CHAPTER ONEINTRODUCTION1.1 BACKGROUND OF THE STUDY

The fortunes and hope of developing economies in as far as rapid growth and improvement in societal welfare and development are concerned largely on the aggregate volume and quality of goods and services produced within the economy. To this extent, the production of goods and services can rightly be described as the soul live wire of any organization. The higher the aggregate value of the goods and services produced and fewer the man-hour of labour and other resources used for production, according to the classical economists is the process of creating and expanding wealth. As a key business organization function,production is primarily concerned with the transformation or conversion of input resources into finished goods and services.It is undoubtedly the technical core of any production organization. As one of functional areas of business management, production managementtherefore, deals with the planning, designing, coordinating, monitoring, controlling and the management of all production activities necessary in ensuring the inputs resources are effectively and efficiently transformed into the required quantities qualities of production. Adams (1978) for the objective of business organization to be maximized, there is need for effective strategic planning of the complex system of men, machines, materials, money and physical structures whose coordination and control is vital to the achievement of corporate goals. Strategy in organizational productivities simply means as a set of objectives policies and plans that, taken together define the scope of the business enterprise and its approach to survival and success, Mluko M. et al (1998). Stategy could also be described as a long-term commitment of resources to achieve a specific goal in a competitive environment. Planning on the other hand, could be defined as selecting from among alternative future course of action as a whole and for every department or section making and determination of how the objectives are to be carried out. It requires the planner(production manager) to ask the following questions, who will do the work?According to Ibekwe O.U. (1984), planning entails setting objectives and (strategy) to set realistic achieving the organization objectives.Strategic planning is a disciplined, creative process for determining how to take your organization from where it is today to where you want it to be in the future.Therefore, strategic planning is a systematic method of analyzing and responding to a competitive environment. Stoner C.K. et al (1998). Strategic planning should be viewed as an on-going process. It provides an overview and analysis of the business and its relevant environment. Then it prescribes and outlines or action capitalize on its strengths and maximize its weakness or threats.In planning the organization productivity alternative strategies for achieving the overall objectives could be set by the production manager of the business organization.Strategic planning, therefore define the specific approaches or game plan for achieving the organization’s objectives.In setting up effective strategic planning of the organizational productivities, the external environment of the organization is also taken to consideration.According to Minzbery and Quin (1991) effective strategic planning of a success production organization contains three essential elements: The goals (or objectives) to be achieved The policies guiding or limiting actions; The major action sequences that are to accomplish the defined goals within the limit.

1.2 STATEMENT OF PROBLEM

This research is motivated by the idea that unsuccessful business organization especially in Rivers Transport company may rise from their poor planning. It could be noted that lack of proper planning under the development and productivity of the organization.There will be problem if an effective strategic planning were not introduced into the production to examine the method of production and work-flow procedure. When this is not done, the maximum benefit/objective would not be gained.There will be problem when the work place is not planned in such a way that production is integrated with other department and system in business organization.Problem may arise when the staff involved in the use of production are not trained in the various skills required.This involves all staff from the operator of machines to the higher management levels.Production managers need training to ensure that job design and job specifications are prepared in a suitable form and pattern.Production operation may find it difficult to operate machines efficiently without the “user Manuel” for guidance. These people who dictate or design production generally known as production personnel, about the procedures to be followed when problem arises.

1.3 PURPOSE OF THE STUDY

This research is aimed at:(i) Identifying strategies needed for organization to achieve it goals and objectives.(ii) Determining the policies guiding or limiting actions.(iii) Identifying the importance of effective strategic planning in organizations productivity.(iv) Identifying factors that lead to poor productivity.(v) Finding out the basic competencies required of both the production personnel and workers.

1.4 SIGNIFICANCE OF THE STUDY

This study will enable the researcher to discover the effects of strategic planning on the organization’s productivity and how production managers should strategize us actualizing the goals of the organization.It will also point out areas in which good/effective strategic planning can affect positive competence to both the workers and the management. The success or failure of any production business depend mainly on the effectiveness of planning, organizing, directing, coordinating, controlling, motivating, practice towards the actualization of organization productivity. This research will help production manager to set policies which serves as a broad guide to thinking. It set rational limitation to workers and managers actions.Generally, the strategic planning provides managers with criteria to follow in order to implement operational objectives.

1.5 RESEARCH QUESTION

The following questions will guide this research work.i) Do manager in organizations plan extensively?ii) What kind of strategic planning do they adopt?iii) What is the effectiveness strategic planning on the organization productivity?iv) What type/kind of production machines do the organization have/use?v) What influences the workers positively put in achieving the organisation’s productivity?

1.5 RESEARCH HYPOTHESIS

For the purpose of data collection and interpretation of this study, the following hypothesis are raised.HO1: There is no significant relationship between the effectiveness of managers and performance in effective strategic planning.HO: Managers does not know their place in effective strategic planning.H1: Manager knows their place in effective strategic planning.

1.6 SCOPE AND DELIMITATION OF THE STUDY

The scope and delimitation of this study would be limited to Rivers State Transport Company in port Harcourt.Besides, considerations was not given to the small organizations and as such suggest therefore that more research should be done on this area including the small organization.It is my desire that this topic being given the has a project for proper developing achieving something.

1.7 LIMITATION OF THE STUDY

There are a lot of companies in Port Harcourt of RiversState. The researcher concentrated her study only in one company which is Rivers State Transport Company due to financial imbalance and limited time factor. This research is designed to ascertain how effective strategic planning boasts the organizations productivity.There competences of the personnel manager in the organization and its sets of strategies calls effective and efficiency of the organizational goals and objectives.

1.8 DEFINITION OF TERMS

There is need for every work in a research proposal and of course in any research report to be clear as to its meaning, since words have different meaning in different context.EFFECT: A change or the result or outcome of a cause.STRATEGY: This is a plan that is intended is to achieve a particular purpose.PLANNING: This is a detailed arrangements for something for something you want to do in the future.ORGANISATION: This is defined as a group of people who form a business, company club etc together in order to achieve a particular objective.PRODUCTIVITY: This is the rate at which a worker, company or an organization produces goods , and the amount/quality produced, compared with how much time, work and money is needed to produce them.