Survey of strategic planning and performance of public corporations in Kenya
Abstract
Public corporations have been criticized for inefficiencies and
mismanagement. They are said to contribute to. many of the
problems hindering economic growth such as public sector deficits,
domestic and foreign borrowing and misallocation of resources. In
as much as public corporations are important to the Kenyan
economy, little research has been done on them.
This study therefore addressed the question: 'What is the mode of
strategic planning in public corporations and how does this affect
performance?'
Objectives of the study were to determine the mode of strategic
planning in public corporations in Kenya and to find out whether the
mode of strategic planning in public corporations is related to the
performance of such corporations.
The study was a survey. The population of interest was all ninetytwo
public corporations in Kenya. Primary data was collected using
a semi-structured questionnaire (refer appendix 2). Both structured
and unstructured questions were be used. The basic data collection
method was through "the drop and pick later technique. The data ~
was then analysed using descriptive statistics such as percentages,
frequency tables, mean scores, standard deviation and crosstabulation.
This was then interpreted to show the relationship
between strategic planning and performance.
From the results of data analysis, it was found that the mode of
strategic planning in public corporations was planned and
deliberate. Public corporations had formal control and plans were
implemented in rather stable environments. Where plans were
documented, implemented, employees were aware of their
existence, planning departments existed and planning
responsibilities clearly assigned, performance from qualitative
factors was very good. Where none of the above existed,
performance was mixed i.e. very good in some performance
indicators and not very good in others. It was not possible to relate
financial performance to the mode of strategic planning due to lack
of financial performance information.
The recommendations were made with a view to improving strategic
planning and performance in public corporations. Employees need
to be sensitised on the objectives of the public corporations once
they have been developed so that everybody works towards their
achievement. Public corporations could lobby to the Government to
have limited or no government control in their respective
organizations so that they can respond adequately to opportunities
and challenges in their environment. There is need for public
corporations to enhance collection of competitor information, which
they can use to gain a competitive edge. They need to consider use
of various business analysis tools during planning. There is need to
redefine the roles of both the public corporations' chairmen and the
directors and to rationalize appointments to boards to ensure they
are appointed on the basis of competence and professional
experience.
Citation
Master of Business AdministrationPublisher
University of Nairobi School of Business