Which of the following is TRUE of the impact of formal planning on organizational performance?
A)Formal planning is associated with positive financial results.
B)Organizations that formally plan invariably outperform those that don't plan.
C)The amount of planning done is more important to high performance than the quality of planning and implementation.
D)Companies can start seeing the impact of formal planning on performance after about a year of starting the planning process.

Question

Quizplus · Accepted Answer

Research has consistently shown that formal planning is associated with positive financial results, including increased profitability, higher sales growth rates, and a better stock market performance. However, it is not true that organizations that formally plan invariably outperform those that don't plan, nor is it true that the amount of planning done is more important than quality. The impact of formal planning on performance can vary depending on several factors, including the type of organization, industry, and external environment. Additionally, the time it takes to see the impact of planning on performance can vary widely and is not limited to one year.

Which of the Following Is TRUE of the Impact of Formal