EFFECTS OF STRATEGIC PLANNING DRIVERS ON PERFORMANCE OF FAITH-BASED ENTERPRISES: A CASE STUDY OF LIMURU ARCHDIOCESAN FARM (LAF)
Kimani Patrick Ndung’u - Masters Degree in Business Administration, St. Paul’s University, Kenya
ABSTRACT
The research investigated the effects of strategic planning drivers on the performance of Limuru Archdiocesan Farm (LAF), an investment project of the Catholic Archdiocese of Nairobi. The aim was to investigate the effects of strategic planning drivers on organizational performance of faith-based organizations with specific regard to LAF. The study tested the effect of leadership, structure, resource allocation, policies and procedures as perceived drivers of strategic formulation and implementation. The study explored the links that exists between organizational performance and strategic planning. The study was informed by three theories; the Resource Based Theory, systems theory and the motivator-hygiene theory. The theories are essential in strategic formulation, day to day coordination of activities and strategy implementation by employees. The study adopted descriptive statistics research design of quantitative research. The researcher sampled 50% of the target population of 150 in LAF. Questionnaires were used as instruments of research. Data was analyzed using SPSS. To determine the factors influencing performance of LAF, a regression analysis of the findings was conducted. The study used ANOVA to establish the significance of the regression. The findings on the influence of leadership in strategic planning on performance of indicated that LAF had a strategic plan as provided by majority of the respondents. The findings on the influence of structure in strategic planning on performance of LAF revealed that the structure of LAF influenced strategic planning at a very great extent as indicated by majority of the respondents. The findings on the influence of resource allocation in strategic planning on performance of LAF revealed that facilities and equipments required to implement strategy work must be available. The research found out that LAF had a committee for strategic plan preparation as indicated by a majority of the respondents. It was also found out that majority of the respondents indicated that the culture of LAF influenced strategic planning at a very great extent. Based on the study findings, the study concluded that LAF organization had a strategic plan and hence the organization was capable of competing successfully and operating profitably. The researcher concluded that the structure of LAF influenced strategic planning at a very great extent and it was critical to success in implementing strategic decisions in an organization. The study concluded that facilities and equipments such as machinery, structures, qualified employees, management capability, financial strengths, marketing capabilities and leadership required to carry out work must be available in the formulation and implementation of strategy. The study further concluded that strategy formulation and implementation can be inhibited or supported by the organizational culture. The study finally concludes taking all other independent variables at zero, a unit increase in leadership will lead to an increase in the scores of the performance of LAF. The study recommends that leaders should ensure they are involved in re-fresher courses to keep the organization abreast with the current organizational practices. The management should try to make the structure of LAF lean and flexible to facilitate effective communication and a decision making processes that is inclusive of all the stakeholders. The management of LAF should labour to mobilize resources to facilitate the formulated strategy into action. The study finally recommends that Limuru Archdiocesan Farm should work on getting an up to date policies and procedures and ensure that they are followed.
