INTRODUCTION 1.1 Background to the Study Every organization aims to survive and grow in a competitive environment. To do so, it must respond and adjust to the social, economic and political environmental changes that occur. The environments of public organizations according to (Bryson, 2004) have become not only increasingly uncertain in recent years but also more tightly interconnected; thus changes anywhere in the system reverberate unpredictably, and often chaotically and dangerously throughout the environment. This increased uncertainty and interconnectedness requires a response from public organizations. First, these organizations must think strategically as never before. Second, they must translate their insights into effective strategies to cope with their changing circumstances and lastly, they must develop the rationale necessary to lay the ground work for the adoption and implementation of their strategies. For strategic planning to be effective and useful, there must be commitment and involvement across all levels of the organization, overcome inherent problems such as; rivalry among departments, projects, resistance to change, resource requirement, resources allocation and so on. The policy initiatives and directions set up by firm management in the form of mission and vision statements and targets for cost saving, debt/equity ratios embodied as argued by Grant (2003) “a framework of constraints and objectives that bounded and directed strategic choices.” Strategic policy formulation has been embraced by business enterprises, the public and private sectors as an important avenue that can be utilized to lead effective organization performance. Strategic policy formulationis the first phase in strategic management process and sets the basis for the other phases (Policy implementation, evaluation and control). (Steiner, 1979) argues that strategic planning system provides the framework for formulating and implementing strategies. However, it is argued that for strategic planning to translate into results, a facilitative internal environment and culture must be present. Ansoff (1990) notes that environment is constantly changing, and so it makes it imperative for organizations to continuously adapt their activities in order to succeed. Strategic planning introduces changes that sometimes encounter organizational resistance. Thompson and Strickland (1989) add that galvanizing organization-wide commitment to the chosen strategic plan is critical for effective performance. There is always a need for policy making in the banking sector especially in First Bank of Nigeria due to the change in the administrative head. The integration brings about framing of policies to guide managerial action. Policymaking became the prime responsibility for effective management system.The implementation phase in strategic management process consists of a set of activities by which the top management assures that the strategic choice is communicated and related to both the organization and its people. This is to say that implementation encompasses the activity of developing the organizational structure and climate best suited for the implementation of the chosen or adopted policy.This task is therefore important in the life of any organization wishing to survive and to grow cannot be over-emphasized considering the dynamic nature of the world we are in today. However, for management system to effectively carry out this task of achieving their corporate objectives, the management must aim itself with the tools of strategic policy formulationand implementation to enable it to adjust to the environment changes surrounding them.It is in the light of this that the researcher aimed to investigate onimproving the performance of an organisation through effective policy formulation using the First Bank of Nigeria as a case study. 1.2 Statement of the Problem The management of most organizations in Nigeria today have been facing the problem of not knowing how to achieve their corporate objectivesas a result of lack of proper strategic policy formulation. This problem which has defile may management approaches is what the researcher is aimed at solving.Many organizations spend most of their time realizing and reacting to ill expected changes and problems instead of anticipating and preparing for them. This is called crisis management. They use up their energy coping with inundated problems with little energy left to anticipate and prepare for the next challenges. This is however causing setbacks for some organizations. This study will therefore investigate on improving the performance of an organisation through effective policy formulation using the First Bank of Nigeria as a case study. 1.3 Research Questions The following are some of the questions which this study intends to answer: i) What is the prevalence of policy making and implementation as a tool for organizational performance? ii) What are the challenges facing policy formulation for organizational growth? iii) What are the effects of policy formulation on organizational performance? 1.4 Objectives of the Study The objective of this study was to investigate onimproving the performance of an organisation through effective policy formulation using the First Bank of Nigeria as a case study. The specific objectives are: i) To establish the prevalence of policy making and implementation as a tool for organizational performance. ii) To determine the challenges facing policy formulation for organizational growth. iii) To assess the effects of policy formulation on organizational performance. 1.5 Research Hypotheses The research hypotheses to be tested include: i) there is no significant relationship between policy formulation and organizational performance ii) there is no significant correlation between policy formulation and top management subordinates on increase in performance iii) there is no significant difference between employees commitment and policy formulation 1.6 Significance of the Study The findings from this study will be of great value to policy makers, stakeholders, board of directors and Human Resource Managers, bankers, etc as it will assess the relevance of policy formulation on organizational performance, clarify the challenges and the ways to meet them. It will act as a useful resource for the banking sector in understanding the need and usefulness of adopting appropriate strategic planning that ensures improved organizational performance. Researchers in related areas will also find the study a useful literature for reference. 1.7 Scope of the Study This study was limited to the First Bank of Nigeria staff and therefore the questionnaires will be distributed to the employees of the organisation. 1.8 Limitation of the study The only constraint encountered by the researcher was finance. This limited the researcher to print just one hundred and twenty questionnaires as against the proposed two hundred and fifty questionnaires. The researcher, however, came up with findings that would be worth making reference to in future and also contribute to the existing literature. 1.9 Definitions of Terms The following terms were used in the course of this study: Organisational performance: Policy formulation:the making of ideas or plans that are used by an organization or government as a basis for making decisions REFERENCES Ansoff, H. I. and McDonnel, E. (1990).Implanting strategic management. 2nd ed. London: Prentice-Hall. Bryson John, M. (2004), Strategic Planning for Public and Nonprofit Organizations; A guide to strengthening and sustaining Organizational achievements, San Francisco Third Edition. Jossey-Bass. Grant, R. M. (2003). Strategic planning in a turbulent environment: evidence from the oil majors. Strategic Management Journal, 24(5), 491-517. Steiner, G. A. (1979). Strategic planning. New York: Free Press. Thompson, A. A. and Strickland, A. J. (1989).Policyformulation and implementation: tasks of the general manager. Homewood, USA: Irwin.

