A research on multivariate statistical analysis of relation between planning and financial performance criteria in organizations

Institutionalization process has usually concluded that organizations always tend to harmonize with their own environment and this attitude eventually leads to an organizational progress. Moreover, institutionalization process evidently shows that organizations? structural and operational characteristics have some resemblance to the characteristics of its own environment and this gradually brings up another similarity along with organizational structures.Formal planning process codifies the planning process with written plans, integrated involvement, and follow-up. However, despite the presumed importance of planning, researchers have not always agreed on the role of formality. By surveying organizations across five industry groups, this study compared the financial performance of organizations that employ formal planning practices against those that plan only informally and those that do not plan at all.This study supports the hypothesis that there is a relationship between the formality of planning and financial performance results, particularly if the continuum used runs from no planning to formal planning.