The role of planning and forecasting in business organisation

ABSTRACT

In modern business,
planning and forecasting are important tools of company management and
decision- making as they assist in the appraisal of investment project in the
analysis measurement and improvement of current marketing strategy and manpower.
The research was conducted mainly to examine the role of planning and
forecasting in the business organization. For this reason, both primary and
secondary data were used to elicit information from sample studied, the primary
source of data were response from field survey through administering of
questionnaire  while secondary source
form textbook on business management and administration and periodicals. Fifty
questionnaires were administered in both the formal and the informal sector of
business organization. The data obtained were analyzed with the use of non-parametric
technique of analysis of chi-square (X2). However, the findings indicate
that planning and forecasting is aids to correct mismanagement in business
organization and the planning and forecasting gives go ahead over to any
individual organization that is going into business to make judicious use of
forecasting and planning as a way of success in any business. The study therefore,
recommends that good planning must be organized because through appropriate grouping
activities and clear delegation of authority. Managers must be hold responsible
for planning within their area of authority. What is sometimes neglected is
sufficient staff assistant’s to make decisions for which they are responsible.
Most managers should improve their planning and forecasting if they had well in
guttering information and its analysis.