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FACTORS INFLUENCING STRATEGY
IMPLEMENTATION IN ORGANIZATIONS: A STUDY OF
PERNOD RICARD KENYA
BY
NANDI ADIMO RAJULA ALBERT
UNITED STATES INTERNATIONAL UNIVERSITY –
AFRICA
SUMMER 2017
FACTORS INFLUENCING STRATEGY
IMPLEMENTATION IN ORGANIZATIONS: A STUDY OF
PERNOD RICARD KENYA
BY
NANDI ADIMO RAJULA ALBERT
A Research Project Report Submitted to the Chandaria School of
Business in partial fulfillment of the Requirement for the Degree of
Master of Business Administration (MBA)
UNITED STATES INTERNATIONAL UNIVERSITY –
AFRICA
SUMMER 2017
ii
STUDENT’S DECLARATION
I, the undersigned, declare that this is my original work and has not been submitted to any
other institution, or university other than the United States International University –
Africa in Nairobi for academic credit.
Signed_______________________________ Date__________________________
Nandi Adimo: ID No: 625798
This research project report has been presented for examination with my approval as the
appointed supervisor.
Signed_______________________________ Date__________________________
Dr. Joseph Kamau
Signed______________________________ Date__________________________
Dean, Chandaria School of Business
iii
COPYRIGHT
Nandi Adimo © 2017
All rights reserved. No part of this research project report may be photocopied, recorded
or otherwise reproduced, stored in retrieval system or transmitted in any electronic or
mechanical means without prior permission of USIU-A or the author.
iv
ABSTRACT
The purpose of the study was to analyze the key factors affecting strategy implementation
in Pernod Ricard Kenya. The research was led by the following research questions: How
does human resource factors affect strategy implementation at Pernod Ricard Kenya?
How does communication affect strategy implementation at Pernod Ricard Kenya? And,
how does organization structure affect strategy implementation at Pernod Ricard Kenya?
The study used descriptive research design. The target population of the research entailed
the top and middle level employees of Pernod Ricard Kenya Limited with a population of
80 employees. The study was quantitative in nature as data was collected using
questionnaires from both clusters. The questionnaires were distributed by the researcher
to the different respondents and collected after completion. In regard to data analysis, the
demographic data was tabulated using frequency and percentages. For data description,
the Pearson’s correlation was used. The data was presented in the form of tables
according to the research questions through the use of Statistical Package for Social
Science (SPSS).
The study showed that the organization was able to select employees who were
knowledgeable for the tasks assigned, and environmental factors such as politics and the
job market affected recruitment and selection at the organization. The organization used
the competency model while hiring which resulted in transparency in the recruitment and
selection process, and employees were trained on the knowledge, skills and abilities
required to perform tasks in the organization. There was an opportunity to put into
practice what employees were trained on after a training and development program, and
information was conveyed to new employees on the expectation of their jobs including
the human resource policies of the organization.
The study showed that company used emails in communicating strategy implementation,
as well as internal memos while communicating strategy to facilitate implementation. The
organization did not use short message service in communicating strategy implementation
which could be effective given that most if not all employees have mobile phones. The
company used oral presentation in communicating strategy implementation, as well as
periodic reports in communicating strategy implementation.
v
The study showed that employees were informed of changes and also encouraged and
motivated towards strategy implementation in the organization, and they had the
information they needed to do their work. There was open communication between
employees and the management at the organization, and management coordinated
activities through the strategy implementation process. There were social task forces,
project teams and standing committees formulated to spearhead the strategy
implementation in the organization, and resources such as finances and personnel were
adequately allocated for strategy implementation.
The study showed that the organization was affected by the unexpected and unpredictable
changes in management, and it took time to respond and adapt to new internal changes.
The study recommends that Pernod Ricard Kenya management need to establish a
knowledge management culture that would facilitate faster adaptation to change since
systems set in place would guide all employees on what was expected of them in good
time.
vi
ACKNOWLEDGEMENT
First the acknowledgement goes to the Almighty God for making it possible for me to
undertake this course and finish my research project report. I acknowledge Dr. Joseph
Kamau for supervising and guiding through my research study.
vii
TABLE OF CONTENTS
STUDENT’S DECLARATION ....................................................................................... ii
COPYRIGHT ................................................................................................................... iii
ABSTRACT ...................................................................................................................... iv
ACKNOWLEDGEMENT ............................................................................................... vi
TABLE OF CONTENTS ............................................................................................... vii
LIST OF TABLES .............................................................................................................x
LIST OF FIGURES ......................................................................................................... xi
CHAPTER ONE ................................................................................................................1
1.0 INTRODUCTION........................................................................................................1
1.1 Background of the Study ...............................................................................................1
1.2 Statement of the Problem ...............................................................................................5
1.3 Purpose of the Study ......................................................................................................6
1.4 Research Questions ........................................................................................................6
1.5 Significance of the Study ...............................................................................................6
1.6 Scope of the Study .........................................................................................................7
1.7 Definition of Terms........................................................................................................8
1.8 Chapter Summary ..........................................................................................................8
CHAPTER TWO ...............................................................................................................9
2.0 LITERATURE REVIEW ...........................................................................................9
2.1 Introduction ....................................................................................................................9
2.2 Human Resource Factors and Strategy Implementation ................................................9
2.3 Communication and Strategy Implementation ............................................................14
2.4 Organization Structure and Strategy Implementation..................................................20
2.5 Chapter Summary ........................................................................................................24
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CHAPTER THREE .....................................................................................................2625
3.0 RESEARCH METHODOLOGY .........................................................................2625
3.1 Introduction ..............................................................................................................2625
3.2 Research Design.......................................................................................................2625
3.3 Population and Sampling Design .............................................................................2625
3.4 Data Collection Methods .........................................................................................2928
3.5 Research Procedures ................................................................................................2928
3.6 Data Analysis Methods ............................................................................................3029
3.7 Chapter Summary ....................................................................................................3130
CHAPTER FOUR ........................................................................................................3231
4.0 RESULTS AND FINDINGS .................................................................................3231
4.1 Introduction ..............................................................................................................3231
4.2 Response Rate ..........................................................................................................3231
4.3 Demographic Characteristics ...................................................................................3231
4.4 Descriptive Statistics of Variables ...........................................................................3635
4.5 Modelling .................................................................................................................4241
4.6 Structural Model Estimation ....................................................................................4644
4.7 Predictive Relevance of the Model ..........................................................................4847
4.8 Chapter Summary ....................................................................................................4847
CHAPTER FIVE .........................................................................................................5048
5.0 DISCUSSIONS, CONCLUSIONS, AND RECOMMENDATIONS .................5048
5.1 Introduction ..............................................................................................................5048
5.2 Summary ..................................................................................................................5048
5.3 Discussions ..............................................................................................................5149
5.4 Conclusions ..............................................................................................................5654
5.5 Recommendations ....................................................................................................5755
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ix
REFERENCES .............................................................................................................5957
APPENDICES ..............................................................................................................6967
APPENDIX I: LETTER OF INTRODUCTION ...........................................................6967
APPENDIX II: QUESTIONNARE ...............................................................................7068
x
LIST OF TABLES
Table 3.1 Population Distribution .................................................................................. 2726
Table 3.2 Sample Size Distribution ............................................................................... 2827
Table 4.1 Response Rate ................................................................................................ 3231
Table 4.2 Employee Engagement .................................................................................. 3837
Table 4.3 Communication .............................................................................................. 3938
Table 4.4 Organization Structure ................................................................................... 4039
Table 4.5 Strategy Implementation ................................................................................ 4241
Table 4.6 Cross Loading ................................................................................................ 4342
Table 4.7 Reliability of Constructs ................................................................................ 4443
Table 4.8 Convergent Validity ...................................................................................... 4443
Table 4.9 Discriminant Validity .................................................................................... 4544
Table 4.10 Regression Coefficients ............................................................................... 4746
xi
LIST OF FIGURES
Figure 4.1 Gender of Respondents................................................................................. 3332
Figure 4.2 Age of Respondents ...................................................................................... 3332
Figure 4.3 Education Level ............................................................................................ 3433
Figure 4.4 Period in the Organization ............................................................................ 3534
Figure 4.5 Management Level ....................................................................................... 3534
Figure 4.6 Involvement in Strategy Implementation ..................................................... 3635
Figure 4.7: Items Loadings and Path Coefficient .......................................................... 4645
1
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
Strategy implementation is the action that moves the organization along its choice of
route towards its goal – the fulfilment of its mission, the achievement of its vision. It is
the realization of intentions (MacLennan, 2012). While many individuals trust that
defining an imaginative and remarkable technique is basic and independent from anyone
else adequate to lead a firm to achievement in the present business world, guaranteeing
that such a procedure works is similarly as critical (Rajasekar, 2014). Considering the
higher failure rates in implementation of strategies, more attention should be given by
executives to implementing the strategy. Several reasons are frequently offered for the
failure of implementing strategy (MacLennan, 2012). Factors that affect strategy
implementation can be categorized as leadership style, information availability and
accuracy, uncertainty, organizational structure, organizational culture, human resources,
and technology (Rajasekar, 2014). Although most authors agree that these factors affect
strategy implementation, each factor’s impact is at a different level and carries a different
force (Rajasekar, 2014).
Viable execution of methodology has progressively turned into the point of each
associations with the target of satisfying key designs and needs. In spite of this, while
making an interpretation of their amazing plans vigorously, unsuitably high
disappointment rates have been accounted for. For those businesses that have a plan in
place, wasting time and energy on the planning process and then not implementing the
plan is very discouraging (Thobani, 2011). Although the topic of implementation may not
be the most exciting thing to talk about, it’s a fundamental business practice that’s critical
for any strategy to take hold (Olsen, 2007). Studies in this area (Hofer & Schendel, 2008;
Rajasekar, 2014; Hrebiniak, 2013; Hernandez, 2015) have focused on problems in
strategy implementation (Al-Ghamdi, 2008). However the range of methodology usage is
huge to the general achievement or disappointment of an association (Thobani, 2011).
Organizations of all stripes routinely attempt strategic change, but many implementation
efforts fail. Change implementation is considered a game of high stakes, where success
can reinvigorate a business, but failure often delivers catastrophic consequences,
2
including the firm’s demise (Hofer & Schendel, 2008). Critical actions move a strategic
plan from a document that sits on the shelf to actions that drive business growth. Sadly,
the majority of companies who have strategic plans fail to implement them. The aim of
strategy is to offer directional signals to the organization that permit it to realize its goals
while, at the same time, responding to the opportunities and threats in the environment
(Pearce & Robinson, 2007). Many researchers have identified factors that affect strategy
implementation such as corporate ownership and commitment (Raps, 2005).
Good implementation naturally starts with good strategic input: the soup is only as good
as the ingredients in it. Strategy implementation, therefore, is a connecting loop between
formulation and control. Execution requires regulatory and administrative ability and a
capacity to predict deterrents that emerge in technique usage (Rajasekar, 2014).
Moreover, to underscore the importance of strategy implementation Dimon, the Chief
Executive Officer (CEO) of KP Morgan Chase & Co. suggested that he would rather have
a first-rate execution and second-rate strategy any time than a brilliant idea and mediocre
management (Naidu, 2010).
