dc.description.abstract | Theway managersapproach strategy development in organizations differs and is
determined by both the environmental and organizational factors. It has been
noted that though various authors and scholars have advocated several
approaches to the strategy development process in organizations, the
approachesonly offer partial explanation about the process.
This study set out to establish how National Hospital Insurance Fund, a Kenyan
state corporation established under the NHIF Act No. 9 of 1998, develops its
strategies, the challenges faced in the process and to what extent the process
addresses the strategic issues of the organization. Data for the study was
collected through well-structured questionnaires administered to the CEO, the
organizations6 General managers and 20 managers. An in-depth interview with
the CEO was also carried out to establish the finer details of strategy
developmentin the organization.
From the findings, it clearly emerged that there exists a highly formalized
processof strategy development in the organization. This is due to the fact that
the strategic decisions made by the management of the organization are
outcomes of deliberate planning efforts and a rational analysis of the business
environment, the organizations objectives, strengths and weaknesses.
Government policies, organizational objectives, available resources, customers
and stakeholder's interests are among the factors that influence the process. The
study established that the process faces challenges, which include resistance to
change, organizational culture, organizational politics and communication
barriers. These challenges lead to delays in implementation of the strategic plans
and plenty of time is spend before coming up with the appropriate strategies.
The research findings further indicated that the process addresses the strategic
issues of the organization to a very large extent.
Finally, the study has come up with discussions, conclusions, suggestions for
further studies and recommendations for policy and practice based on the
findings. | en |