Influence of Strategy Implementation on Performance of Government Owned Entities in Kenya

A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of Requirement for the Degree of Master of Business Administration (MBA)The purpose of this study was to determine the influence of strategy implementation on performance of government owned entities in Kenya. The study was guided by the following questions: How does strategic evaluation influence performance of government owned entities? How does reward structure influence performance of government owned entities? How has strategic alignment influenced performance of government owned entities? The study adopted a descriptive survey research design. The study had a population of 42 government owned entities in Nairobi County. Purposive sampling was used to select 42 managers from the government owned entities who were in a position to answer the study questions. A study pilot was conducted to determine the validity and reliability of the study instrument, which was found to be above 0.7 required threshold. The statistical Package for Social Sciences (SPSS) version 20 was used to conduct descriptive (frequencies and percentages) and inferential (correlation, and regression) statistical analysis. The study established the existence of a significant relationship between strategic evaluation and performance of government owned entities. All components considered under this question included how an organization sets objectives, performs evaluations, and strategic audits. The study showed that these components were significant in enhancing performance of government owned entities. The study also established the existence of a significant relationship between reward structure and performance of government owned entities. Long term incentives such as pain leave, vacations, good salaries and wages, and bonus payments enhanced performance of government owned entities. Finally, this study established the existence of a significant relationship between strategic alignment and performance of government owned entities. Strategic alignment of strategy with performance objectives, organization processes, and organizational employee was significant in enhancing the organizational performance The study concludes that organizations that have performance objectives in place have a higher probability to enhance performance. The study also concludes that government owned entities that have well-structured performs evaluations programs do also enhance organizational performance since they enable organizations monitor and review v performance outcomes with set outcomes. The study concludes that long-term incentives such as pain leave, vacations, good salaries and wages, and bonus payments enhanced performance of government owned entities. Paid leave enhance employees’ commitment to the organization, and thus, reduce levels of turnover of employees to the private sector who might be seeking same leave packages. The study concludes that organization processes are important in enhancing performance of government owned entities. Organizational processes are essential in advancing and actualizing set objectives that enhance performance. Finally, this study concludes that organizational employee significantly contributes to enhancing performance of government owned entities. This study recommends that management within government owned entities should develop adequate strategic formulation processes that are inclusive as a way of developing performance objectives. There is also need to develop performance evaluation systems that are objective, with key performance indicators for each employee and job category. The study recommends that government owned entities should invest more in long-term incentives such as pain leave, and paid vacations as a way of motivation employees to good performance. Management in government owned entities should also invest good salaries and wages to attract and keep highly talented employees that can help drive organizations performance agenda. This study also recommends the need to for management to ensure adequate strategic alignment with organization processes. Processes not only enhance organization performance by introducing efficiency and effectiveness in production processes. This study concludes that government owned entities should invest in recruitment process to ensure that their organizations do not only have adequate numbers of employees, but also employees with competitive talent to enhance organizational performance