Relationship Between Strategy Implementation And Organizational Performance, A Study of National Bank of Kenya

Abstract

ABSTRACT Strategy Implementation is the process of institutionalization and operationalization of strategies put in place by an organization to achieve its set objectives. Organizational performance is therefore the output or result realized by an organization as a result of implementation of strategies an organization has in place and can be measured against its set objectives or goals. The objective of this study was to determine the relationship between strategy implementation and performance of National Bank of Kenya. The study adopted a correlation research design as it involved measuring of the variables under study to establish the existing relationship between them. The number of respondents in this study was 19. The researcher used primary data collected through administration of questionnaires. The questions were both closed and open ended. This is because closed ended questions usually disadvantage the respondents as it limits their responses to the questions choices put forth by the researcher. Data was analyzed using descriptive statistics which presents the summarized data in form of tables and graphs for comparison and analysis. Simple regression analysis was used to present the summarized data in form of linear graphs to examine to what extent the dependent variables (Profitability, efficiency and customer satisfaction) was influenced by the independent variable (strategy implementation). The researcher determined several factors that impact on strategy implementation which included organizational culture, organizational structure, communication, employee involvement and embedment of strategy. To an extent, these factors either positively or negatively influence strategy implementation which also has an impact on performance. The study recommended that the bank needs to improve in its systems and culture of operations, restructure its organizational structure to enable embrace a democratic style of leadership and ease decision making process, ensure employee involvement in formulation as well as implementation process of strategy. Further studies was recommended to establish to what extent strategy implementation with regards to institutionalization and Operationalization of strategy has impacted on organizational performance and whether the findings can be generalized.