Case Study – Importance of Planning Function in a Merger

Introduction

Although merging of organizations result to new opportunities there are challenges that the management must tackle to enhance merger’s performance (Kansal, 2017). Changes arise from the differences in culture between the two organizations. It is the responsibility of the new management to align both cultures to the goals of their merger. It is important as an operations manager to focus on utilizing the function of planning to ensure that the new outfit meets its objectives. Planning helps a manager to set the main objectives of an organization and acts as road map that directs all activities in the firm (Hill, 2018). In a merger, planning function plays a significant role in influencing the success of the new outfit. 

Role of Planning Function 

In the scenario of merging two health facilities in different locations under one management, it is important to consider embracing planning function. Planning enables the management to identify challenges each organization faces and plan on how to overcome them (Kansal, 2017). Indeed, it allows establishment of methods to limit resistance to change that may arise from workers working for the different organization. Through planning, it is possible for a manager to identify how to deal with such uncertainties before the actual merger takes place. The impact is a relative smooth transition in forming the merger without suffering from unnecessary obstacles. 

Further, planning enables a manager to present main objectives of the firm and provide mechanisms on how to meet them (Hill, 2018). Therefore, it becomes relatively easy for the employees to have idea on expectation of their employer. Additionally, planning allows an organization to mobilize necessary resources that support meeting set goals (Olumuyiwa et.al. 2014). Therefore, issues of time wasting due to lack of equipment to carry out work are avoidable. Indeed, in the hospitals scenario, planning for resources will make it possible for manager to provide mechanisms for improving patient safety. Additionally, resources such as computerized financial control system will be available to reduce issues of financial mismanagement experienced in one of the organization. The resultant is improvement in customer experience and prudent use of available funds in the hospital. 

Additionally, planning allows a manager to develop a framework that helps in monitoring progress of the organization (Hill, 2018). A plan sets the target for the organization and any deviation from the set goals is easily noticeable. Therefore, the plan helps the manager to initiate corrective measures when the merged organization does not meet its target. In the hospitals merger, a plan will make it possible for a manager to identify the pace of accomplishing set goals. Presence of a plan also makes it possible for a manager to assign specific duties to the employees (Olumuyiwa et.al. 2014). The resultant is reduction in ambiguity in work and duplication of responsibilities. Actually, specification of roles ensures that all the workers take responsibility of their assigned work. In the scenario, the workers assigned to ensure patient safety and financial management will be answerable to the manager. 

Conclusion 

Planning is an important element for any organization that plans to succeed in meeting its goals. During mergers, the differences in cultures influence the need for a manager to embrace planning function to streamline activities in the new organization. Planning ensures that an organization develop clear goals of what it plans to achieve and its timelines. The workers are therefore aware of their roles and expectation of their employer from them. Further, planning allows correction of deviations if the organization fails to meet any of its goals. Additionally, planning help reduce ambiguity on employees responsibilities. 

References

Hill, B. (2018). The Importance of Planning in an Organization. Chron. Retrieved January 25, 2019, from: https://smallbusiness.chron.com/importance-planning-organization-1137.html

Kansal, S. (2017). Effective Management Of Change During Merger And Acquisition. Retrieved January 25, 2019, from: https://imaa-institute.org/effective-management-change-merger-acquisition/

Olumuyiwa, O. S., Adelaja, A. S. & Chukwuemeka, O. E. (2014). Effective Planning and Organisational Productivity. (A Case Study Of Sterling Bank Nigeria Plc). IOSR Journal Of Humanities And Social Science, 5(5), 31-39.