Strategy implementation always involves more people than strategy formulation. This
presents problems because the larger the number of people involved, the greater the
challenge to execute strategy effectively (Hrebiniak, 2013). Implementation of strategy
essentially pulls a plan apart and diffuses it throughout an organization and its
intermittent systems. Every unit within the organization which is involved should be in a
position to accept the plan, agree to its direction and objectives, and implement specific
actions. In order to effectively and efficiently implement a plan, all individuals involved
in its implementation must function as a whole or the plan is destined for failure (Ukpolo,
2010).
Firms seem to experience significant problems with translating strategy into concrete
activities and results. Planning a steady procedure is troublesome for any administration
group, however making methodology work (implementing it) all through the association
is much more troublesome. Planning a steady procedure is troublesome for any
administration group, however making methodology work (implementing it) all through
3
the association is much more troublesome (Verweire, 2014). Zagotta and Robinson
(2002) identified a number of factors which need to be considered in seeking to ensure
that a selected strategy is effectively implemented. In their view (Zagotta & Robinson,
2002), the start point should be that the strategy and proposed actions to be implemented
are understood by all employees at all levels within the organization. To help employees
fulfil their assigned tasks, performance indicators should be made available which
provide early warning metrics when strategic aims are not being met. This permits
employees to take appropriate action to resolve problems before they are unmanageable.
When it comes to strategy implementation, global companies emphasize that, to ensure
strategies are successfully implemented; execution must be built into and across a
planning process (Hernandez, 2015). Most multi-national corporations are successful in
their strategy implementation initiatives because they apply five tips that make their
strategy implementation successful. By aligning their initiatives to create new priorities
and activities they create a measurement tool for them and the existing ones. This ensures
that when they measure them, they are assured that the right initiatives are adapted
(Thobani, 2011). Secondly, they align budgets and performance to structure their budgets
and expenditures in line with their strategies and goals (Hrebiniak, 2013). Thirdly,
structure follows strategy which implies that, they ensure that their structures allow for a
meaningful and efficient strategy implementation process (Hernandez, 2015).
Furthermore, they engage influential employees to contribute meaningfully to their
strategy, this results in a sense of ownership that facilitates their ability to implement
strategy (Hrebiniak, 2013). Thobani (2011) notes that for strategy implementation to be
effective, one needs to have people who share in the same vision. Lastly, these multi-
national corporations evaluate and monitor their strategies and adapt the flexible ones that
respond to the internal and external environments (Hernandez, 2015; Hrebiniak, 2013).
Most organizations in the African continent sometimes appear to experience issues in
actualizing their systems (Naidu, 2010). Various issues in technique usage have been
uncovered examinations and they include: feeble administration obligations in execution,
a nonattendance of correspondence (Okumu, 2003), an absence of sense of duty regarding
the methodology, procedure misconception, unaligned authoritative assets (Ito et al.,
4
2010), and frameworks, poor bearing and duty sharing, lacking capabilities, contending
exercises, and uncontainable ecological variables (Chitale, Mohanty and Nish, 2013).The
aim of strategy is to offer directional signals to the organization that permit it to realize its
goals while, at the same time, responding to the opportunities and threats in the
environment (Pearce & Robinson, 2005).
The biggest challenge and bottlenecks in organizations, especially in the Kenyan context
is successfully implementing and actualizing the policies and strategies that have been set
up by the organization in aid of fulfilling the key objectives (Okumu, 2003). There has
been an increased emergence of multinational corporations in Kenya and with it comes
the headache of implementing strategies so as to ensure synergy and compatibility of
international policies and strategies (Naidu, 2010). Pernod Ricard Kenya is one of six
African market companies to proudly fly the flag of the Pernod Ricard Group. The
French-based Pernod Ricard Group is the world co-leader of the wine and spirits industry,
delivering on leading premium brands such as Chivas Regal, Jameson Whiskey, Absolut
Vodka, and G.H. Mumm Champagne.
Pernod Ricard Kenya was established in 2012, following a successful distribution channel
with Kenyan based Distributors. Over the past five years, it has grown significantly
within the local market and still continues to thrive. Pernod Ricard Kenya is part of a
network of 80 international market companies that promote both the Group’s
international brands and manages local and regional brands like Jameson and The
Glenlivet. With headquarters in Nairobi, Pernod Ricard Kenya has managed to employ
over 100 employees both directly and indirectly through agencies.
As the “creators of conviviality” and backed by sound business values and a belief in
building lasting relationships, the respected Pernod Ricard tradition continues to be
carried forward with vibrancy and passion by the men and women behind Pernod Ricard.
From a humble family business to a major global company, Pernod Ricard has been
driven by an indomitable entrepreneurial spirit, passion and vision. Today, the Pernod
Ricard Group has 19000 employees across the world with 80 market companies covering
four world regions, six brand companies and 96 production sites. The company was
5
formed with the link-up of two French anise-based spirits companies: Pernod Ricard.
According to an article by Grocer, Pernod Ricard brands account for 35% of the total
spirit sales in Kenya (Grocer, 2015). This in itself makes it a formidable force to reckon
with, within the short period of time that the multinational corporation has been operating
in Kenya.
1.2 Statement of the Problem
There are several studies that have been conducted on factors influencing strategy
implementation, for instance: Strohhecker (2016) focused on factors influencing strategy
implementation decisions, Al-Kandi, Asutay, and Dixon (2013) focused on factors
influencing the strategy implementation process and its outcomes in Saudi Arabian
Banks, Rajasekar (2014) studied the factors affecting effective strategy implementation in
a service industry in the Sultanate of Oman, Yang, Guohui, and Eppler (2008) did a
literature review on the factors influencing strategy implementation, and Brinkschroder
(2013) focused on strategy implementation and the key factors, challenges and solutions
influencing it. These studies are related to the study topic, but they were all carried out
internationally, creating a gap for similar studies to be carried out in Kenya.
Similar studies conducted in Kenya include: Mbaka and Mugambi (2014) who focus on
Factors affecting successful strategy implementation in the Water Sector in Kenya,
Guzami (2013) who studied factors influencing strategy implementation in community
based organizations in Seme, a sub-county in Kenya, Kurendi (2013) carried out a study
on factors influencing strategy implementation among flower firms in Naivasha,
Mukhalasie (2014) did an analysis of the factors affecting strategy implementation in
Kenya Commercial Bank, Nabwire (2014) focused on factors affecting implementation of
strategy in Barclays Bank of Kenya, while Kirui (2011) focused on factors influencing
implementation of strategic plans in local authorities in Migori county, and Arumonyang
(2009) did a survey of strategy implementation challenges facing development authorities
in Kenya. From all the studies done in Kenya, it was evident that there existed mixed
results which were inconclusive, and none had been carried out in Pernod Ricard Kenya.
6
From the study’s background, it is clear that a company’s ability to implement its strategy
successfully is a result of its ability to overcome obstacles leading to poor strategy
implementation (Pella et al., 2013). In spite of the fact that defining a reliable strategy is a
troublesome task for any management team, making that strategy work – actualizing it all
through the organization – is considerably more difficult (Hrebiniak, 2013), and
subsequently this study tried to examined the key factors influencing strategy
implementation in Pernod Ricard Kenya. The study focused on how human resource
factors affected strategy implementation at Pernod Ricard Kenya, examined how
communication affected strategy implementation at Pernod Ricard Kenya, and finally
determined how the organization structure affected strategy implementation at Pernod
Ricard Kenya?
1.3 Purpose of the Study
The purpose of the study was to analyze the key factors affecting strategy implementation
in Pernod Ricard Kenya.
1.4 Research Questions
The research was led by the following research questions:
1.4.1 How does human resource factors affect strategy implementation at Pernod Ricard
Kenya?
1.4.2 How does communication affect strategy implementation at Pernod Ricard
Kenya?
1.4.3 How does organization structure affect strategy implementation at Pernod Ricard
Kenya?
1.5 Significance of the Study
1.5.1 Management of Pernod Ricard Kenya
An efficient strategy implementation has an enormous impact on a company’s success
(Raps, 2004). The management of Pernod Ricard may base their decisions regarding the
importance and priority of strategic implementation. They may be able to select the right
strategy for their organization, implement it competitively in the industry, and evaluate
their performance with an intention of taking the necessary corrective measure essential
7
for fulfillment of the goal of the organization if the need arise in order to fulfill the
organizational goal of becoming self-sustainable and self-reliant.
1.5.2 Policy Makers
Government and non-profit leaders are often hesitant to implement changes to programs
and operations that disrupt the status quo, even when things are not going well for the
organization. This study directly influences the government in terms of decision making
and serves as a rich source of information to policy makers. This study may enable the
government to appreciate that after a business plan is developed and implementation
starts, progress can be only be achieved through carefully implementation process and
staying power of those committed to adopting change. The new way of doing business by
understanding that the process of monitoring performance, evaluating progress, and
mentoring strategy implementation teams is integral to successful goal achievement.
1.5.3 Researchers and Academics
Future scholars and researchers may be able to utilize this research as reference to
empower them and conduct future business research problems in order to come up with
new aspects on strategy implementation. Secondly, they may use this report for reference
and source of secondary data for future research that are related to implementation of
competitive strategies by other organizations in a developing country that are facing
similar implementation problems.
1.6 Scope of the Study
The research focused on Pernod Ricard Employees which has a population of close to one
hundred employees at different job group level. An adequate sample was selected from
the population in the managerial levels which ensured that the information acquired was
not biased as well as a few team leaders from various departments. The study covered a
period of three months, from June to August 2017.
8
1.7 Definition of Terms
1.7.1 Strategic Implementation
Strategy implementation refers to the way an organization structures itself in order to
execute its strategic plan efficiently and achieve its objectives effectively (Alkhafaji,
2013). Hernandez (2015) defines it as the process that turns strategies and plans into
actions in order to accomplish strategic objectives and goals.
1.7.2 Strategy
Strategy is the coordinated set of actions that fulfill a firm’s objectives, purposes and
goals (White, 2011). Thobani (2011) defines strategy simply as a method or plan chosen
to bring about a desired future, such as achievement of a goal or solution to a problem.
1.7.3 Communication
Communication is the act of conveying intended meanings from one entity or group to
another through the use of mutually understood signs and semiotic rules (White, 2011).
McShane and Von Glinow (2005) basically characterize correspondence as the procedure
by which data is transmitted and comprehended between at least two individuals.
1.7.4 Employee Engagement
Representative engagement is a work environment approach bringing about the correct
conditions for all individuals from an association to give their best every day, focused on
their association’s objectives and qualities, spurred to add to hierarchical achievement,
with an improved feeling of their prosperity (Macleod, 2016).
1.8 Chapter Summary
This chapter presents the background of the study and discusses the key factors affecting
implementation of strategy. The purpose of the study has been clearly identified and the
questions used in the study are stated here. The chapter further highlighted the importance
of the study and the scope covered by the study and finally the definition of the terms
used in the research. Chapter two provides the literature review, chapter three provides
the research methodology, chapter four presents results and findings, and chapter five
offers study discussions, conclusions, and recommendations.
9
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
The purpose of the study was to analyze the key factors affecting strategy implementation
in Pernod Ricard Kenya. The research was steered by the following research questions:
How does human resource factors affect strategy implementation at Pernod Ricard
Kenya? How does communication affect strategy implementation at Pernod Ricard
Kenya? And, how does organization structure affect strategy implementation at Pernod
Ricard Kenya?
