Saturday, August 07, 2010

How Formal Planning Contributes To An Organization's Efficiency and Effectiveness

According to Daft (2008, p210) planning is the “act of determining the organization’s goals and the means for achieving them” - the source of motivation and commitment, with legitimacy, guides to action, rationale for decisions, resources allocation and standard of performance as benefits -, and goals as what define and state the organization’s purpose.

By implementing formal planning, an organization’s (achievements) goals are outlined, with allocations of necessary resources, tasks, schedules and other actions being specified (Daft 2008). Explicit goals (targets) and plans at each planning stage would be developed, sending out messages to internal and external audiences. Thus, an organization improves its efficiency and effectiveness (financial and operational performance) when it adopts a formal planning approach... Read more>>

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