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  • Public Matter Influences Planning Participation on Organizational Performance

Public Matter Influences Planning Participation on Organizational Performance

  • 08 October 2010, 14:41 WIB
  • By: Marwati
  • 12553



Effect of strategic planning on the economic performance of companies is a central issue of strategic planning studies. Various studies have shown inconsistent and confusing matters. There are still many weaknesses in the conceptualization, operation, and measurement concepts of strategic and performance planning. This was delivered by Drs. Wisnu Untoro, M.S, lecturer of Faculty of Economics, University of Sebelas Maret (UNS), while conducting an open examination of Doctoral Program, Wednesday (6/10), at the BRI Auditorium Faculty of Economics and Business UGM.

According to Wisnu, some efforts to unravel disagreements of the results of research on strategic planning influence on organizational performance have not produced a conclusive conclusion. Using public matter as a contingency variable is expected to clarify the influence of strategic planning in organizational performance. Public matter is defined as organizational characteristics that reflect to what extent organizations are influenced by government authorities.

Mentioned by Wisnu, the results of his research showed the level of environmental puclic matter moderate the influence of planning participation on organizational performance negatively. "So, the higher the environment public matter, of the higher the planning participation, which will reduce organizational performance. Thus, participatory planning is not effective for high public matter organization," he explained when defending the dissertation entitled Public Matter as a Moderator of Influence on the Strategic Planning toward Organizational Performance.

Noticing this phenomenon, Wisnu proposed adjustments to the participatory planning with oversight body regulation, the use of participatory planning mechanisms, and mutual trust. From the testing of other moderators, a result is obtained that public matter level of organizational process moderate the influence of planning participation on organizational performance in a positive way, thus participatory planning is effective for high-level public organizations. "At first glance, these two findings were contradictory. Public matter has a negative as well as positive moderating effect toward the influence of the participation of organizational planning. Actually, they are different. Environment public matter moderate the influence of planning participation in the organizational performance negatively, whereas public matter of organizational process moderates influence of planning participation on organizational performance positively, "he explained.

The husband of Ninik Sri Wahyuni added that formality and flexibility of planning give a direct influence on organizational performance.  Planning participation, however, does not affect the organizational performance. "This proves that strategic planning that is represented by the formality and flexibility in strategic planning positively affects the organizational performance," explained the man born in Klaten, February 20, 1954.

The father of three daughters said that his research provides support for the reconciliation of two schools of thought, planning and learning. Formalities and flexibility in this regard are characteristics of complementary strategic planning processes, not substituting each other.

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