2.2 Human Resource Factors and Strategy Implementation
According to Zaribaf and Hamid (2009), it is difficult to distinguish between strategic
planning and human resource management in most successful organizations since the two
work as a team. Policies and strategies relating to individual management are
implemented through the management function of human resource management (Omolo,
Oginda, & Oso, 2012). Key elements for the success of businesses in strategy
implementation are human resource factors and human resource practioners are best
placed to pioneer the realization of such factors in strategy implementation (Ali, 2013).
Schuler (1998) states that human resource factors are contained in the human resource
function that has eight menus of HRM practices from which companies can choose the
ones that are most viable for implementing their strategy. This research refers to;
employee recruitment and selection, training and development, orientation, performance
appraisal, compensation and benefits and work environment as menus that refer to
particular function areas of HRM.
2.2.1 Employee Recruitment and Selection
Olian and Rynes (2000) indicates that, a company engaged in strategy implementation
requires different types and numbers of employees who are knowledgeable in the current
economy sought through employee recruitment and selection and are seen as the primary
factors of production (DeCenzo & Robbins, 2002). Ahmadi et al. (2012) indicates that
recruitment and selection is the process of attracting and selecting people to serve in an
10
organization. Dowling, Schuler, and Welch (1994) defines the process of recruitment and
selection as searching for and obtaining potential job candidates in sufficient numbers and
quality for the organization to select the most appropriate people to fill the job needs. This
process is a priority in organizations for them to acquire employees with exceptional
skills, knowledge, experience and attitude (Brindusoiu, 2013). According to Cummins
(2015) and Rees and French (2010), it is also the most expensive part of human resource
but still an essential component of any organization where the right people are appointed
and trained to produce good results.
Recruitment process is the beginning of good or bad services in both public and private
organizations. If an organization does poor recruitment, they are faced with long-term
negative effects including; high training and development costs to minimize poor
performance, disciplinary issues, absenteeism, disputes, poor service delivery to
customers, high turnover and low productivity which impacts on staff morale. The
organization is also not able to implement their strategies and their competitive edge and
market share is also lost (Chukwu & Igwe, 2012). Swanepoel, Erasmus, and Schenk
(2008) and Dessler (2011) emphasize that, it is important in the recruitment and selection
process to acquire employees with multidimensional skills and knowledge infusing
organizational capacity and competitiveness.
Referring to the analysis above, it is clear that recruitment and selection is not just a
human resource factor and an administrative function but a strategic process aimed at
contributing to the achievement of organizational objectives (Public Service Commission,
2015). This underlines the significance of recruitment and selection to strategy
implementation process having a well-planned human resource that is well coordinated
and knowledgeable to execute strategies (Lavigna & Hays, 2005).
2.2.2 Training and Development
Training and development is a key human resource management practice that is necessary
for organizations while implementing new strategies (Niazi, 2011). Employees must be
trained to become productive employees and to integrate well in their organizations. Niazi
(2011) states that training and development is a process of transferring Knowledge, Skills
11
and Abilities (KSA) that are required to perform specific tasks in an organization making
this process strategic. Research shows that in order to meet the current and future
challenges of organizations, training and development takes up a big role of learning
actions which involves training of the employees for their present tasks and more so,
knowledge sharing to improve their businesses.
According to Dessler (2006), training is referred to as a method that is applied to provide
new recruits with skills needed to perform their duties and development refers to
broadening the horizon of the employees. Development activities that help an individual
make positive contributions in an organization are refereed as training and development
focuses on factors of maintaining and expanding the performance of individuals in an
organization (Ivancevich, 2001).
Training and development also focuses on career development expanding individual,
group and organizational effectiveness. In strategy implementation, a comprehensive
training and development program help deliberate on the necessary knowledge, skills and
attitudes that assist to achieve organizational goals and also create competitive advantage
(Peteraf, 1993). Niazi (2011) indicates that training and development contributes to
increase in productivity and quality of work in an organization and especially
development reduces staff turnover and absenteeism helping in improving motivation
among the employees. Niazi points out that to stay ahead of the competition,
organizations must incorporate innovation and reinvention which is possible if training
encompasses a wide range of learning actions. Training then becomes part of the
organizations-wide strategy and it is linked to business goals and organizational
performance.
2.2.3 Orientation and Strategy Implementation
Towards execution of proper strategies in organizations, orientation is considered as a key
component to assist in the execution of the employee’s roles (Shehzad & Akhtar, 2012).
Orientation is the process of conveying information to new employees about the
expectation of their jobs and assisting them adapt to the stresses of transition to new jobs
(Gomez-Mejia, Balkin, & Cardy, 2001). Orientation is conducted in informal brief
12
introductions or lengthy formal courses to introduce new employees to the organization.
This introduction is done on the rules and regulation of the organization, hierarchical
structure and the expectation of the organization (Shehzad & Akhtar, 2012). Robbins and
DeCenzo (1999) adds that the orientation program also communicates the relevant human
resource management policies such as work hours, pay procedures, benefits; review the
specific duties and responsibilities of the new member’s job.
According to Geroski, Machin and Reenen (1993) and Praveen, Lilien and Wilson
(1993), the profitability of a firm is seen in strategy, marketing and economic literatures
to be related to the ability of the firm to innovate. In strategy, orientation of a firm leads
to superior performance because of the innovations that are brought to the market
(Gatignon & Xuereb, 2006).This reflects the strategic direction implemented by a firm to
create proper behaviors for continuous superior performance of business (Narver &
Slater, 1990).
Mankins and Steele (2005) pointed out that in various businesses have a strategic
potential value of 63% while Johnson (2004) indicates that 66% of business strategy was
never implemented explaining why companies that develop complex and extensive
strategic plans do not reach competitive advantages. According to Crittenden and
Crittenden (2008), there is a gap between formulation and implementation process since
employees lack knowledge of the company’s strategy contributing to strategy
implementation failure resulting in poor financial performance. However, with proper
orientation of strategies formulated to all employees great success of strategy
implementation is possible.
2.2.4 Performance Appraisal
This is the evaluation of the current and past performance of employees based on the
performance standards with the view to improve performance (Dessler, 2006). The
appraisal can be used to reward employees whose performance is better than others. It
evaluates the work of employees and motivates them to improve their future performance
providing an opportunity to the employees to identify the skills they need in order to
progress within their organization activities (Cleveland, Murphy, & Williams, 2005).
13
Using the performance appraisal of all employees the management of the organization is
able to identify their exemplary employees to spearhead strategy implementation in the
organization.
According to Shehzad and Akhtar (2012), employees must have a say in developing the
performance appraisal system as evidenced by Mayer and Davis (1999) that involving
employees in developing the performance appraisal system leads to favorable reactions to
the process and increases trust for top management. The same involvement of employees
in the strategy implementation process leads to favorable reactions of the process and
increases acceptance of the process in the organization (Shehzad & Akhtar, 2012).
Participation of employees leads to a sense of possession developing the satisfaction of
the strategy implementation process (Cawley, Keeping, & Levy, 1998). Anthony,
Kacmar, and Perrewe (2002) indicates that performance appraisal is important in strategy
implementation process as it is an integral part of an organization’s performance
management process.
2.2.5 Compensation and Benefits
Williams (2005) indicates that compensation and benefits are all forms of pay or rewards
Institutions give to employees in exchange of their services. Employees get a reward in
return of performing the tasks assigned by the administration (Hackett & McDermott,
1999). Bateman and Snell (2007) indicates that a good compensation and benefits
package leads to improved performance of employees. Cherrington (1995) adds that with
a good compensation and benefits package an organization is able to retain employees
who are satisfied and are motivated.
If a compensation and benefits package is less compared to another organizations of the
same nature, employees may leave the organization to join others with a better package. If
an organization experiences high turnover due to a poor compensation and benefits
package, organizations may not achieve strategy implementation (Roberts, 1997).
According to Appelbaum and MacKenzie (1996), the improvement of organizational
performance is related to the innovation of competitive strategies required for successful
14
strategy implementation. The system of compensation and benefits maximize profits
making fairness of the system a pre-requisite.
2.2.6 Work Environment
Shehzad and Akhtar (2012) indicates that working conditions of an organization need to
be conducive to improve on the performance of an organization. The conditions are
conducive when the organization provides employees with a safe healthy environment
which Byars and Rue (1997) indicate that safety and health are important concerns for
organizations today. Delery and Doty (1996); Pfeffer (1995) state that employment
security is an important factor in HRM practices and employees are more cooperative in
strategy implementation process if they feel their jobs are secure. They increase their
efficiency but withdraw from their responsibilities if the environment is not secure.
Shehzad and Akhtar (2012) indicates that job or employment security plays a major role
in harmonizing the interests of the employer and employees in a long-term mutual
commitment relationship like the strategy implementation process and particularly
important in the human resource management context (Levine, 1995).
2.3 Communication and Strategy Implementation
These are the ways that messages and information travel around such as: the verbal
communication, the non-verbal communication and the technology-aided communication,
which accommodates e-mailing, instant messaging, micro-blogging, phones and
ontology, and communities of practice. Verbal communication is considered the spoken
and written modes. Non-verbal communication on the other hand, is the communication
that transcends the written or spoken word (Lechener & Floyd, 2012). They identified
that non-verbal communication channels incorporates much more complex aspects, and
grouped them into 4 categories.
15
Guohui and Eppler (2011) find that organizations where employees have easy access to
management through open and supportive communication climates tend to outperform
those with more restrictive communication environments (Lechner, Frankenberg &
Floyd, 2010). Also the findings of Lehtimäk and Karintau (2012) show that effective
communication is a key requirement for effective strategy implementation. Authoritative
correspondence assumes an imperative part in preparing, information spread and getting
the hang of amid the procedure of system execution. Truth be told, correspondence is
inescapable in each part of system execution, as it relates intricately to arranging forms,
authoritative setting and usage of destinations. Correspondence obstructions are
accounted for more often than some other sort of hindrances.
The corporate communication function is the department or unit whose purpose is
facilitate strategy implementation through communication (Mazzola & Kellermanns,
2010). This department can also serve as the antenna of an organization, receiving
reactions from key constituencies to the strategy of the firm. Mazzola and Kellermanns
(2010) found that the alignment between the corporate communication function and the
strategic implementation process was particularly visible in those companies that were
going through fundamental strategic change: All of the firms studied were involved in
significant efforts in internal communications and felt that IT was central to the success of
the function, particularly in terms of implementing strategy and building reputation
(Roberts & Kaiser, 2011).
The significance of correspondence amid proposed change has been observationally
shown and usually concurred among specialists. The exact picture showed up
demonstrated that authoritative change and correspondence process are inseparably
related procedures. Late investigations about correspondence demonstrate that
correspondence has positive connection with numerous hierarchical yields like
authoritative responsibility, execution, authoritative citizenship practices, and occupation
fulfillment. Conversely correspondence disappointment may cause functionless outcomes
like anxiety, work disappointment, low put stock in, diminish in authoritative
responsibility, severance aim, and nonattendance (Malmelin, 2007) and this can influence
association's effectiveness contrarily (Zhang and Agarwal, 2009). Correspondence amid
16
authoritative change diminishes imperviousness to change. At the point when
imperviousness to change levels is low inside an association, the change-exertion ends up
being more beneficial. The change design is reliant of limit of the association to change
the individual execution of every representative. Since authoritative change acquaints
variety of assignments given with singular workers, transmission of data to these
representatives on future change is a fundamental and integrative piece of the change
techniques.
