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 management therefore, 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). Stategycould 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 (stategy) to set realistic achieving the organization objectives.Stategic 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 strategic planning of the organizational’s success, the external environment of the organization is also taken to consideration.According to Minzbery and Quin (1991) Strategic planning of a successful and productive 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

Our 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 a 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 is 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 AND OBJECTIVES OF THE STUDY

The main objective of our study is to examine the role of strategic planning in an organizational success. The specific objectives are as follows:(i) To identify strategies needed for organization to achieve its goals and objectives.(ii) Determining the policies guiding or limiting actions.(iii) To examine the importance of strategic planning in organizational success.(iv) To determine the factors that lead to poor productivity in an organization.(v) To find out the basic competencies required of both the production personnel and workers.

1.4 RESEARCH QUESTION

The following questions will guide this research work.i. What are the strategies needed for organization to achieve its goals and objectives?ii. To what extent does the policy or limiting actions effective?iii. What is the importance’s of strategic planning in organizational success?iv. What are the factors that lead to poor productivity in an organization?What are the basic competencies required of both the production personnel and workers.

1.5 RESEARCH HYPOTHESIS

For the purpose of data collection and interpretation of this study, the following hypotheses are raised.HO1: There is no significant relationship between strategic planning and organizational success.H1: There is a significant relationship between strategic planning and organizational success.

1.6SIGNIFICANCE OF THE STUDY

This study will enable the researcher to discover the role of strategic planning on the organization’s success and how production managers should strategize and actualizing the goals of the organization in attaining success.It will also point out areas in which good 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.

1.7 SCOPE OF THE STUDY

The scope and delimitation of this study would be limited to Rivers State Transport Company in Port Harcourt.Besides, considerations were 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.

1.8 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.

1.9 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.