Chapter 8, Problem 1RDQ

Summary Introduction

To determine:

The relationship between performance and planning suggested by different studies.

Introduction:

Planning refers to the process wherein the managers think about the task and activities that need to be undertaken for attaining the desired objective or goal. Planning is the first step to attain the desired outcome. In other words, Planning is thinking before action actually takes place. It is about deciding in advance to deal with the situation that might occur in the near future.

Answer to Problem 1RDQ

Studies have suggested that there exists a positive relationship when it comes to performance and planning. Also, in order to attain the expected performance, an organization must consider at least four years of formal planning exercise.

Explanation of Solution

The organization that plans for their course of action do not always come up with flying colors or outperform the organization that does not plan their future, however, still most of the studies suggest that there is a positive relationship between performance and planning. The organization that plans in an effective manner generally performs well, but if the organization still fails to give high performance than it might be due to the forces in the external environment that pose hurdle and challenges to attain the expected outcome. Different studies have also suggested that in order to attain the expected performance, formal planning for a period of at least four years should be taken into consideration.