Effectiveness of Relationship between Strategic Planning and Performance Management - Research Proposal Example

Proposal: Effectiveness of relationship between strategic planning and performance management in order to achieve the organization objective Name: Lecturer: Course: Date: Table of Contents Table of Contents 2 Introduction 3 Overview: strategic planning and performance management correlation 4 Statement of problem 4 Significance of the study 5 Overview of Key Research Issues 5 Literature Review 6 Proposed Methodology 7 Conclusion 8 Reference List 9 Introduction Strategic planning has for a long time been used as an instrument for regenerating and transforming an organisation. Recent studies have however questioned the accuracy of the concept (Hakimpoor et al. 2011). Empirical studies that have investigated the link between strategic planning and performance have also attracted criticisms. The bone of contention is that there is some dissatisfaction with the planning efforts. Instead of revealing the fatal defects in strategic planning, they tend to reflect misconceptions on the aim and value of strategic planning, as well as, what it should take for the planning process to succeed. Even as this relationship between strategic planning and performance management is vital for all organisations that use strategic planning, a growing body of researches show that a range of other factors will impact the effectiveness of the relationship between strategic planning and performance management in attaining organisational objectives (Pirtea et al. 2009). These factors call for a need to review the effectiveness of the relation. The factors include economic and political uncertainty and the rate of social and technological change. Overview: strategic planning and performance management correlation Strategic planning is targeted at examining and presenting evidence-based projections of the environmental reality. This enables organisations to predict and respond to shifts by clarifying underlying goals and objectives (Pirtea et al. 2009). It has been established that failure to integrate performance management in strategic planning can slow down an organisation’s practices from being result-oriented (Hakimpoor et al. 2011). Performance management is defines as a systematic approach that is ongoing and which aims to improve organisational outcomes, using evidence-based decision-making and learning with the view of ensuring accountability of the performance. According to Pirtea et al. (2009), performance management is included in the elements of organisational management; the organisation’s practices become transformed into being result-oriented. Statement of problem Current research literature has acknowledged the effectiveness of the relationship between strategic planning and organisations’ performances, as well as, their competencies in the business world (Pirtea et al. 2009). Despite a large body of researches, evidence as regards the relationship between strategic planning and performance management has been criticised for being ambiguous. Additionally, dedicated research on strategic planning and organisation’s performance are still limited. While some empirical studies have established a positive correlation between strategic planning and performance (McIlquham-Schmidt 2010: Pirtea et al. 2009; Aldehayyat et al. 2011), other studies have founded contradictory researches (Falshaw, Glaister, & Tatoglu, 2006). Such dichotomy has hindered the development of this research field. Therefore, a study of the effectiveness of the relationship between strategic planning and performance management would be vital in ensuring a better understanding of the correlation. Significance of the study The study will contribute to research knowledge on the effectiveness of the relationship of strategic planning and performance management, in attaining organisational objectives. It will also signal the need for organisations to develop operational plan based on a strategic plan, which is consistent with the performance management feedback. Overview of Key Research Issues The research aims to assess strategic planning and performance management in order to establish how they relate and their effectiveness in an organisation. To achieve this, the key objectives are outlined. Assess strategic planning processes in an organisation that lead to realization of organisational objectives. Assess performance management processes that lead to realisation of organisational objectives. Assess the critical factors that affect effective management processes. Identify the strategies used, or that could be applied, in an organisation to effectively manage the performance. Establish the effectiveness integrating performance management in strategic planning. Literature Review Maila (2006) described performance as the process of attending to conditions, communicating, and processing with the view of attaining results. Shafuda (2011) defined performance as the actual work undertaken to ensure the achievement of organisational objectives. In sum, performance covers the conditions, inputs and outputs, aspects of management, communication, process elements and outcomes. As stated by McIlquham-Schmidt (2010) performance product should be measured against the quality, quantity, time, risk factors and the cost, According to Hakimpoor et al. (2011) management describes activities that control, lead, manage and give direction. Shafuda (2011) defined management as a process meant for attaining organisational objectives through four key process, strategic planning being one of them. Others include controlling, leading and organising. Pirtea et al. (2009) stated that planning is a key function of management in ensuring the organisation attains its objectives. Therefore, linking performance and management brings forth performance management, which was described by Dusenbury (2000) as an ongoing communication process between the management and the employees to bear forth improved organisational results. Shafuda (2011) suggested that a major element of performance management is planning