The Effect Of Strategic Management Practices On Organizational Performance In Debit Credit And Saving Institution In South West Region Buea

ABSTRACT

The purpose of this study is to do a study on the effect of strategic management practices  on organizational performance  in debit credit and saving institution in South West Region  Buea. The source of data collection was the primary source. The primary method adapted questionnaires, the closed ended questionnaires issued to correspondence so as to obtain consistency of responses.. Data collected was analysed both qualitatively and quantitatively; these were summarized, coded and summarized, descriptively by statistical package for social sciences (SPSS). Descriptive statistics were applied, where by frequency distribution and percentages were obtained to describe major variables. The sample population to this study were employee of  DCSI in Buea and a sample size was carved out using a convenient sampling techniques. Analysis were done using the descriptive statistics presented through table and the inferential statistics through a linear regression. The finding to this study shows that Strategic management practices significantly affect organisation performance in DCSI and so it was recommended that organisations focus on building sustainable Strategic management practices.    

Key Words:  Strategic Management practices, Organizational Performance.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Strategic management is the link between the organization and the external environment. It is Mirrored In the patterns of moves and approaches devised by management to produce the desired performance. The crafting of strategy managerial commitment to pursue a Particular et of actions on growing the business, attracting and pleasing customers, competing successfully, conducting operations and improving the company’s financial and market performance. Thus, a company’s strategy is all about how management intends to grow the business, how it will build loyal clients, how the company will compete rivals, how each functional piece of the business which includes research and development, supply chain activities. production. sales and marketing distribution, finance and human resources will be  operated and how performance will be boosted.(Lee et al., 2003)

The concept of strategic management carries conflicting definitions all through literature. However, a cursory observation reveals a considerable agreement on the core activities involved in “doing”. Stonehouse et A1, (2004) conceptualized strategic management as a set of theories and frameworks through which managers can envision and plan for the long-term future of the organization as a whole.

Strategic management can be defined as “the arts and science of formulation, implementation and evaluating cross-functional decisions that enables an organization to achieve its objectives”. Strategic management is “the on-going process of formulating, implementing and controlling broad plans that guides the organization in achieving the strategic goods given its internal and external environment.” The top management has to put into consideration the available resources, and in addition, carryout an assessment of the internal and external environments in which the organization competes. strategies are important to companies because they guide top management to set direction, focus efforts, defense or clarify the organization, and provide consistency or guidance in response to the environment.

description of “strategic management portrays it as a deliberate section of a different set of activities to deliver a unique mix of value as a means of gaining competitive advantages. The process however is influenced by both internal and external factors. Strategic management as a process therefore is increasingly seen as socially accomplished activity aimed at achieving some strategic goals and build upon through actions and interaction of multiple actors or groups distributed throughout an organization. (Hendry et A1,2010)

Strategic management practices are the different approaches that a company undertakes to achieve its objectives. They entail formulation of the company’s mission while including broad statement about its purpose philosy and goals. The company must ensure that it focuses on its areas of strength so that it doesn’t disappoint its customers.

The company also develops a company’s profile that reflects its internal conditions and capacities. Companies also assess their external environment including both the competitive and general textual factors. They do this by coming up with strategies to beat up competition. Example, is the coca-cola industry which ventured into the production of juice drinks because of the success of the Delmont juice products. In addition, companies also analyse their options by matching their resources with the external environment.

The term “organizational performance” is used in three times senses; past, present and future. In other words, performance can refer to something completed or something happening now or activities that prepare for new needs. Profitability for example, is often regarded as the ultimate performance indicator, but if it is not the actual performance. Firms’ performance is the measure of standards or prescribed indicators of effectiveness, efficiency and environmental responsibility such as cycle time, productivity, waste reduction and regulatory compliance. Performance also refers to the metrics relating to how a particular request is handled, or the act of performing, of doing something successfully, using knowledge as distinguished from merely possessing it.

Organization’s pursuits of competitive advantage start with the development of a long-term vision or “strategic inten” as described by Prahalad and Hamel (990) for the organization. This vision is fashioned upon strategic learning by the organization regarding itself (in terms of resources, competences, activities, processes, system, culture, structure and its environments(customers, markets, suppliers, competitors etc). This consequently feeds into an action plan for developing an inimitable blend of value for the organization.

Organizational performance is described as an organization’s ability to acquire and utilize its scarce resources and valuables as expeditiously as possible in the pursuits of its operation’s’goals (Griffins 2006).

1.2. Statement of the Problem.

The world has become a global village composed of unpredictable changes and uncertainties that are transforming the nature of competitive success based on service delivery which depends on the actual performance management of individual organizations. Strategic management is a management approach that enables organizational leaders to align the internal organizational environment with the changes in the increasingly volatile business environment in which organizations operate(Lynch, 1997).

Strategic management is viewed as the set of decisions and actions that result in the appraisal, formulation, implementation and monitoring and evaluation of plans designed to achieve an organization’s vision, mission, strategy and strategic objectives within the business environment in which it operates (Pearce and Robinson, 2007).

Organization performance requires managerial mindset that emphasizes global markets strategic flexibility and the ability to tolerate and harness change The actual service delivery requires new forms  of strategic thinking and organizational structure, global mindset, considerable strategic and innovative methods of formulation and implementation strategies. (Hitt et al 2000).

The very well-known challenge for DECSI  in the past and currently is successful formulation and implementation  Many organizations are able to generate innovative strategic plans, but few are able to successfully implement these plans. Some researchers note that organizations fail to implement up to 70% of their strategic initiatives (Miller, 2002). Some of the reasons why DECSI fail to implement their strategic plans include failure to understand the reason for the plan- the customer; inability to predict environmental reaction; over-estimation of resource competence; failure to coordinate; failure to obtain senior management commitment; failure to  obtain employee commitment; under-estimation of time requirements and failure to follow the plan. The main aim of thus study is discover the effect of Strategic management practices on Organisational Performance. 

1.3 Research Questions

The main research question to this study is:

What is the effect of strategic management practices on organisational performace in  DECSI in Buea

The specific research question include: 

• What are the strategic management practices adopted by DECSI?
• What are the pitfalls of strategic management practices in operations OF DECSI? 
• What are the relationship between strategic management practices and organisational performance in DECSI?