The Efficacy of Business Planning on Organisational Performance in the Nigeria SMEs
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The importance of planning in Nigerian volatile business environment cannot be over-emphasized. Planning is an essential element in management functions used for coping with the challenges of the contemporary business environment. Inadequacy of planning skills among Small and Medium Enterprises (SMEs) managers results in poor performance, hence little or no business expansion. This study investigated the relationship between planning and
organisational performance in the Nigerian SMEs. A cross sectional survey design of four hundred and forty-one (441) SMEs in Lagos was undertaken by means of self-administered questionnaires. While the data generated were presented by descriptive statistics, Pearson Product Moment Correlation was used for inferential analyses. The results of the analyses show active involvement of Nigerian SMEs in various categories of planning. However, the test of hypothesis revealed an insignificant relationship. The study concludes that there is a need for effective planning in Nigerian SMEs for better performance and growth. In addition, participative management that emphasized on the importance of ideas, initiatives, suggestions, feelings and opinion from organisational members were recommended.
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