Influence of strategic planning practices on the performance of Large Pension Schemes in Kenya
Abstract
The essence of strategy is to attempt to relate the organization to the changes in the
environment (Ansoff, 2010). For any organization, strategy helps in interrogating the
long term plans and ensuring that there is harmony between the vision, mission,
objectives, core values, activities and its environment. Despite the pension industry in
Kenya being a key a driver of the economy, there has been lack of extensive research;
innovation and commercialization as it ought to besides lagging behind in terms of
current technology both in operational level and in communication to the
membership. The study pursued the following objectives; To establish the influence
strategic planning practices on the performance of pension large schemes in Kenya
and to determine the challenges of strategic planning of large Pension Schemes in
Kenya. The findings of this study would be useful to the management of Pension
Schemes in Kenya as it will provide significant information on determinants of
strategic plans. Therefore, the study would provide the basis for the management to
formulate strategies to enable successful strategic plans. This study took on a
descriptive survey research design. A descriptive survey attempts to describe or
define a subject often by creating a profile of a group of problems, people or events
through the collection of data and tabulation of the frequencies on research variables
or their interaction as indicated by Cooper and Schindler (2012). The study used both
primary and secondary data sources. Primary data was obtained from the selected
respondents of the research project while secondary data already exists, data intended
for other purposes other than the study itself (Mugenda and Mugenda, 2003). The
study employed both descriptive and content analysis. The relationship between the
dependent variable and the independent variables was determined by regression
model. Variables data were analyzed using Statistical Package for Social Sciences
(SPSS version 22). A multiple regression model was used to determine the
effectiveness of strategy plan of Pension Schemes in Kenya. The study had a response
rate of 73.3% which was considered adequate for statistical reporting. The study
found that majority of the respondents was Schemes that had undertaken strategic
planning with knowledge on impact of strategic planning practices on performance of
large pension schemes. On Strategic Choice as a strategic planning exercise, the study
found that the Scheme’s had a clearly defined roadmap for growth and realizing their
vision in the long term. The study recommends that the Trustees of large pension
schemes need to have sound knowledge, processes and structures in place to meet the
stringent legal and fiduciary requirements governing retirement benefits and in line
with best practice. The study also recommends that saving for retirement should be
made more attractive through good financial performance in pension schemes, good
service delivery and advocacy from all sector players. Further the study recommends
that the formal and informal sector has not been adequately sensitized, hence the need
to develop a strategy to help in increasing coverage in this market segment. The
Findings of the study showed that there are challenges of strategic planning
implementation of strategic plan. This study therefore recommends that more research
needs to be carried out in other services companies to show the various challenges
faced and the various measures put to overcome challenges of Strategic Planning
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
The following license files are associated with this item: