Alternative Modes of Planning Domain and Direction Planning Free Essay Example, 1500 words

The purpose of strategic planning is to rationalize and articulate the process of integrated decision making among firms. Planning can be strategic or operational where strategic planning pertains to long-term planning and operational to short-term planning. A study of ninety-seven small firms in central Iowa, in the USA, was conducted to evaluate the planning/performance relationship (Shrader et al cited in French, Kelly and Harrison, 2004). The study found that planning and performance are inter-related but small firms seldom undertook strategic planning and there was a possibility they were missing out on potential benefits. Sophistication in the planning process and quality of planning can help achieve organizational goals and not the time spent in the planning process (French, Kelly and Harrison, 2004). Larger firms engage in long-term strategic planning while smaller firms focus on operational planning. The authors also cite that mission and vision are the key variables in str ategic planning and there is no empirical evidence to support the claim that it positively impacts firm performance. People relate the future with goals but alternative modes of planning such as domain and direction planning do not involve goal-setting. We will write a custom essay sample on Alternative Modes of Planning: Domain and Direction Planning or any topic specifically for you Only $17.96 $11.86/pageorder now Planning can differ across organizational culture, size and situation. When people create an image of the future and then plan, it implies setting specific, objective and measurable goals. McCaskey observes that such planning is workable after the problem has been identified and defined. Moreover, goals are made to rationalize the decision or plans that have been made in advance. Such rationalization and justification for actions may blind the management to the unforeseen circumstances such as the external and the internal environment. Contingency theorists recognize several different modes of planning and the planning process should be aligned with the given situation (McCaskey, 1976). Planning for a well-defined problem in a stable environment is likely to be a rational process with specific objectives and measurable goals. With an ill-defined problem in a fuzzy environment, the planning process would depend on intuition.