continuous employee improvement, to attain organisation objectives, including improved performance. Therefore, performance management describes the process of integrating management and employee or organisational performance. In a related study, Hakimpoor et al. (2011) discussed that performance management is about planning and attaining organisational objectives. Therefore, since planning is an essential component of strategic planning, the relationship between the effectiveness of strategic planning and performance management is indeed practicable. According to Arasa and K'Obonyo (2012), strategic planning is a method that an organisation organize its work-units to determine and design the goals and objectives. Hence, while strategic planning aims to define the processes that are to be measured, performance management supplies the required feedback to ensure that the strategic plan remains focused. Strategic planning entails a continuous process that demands constant feedback on how the current organisational strategies are on course (Arasa & K'Obonyo 2012). On the other hand, performance management supplies an organisation with relatable information. Additionally, while the strategic planning anticipates the desired organisational objectives, performance management reviews the organisation’s attainments (Dusenbury 2000). Hakimpoor et al. (2011) suggested that combining the strategic planning and the performance management create a circle called a continuous process of governing results. Though linked, the strategic plan sets out the performance that has to be measured while performance management supplies feedback to keep the strategic planning focused on the objectives. Shafuda (2011) remarked that such an association gives strength to both processes. Proposed Methodology Document analysis research design is proposed as a research methodology for data collection, analysis and interpretation. The researcher will focus on collecting extensive data on the effectiveness of relationship between strategic planning and performance management in attainment of organizational objectives (Gilbert 2008). A systematic literature review through document analysis research methodology is proposed for this study. Library-based and online sources will be targeted. The researcher will use Boolean logic in document search (Gilbert 2008). The process entails combining phrases and words to extend or narrow the search. Academic texts, books and peer-reviewed journals will be targeted for the research. The targeted online databases include Google Scholar, ProQuest, EBSCO, Informit and other open source databases. The research will undertake systematic analysis of studies published in English and whose scope cover organisational or industry-wide representative sample. Searches will be made for articles that use quantitative or qualitative research methodologies. Research documents expected include those that use qualitative, quantitative and exploratory research designs, which seek to establish a correlation between strategic planning and performance management (Tellis 1997). Data analysis proposed is general analytic strategy. Here, the researcher will depend on theoretical propositions to achieve the study objectives. In evaluation of literature, Critical Appraisal Skills Programme (CASP) method is also proposed, as it can investigate into literary debates to identify the theoretical practical research gaps. Of the documents selected for analysis, the researcher will centre on investigating the objectivity, statistics, logic and convergent reasoning to make sure that the research study designs, employed in the studies, are valid and generate reliable data. Validity of the documents will also be established by comparing them with related empirical evidences (Tellis 1997). Conclusion The proposed study will provide the moderating link between strategic planning and organisational performance. The researcher’s aim is to fill up the gap on lack of enough researches on the effectiveness of the relationship between strategic planning and performance management, in achieving corporate objectives. It is expected that the study will contribute to clarifying the significance of the relationship between performance and strategic planning in increasing organisational performance. Reference List Aldehayyat, J &, Twaissi, N & Jordan, M 2011, "Strategic Planning and Corporate Performance Relationship in Small Business Firms: Evidence from a Middle East Country Context," International Journal of Business and Management Vol. 6, No. 8, pp.255-260 Arasa, R & K'Obonyo, P 2012, "The Relationship between Strategic Planning and Firm Performance," International Journal of Humanities and Social Science Vol. 2 No. 22, pp.201-209 Dusenbury, P 2000, "Strategic Planning and Performance Measurement," Urban Institute Falshaw, J., Glaister, K., and Tatoglue, E. (2006). Evidence on formal strategic planning and company performance. Management Decision, 44 (1), 9-30. Gilbert, N 2008, Researching Social Life, Sage Publications, New York Hakimpoor, H, Tat, H & Arshad, K 2011, Strategic Marketing Planning (Smp) And Smes’performance: The Moderating Effects Of Structural Dimensions Of Marketing Networks, 2nd International Conference On Business And Economic Research (2ndicber 2011) Proceeding McIlquham-Schmidt, A 2010, Strategic planning and corporate performance. What is the relationship? Working Paper 2010-02,viewed 4 May 2014, http://old- hha.asb.dk/man/cmsdocs/wp/2010/wp2010_02.pdf Pirtea, M 2009, "The Role of Strategic Planning in Modern Organizations," Annales Universitatis Apulensis Series Oeconomica, vol. 11 no. 2, pp.953-957 Shafudah, E 2011, Appraising Performance Management Processes: A Case Of The Directorate Of Customs And Excise, Ministry of Finance, Namibia, viewed 4 May 2014, http://ir.polytechnic.edu.na/bitstream/10628/297/1/Shafudah.%20Thesis.%20Appraisi ng%20performance%20management%20processes.pdf Tellis, W 1997, "Application of a Case Study Methodology,” The Qualitative Report, vol. 3. no3, viewed 3 May 2014, http://www.nova.edu/ssss/QR/QR3-3/tellis2.html Read More