INFLUENCE OF STRATEGIC MANAGEMENT PRACTICES ON ORGANISATIONAL PERFORMANCE. A SURVEY OF COMMERCIAL BASED PARASTATALS IN NAIROBI COUNTY

Abstract

This analysis determined the influence of strategic management practices on organizational performance, a case study of commercial based parastatals in Nairobi County, Kenya. The review would greatly contribute towards the running of commercially based parastatals in Nairobi County, Kenya. Terminations from the analysis aid them towards the formulation as well as designing of effective plans for the identification and tackling of concerns surrounding strategic management practices in order to realize established desires and ensure relevancy in a dynamic and place commercially based parastatals well towards better results going forward. This study adopted descriptive research design and targeted 129 employees of commercial based parastatals in Nairobi County, Kenya. The study was carried out through a census; a questionnaire was used in data collection. Quantitative approaches were used for data analysis whereby Statistical Package for Social Sciences (SPSS version 23.0) was used to run descriptive and inferential statistics. The result indicated that collectively environmental scanning has the highest positive influence on organization performance, followed by strategy evaluation, strategy formulation and strategy implementation. The study concluded that predictors collectively influence organization performance. The findings are expected to be of value to the management and decision makers to form a basis for improving implementation of strategies. The study recommended that during strategy formulation the commercial based parastatals should involve all stakeholders in the industry so as to create sense of ownership. Commercial based parastatals should have a well-conceived strategic vision that must be communicated to all employees. Commercial based parastatals should seek more input from the lower level managers and supervisors when formulating strategy so that the formulated plans will be effective and in line with both long and short term objectives of the organization. Furthermore, studies can be done to other variables which influence implementation of strategic plans but were not considered in this study or the same variables to different populations, locations and other sectors of economy in Kenya