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Author: search.filters.author.Rintari, NancySubject: search.filters.subject.Commercial-Based Parastatals

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    Influence of Strategic Planning on the Organizational Performance Among Commercial-Based Parastatals in Kenya
    (Journal of Business and Strategic Management, 2023-04) Leral, Solomon Eramram; Rintari, Nancy; Moguche, Abel
    Purpose: To examine the influence of strategic planning on the organizational performance among commercial-based parastatals in Kenya. Methodology: The study used a descriptive research design to collect data on a target population of six (6) commercial based parastatals. The respondents were 45 departmental managers and 151 administrative staff. The study obtained the sample size of 40 departmental managers and 110 administrative staff using simple random method. They were issued with closed and open-ended. Further, pre-test study was conducted at Kenya Airways where 4 departmental managers and 11 administrative staff. Additionally, descriptive analysis, frequency tables and explanation were used to illustrate the results. Further, inferential statistics were examined using multiple regression and correlation analysis. Results: The dependent variable results indicated that 75(69%) respondents strongly agreed on the highest mean of 4.37 (SD of 1.04), that the management motivated the staff to go and get a higher academic qualification. Additionally, on a mean of 3.67 (SD of 1.32), 51(48%) respondents strongly agreed that the number of clients has been increasing for the last few years. That notwithstanding, 85(79%) disagreed on a mean of 2.22 (SD of 0.73), that the parastatals had enough cash to meet their financial obligations effectively. The independent variable results indicated that 38(36%) and 19(18%) respondents strongly agreed and agreed respectively on a mean of 3.81(SD of 1.01), that strategic forecasting had significantly informed their strategic planning. This was closely followed by availability of resource allocation influenced employee motivation. This question had a mean of 3.55 (SD of 1.04) where 28(26%) respondents strongly agreed and 19 (18%) agreed on the sentiments. However, 39(36%) respondents strongly disagreed while 51(48%) disagreed that bench marking had always guided their strategic planning decisions on a mean score of 2.98 (SD of 1.04). The Pearson correlation coefficient was r=0.700** at α < 0.000 and 99% significance level indicating a positive correlation between strategic planning and organization performance. Unique contribution to theory, policy and practice: The basis of the parastatals’ strategic planning was not supported by any bench marking but rather a specific individual’s knowledge and experience. Therefore, when the individual at any capacity left the parastatal, the remaining team did not have a clear way of formulating strategies or benchmarking them with other corporates. The study recommends that there should be developed processes of strategic planning which are well documented by the management and have a policy to guide on what should done, who should be consulted and when should that happen in case of eventualities. Further, the management should encourage work mentorship from senior management to junior employees to orient them on management issues. This would help the employees gather relevant skills and knowledge to make strategic decision, when need be, on behalf of the parastatal.
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    Influence of Strategic Direction on Organizational Performance of Commercial-Based Parastatals in Kenya
    (Journal of Strategic Management, 2023-07) Lerai, Solomon Eramram; Rintari, Nancy; Moguche, Abel
    To investigate the influence of strategic direction on the organizational performance of commercial-based parastatals in Kenya. The study used a descriptive research design to collect data on a target population of six (6) commercial-based parastatals. The respondents were 45 departmental managers and 151 administrative staff. Data was analyzed using descriptive and inferential statistics. Of the questionnaire respondents who were 56(52%) agreed and 51(48%) strongly agreed on a mean of 4.48 (SD of 0.50), that there was adequate involvement in decision-making among the departmental heads. This was closely followed by 60(56%) respondents agreeing and 19(18%) strongly agreeing on a mean score of 3.70 (SD of 1.01), that innovation and customer satisfaction were supported by their parastatal. However, 39(36%) respondents strongly disagreed while another 42(39%) disagreed on a mean score of 2.55 (SD of 1.33), that the organization's budget was aligned to the strategic goals with the strategic goals. Additionally, 48 (45%) strongly disagreed and 50 (47%) disagreed on a mean score of 2.18 (SD of 1.22), that the management managed the organizations' resources effectively. The Pearson correlation coefficient was r=0.706** at α < 0.000 and 99% significance level indicating a positive correlation between strategic direction and performance. The management diverted the organization's resources to unscheduled things hence ending up misusing the resources and causing ineffectiveness in the operations. It was rather sad that the strategic goals were not being achieved because some members of the management thought it wise to divert the resources meant for that purpose to either other areas or their projects amounting to embezzlement of funds. Additionally, the findings revealed that some organizations were unwilling to change when strategies demanded change but stick to old methods to serve their interests. Therefore, there should be implementation of tough regulations by the government agencies like EACC of various legal punishments to any staff irrespective of their job group found guilty of embezzlement of funds must face. Further, ow cadre staff should be involved in the strategic direction exercise which can be done by seeking the views and opinions of the staff on the strategies to develop to improve organizational direction to foster implementation and make the staff to be part of the progress of the organization. There is a need to build the competency of the leaders to assume a strategic approach while directing other activities.