2.3.1 Email
Many employees purport to prefer email as an information source, even while noting the
overload of messages they receive each day (Zvoch, 2012). While email is highly
convenient for both sender and receiver, it is an impersonal medium and lacks the
richness of other information sources (Ketola, 2010). Since email is asynchronous in that
there are delays in sending, receiving, and responding, it is not the optimal medium for
conveying delicate or complicated information or to influence, persuade, or sell an idea. It
is most useful for announcements to communicate the same thing to many people, to keep
employees informed about an issue they already know about, and to reach geographically
dispersed employees (Ronél, 2014). Emails lead to Productivity, Increased
communication, collaboration, networking, and creativity and also provide a Forum to air
opinions and views (Steyn & Niemann, 2010).
E-mail is still the most prevalent form of computer-mediated communication within
organizations. Moreover, the increasing use of mobile devices in business has given the
experience of e-mail a new dimension. Therefore, in the present paper we focus
predominantly on the impact of e-mail, provided by personal computers as well as smart
mobile devices, on organizational life. There is a still increasing number of studies on the
social psychological aspects of computer-mediated communication, but to date the impact
of mobile e-mail on organizational life has been neglected. With every new innovative
technology there are advantages and disadvantages in using it. The original idea of e-mail
was that it facilitates our communication and makes lives at work easier. Unfortunately,
there are, besides advantages also side effects. This theoretical paper aims to overview the
impact of e-mail on organizational life (McKenna & Bargh, 2000).
17
2.3.2 Memos and Messages
Memorandums (memos) are the most common form of written communication within
organizations. Generally, there is a standard format adopted by the organization. Memos
are used to: inform the recipient of events or activities, initiate or summarize action and
confirm what has already been communicated orally (Nahapiet, 2009). Written messages
are less formal than memos and tend to be used between people who work closely
together. They may be telephone messages or simply notes left on someone else’s desk
while they are out of the office. However informal, it is worth taking the trouble to write
clearly and concisely. A garbled or illegible message is worth than useless (Roberts &
Kaiser, 2011).
Many organizations produce brochures, leaflets, or handbooks for their customers and the
general public. These are useful to: summarize information for customers, provide
information on the services offered by the organization, advice readers as to the best
course of action to take when facing specific problems (Steyn & Niemann, 2010).
Letters are usually produced to be sent outside the organization. They are not generally
used inside an organization, except to confirm key decisions made about the performance
or progress of individual employees. These letters typically concern promotions,
transfers, the results of a disciplinary meeting, formal warnings and confirmation of
resignation. Letters are an efficient means of communication when: - it is necessary to
inform the receiver officially of a decision taken by the organization - a formal request for
information or action is required (Julian & Olaf, 2012).
2.3.3 Meetings and Oral Presentation
An effective meeting, whether formal or informal, is a highly efficient tool of
communication. Ideally, everyone at the meeting has the opportunity to speak, listen to
what is said, and discuss the issues. On the other hand, badly planned or poorly chaired
meetings can waste everyone’s time and less confident people may not find it easy to
participate fully (Keyton, 2011).
18
Oral presentations may be necessary to communicate an argument or a message to a
group of people quickly and effectively. Again, this could be a formal occasion, or a less
formal briefing to a group of staff (Steyn & Niemann, 2010). The most informal and
frequent type of oral communication is simple face to face conversation. You may
approach a colleague to gain information, discuss a problem or issue, persuade them to
accept your point of view, get to know them, initiate action, impress, amuse or pass the
time of day with them. In many circumstances a more formal method of communication
would be inappropriate. Oral communication of this nature is particularly appropriate for
personal matters, or when a manager wishes to praise or reward an employee (Keyton,
2011).
Interviews are a form of oral communication in which information is obtained from one
person by one or a panel of interviewers. Very occasionally a group of people may be
interviewed together. Interviews are used for: selecting employees, gathering information,
counseling, appraising employees, disciplinary hearings. The interviewee is usually given
the opportunity to ask any questions they might have or clarify matters that have arisen
(Steyn & Niemann, 2010).
Telephone conversations are another very common form of oral communication. The
telephone has the advantage of speed and accessibility. It is often easier to pick up the
telephone and dial a colleague than it is to walk across a building to see them. Likewise it
is a very effective means of communicating quickly and directly with an individual in a
different location. Communications technology is improving and expanding rapidly
(Keyton, 2011).
2.3.4 Reports
Written reports are another widely used form of communication. We can distinguish
between two types of report: the descriptive report and the analytical report. The
descriptive report is simply an account of events, or collection of facts. The analytical
report gives meaning to facts and concepts by analyzing the facts presented, suggesting
conclusions and recommending possible solutions to problems (Yang, Guohui & Eppler,
2011). Newsletters or bulletins can be used to communicate general information or
19
management policy to all staff or sections of staff within the organization. These may be
distributed or posted on a notice board (Steyn & Niemann, 2010).
Minutes are a formal written record of what has been discussed and agreed at meetings.
They may be:- verbatim records (a complete word-for-word account) a full discussion
record where summaries of all the main contributions are minute a summary of the
meeting as a whole containing decisions reached (with reasons) and a list of actions to be
taken and those responsible for doing so - decision only/action only minutes (Mats and
Charlotte, 2014). Manuals or handbooks are used widely by organizations to provide
employees with a written set of instructions or guidelines as to the procedure to be
followed when carrying out their duties (Yang, Guohui & Eppler, 2011).
Reports play various roles in the organization; Business reports are written to
communicate. Sometimes they are written as a means to attract investors to your
organization. Business reports are also written for employees, to keep them abreast of a
company’s goals and achievements. Whichever audience the report is written for, the
purpose is to communicate specific information about your business. Reports are also
written to illustrate a specific problem within the company. These types of reports present
a problem along with solutions to help correct the problems. This type of report is often
directed at employees. An example problem that a business report may address for
employees would be a situation in which the company may be looking to downsize. This
affects employees. The business report might state the standing of the business and why it
may be forced to downsize. The report may also enlist the help of employees to find ways
to avoid the down size.
A report might be written from a financial statement perspective. This type of business
report will be aimed at advisers. To an extent, it can be used to inform employees about
the financial standing of the company as well. A business report may be presented for this
purpose at the end of each fiscal year. A report can also be important when setting up
marketing strategies. Before entering a new market or targeting consumers, a company
may write a business report that an advertising agency can use to help devise a marketing
strategy. There may also be a separate report written to help obtain financing for a media
20
push. A business report is above all the best way a company has to communicate vital
financial and background information to others. Many larger companies that write
business reports throughout the year to employees and for board members hire a staff that
do nothing but keep abreast of company changes and write current business reports.
Depending on the situation, failing to have a well-written business report to present when
you need one can make it difficult to acquire funding, cause company turmoil or may
make it difficult to achieve company goals.
2.4 Organization Structure and Strategy Implementation
Organizational structure presents how people interact with each other, how
communication flows, and how power relationships are defined reflecting on the value
based choice made by a company and how job tasks are formally divided, grouped and
coordinated (Munyoroku, 2012). According to Distelzweig (2004), organizational
structure refers to the way an organization arranges people and jobs so that its work can
be performed and its goals met. Rajasekar (2014) indicates that organizational structures
are necessary for employees to act readily on the knowledge developed to craft and
implement strategy. The structures provides a visual explanation of the decision making
process and resource allocation. Bhimani and Langfield (2007) found the process of
strategy implementation to be structural and formal in their study to investigate the
organizational structure influences in strategy implementation. Forman and Argenti
(2005) found out that internal communication of a company has an overarching hand that
makes strategy and also contributes to successfully implement the strategy.
Wheelen and Hunger (2006) indicates that organizational structure plays an important
role in increasing the consistency of successful results in strategy implementation.
According to Olson et al. (2005), organizational structure involves formalization,
centralization, and specialization key dimensions of organizational structure that
influence communication, coordination, resource allocation and environmental turbulence
while implementing strategies. These influences are discussed further in this section.
2.4.1 Communication and Strategy Implementation
21
Andersson and Zbirenko (2014) indicates that, communication as a tool used to create,
modify, and end relationships between people. It is also a channel of influence, a
mechanism of change and a critical dimension of an organization structure. Andersson
and Zbirenko concluded that communication is a crucial dimension for effective and
efficient organizational functioning. According to Bloisi, Cook, and Hunsaker (2007),
internal communication in an organization should be established and maintained by the
management in upward, downward, and horizontal directions. This is communication
between managers and employees as well as between workers on the same level.
Communication in an organization transmits directions or ideas along the lines of
command; providing confirmations, information, and feedback upwards; informing staff
on changes, encouraging and motivating employees (Bloisi et al., 2007). Taylor (2007)
shows that, authoritative structure in many organizations characterizes the modes and
tone of correspondence. He argued that highly stratified organizations have formal
methods of communication which is conducted between managers and employees and
small organizations may have informal communication as companies leverage on their
flat nature. Taylor contended that vital pioneers must figure out how to coordinate the
fitting style of correspondence to organization standards as they are currently system
execution.
Research shows that, organizations where employees have simple access to management
through open communication outperform those in a restrictive communication
environment (Rapert, Velliquette, and Garretson, 2002). According to Peng and Litteljohn
(2001), effective communication is key to effective strategy implementation. Hence
Communication as an impact of organizational structure and assumes a key role in
training of employees, information spread and learning during the process of strategy
implementation. Yang, Guohui and Eppler (2008) states that in strategy implementation,
communication is unavoidable and it relates impressively to sorting out procedures,
organizational context and implementation objectives which, thus, affect the procedure of
implementation.
2.4.2 Coordination and Strategy Implementation
22
Coordination of activities in an organization is critical to the success of strategy
implementation. It is important to note that coordination is a result of structures put in
place in an organization. According to Richard (1998), coordination of activities of
organizational units is accomplished through positioning of activities in the hierarchy of
authority. The power to coordinate activities during strategy implementation is then
placed on the mangers in the organization since they have more authority over more
organizational units and the power to coordinate, integrate, and arrange the cooperation of
the units under their supervision becomes an easy process (Barrows, 2014).
Through the organizational structure, coordination of strategic efforts is also achieved
through informal meetings, social task forces, project teams and standing committees.
The process of negotiating and deciding on the objectives and strategies of each
organizational unit, making sure the related activities mesh suitably and help coordinate
operations across organization units (Barrows, 2014). Richard (1998) adds that,
organizations generally respond positively to strategy implementation process if there is a
coordination mechanism put in place. The organization's structure at any point in time is
the sum total or the mechanisms it has developed and modified to achieve control and
coordination of strategies of organizations.
According to Edinger (2012), coordination additionally includes cascading of the strategy
throughout the organization getting to the practical and strategic components of
individuals' occupations every day. Managers are at the forefront in this process and help
in translating the elements of the strategy to the functional areas in the organization.
Doing this, allows the coordinators who are mostly managers in the organization own the
process of strategy implementation (Barrows, 2014).
2.4.3 Resource Allocation
Strategy implementation includes designing the organization's structure, allocating
resources, developing information and decision process, and managing human resources,
including such areas as the reward system, approaches to leadership, and staffing (Barnat
2005). Asset allotment is a focal administration action that considers methodology
execution. 1 The genuine estimation of any asset allotment program lies in the subsequent
achievement of an association's destinations. Elements do exist that forbid compelling
23
asset distribution, including an over-insurance of assets, excessively extraordinary an
accentuation on short-run budgetary criteria, hierarchical governmental issues, unclear
methodology focuses on, a hesitance to go out on a limb, and an absence of adequate
learning (Barnat, 2015). The author further states that the most prevalent way of
evaluating and defining resources is by their functional areas of finance, research and
development, human resources, operations and marketing.
