EFFECT OF ORGANIZATIONAL STRUCTURE ON STRATEGY IMPLEMENTATION: A CASE STUDY OF SAFARICOM KENYA LTD
Ruth Moraa Abuga - Masters of Business Administration (Strategic Management), Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Jared Deya - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Strategic planning is a comprehensive stream of tasks that organizations carry out to achieve their set goals. The purpose of this study was to assess the effect of organizational structure on strategy implementation (a case study of Safaricom, Kenya Limited, Westlands). The study specifically sought to assess the effect of functional structure on strategy implementation at Safaricom Kenya Ltd, to determine how divisional structures affect implementation of strategic plans at Safaricom Ltd Kenya. The study was based on stakeholder and resource based view theories. The study utilized a descriptive research design where the target population comprised of 243 Safaricom employees. Stratified sampling was adopted to select 72 employee. Data was gathered with use of questionnaires. Descriptive and inferential statistics helped the analysis of the findings. The study found out that functional structure (p<0.05), divisional structure (p<0.05) and centralization (p<0.05) all have a significant effect on strategy implementation. The study concludes that organizational structure has significant effect on strategy implementation. The study recommends that organizations should adopt practices to optimize the contribution of top managers in the strategy implementation by enhancing harmonization and execution of roles by the management committee, during strategy implementation effort, an organization should have a clear organization structure in place and the organization should continue to streamline the organization structure and design as per function so that the strategy can effectively be implemented.