The Role Of Organizational Structure On Strategy Implementation Among Food Processing Companies In Nairobi

Abstract

In order to implement strategy effectively, it is crucial to consider several organizational issues. Several researchers have identified fundamental issues in strategy implementation, the most important being the structure, leadership style, resource allocation and culture. This study will focus mainly on structure as a crucial component of effective strategy implementation. The objective of the study was to determine the role of organization structure on strategy implementation among food processing companies in Nairobi. The study used primary data that was collected through self-administered questionnaires. The study was analyzed by use of descriptive statistics to summarize and relate variables which were attained from the administered questionnaire. The study established that organizational structures are influenced by multiple factors and that effective structures provide the stability a firm needs to successfully implement its strategies and maintain its current competitive advantages, while simultaneously providing the flexibility to develop competitive advantages that will be needed for its future strategies. Firms seem to prefer the structural status quo and its familiar working relationships until the firm’s performance declines to the point where change is absolutely necessary. The recommendations from the study were that during an implementation effort, it is important to have a clear organization structure in place. It should be clear who has the authority to make decisions. When possible, management should try to ensure that the organization structure is clear, relatively decentralized and relatively formalized as decisions may be made more quickly. Clear procedures, rules and responsibilities may give organizational members certainty during an implementation effort. Furthermore, it may increase the motivation of organizational members. Also, a deliberate policy is needed on the part of Government to create a climate that is conducive and favorable to the growth, development and profitable operation of small, medium sized and large industries.