According to Vanguard Papers (2015) effective resources allocation enhances
administrative efficiency. The strategic plan captures the organization’s aspirations
whereas implementation creates the required infrastructure needed to put the plan into
action. Resource allocation plays a key role in strategy implementation since it focuses on
the acquisition, commitment and allocation of finance, personnel and other key resources
that the organization requires to achieve its objectives. Assets sending must be talked
about as right on time as conceivable in the entire usage arranging process, and these
assets; budgetary, individual and time, must be incorporated into the organization's
financial plan from the earliest starting point (Mankins and Steele, 2005). Appropriate
asset distribution and planning gives the association upper hand by upgrading its center
skills and capacity.
Proper asset allotment and planning gives the association upper hand by redesigning its
center abilities and limit. The management holds the responsibility of ensuring that
adequate resources are available to pursue organizational strategy (Vanguard Papers,
2015). In a study on the effects of resource strength on strategy implementation in
insurance companies in Kenya, the findings established that resource strength
significantly determines strategy implementation. Most notably resource strength in the
study areas impact strategy implementation through adequate resource base matching
firm’s needs; firm always being able to meet its set resource department goals and
objectives; access to cost efficient resources; operations never delayed or halted due to
resource unavailability; efficient and reliable resource sourcing mechanisms and adequate
and efficient human resources in this case, competent employees (Kibicho, 2015). In
study recommendations, Kibicho (2015) reveals the importance of many strategy
implementation facilitating factors relate to resource strength and this he says is both
financial as well as knowledge resources. Flexibility in budgetary allocation should be
24
observed as well as transmission of knowledge through accessible routes, such as
intensive training and consultation on key implementation processes.
2.4.4 Environmental Turbulence
Turbulence is defined as the dynamism in the environment that involves rapid unexpected
change in the environment sub dimensions (Conner, 2006; Vorhies, 2007). Barnat (2005)
shows that natural turbulence exists when changes are unforeseen and flighty and the
weights for change at which the association must have the ability to respond to the change
are key ecological issues. According to Barnat (2005), environmental turbulence appears
to influence structure in terms of formation of departments division of labor, the
configuration of the organization, and the allocation of power within the organization
which flows from strategy.
In turbulent environments, there are many unexpected changes. Turbulence is the natural
state of the world Benton and Lloyd (2012) caused by the changes in the various
environmental factors as a result of advances in technology (Iansiti, 2005). The result of
this development in environmental turbulence has been the reduction of orderly
competition, an expanding requirement for data, advancement and faster cycles of
improvement, and more trouble in foreseeing customer, product and service requirements
(Pine, Victor, and Boynton, 2006).
As a result of the turbulent environment, businesses processes have to be streamlined in
the organization to allow for flow of information and decision processes within the
organization which in turn affect strategy implementation positively (Barnat, 2005) This
is to give to give people accurate and timely information upon which to make decisions.
Reward systems need to be structured so that people's behavior corresponds with the
purpose of the strategy (Byars & Rue, 1997).
2.5 Chapter Summary
This chapter has broadly reviewed the literature on the factors influencing the
implementation of strategic plans in organizations. The first research question looked at
the influence of human resource factors on strategic implementation. The second research
25
question looked at the influence of communication on strategy implementation. The third
addressed the influence of organizational structure on strategy implementation. Chapter
three of the research traces the design and methodology of the study. It describes the
design that was adopted by this research to achieve the appropriate objectives.
26
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This section presents the research methodology that was used when carrying the research.
This section describes the research design, population and sampling design. It offers
readers the population, sample frame, sampling technique, and the study’s sample size.
The chapter explains on the information collection techniques, research procedures, and
information analysis methods.
3.2 Research Design
Research design is the procedure for collection and analysis of data in a manner that aims
to combine relevance with the research purpose (Collins, 2010). It constitutes the
blueprint for collection, estimation and examination of information (Saunders, Lewis, and
Thornhill, 2012) Research design is used to structure the research, as well as to show how
each of the major parts of the research project, the samples or groups, and the research
tools and analysis all work together in order to try to address the central research
questions at hand (Saunders, Lewis, & Thornhill, 2012). Understanding the relationships
between designs and thinking about the strengths and weaknesses of different designs is
important in making design choices (Collins, 2010).
The study used descriptive research design. The design was suitable for this study
because it facilitated the description of how human resource, organizational
communication, and organizational structure (independent variables) influenced strategy
implementation (dependent variable). The design was also used because descriptive
designs ensures that all population elements are considered.
3.3 Population and Sampling Design
3.3.1 Population
A population is the totality of items or objects under consideration (Levy & Lemeshow,
2013). Population definition identifies and describes the elements of the population.
Target population is the total number of elements of a specific population relevant to the
27
research study (Neelankavil, 2015). The target population of this study entailed the
employees of Pernod Ricard Kenya who were responsible for implementing strategic
plans in the organization and was composed of top and middle level managers whose total
number was 80 employees and was distributed as shown on Table 3.1.
Table 3.1 Population Distribution
Population Distribution
Number Percentage
Total No. of top level managers 30 37.5
Total Number of midlevel managers 50 62.5
Total 80 100
Source: Pernod Ricard Kenya (2017)
3.3.2 Sampling Design
Sampling design encompasses all aspects of how to group units on the frame, determine
the sample size, allocate the sample to the various classifications of frame units, and
finally, select the sample (Mertens & Wilson, 2012). Simply, a sample design is the
framework, or road map, that serves as the basis for the selection of a survey sample and
affects many other important aspects of a survey as well (Saunders, Lewis & Thornhill,
2012).
3.3.2.1 Sampling Frame
A sampling frame is the list of components from which a sample is chosen (Levy &
Lemeshow, 2013). Sampling frame is a list of elements composing of the study
population. Rubin (2011) states that, properly drawn samples should provide information
appropriate for describing the target population elements and nothing more. In regard to
this study, the focus was on Pernod Ricard Kenya, and therefore, the sample frame was
drawn from the Human Resources Department, and it contained a list of official
employees in top and mid-level management in the organization. The information
acquired was accurate, and thus adequate for meeting the specific objectives of the study.
28
3.3.2.2 Sampling Technique
Sampling is characterized as the way toward choosing various people for an examination
such that they speak to the bigger gathering from which they are chosen (Bradford and
Cullen, 2012). This examination utilized a statistics think about. Levy and Lemeshow
(2013) characterize an enumeration consider as a method of efficiently securing and
recording data about the individuals from a given populace. Rubin (2011) characterize an
evaluation as the investigation of each unit, everybody or everything in a populace, it is
otherwise called an entire identification which implies a total check.
As indicated by Beri (2013), a census study provide a true measure of the population by
eliminating the sampling error. Collect and Lemeshow (2013) additionally express that a
census gives a benchmark data that might be gotten for future studies and a detailed
information about all the little sub-bunches inside the population that will probably be
accessible. Therefore, the researcher considered the design as suitable for the study.
3.3.2.3 Sample Size
Saunders, Lewis and Thornhill (2012) characterize the sample size as a littler
arrangement of the greater populace, and battle that the research must be accurately been
illustrative of the populace and the necessity for the researcher to ensure that the
subdivisions associated with the investigation are precisely catered for. Given the nature
of the sampling technique adopted for the study was a census, the sample size under
consideration was all the 80 employees of Pernod Ricard Kenya who were responsible for
implementing strategic plans within the organization and was composed of top and
middle level managers.
Table 3.2 Sample Size Distribution
Management Levels
Sample Size Distribution
Number Percentage Sample Size
Total No. of Top Level Managers 30 100 30
Total No. of Middle Level Managers 50 100 50
Total 80 100 80
29
3.4 Data Collection Methods
The study relied on primary data which was collected using questionnaires. Mertens and
Wilson (2012) define a questionnaire as a list of questions on a specific topic compiled by
the researcher to which answers and information are required. They further state that the
use of questionnaires is cost effective, easy to analyze, familiar to most people, reduces
bias and are considered less intrusive. The questionnaire was self-administered. Saunders,
Lewis and Thornhill (2012), state that self-administered questionnaires are usually
completed by the respondents. Such questionnaires are sent electronically using the
Internet, posted to respondents or delivered by hand to each respondent and collected
later. Responses to interviewer-completed questionnaires are recorded by the interviewer
on the basis of each respondent’s answers.
For the purpose of this study, the questionnaires communicated to the respondents the
intended and elicited responses in terms of empirical data necessary for analysis. The
research questions guided the research instrument. The questionnaire was structured and
contained closed-ended questions. The questionnaire used a five point likert scale and
was divided into five sections which were as follows: section A sought to determine the
respondents’ general information, section B sought to examine the human resource as a
factor influencing strategy implementation, section C sought to determine the
communication as a factor influencing strategy implementation, section D sought to
examine the organization structure as a factor influencing strategy implementation, and
section E sought to determine the strategy implementation.
3.5 Research Procedures
The questionnaires were designed by the researcher in light of the research questions
were pre-tested to determine the suitability of the instrument before the real organization.
According to Gideon (2012), the purpose behind leading pilot testing is to detect
weakness in design and instrumentation and to give proxy information to selection of a
likelihood test. According to Vaus (2014), at least four things should be carefully
checked: flow, question skips, timing and respondent’s interest and attention. Pre-testing
was done by administering the survey to 10 respondents who were excluded in the
genuine study. This empowered the researcher to fine-tune the questionnaire for
30
objectivity and efficiency of the process. This enabled the researcher to fine-tune the
questionnaire for objectivity and efficiency of the process.
Content validity was ascertained by making sure that questionnaire items sufficiently
covered the research objectives (Kothari, 2005). Reliability is characterized as the
measure of how much the measuring instrument comes about into steady outcome or
information after rehashed trials (Mugenda and Mugenda). In this study, Cronbach's
Alpha Test was utilized to test reliability of the questionnaire. Cronbach’s Alpha
Reliability coefficients above 0.7 judged whether the reliability level was satisfactory.
Once the pre-test was completed, the researcher made the necessary adjustments to the
questionnaire and later administer the improved questionnaires individually to the target
population. High ethical standards were also strictly adhered, the researcher ensured that
privacy and confidentiality of the participants was respected. The questionnaire ensured
that the respondents did not identify themselves by names, addresses, and personal phone
numbers. The researcher explained to the population the need for the study to facilitate
truthful responses from the respondents. The researcher carried out a follow-up on the
data collection by personally visiting the respondents to encourage a high response rate
for the study. The researcher came up with a schedule that was followed during every
visit to the organization. The respondents were given 5 days to fill the questionnaire
which was estimated to take twenty minutes to complete. This was done to ensure that the
respondents did not rush through the exercise.
3.6 Data Analysis Methods
The data was collected in the form of discrete quantitative variables. It was thoroughly
checked for completeness and comprehensiveness. The Statistical Package for the Social
Sciences (SPSS) program version 22.0 was used to analyze the data. Data was analyzed
through calculation of percentages. Descriptive statistics and frequencies were applied to
establish patterns, correlations and to make it easier for the interpretation of implications
of the study. Descriptive analysis included a measure of central tendency which were
Mean, and Standard Deviation. Finally, presentation of data was in the form of tables and
figures.
31
3.7 Chapter Summary
This chapter has focused on the research methods that were adopted in conducting the
study. The chapter has discussed in detail the research design, population and sampling
design, data collection methods, research procedures and data analysis methods. Primary
data was gathered utilizing questionnaires. Chapter four provides the study results and
findings.
