Introduction
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 b ...