Project Abstract

<p> </p><p>As against conservative nature of some organization managers prior to the introduction of MBO organization had become more flexible and fill with risk as they now engage in imprudent and unprofessional activities in other to execute there formulated goals. These activities led to kluge losses, distress syndrome, low morale, conflict, poor communication and lack of control leading to eventual collapse of the organization.</p><p>Without doubt, the importance of MBO as an effective strategy for achieving organization goals cannot be overemphasized. What is more important is the attitude of managements in following the (aid down procedure of an effective and efficient principles of MBO so as to maintain a sound organization system. It had been !toted that one of the major phenomenon distress is poor labour management relation. &nbsp; &nbsp; Which common among the distress organization.</p> <br><p></p>

Project Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p>1.1 &nbsp; <strong>BACKGROUND TO THE STUDY</strong></p><p>At the survival of any organization, there must be deliberate grand plan for achieving present and future goals and objectives, in which the organization must be strategic about, such actor, otherwise it would affect organization at large.</p><p>To formulate and implement organization objectives into a practical planning target that would not fail in respective of the organization.</p><p>BUDGETING could be adopted, but a more effective alternative system applicable would `MBO” management by objective, although to establish a system of MBO calls for a lot of efforts and participative approach to decision making by management and subordinate (MBO) is a process through which individuals in an organization works together to identify goals and objective and to coordinate these effort in attaining initially development in the 1950s, MBO has gone from being a fund in. the 1960s,and early 1970 to failing to into disrepute in many organization in the 1980s and 1990s, yet, as most research has indicated, it is the way in which MBO is usually implemented that created problems rather than the idea of MBO it self.</p><p>MBO was initially development as a synthesis of there process which are goal setting, participation in decision making, and objective feedback, in an MBO program, a supervision and attempt to accom consume on (1) the goals the subordinate will attempt accomplish alluring a specific period of time. (2) the means the subordinate A7ill use to reach these goals and (3) how progress toward the goals will be measured and evaluated. A key factor under lying this method is the degrees to which there is true participation MUTUAL INVOLVEMENT in determining objectives and means during the process.</p><p>PETER DRUNKER (1959) (MBO) management by object allows management to focus on achievable goals and to attain the best possible result from available resources.</p><p>It aims to increase organization performance by allying goals and subordinate objectives, throughout the organization. Ideally, employees get strong input to identify their objectives, time , lines for completion e.t.c. MBO include ongoing tracking and feedback in the process to reach objectives.</p><p>Management by objective is not a new techniques it was introduction as a supplementary management tools by ALFRED SLOAN in the early 1950s, however, PETER DRUNKER is credited in his classic management drunker is credited with being the father of MBO, it was George Ordiore who popularized MBO with his statement of its six major premises.</p><p>Management by objective (MBO) focuses on the result not the activity they delegate task to subordinate Management is about salting yourself objectives and then break specific goals or key results.</p><p>It is true to say that the place of MBO has come to be being the keystone to the success and indeed, to every existence to the organization it is no over, statement to declare that what ever may be the future, the application of MBO will be an important tools. Indeed so significant is the important as MBO to the organization and nation that it cannot be over emphasized.</p><p>1.2 <strong>&nbsp; PURPOSE OF STUDY</strong></p><p>The purpose of this study is to examine and understand, the concept management by objectives (MBO) and its effectiveness in achieving organization predetermined goals and objectives, and more so to recommend the concept to every organization.</p><p>1.3 &nbsp; <strong>THE OBJECTIVES OF THE STUDY</strong></p><p>(i) &nbsp; &nbsp; To examine the general impact of MBO towards achieving organizational goals and objective.