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 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 needed some planning...
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