Planning in organizations: Performance as a multi-level phenomenon

Abstract

In complex, dynamic environments where people must coordinate their activities, planning represents a key influence on performance. Accordingly, one might expect planning to affect performance in organizational settings. In this article, we define planning as the mental simulation of future actions. The processing operations that make the generation of viable mental simulations possible are then described along with requisite information requirements. The variables that shape the need for, and effectiveness of, planning activities are then considered with respect to the individual, group, and organizational levels of analysis. Based on these observations, we argue that planning represents a cross-level performance phenomenon of critical importance in understanding organizational behavior. Directions for future research are discussed.