</p><p>(ii) &nbsp; To study the main principle of management by objectives (MBO)</p><p>(iii) &nbsp; To determine where management by objectives applicable in day running of the organization.</p><p>(iv) &nbsp; To study management focus on MBO</p><p>(v) &nbsp; &nbsp; To examine factors that affect MBO and how to subdue it</p><p>(vi) &nbsp; To recommend the concept to every management in achieving their objectives.</p><p>In conclusion, I hope to provide relevant theories and literatures, to the mature of collaborative processes in MBO programmers.</p><p>1.4 &nbsp; <strong>SIGNIFICANCE OF STUDY.</strong></p><p>The relevance of the study is add to the previous and existing literature in this discourse.</p><p>Another significant is the understanding of the subject matter by the general public.</p><p>Through this project various management will recognized the need to systematically learn how to indicate goals and how to manage their subordinates, to the goals and objectives of the organization will be easy to achieve and attained.</p><p>Furthermore, this study is an eye opener former to gain improvement, confidence and assurance in facing future challenges as it may come.</p><p>Finally, it is appropriate in situation where you which to build employee, management and self leadership skin and tap clavier creativity, tactic knowledge and initiative.</p><p>1.5 &nbsp; <strong>STATEMENT OF PROBLEM</strong></p><p>The statement of problem associated with the study, can be traced to significant environmental factors and events that shape the operation of the organization but for organization to survive and have competitive advantage over its competitors, this organization affects organizations policy, programmers, philosophy and practice, which may lead subtle dissatisfaction, poor performance, resistance, conflict role ambiguity and ill relationship among superiors and surbohinder the attainment of organization delegated grand plans for achieving present and future goals and objectives.</p><p>1.6 &nbsp; <strong>SCOPES AND LIMITATION</strong></p><p>This study will be limited in scope to the element within the sample of VITAMALT NIGERIA PLC, particularly to the staffs both at upper and lower echelon.</p><p>Furthermore, another extraneous factors limitation to this study would be.</p><ul><li>Time Factor</li><li>Respondent Behavior And Attitude</li><li>Financial Implications</li><li>Personnel To Execute Study</li><li>General State Of Nature</li></ul><p>Finally the scope of the study is restricted to Lagos branch Agara where sample size will be drawn.</p><p>1.7 &nbsp; <strong>STATEMENT OF HYPOTHESES</strong></p><p>Hypothesis would be tested for the purpose of the study, which are as follows</p><p><strong>HYPOTHESIS 1</strong></p><p><strong>Ho:</strong>&nbsp; There is non correlation between managements goals.</p><p><strong>Hi:</strong>&nbsp; There is correlation between managements goals and subordinate goals.</p><p><strong>HYPOTHESIS 2</strong></p><p><strong>Ho:</strong>&nbsp; Failure to achieve organizations objectives is not caused by poor management</p><p><strong>HI:</strong>&nbsp; Failure to achieve organization objective is caused by poor management</p><p>1.8 &nbsp; <strong>DEFINITION OF TERMS</strong></p><p>Below are the definition of some terms used in the items</p><p>Management: it refers to getting things (activities) done through with people by planning, organization, coordinating, directing and controlling.</p><p><strong>OBJECTIIVES:</strong>&nbsp;This an end goal toward which all activities should be aimed.</p><p><strong>STRATEGY: </strong>A term that deals with organization goals and objectives it could be long terms or future terms. Deliberately planned or emergent.</p><p><strong>JOB SATISFACTION:</strong>&nbsp;This is the degree to which individuals feel position or negatively about their jobs.</p><p><strong>ENVIROIIENT:</strong>&nbsp;It is used to refers to the physical and social context with in which any target system is functioning, be it a persons group or organization.</p><p><strong>FEEDBACK:</strong>&nbsp;Technical term from system theory used primarily, to describe one persons report to another of the on the reporter.</p><p><strong>PRODUCTIVITY:</strong>&nbsp;Targets there is a measure of the resources should be vitalized (e.g.) output per man hour est.</p><p><strong>ORGANIZATION:</strong>&nbsp;An organization can be described as a planned coordination of the activities of a number of people in the service of mutual harp for the achievement of a common goal through division of labour and function through hierarchy of authority and responsibility.</p> <br><p></p>