THE EFFECT OF LONG TERM PLANNING ON ORGANISATIONAL PERFORMANCE

1.0 Introduction

1.1 The Background of the Study

Extensive business planning is a comparatively modern development. Early industrial and marketing organizations concentrated upon production and selling rather than planning. This was partially a reflection of size of the industrial concerns small-scale operations permitted much planning to be done formally. Business was also less complete many factors of great significance to day such as labour, public relation, tax legislation, consumer preferences, and international business were relatively unimportant in the early period.

Various developments have created the need for more extensive business planning. Growth in size made it difficult to operate without formalize planning. in the field of petroleum, the work of Fredrick W. Tayor and the scientific management movement placed great stress upon detailed banking planning. Since the second world war, there has been a substantial increase in corporate planning of a comprehensive nature. In earliest years.

These was a tendency for planning to be performed unevenly throughout. The company and the result was a collection of plans which controlled. The operation on individual segment of the business but lacked overall unity. Heindreds of large corporation have adopted. The practice of comprehensive corporate planning regularly preparing formal long-rang plans.

The constantly accelerating rate of changes in the environment, products markets, and method of business has forced attention to long term planning.

A company must therefore plan long into, the future if it must stay even with the competition environment. Discoveries and new product line obsolete. Lead time for introducing new products and exploiting new materials is shortened by the rush to duplicate the success of other by competitors. In this atmosphere of constant change, long term planning is necessary for survival. Today, the need for long-term planning in public administration, but to use complete quantitation and sophisticated tools such as electronic computers in planning.

The desirable course of action for the business. The major question today, is not whether to engage in long term planning on the organization is performance. Brief History of Nigerian Nation Petroleum Corporation (NNPC)

The Nigerian national petroleum corporation (NNPC) is a state oil cooperation through which the federal Government of Nigeria regulates and participate in the country's petroleum industry.

NNPC was established on April 1, 1977 as a merger of the Nigerian national oil corporation and the Federal ministry of mines and steel. NNPC by law managers the joint venture between the Nigeria. Federal government and a numbers of foreign multinational corporations, which includes ROYAL DUTCH SHELL, AGIP, EXXONMOBIL CHEVRON AND TAXACO. Through collaboration with these companies, the Nigeria government conducts petroleum exploration and production.

The NNPC Towers in Abuja is the headquarters of NNPC, consisting of four identical towards the complex is located on Herbert Macaulay way, contral Business District Abuja. NNPC also has zonal offices in lagos, Kaduna, port Harcourt and warri. It has an international office located in London, united kingdom.

The NNPC group Comprises the NNPC Board, the group managing directors office, each of the directorate is headed by a group Executive Directors (GED). Its divislons are headed by Group General managers (GGM).

The directorates of the NNPC company is as follows:

1. Exploration and production
2. Refining and petrochemicals
3. Commercial and investment
4. Finance and accounts
5. Corporate services
6. Gas and power
7. Engineering and technology
8. Business development

The factory commenced production in February 2007 to meet up with the daily rising demand of their numerous and increasing list of clients and satisfy the widening architectural taste of may Nigerians. The factors is equipped with three giant modern automated petroleum plant capable of producing.

1. Crude oil
2. Gas
3. Petroleum products

---

1.2 Statement of the Problem

The issue of organizational performance in Nigeria has been a thing of concern in management and owners of business (public and Private) the public consumers and the nations as a whole. The research for this concern is based on the fact that in a capitalist or mixed economy like Nigeria, aggregate economic performance is dependent on the performance of the players in the economy i.e the government, business firms and the household, the performance of any organization is therefore based not only in management is ability to plan in the short-run control organize, direct and coordinate its resources but also on the ability to effectively plan for into the future and effectively implement the plans.

It is pertinent to note that planning ahead has many forms which has different effects on the organizational performance. These are short term plans, medium term and long term plans. The adoption of any of these ronges of plan by any organization will depend on the foreseen effect it will have on its operations. Most organization in Nigeria prefers the short and medium range plans because of the flexibility and almost certain outcomes of such plans.

The use of long-terms plans is therefore not widely applied by Nigeria companies. This is probably due to the seeming uncertainty associated with the outcome and high cost involved in formulating and implementing such plans. The reluctance shown on the part of most Nigeria companies in using the long term planning is due to the advantaged and that therefore brought about the problem of this research work which are:

1. High labour turnover due to poor welfare scheme implementation.
2. Poor employee performance due to the use of obsolete equipment.

---

1.3 Objectives of the Study

The purpose of this research work is to determine:

1. If long term survival of organization and the achievement of desired goals is depended on effective long term planning or not.
2. The relationship between long-term planning and the performance of the organization.
3. If long term planning can help in sustenance of growth and proper the organization to react favourable to the changing environment factors.

---

1.4 Research Questions

In this research work, the following questions were developed and answered by the researcher. For the purpose of this research work, the researcher will formulate.

1. What roles does long-term planning play in the sustence and growth of an organization?
2. Does long term planning make on organization to be more effective than when it was running on short and medium term plan?
3. Does long term planning make an organizational performance of the personal ability to recite favourable to the organizations changing patterns.
4. How long-term planning does ensures long terms survive of any organization that embarks on it?
5. To what extent is the relationship between long-term planning and the performance of the organization?

---

1.5 Significance of the Study

This research work will be beneficial to employers of labour both the private and public. It will also benefit all planning units within an organization.

Employees are not left out because it serves as an eye opener to them to determine the relationship between long-term planning and their performance.

Students and research scholar will find this materials useful for further citation.

---

1.6 Scope of the Study

The scope of the research will be limited to the Nigerian national petroleum corporation (NNPC). The reason for this is to make an in-depth analysis of the effects of long term planning on the company is performance and not on the entire operations of the company. Questionnaire will be limited to those involved in formulating and implementing long term planning in the organization.

---

1.7 Limitation of the Study

The study encountered several limitations such as:

1. Inability of the interviewers to disclose fact which is deemed necessary for the study as well as distance that is being covered through and for the company site.
2. Limitation in questionnaires was also a problem since, respondents worthiness in answering question was not adequately guaranteed.
3. Therefore, the work was limited to the answer given to the researcher from the respondents.
4. Frequent rescheduling of interviews by the top management to the researcher and their unwillingness when interview to disclose some vital information they considered confidential to the researcher on the long term planning methods used by the organization.
5. The last but most important was financial constraints. The cost of transportation to many state round. The country were the case study firm is located and funds spent in gathering data were very height.

---

1.8 Definition of Terms

Effect:

This word is used to refer to the out come or result of an occurrence or event in this work. Therefore, we are talking about the result or an occurrence or event, which is the implementation on long term plan.

Planning:

Selecting mission and objectives and the strategies, policies, programme and procedures for achieving them. Decision making selection of a course of action from among alternative.

Long Term Planning:

This is also means long range planning. The activity process of study of preparing plans that covers long periods usually five years or more.

Plan:

The outcome of the planning process. It is defined as a projected course of action that is designed to lead to desired result or goals.

Panning Process:

A rational approach of setting and accomplishing an objectives and evaluating alternatives in light of goals, sought and against the environment of planning premises.

Forecasting:

This means assessing the future, it normally involves asking calculations and projections which take account in the past performance, current trends and anticipated change in any period ahead.

Organization Performance:

This means the achievement success or failure of an organization in this work however, success will be considered.

Goals:

This is the future desired state of an organization. Anderson defined it as target for achievement in pursuit of specific aims and objectives.

Objectives:

These are the specific aims of an organization. They are target aimed at activity goals. Objectives according to Akawa (1999:38) are broad aims towards which activities is targeted.