32
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
The purpose of this study was to find out the factors influencing strategic implementation
in organizations. This chapter represents the data analysis results, presentation and
interpretation.
4.2 Response Rate
Table 4.1 indicates the response rate. Out of 64 questionnaires hand delivered to the
respective respondents, 48 were returned bringing the response rate to 75%. This rate was
above the expected response rate of 50-75% and thus was sufficient to perform data
analysis.
Table 4.1 Response Rate
Category Frequency Percentage
Responded 48 75
Not Responded 16 25
Total 64 100
4.3 Demographic Characteristics
4.3.1 Gender of the Respondents
Respondents were requested to specify their gender and their reply was represented in
Figure 4.1. 58% of the respondents who constituted the majority were male and 42% were
female. This indicates that more male took part in the study than the females.
33
Figure 4.1 Gender of Respondents
4.3.2 Age of the Respondents
Respondents were requested to specify their age and their reply was represented in Figure
4.2. From the findings it is clear that the respondents were spread out to various age
brackets, majority of the respondents 68% were between the age brackets of 20 – 30
years, 26% were between the age brackets of 31 – 40 years, 3% were between 41-50
years, 3% were above 50years.
Figure 4.2 Age of Respondents
34
4.3.3 Level of Education of the Respondents
Respondents were requested to specify their education level and their reply was
represented in Figure 4.3. 49% of the respondents were undergraduates, 26% had
diplomas, 15% were graduates, 8% were certificate holders and 1% had higher diplomas.
Figure 4.3 Education Level
4.3.4 Period in the Organization
Respondents were requested to specify the period they had worked in the organization
and their reply was represented in Figure 4.4. Majority of the respondents (63%)
indicated that they have worked in the organization for a period of 0-5 years, 27% for a
period of 6-10 years, 7% for a period of 11-15 years, 1% for a period of 16-20 years and
1% for a period of 21-25 years.
35
Figure 4.4 Period in the Organization
4.3.5 Management Level
The respondents were asked to indicate their level of management and the findings
presented in figure 4.5. 52% of the respondents who were the majority were line
managers, 34% were operations manager and 14% were top management.
Figure 4.5 Management Level
Formatted: Caption
36
4.3.6 Involvement in Strategy Implementation
The respondents were asked to indicate whether they have been involved in any strategy
implementation in the organization. The results are presented in figure 4.6. From the
findings, 44% indicated that they have been involved in strategy implementation process
very often, 25% indicated that sometimes they are involved in strategy implementation
process, 12% indicated that they are involved in strategy implementation process always,
7% indicated that they rarely are they involved in strategy implementation process, and
12% indicated that they are never they are involved in strategy implementation process.
Figure 4.6 Involvement in Strategy Implementation
4.4 Descriptive Statistics of Variables
4.4.1 Employee Engagement
The respondents of this study were asked to indicate their ratings in reference to the
variable employee engagement on strategy implementation. The findings are as indicated
in table 4.2.
The findings indicated that 42% of the respondents agreed that the organization is able to
select employees who are knowledgeable for the tasks assigned, 57% agreed that the
environmental factors such as politics and the job market affect recruitment and selection
37
at the organization, 60% agreed that the organization uses the competency model while
hiring which results in transparency in the recruitment and selection process, 69% agreed
that employees are trained on the knowledge, skills and abilities required to perform tasks
in the organization, 68% agreed that training and development enhances employee
performance at the organization, 65% agreed that there is an opportunity to put into
practice what employees are trained on after a training and development program, 40%
agreed that information is conveyed to new employees on the expectation of their jobs
including the human resource policies of the organization, 54% agreed that new strategies
formulated in the organization are communicated to new employees, 55% agreed that
employees are evaluated on their current and past performance standards with the view to
improve their performance, 66% agreed that through the performance appraisal, the skills
required by employees are identified and action taken by the management on instilling the
skills to their employees through training, 53% agreed that employees are involved in
developing the performance appraisal system of the organization, 57% agreed that
employees are rewarded as a result of performing tasks assigned to them which motivates
them to perform better, 59% agreed that the organization has a favorable compensation
and benefits package, 62% agreed that salaries of the employees are paid in on time, 62%
agreed that the working conditions of employees at the organization are conducive and
60% agreed that employees feel secure in their jobs which leads to their motivation.
38
Table 4.2 Employee Engagement
Employee Engagement SD
(%)
D
(%)
S
(%)
A
(%)
SA
(%)
The organization is able to select employees who are
knowledgeable for the tasks assigned 6 12 41 36 6
The environmental factors such as politics and the job
market affect recruitment and selection at the
organization
0 10 34 51 6
The organization uses the competency model while
hiring which results in transparency in the recruitment
and selection process.
1 12 26 48 12
Employees are trained on the knowledge, skills and
abilities required to perform tasks in the organization 1 14 16 48 21
Training and development enhances employee
performance at the organization 1 11 19 49 19
There is an opportunity to put into practice what
employees are trained on after a training and
development program
3 8 23 49 16
Information is conveyed to new employees on the
expectation of their jobs including the human resource
policies of the organization
7 15 38 34 6
New strategies formulated in the organization are
communicated to new employees 4 14 29 51 3
Employees are evaluated on their current and past
performance standards with the view to improve their
performance.
4 4 37 45 10
Through the performance appraisal, the skills required
by employees are identified and action taken by the
management on instilling the skills to their employees
through training
1 8 25 45 21
Employees are involved in developing the performance
appraisal system of the organization 3 10 34 41 12
Employees are rewarded as a result of performing tasks
assigned to them which motivates them to perform
better.
1 12 29 45 12
The organization has a favorable compensation and
benefits package 0 3 38 48 11
Salaries of the employees are paid in on time 3 15 21 37 25
The working conditions of employees at the
organization are conducive. 3 7 29 51 11
Employees feel secure in their jobs which leads to their
motivation. 8 11 21 37 23
KEY: SA-Strongly Agree, A-Agree, N-Neutral, D- Disagree, SD-Strongly disagree
39
4.4.2 Communication
The study sought to find out the respondents opinion in reference to the variable
communication on strategy implementation, the findings are as shown in table 4.3.The
findings indicate that 61% of the respondents agreed that their company used emails in
communicating strategy implementation, 58% agreed that their company used internal
memo in communicating strategy implementation, 45% agreed that their company used
short message service in communicating strategy implementation, 56% agreed that their
company used oral presentation in communicating strategy implementation and 33%
agreed that their company used periodic reports in communicating strategy
implementation.
Table 4.3 Communication
Communication SD
(%)
D
(%)
S
(%)
A
(%)
SA
(%)
Our company used emails in communicating strategy
implementation 0 11 29 51 10
Our company used internal memo in communicating
strategy implementation 1 7 34 48 10
Our company used short message service in
communicating strategy implementation 18 11 26 37 8
Our company used oral presentation in communicating
strategy implementation 7 14 23 34 22
Our company used periodic reports in communicating
strategy implementation. 11 12 44 26 7
KEY: SA-Strongly Agree, A-Agree, N-Neutral, D- Disagree, SD-Strongly disagree
4.4.3 Organization Structure
The study sought to find out how organization structure affects strategy implementation
and the findings are as presented in table 4.4.
40
Table 4.4 Organization Structure
Organization Structure SD
(%)
D
(%)
S
(%)
A
(%)
SA
(%)
Employees are informed of changes and also encouraged
and motivated towards strategy implementation in the
organization
5 9 32 47 7
Employees have the information they need to do their
work 1 10 28 47 14
There is open communication between employees and
the management at the organization 0 19 34 37 10
The management coordinate activities through the
strategy implementation process 4 12 26 44 14
There are social task forces, project teams and standing
committees formulated to spearhead the strategy
implementation in the organization
3 12 30 47 8
The organization allocates resources such finances and
personnel adequately towards strategy implementation 0 11 29 45 15
The management ensures that adequate resources are
available to pursue organizational strategies 0 13 32 43 12
The organization is affected by the unexpected and
unpredictable changes in the organization. For example
change in management.
3 10 23 41 23
The organization takes time to respond and adapt to new
changes in the organization. 1 10 25 41 23
As a result of changes in the management, the
organizational structure including departments division
of labor is affected
3 10 22 43 23
KEY: SA-Strongly Agree, A-Agree, N-Neutral, D- Disagree, SD-Strongly disagree
The findings indicated that 54% agreed that employees are informed of changes and also
encouraged and motivated towards strategy implementation in the organization, 61%
41
agreed that employees have the information they need to do their work, 47% agreed that
there is open communication between employees and the management at the
organization, 58% agreed that the management coordinate activities through the strategy
implementation process, 55% agreed that there are social task forces, project teams and
standing committees formulated to spearhead the strategy implementation in the
organization, 60% agreed that the organization allocates resources such finances and
personnel adequately towards strategy implementation, 55% agreed that the management
ensures that adequate resources are available to pursue organizational strategies, 64%
agreed that the organization is affected by the unexpected and unpredictable changes in
the organization. For example change in management, 64% agreed that the organization
takes time to respond and adapt to new changes in the organization and 66% agreed that
as a result of changes in the management, the organizational structure including
departments division of labour is affected.
4.4.4 Strategy Implementation
The study sought to find out the respondents opinion on Strategy Implementation in their
organization, the findings are as shown in table 4.5. The findings indicate that 67%
strategic consensus acts as a shared understanding to a strategic directive between
individuals or groups within an organization, 74% agreed that a proper strategy-structure
alignment is a necessary precursor to the successful implementation of new business
strategies, 78% agreed that communication is key to strategy implementation process;
strategy must be communicated to all stakeholders before implementation, 78% agreed
that the leadership culture of senior managers has a significant effect on decision-making
and 79% agreed that mobilization of organizational capabilities enables the firm to
advantage of strategic opportunities.
42
Table 4.5 Strategy Implementation
Strategy Implementation SD
(%)
D
(%)
S
(%)
A
(%)
SA
(%)
Strategic consensus acts as a shared understanding to a
strategic directive between individuals or groups within
an organization.
6 13 14 52 15
A proper strategy-structure alignment is a necessary
precursor to the successful implementation of new
business strategies.
1 3 22 49 25
Communication is key to strategy implementation
process; strategy must be communicated to all
stakeholders before implementation.
1 2 19 52 26
The leadership culture of senior managers has a
significant effect on decision-making. 1 6 15 52 26
Mobilization of organizational capabilities enables the
firm to advantage of strategic opportunities 3 3 15 46 33
KEY: SA-Strongly Agree, A-Agree, N-Neutral, D- Disagree, SD-Strongly disagree
4.5 Modelling
The information investigation took after a two-stage approach. Initially the estimation
display was surveyed and investigated to affirm develop legitimacy. The second step
included building up the connections between every single inert variable utilizing
structural equation modelling (SEM). PLS calculation and Bootstrapping calculation was
done through SmartPLS 2.0
4.5.1 Measurement Model
The corroborative factor investigation was directed keeping in mind the end goal to
survey the degree to which the watched information fits the pre-indicated hypothetically
determined model. The model fits for the estimation demonstrate in partial least squares
(PLS) were approved utilizing four criteria. These were build uni-dimensionality, develop
unwavering quality, focalized legitimacy and discriminant legitimacy (Hair et al., 2011).
