation by government. (Olukunle Iyanda, 1988). All
these have planning in Nigeria
a very difficult task.
1.4 Purpose of Study
The purpose of the study is to assess
the effectiveness of the corporate planning as the management process and also
to evaluate its contribution as a catalyst to the survival, growth and
profitability of the organization. The motive is basically to assess the
following components of the corporate planning which are:
1.
Strategic planning, process and
implementation.
2.
Operational
planning and its sub-components like, singles use plan and standing plans.
The
study is to examine corporate plan formulation and implementation in the
organization.
It
will highlight how the consultations deliberations and condition for effective
planning are properly taken care of it will also show how the dependence of the
management functions like organization,
staffing, coordinating, reporting, leading and budgeting on
effectiveness
of the discharge of these functions depend on the corporate planning.
Thus the pitfalls in Nigerian business environment will be highlighted and how
the situation can be improved.
The
dynamic of planning in the chosen organization will be appraised. The evolution
implementation, success and benefits of corporate planning in the company shall
be discussed. This will help to motivate and encourage other companies who are
yet to embrace the practice and convince them that successful discharge of
management function in order to accomplish that set of goals, objectives and
purpose depend on adoption and implementation of a corporate plan.
1.5 Research Questions
1.
Does corporate planning lead to
attainment of organizational goals and objectives?
2.
Does it provide framework for decision
making and resources allocation?
3.
How can corporate plan affect
organization culture?
4.
How can corporate plan affect
organization structure?
5.
To what extent are workers involved
and motivated in the process?
6.
To what extent do information systems,
organizational politics and Forecasting techniques influence corporate
planning?
7.
Does corporate planning make use of
technical qualitative method techniques?
8.
How can corporate planning and
budgeting be effectively integrated?
9.
Are there significant effect of
corporate planning on management process?
1.6 Statement of Hypotheses
1.
Ho: Corporate planning does not
lead to attainment of organizational goals and objectives.
Hi: Corporate planning leads to
attainment of organizational goals and objectives.
2.
Ho: It does not provide
framework, for decision- making and resources allocation.
Hi: It provides framework for
decision- making and resources allocation.
3. Ho:
Corporate planning cannot affect organizational culture
Hi:
Corporate planning can affect organizational culture.
4. Ho: Corporate planning does not involve and
motivate workers.
Corporate planning involves and
motivates workers.
5.
Ho: Information systems,
organizational politics and forecasting techniques do influence corporate
planning.
Hi:
Information system, organizational politics and forecasting techniques
influence corporate planning.
6. Ho:
Corporate planning does not make use of technical qualitative method
techniques.
Hi: Corporate planning makes use
of technical qualitative method techniques.
7. Ho:
Corporate planning and budgeting are not effectively integrated.
Hi:
Corporate planning and budgeting are effectively integrated.
8. Ho: There is no significant effect of corporate
planning on management process.
Hi: There is significant effect
of corporate planning on management process