THE ROLE OF PLANNING AND FORECASTING IN BUSINESS ORGANIZATION
1.0 Background of the Study
Planning and forecasting are two sides of a coin that an organization that wants to be successful must imbibe. There are needed in the achievement of an organizational goals and objectives.
Planning is the process that involves going through the current activities of an organization, checking lapses that occurred in the previous year and setting measures to avoid them in subsequent years.It involves mapping out the goals an organization wants to achieve in a year, ways to achieve such goals and the necessary resources to achieve them. It is the first step a manager must take in deciding what to do and how to go about it.
Planning takes an organization to where it wants to be in the nearest future. In planning, the past and present state of an organization is considered in other to bounce back better and stronger.
Forecasting involves looking into the future by noting the available resources, making an estimate of the resources required and considering if more hands will be needed in achieving the organization’s goals (Needle, 1999: p178).
Forecasting is carried out when an organization wants to look into what the future would be like; in order to put necessary measures in place. An organization can be effective if it can predict its environment, identify problems and solve them (Steiner, 1979).
Planning and forecasting are vital tools needed in an organization for performing management functions and in decision making to ensure all departments of the organization functions well. Planning and forecasting walk hand in hand, as forecasting helps unify and coordinate plans.
1.1 Statement of the Problem
Organizations that fail to plan, plan to fail. Organizations that wait for rainy days are bound to crumble as this is evident in many organizations today.
Many organizations fail because of the notion that planning and forecasting should center on a part of an organization.
In addition, some business organizations crash due to poor timing of planning and forecasting.
1.2 Objectives of the Study
The major objective of this research is to discover the role of planning and forecasting in business organization.
Other specific objectives include;
- To determine if planning and forecasting should be the duty of just the managers.
- To determine if planning and forecasting boosts business organizations.
- To discover if a business organization can strive without planning and forecasting.
- To determine if there is a relationship between planning/forecasting in business organizations and Gross Domestic Product.
1.3 Research Questions
- Is planning and forecasting just the duty of the manager?
- Does planning and forecasting boosts business organizations?
- Can a business organization strive without planning and forecasting?
- Is there a relationship between planning/forecasting in business organizations and Gross Domestic Product?
1.4 Research Hypotheses
Ho: Business organizations cannot strive without planning and forecasting.
Hi:Business organizations can strive without planning and forecasting.
1.5 Significance of the Study/ Justification of the study
This study is meant to bring to the knowledge of the management of business organizations that planning and forecasting is needful in the overall success of an organization.
This study will be of immense benefit to other researchers who intend to know more on this topic and can also be used by non-researchers to build more on their work. This study contributes to knowledge and could serve as a bench mark or guide for other work or study.
1.6 Scope/Limitations of the Study
This study isbroad since it is studying on the role of planning and forecasting in business organizations generally.
Limitations of study
- 1. Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- 2. Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.7 Definition of Terms
Plan:Is a detailed proposal for achieving something or a decision about what one is going to do.
Planning is the process of making plans for something.
Forecasting:Is the process of making predictions of the future based on past and present data and analysis of trends