43
4.5.1 Construct Uni-Dimensionality
Construct uni-dimensionality was at first surveyed by confirming that the estimation
items measured the particular construct. Additionally develop uni-dimensionality was
performed through the confirmation of the cross loadings of scales and constructs to
guarantee that the scales stacked intensely on the pertinent builds. The loadings and cross
loadings are demonstrated in table 4.6. Every one of the loadings and cross loadings were
sufficient and exhibited develop uni-dimensionality
Table 4.6 Cross Loading
Item Communication Engagement Implementation Structure T
statistic P values
EE13 0.267 0.743 0.330 0.374 17.992 0.000
EE14 0.348 0.854 0.142 0.343 44.265 0.000
EE15 0.103 0.803 0.333 0.361 23.658 0.000
EE16 0.172 0.578 0.220 0.237 6.858 0.000
EE7 0.329 0.732 0.390 0.290 20.598 0.000
EE8 0.411 0.560 0.268 0.143 7.725 0.000
MC1 0.768 0.361 0.232 0.196 5.755 0.000
MC5 0.752 0.357 0.226 0.342 5.272 0.000
OS1 0.187 0.125 0.311 0.781 13.656 0.000
OS10 0.115 0.255 0.108 0.560 3.676 0.000
OS2 0.328 0.222 0.166 0.615 5.289 0.000
OS7 0.354 0.327 0.261 0.806 11.998 0.000
OS8 0.116 0.134 0.254 0.592 5.229 0.000
SI1 0.196 0.391 0.785 0.293 23.536 0.000
SI2 0.175 0.158 0.857 0.285 19.982 0.000
SI3 0.196 0.253 0.774 0.202 16.556 0.000
SI4 0.325 0.350 0.827 0.286 26.504 0.000
SI5 0.289 0.205 0.753 0.311 12.841 0.000
44
4.5.2 Construct Reliability
Construct reliability was measured by calculating the composite reliability and the
cronbach alpha of the paradigms. Composite reliability factors were assessed through
SmartPLS. The Cronbach alphas were all above the 0.6 threshold as specified for PLS
analysis (Hair et al., 2010) indicating good reliability and composite reliability of
reflective items were all above the acceptable 0.7 threshold which means all the variables
in the study exhibited construct reliability. All constructs had an acceptable reliability
levels because the composite reliability scores for all constructs were above the 0.7
threshold. Results of construct reliability were indicated in Table 4.7.
Table 4.7 Reliability of Constructs
Construct
Number
of items
Cronbach’s
Alpha
Composite
Reliability Items removed
Communication 2 0.705 0.733 MC2,MC3,MC4
Employee
Engagement 6
0.809 0.863
EE1,EE2,EE3,EE4,EE5,E
E6,
EE9EE10EE11,EE12,EE1
6
Strategy
Implementation 5
0.860 0.899 None
Organization
Structure 5
0.713 0.807 OS3,0S4,OS5,OS6,OS9
4.5.3 Convergent Validity
Convergent Validity Convergent legitimacy alludes to how much at least two things that
measure a construct in theory converge or share high extent of variance in actuality. It is
measured by three measures; factor loadings, composite reliability (CR) and normal
fluctuation extricated (NFE). Merged legitimacy is accomplished if composite
unwavering quality esteems for the develop are slightest 0.7 and the normal fluctuation
separated (AVE) are no less than 0.5 (Hair et al., 2010). Likewise all factor loadings
ought to be factually critical and ought to be over 0.5, as demonstrated in table 4.6, 4.7
and 4.8
45
Table 4.8. Convergent Validity
Construct Number of items AVE
Communication 2 0.578
Employee Engagement 6 0.518
Strategy Implementation 5 0.640
Organization Structure 5 0.506
4.5.4 Discriminant Validity
Discriminant Validity Discriminant Validity is the degree to which things measuring one
construct differentiate from things measuring different constructs. There are two criteria
to survey the discriminant Validity. The main model is that the inter construct relationship
ought not to be higher than 0.9. The second model is the square base of the Average
Variance Extracted (AVE) of the construct ought to be bigger than its relationship with
alternate builds. As in relationship network showed in Table 4.9 the slanting components
are the square foundation of the normal fluctuation separated of all the inert construct.
The discriminant legitimacy is expected if the corner to corner components are higher
than other off-slanting components in their lines and segments. This circumstance is
clearly the case in the relationship grid and in this manner the discriminant legitimacy is
affirmed.
Table 4.9 Discriminant Validity
Construct Communication Employee
Engagement
Strategy
Implementation
Organization
Structure
Communication 0.760
Employee
Engagement 0.472 0.720
Strategy
Implementation 0.301 0.473 0.800
Organization
Structure 0.486 0.412 0.351 0.711
46
4.6 Structural Model Estimation
Having established the validity and the reliability of the measurement model, the next
step was to test the hypothesized relationship by running PLS algorithm and
Bootstrapping algorithm in SmartPLS 2.0.
Figure 4.7: Items Loadings and Path Coefficient
47
Figure 4.8: Significance of Factor Loadings and Path Coefficient
Table 4.10 Regression Coefficients
Path coefficient Standard Error T Statistics P
Values
Communication ->
Implementation 0.234 0.096 2.443 0.017
Engagement ->
Implementation 0.385 0.056 6.845 0.000
Structure -> Implementation 0.175 0.059 2.988 0.004
48
4.6.1 Communication and Strategy Implementation
Communication was found to have a positive and statistically significant relationship with
Strategy implementation. The path coefficient was positive and significant at the 0.05
level (β=0.234, T-value =2.443 p<0.05) as indicated in table 4.10 and figure 4.7 and 4.8.
The positive relationship means if, communication increases by 1, strategy
implementation in will increase by 0.234.
4.6.2 Employee Engagement and Strategy Implementation
Employee engagement was found to have a positive and statistically significant
relationship with Strategy implementation. The path coefficient was positive and
significant at the 0.05 level (β=0.385, T-value =6.845 p<0.05) as indicated in table 4.10
and figure 4.7 and 4.8. The positive relationship means if, Employee engagement
increases by 1, strategy implementation in will increase by 0.385.
4.6.3 Organization Structure and Strategy Implementation
Organization structure was found to have a positive and statistically significant
relationship with Strategy implementation. The path coefficient was positive and
significant at the 0.05 level (β=0.175, T-value =2.988 p<0.05) as indicated in table 4.10
and figure 4.7 and 4.8. The positive relationship means if, Organization structure
increases by 1, strategy implementation in will increase by 0.175.
4.7 Predictive Relevance of the Model
The quality of the structural model can be assessed by R2 which shows the variance in the
endogenous variable that is explained by the exogenous variables. Based on the results
reported in figure 4.6, the R2 was found to be 0.454 indicating that Employee
engagement, communication and organization structure can account for 45.4% of the
variance in the strategy implementation.
4.8 Chapter Summary
The chapter has presented the study findings using that were obtained from the
questionnaires. The analysis has been done using descriptive statistics of means and
percentages to explain the findings. Pearson Correlation analysis was used to determine
49
significant elements for human resource, communication, and organization structure
factors. Inferential statistics has been used to show the relationship that exists between
human resource, communication, and organization structure factors and strategy
implementation. Presentations have been made using tables and figures and brief
explanations of the same have been offered. The next chapter presents the study
discussions, conclusions, and recommendations.
50
CHAPTER FIVE
5.0 DISCUSSIONS, CONCLUSIONS, AND RECOMMENDATIONS
5.1 Introduction
This chapter is divided into different sections which are as per the following: area 5.1
introduction, section 5.2 summary of findings, segment 5.3 discussions, section 5.4
conclusions, and section 5.5 recommendations for improvement, and recommendations
for further studies.
5.2 Summary
The purpose of the study was to analyze the key factors affecting strategy implementation
in Pernod Ricard Kenya. The research was led by the following research questions: How
does human resource factors affect strategy implementation at Pernod Ricard Kenya?
How does communication affect strategy implementation at Pernod Ricard Kenya? And,
how does organization structure affect strategy implementation at Pernod Ricard Kenya?
The study used descriptive research design. The target population of the research entailed
the top and middle level employees of Pernod Ricard Kenya Limited with a population of
80 employees. The study was quantitative in nature as data was collected using
questionnaires from both clusters. The questionnaires were distributed by the researcher
to the different respondents and collected after completion. In regard to data analysis, the
demographic data was tabulated using frequency and percentages. For data description,
the Pearson’s correlation was used. The data was presented in the form of tables
according to the research questions through the use of Statistical Package for Social
Science (SPSS).
The study showed that the organization was able to select employees who were
knowledgeable for the tasks assigned, and environmental factors such as politics and the
job market affected recruitment and selection at the organization. The organization used
the competency model while hiring which resulted in transparency in the recruitment and
selection process, and employees were trained on the knowledge, skills and abilities
required to perform tasks in the organization. There was an opportunity to put into
51
practice what employees were trained on after a training and development program, and
information was conveyed to new employees on the expectation of their jobs including
the human resource policies of the organization.
The study showed that company used emails in communicating strategy implementation,
as well as internal memos while communicating strategy to facilitate implementation. The
organization did not use short message service in communicating strategy implementation
which could be effective given that most if not all employees have mobile phones. The
company used oral presentation in communicating strategy implementation, as well as
periodic reports in communicating strategy implementation.
The study showed that employees were informed of changes and also encouraged and
motivated towards strategy implementation in the organization, and they had the
information they needed to do their work. There was open communication between
employees and the management at the organization, and management coordinated
activities through the strategy implementation process. There were social task forces,
project teams and standing committees formulated to spearhead the strategy
implementation in the organization, and resources such as finances and personnel were
adequately allocated for strategy implementation.
5.3 Discussions
5.3.1 Human Resource as a Factor Influencing Strategy Implementation
The study showed that the organization is able to select employees who are
knowledgeable for the tasks assigned. These results are in concurrence with Barnat
(2015) who states that, factors do exist that disallow powerful asset portion, include
absence of adequate learning. The study showed that the organization uses the
competency model while hiring which results in transparency in the recruitment and
selection process. The study showed that employees are trained on the knowledge, skills
and abilities required to perform tasks in the organization. These results are in agreement
with Niazi (2011) who states that, training and development is a process of transferring
Knowledge, Skills and Abilities (KSA) that are required to perform specific tasks in an
organization making this process strategic.
52
The study showed that training and development enhances employee performance at the
organization. These results are in agreement with Peteraf (1993) who states that, in
strategy implementation, a comprehensive training and development program help
deliberate on the necessary knowledge, skills and attitudes that assist to achieve
organizational goals and also create competitive advantage. The study showed that there
is an opportunity to put into practice what employees are trained on after a training and
development program. These results are in agreement with Niazi (2011) who points out
that, to stay ahead of the competition, organizations must incorporate innovation and
reinvention which is possible if training encompasses a wide range of learning actions.
Training then becomes part of the organizations-wide strategy and it is linked to business
goals and organizational performance.
The study showed that information is conveyed to new employees on the expectation of
their jobs including the human resource policies of the organization. These results are in
agreement with Gomez-Mejia, Balkin and Cardy (2001) who state that, orientation is the
process of conveying information to new employees about the expectation of their jobs
and assisting them adapt to the stresses of transition to new jobs. Robbins and DeCenzo
(1999) adds that the orientation program also communicates the relevant human resource
management policies such as work hours, pay procedures, benefits; review the specific
duties and responsibilities of the new member’s job. The study showed that new strategies
formulated in the organization are communicated to new employees. These results are in
agreement with Gatignon and Xuereb (2006) who state that, in strategy, orientation of a
firm leads to superior performance because of the innovations that are brought to the
market. Narver and Slater (1990) opine that, this reflects the strategic direction
implemented by a firm to create proper behaviors for continuous superior performance of
business.
