Strategic management practices and performance of retirement benefits schemes in Kenya

Abstract

The study aimed to identify the effects of strategic management practices on performance of Retirement Benefit Schemes in Kenya. The study was underpinned on three theories namely; the dynamic capability theory, resource based view theory and resource dependence theory. Appropriate strategies in resource management and planning can solve modern day firms’ problems. Admissible strategies are increasingly recognized as key aspects of an efficient pension scheme, boosting investment performance and asset security. Therefore, to guarantee survival as well as success, the retirement benefit schemes ought to employ practices of strategic management which aim at continuously strike a balance amidst the firm and the business scenario. Descriptive research design was adopted in this study. The population for this study was the 1339 occupational defined contribution schemes published in the Retirement Benefits Authority. A population sample of 299 was obtained through the Kothari (2004) formula. Questionnaires were utilized for collecting the primary data. The questionnaire in use was conducted through drop and collect thereafter. Secondary data was obtained from News publications, organizations’ strategic plans, and organizations human resource manuals. The analysis of the data collected was done using both quantitative and qualitative data analysis methods. Both descriptive and inferential analyses were utilized for analyzing the quantitative field data. Descriptive statistics like average, standard deviations, frequencies and percentages were utilized. Data from open-end questions was analyzed qualitatively using content analysis. Regression analysis was used to establish effects of strategic management practices on performance of Retirement Benefit Schemes in Kenya at 95% level of significance. Presentation was done using tables. The study found that each department was conversant with their role in achieving the organization’s goals. The study also found that no real value is created by a brilliant strategy which cannot be implemented. Moreover, the firms had daily/weekly/monthly targets for key departments. The study also found that the firms practiced strategy control by: investing in staff training; suspending less productive projects; and increasing funds on productive projects. The research concluded that strategy control impacted highest on performance of retirement benefit schemes in Kenya, succeeded by strategy formulation, thereafter strategy evaluation while strategy implementation resulted to the most minimal impact to the performance of Retirement Benefit Schemes in Kenya. The research advocates that RBS in Kenya ought not to focus all their resources on the method in which the company develops, uses and integrates organizational structure, control systems, policies and organizational culture but should ensure that the right implementation processes are followed. To counter the challenges of resistance to change, it’s recommended that Retirement Benefit Schemes’ top management win the trust of the employees to own the change management process.