Influence of Strategic Control on Organizational Performance of Commercial-Based Parastatals in Kenya

Abstract

To examine the influence of strategic control on the organizational performance of commercial-based parastatals in Kenya.  The study used a descriptive research design to collect data on a target population of six (6) commercial-based parastatals. The respondents were 45 departmental managers and 151 administrative staff. The study obtained a sample size of 40 departmental managers and 110 administrative staff using a simple random method. They were issued with closed and open-ended. Additionally, descriptive analysis, frequency tables, and explanations were used to illustrate the results. Further, inferential statistics were examined using multiple regression and correlation analysis. In the questionnaires, 60(56%) respondents strongly agreed and 17(16%) agreed on a mean of 4.11 (SD of 1.16) that, their parastatal’s work plans addressed the organization’s objectives, targets, indicators, strategies, timelines, monitoring, and budget. Additionally, 21(20%) strongly agreed and 56(52%) agreed on a mean of 3.69 (SD of 1.03) that, they had developed a series of actions to manage risks and issues in the project/ organization. However, 35(33%) strongly disagreed and 36(34%) disagreed on a mean of 2.49 (SD of 1.26) that, the resources required by the staff to complete their assigned tasks were always available. The Pearson correlation coefficient was r=0.725** at α < 0.000 and 99% significance level indicating a positive correlation between strategic control and performance. There was a lack of support from the government and inadequate funding of the strategies due to poor resource provision by the government. This meant that in as much as strategies would be formulated, their implementation would be tough since resources were not fully provided hence the projects were implemented in phases. Therefore, the study recommends that the various parastatal managers should lobby for more funds through other legal ways such as fundraising and competitions such as marathons among others within their jurisdiction. This would improve the funding of their operations to acceptable limits. Further, the parastatal management should negotiate aggressively with various key ministry officials for an increase in budget allocation.