Improving The Performance Of An Organisation Through Effective Policy Formulation
Enhancing organizational performance is intricately linked to the efficacy of policy formulation. By adeptly crafting policies tailored to address specific challenges and opportunities, organizations can optimize their operations, foster innovation, and cultivate a culture of excellence. Effective policy formulation involves meticulous analysis of internal and external factors, including market dynamics, technological advancements, and regulatory frameworks, to devise strategies that align with the organization’s objectives and stakeholders’ interests. Moreover, fostering transparency, accountability, and inclusivity in the policy development process empowers employees and stakeholders, fostering a sense of ownership and commitment to implementation. Regular evaluation and adaptation of policies based on performance metrics and feedback mechanisms ensure agility and relevance in dynamic environments, thus fortifying the organization’s resilience and competitive advantage. Through strategic and adaptive policy formulation, organizations can navigate complexities, capitalize on opportunities, and drive sustained growth and success.
Most organizations lack policy formulation for effective organizational performance is not usually carried out properly due to lack of appreciation and knowledge of the relevance of policy making and implementation on organizational growth.Descriptive research design was used in carrying out this research work and the regression analysis was used to analyse the data. The methodology that was used for the study is survey design and the target population was 180 members of staff of First bank Plc Enugu while the sample size was 124. The result of the analysis indicate that there is relationship between effective strategic planning and organizational performance and also that lack of accountability, lack of commitment and lack of understanding of the role in the execution process are challenges in the implementation of policy formulation and therefore recommend among others that Nigerian firms should give more serious attention to strategic planning and finally, employee welfare should also be given adequate attention for efficiency and effectiveness in organization.
ABSTRACT
CHAPTER ONE
INTRODUCTION
1.1Background of the Study
1.2Statement of the Problem
1.3 Research Questions
1.4 Objectives of the Study
1.5 Research Hypotheses
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Limitation of the study
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.2 Theoretical Foundation
2.3 Effects of the Implementation of Strategies Formulated by an organisation on its performance
2.4 Challenges Faced While Implementing Strategies Formulated by FBN
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research design
3.2 Sources of Data
3.3 Population of the study
3.4 Sample size determination
3.5 Instrument of Data Collection
3.6 Reliability
3.7 Validity
3.8 Method of Data Collection
3.9 Method of Data Analysis
3.10 Ethical consideration
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Results
4.2 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONLUSION AND RECOMMENDATION
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
5.4 Recommendations for Policy and Practice
5.5 Suggestions for Further Research
1.0 INTRODUCTION
1.1 Background of 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 effective policy formulation 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 effective policy formulation system provides the framework for formulating and implementing strategies. However, it is argued that for effective policy formulation 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. Effective policy formulation 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 formulation and 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 on improving 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 objectives as 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:
- What is the prevalence of policy making and implementation as a tool for organizational performance?
- What are the challenges facing policy formulation for organizational growth?
- What are the effects of policy formulation on organizational performance?
1.4 Objectives of the Study
The objective of this study was to investigate on improving the performance of an organisation through effective policy formulation using the First Bank of Nigeria as a case study. The specific objectives are:
- To establish the prevalence of policy making and implementation as a tool for organizational performance.
- To determine the challenges facing policy formulation for organizational growth.
- To assess the effects of policy formulation on organizational performance.
1.5 Research Hypotheses
The research hypotheses to be tested include:
- there is no significant relationship between policy formulation and organizational performance
- there is no significant correlation between policy formulation and top management subordinates on increase in performance
- 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 effective policy formulation 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.
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“Improving the Performance of an Organization Through Effective Policy Formulation” refers to the process of creating and implementing well-structured and strategically aligned policies within an organization with the aim of enhancing its overall performance, efficiency, and effectiveness.
Policies are sets of guidelines, rules, and principles that guide decision-making and behavior within an organization. They provide a framework for consistent and standardized actions across different functions and levels of the organization. Effective policy formulation involves identifying areas where policies are needed, developing clear and concise policies, and ensuring their proper implementation and communication.
The process typically involves the following steps:
- Identification of Needs: Assessing the current state of the organization and identifying areas where policies are lacking or where existing policies need improvement.
- Policy Development: Creating well-defined policies that address the identified needs. These policies should align with the organization’s mission, values, and strategic goals. They should also be practical, actionable, and easy to understand.
- Consultation and Input: Involving relevant stakeholders, such as employees, managers, and experts, in the policy formulation process. Gathering feedback and insights ensures that policies are comprehensive and take into account various perspectives.
- Review and Approval: Reviewing the drafted policies for accuracy, legality, and consistency. Obtaining approval from senior leadership or relevant decision-making bodies within the organization.
- Implementation Plan: Developing a plan for how the policies will be rolled out and communicated to the entire organization. This may involve training sessions, workshops, and clear documentation.
- Communication: Ensuring that all employees are aware of the new policies, understand their implications, and know how to adhere to them.
- Monitoring and Evaluation: Continuously monitoring the implementation of policies and evaluating their impact on the organization’s performance. This may involve collecting data, conducting surveys, and seeking feedback from employees.
- Adaptation and Improvement: Based on the feedback and performance data, making necessary adjustments to the policies to enhance their effectiveness. Policies should be flexible enough to accommodate changing circumstances and needs.
Effective policy formulation can lead to several benefits for an organization, including:
- Consistency: Policies provide a uniform approach to decision-making and actions, reducing ambiguity and promoting consistent behavior across the organization.
- Efficiency: Clear policies streamline processes, reducing the time and effort required to make decisions or handle various tasks.
- Risk Management: Policies can help mitigate risks by providing guidelines for addressing potential issues and ensuring compliance with legal and regulatory requirements.
- Employee Empowerment: Well-communicated policies empower employees to make informed decisions within their roles, increasing their confidence and job satisfaction.
- Alignment with Strategy: Policies that are aligned with the organization’s strategic goals help ensure that day-to-day activities contribute to larger objectives.
In summary, improving an organization’s performance through effective policy formulation involves the creation and implementation of clear, well-structured policies that guide actions, promote consistency, and align with the organization’s strategic direction.