The study showed that employees are evaluated on their current and past performance
standards with the view to improve their performance. These results are in agreement
with Dessler (2006) who states that, performance appraisal is the evaluation of the current
and past performance of employees based on the performance standards with the view to
improve performance, and that, this appraisal can be used to reward employees whose
performance is better than others. The study showed that employees are not involved in
53
developing the performance appraisal system of the organization. These results differ
with Shehzad and Akhtar (2012) who state that, employees must have a say in developing
the performance appraisal system as evidenced by Mayer and Davis (1999) that involving
employees in developing the performance appraisal system leads to favorable reactions to
the process and increases trust for top management.
The study showed that employees are rewarded as a result of performing tasks assigned to
them which motivates them to perform better. These results are in agreement with
Williams (2005) who indicates that, compensation and benefits are all forms of pay or
rewards, and institutions give to employees in exchange of their services. Hackett and
McDermott (1999) note that, employees get a reward in return of performing the tasks
assigned by the administration. The study showed that the organization has a favorable
compensation and benefits package.
5.3.2 Communication as a Factor Influencing Strategy Implementation
The study showed that the company used emails in communicating strategy
implementation. These results are in agreement with Zvoch (2012) who states that, many
employees purport to prefer email as an information source, even while noting the
overload of messages they receive each day. Ketola (2010) also notes that, while email is
highly convenient for both sender and receiver, it is an impersonal medium and lacks the
richness of other information sources, and email is asynchronous in that there are delays
in sending, receiving, and responding, it is not the optimal medium for conveying delicate
or complicated information or to influence, persuade, or sell an idea.
The study showed that the company used internal memo in communicating strategy
implementation. These results are in agreement with Nahapiet (2009) who state that,
memorandums (memos) are the most common form of written communication within
organizations. Generally, there is a standard format adopted by the organization. Memos
are used to: inform the recipient of events or activities, initiate or summarize action and
confirm what has already been communicated orally, and that, written messages are less
formal than memos and tend to be used between people who work closely together.
54
The study showed that the company did not use short message service in communicating
strategy implementation. These results differ with Roberts and Kaiser (2011) who state
that, written messages are less formal than memos and tend to be used between people
who work closely together. They may be telephone messages or simply notes left on
someone else’s desk while they are out of the office. However informal, it is worth taking
the trouble to write clearly and concisely since a garbled or illegible message is worth
than useless.
The study showed that the company used oral presentation in communicating strategy
implementation. These results are in agreement with Steyn and Niemann (2010) who state
that, oral presentations may be necessary to communicate an argument or a message to a
group of people quickly and effectively. Again, this could be a formal occasion, or a less
formal briefing to a group of staff. The most informal and frequent type of oral
communication is simple face to face conversation. Keyton (2011) reiterates that, oral
communication of this nature is particularly appropriate for personal matters, or when a
manager wishes to praise or reward an employee.
The study showed that the company used periodic reports in communicating strategy
implementation. These results are in agreement with Yang, Guohui and Eppler (2011)
who state that, written reports are another widely used form of communication.
Descriptive report is simply an account of events, or collection of facts, while analytical
report gives meaning to facts and concepts by analyzing the facts presented, suggesting
conclusions and recommending possible solutions to problems, and newsletters or
bulletins can be used to communicate general information or management policy to all
staff or sections of staff within the organization.
5.3.3 Organization Structure as a Factor Influencing Strategy Implementation
The study showed that employees are informed of changes and also encouraged and
motivated towards strategy implementation in the organization. These results are in
agreement with Bloisi et al. (20070 who state that, communication in an organization
transmits directions or ideas along the lines of command; providing confirmations,
information, and feedback upwards; informing staff on changes, encouraging and
55
motivating employees. The study showed that employees have the information they need
to do their work. These results are in agreement with Taylor (2007) who indicates that,
organizational structure in many companies defines the modes and tone of
communication. He argued that highly stratified organizations have formal methods of
communication which is conducted between managers and employees and small
organizations may have informal communication as companies leverage on their flat
nature. The study also demonstrated that there is open communication amongst workers
and the management at the organization. These results are in agreement with Rapert,
Velliquette and Garretson (2002) who state that, research shows that, organizations where
employees have easy access to management through open communication outperform
those in a restrictive communication environment.
The study showed that the management organize exercises through the strategy
implementation process. These results are in agreement with Barrows (2014) who state
that, the power to coordinate activities during strategy implementation is then placed on
the mangers in the organization since they have more authority over more organizational
units and the power to coordinate, integrate, and arrange the cooperation of the units
under their supervision becomes an easy process. The study demonstrated that there are
social task forces, extend groups and standing committees detailed to lead the strategy
implementation in the organization. These results are in agreement with Barrows (2014)
who state that, through the organizational structure, coordination of strategic efforts is
also achieved through informal meetings, social task forces, project teams and standing
committees. Edinger (2012) additionally expresses that, coordination likewise includes
cascading of the strategy all through the organization getting to the reasonable and
strategic components of individuals' jobs every day.
The study showed that the organization allocates resources such finances and personnel
adequately towards strategy implementation. These results are in agreement with Barnat
(2005) who show that, strategy implementation includes designing the organization's
structure, allocating resources, developing information and decision process, and
managing human resources, including such areas as the reward system, approaches to
leadership, and staffing. The study also demonstrated that the management guarantees
56
that sufficient resources are accessible to pursue organizational strategies. These
outcomes are in concurrence with Vanguard Papers (2015) that states, suitable resource
allocation and budgeting gives the organization competitive advantage by improving its
core abilities and capacity. The management holds the responsibility of ensuring that
adequate resources are available to pursue organizational strategy.
The study showed that the organization is influenced by the unxpected and unpredictable
changes in the organization, for example, change in management. These outcomes are in
concurrence with Barnat (2005) who observed that, environmental turbulence exists when
changes are startling and flighty and the weights for change at which the organization
must have the capacity to react to the change are key environmental issues. The study
showed that the organization takes time to respond and adapt to new changes in the
organization. These outcomes are in concurrence with Barnat (2005) who observed that,
environmental turbulence exists when changes are startling and flighty and the weights
for change at which the organization must have the capacity to react to the change are key
environmental issues. The study also showed that as a result of changes in the
management, the organizational structure including departments division of labor is
affected. These results are in agreement with Barnat (2005) who observed that,
environmental turbulence appears to influence structure in terms of formation of
departments division of labor, the configuration of the organization, and the allocation of
power within the organization which flows from strategy.
5.4 Conclusions
5.4.1 Human Resource as a Factor Influencing Strategy Implementation
The study concludes that the organization was able to select employees who were
knowledgeable for the tasks assigned, and environmental factors such as politics and the
job market affected recruitment and selection at the organization. The organization used
the competency model while hiring which resulted in transparency in the recruitment and
selection process, and employees were trained on the knowledge, skills and abilities
required to perform tasks in the organization. There was an opportunity to put into
practice what employees were trained on after a training and development program, and
information was conveyed to new employees on the expectation of their jobs including
the human resource policies of the organization. Employees were not involved in
57
developing the performance appraisal system of the organization, however, they were
rewarded as a result of performing tasks assigned to them which motivated them to
perform better.
5.4.2 Communication as a Factor Influencing Strategy Implementation
The study concludes that company used emails in communicating strategy
implementation, as well as internal memos while communicating strategy to facilitate
implementation. The organization did not use short message service in communicating
strategy implementation which could be effective given that most if not all employees
have mobile phones. The company used oral presentation in communicating strategy
implementation, as well as periodic reports in communicating strategy implementation. It
can be concluded that the organization employed the use of formal communication
channels while communicating strategy implementation and disregarded informal
channels.
5.4.3 Organization Structure as a Factor Influencing Strategy Implementation
The study concludes that employees were informed of changes and also encouraged and
motivated towards strategy implementation in the organization, and they had the
information they needed to do their work. There was open communication between
employees and the management at the organization, and management coordinated
activities through the strategy implementation process. There were social task forces,
project teams and standing committees formulated to spearhead the strategy
implementation in the organization, and resources such as finances and personnel were
adequately allocated for strategy implementation. The organization was affected by the
unexpected and unpredictable changes in management, and the organization took time to
respond and adapt to new internal changes.
5.5 Recommendations
5.5.1 Recommendations for Improvement
5.5.1.1 Human Resource as a Factor Influencing Strategy Implementation
The study showed that employees were not involved in developing the performance
appraisal system of the organization. The study recommends the management of Pernod
58
Ricard Kenya to involve employees in the creation of a performance appraisal tool which
will facilitate favorable reactions to the process, increase top management trust, as well as
increase acceptance of the process in the organization.
5.5.1.2 Communication as a Factor Influencing Strategy Implementation
The study revealed that the organization did not use short message service in
communicating strategy implementation. The study recommends the management of
Pernod Ricard Kenya to come up with a communication channel that would employ the
use of SMS to reach out to all employees. This could be achieved through divisional, or
departmental message groups that can be used to inform employees about meetings that
would facilitate better quorums during strategy discussions.
5.5.1.3 Organization Structure as a Factor Influencing Strategy Implementation
The study showed that the organization was affected by the unexpected and unpredictable
changes in management, and it took time to respond and adapt to new internal changes.
The study recommends that Pernod Ricard Kenya management need to establish a
knowledge management culture that would facilitate faster adaptation to change since
systems set in place would guide all employees on what was expected of them in good
time.
5.5.2 Recommendations for Further Studies
This research focused on Pernod Ricard Employees which had a population of close to
one hundred employees at different job group level, and it analyzed the key factors
affecting strategy implementation. The study was limited in that it only focused on one
organization and three variables including: human resource, communication, and
organization structure. The study therefore recommends that similar studies be conducted
in other organizations within all the industries in the country for a broader picture of how
various factors affect strategy implementation across board. The study also recommends
future scholars to focus on other variables excluding the ones mentioned in this study to
provide a deeper understanding of how various factors influence strategy implementation
inn organizations.
59
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69
APPENDICES
APPENDIX I: LETTER OF INTRODUCTION
United States International University – Africa,
P.O. BOX 14634 – 00800,
Nairobi, Kenya.
To Whom It May Concern,
I am a graduate student at the United States International University in partial fulfillment
of the requirement for the degree of Masters of Business Administration (MBA) Strategic
Management option. I am conducting a study to determine the Factors Influencing the
Implementation of Strategic Plans in Organizations.
The information provided by respondents will be protected by the principle of
confidentiality. Your participation is very imperative for the accomplishment of this study
and it will be highly appreciated. Should you have any questions or concerns with regards
to the questionnaire, please do not hesitate to contact me through my contact provided
above.
Thank you for your cooperation and time.
Yours Sincerely,
Nandi Adimo Albert.
70
APPENDIX II: QUESTIONNARE
Section A: General Information
1. Gender:
Male [ ]
Female [ ]
2. Age:
20-30yrs [ ]
31-40yrs [ ]
41-50yrs [ ]
Above 50yrs [ ]
3. Highest Level of Education
: Certificate [ ]
Diploma [ ]
Undergraduate [ ]
Graduate [ ]
Higher Diploma [ ]
Post Graduate [ ]
4. Number of years you have worked in the organization?
0 – 5yrs [ ]
66 – 10yrs [ ]
11 – 15yrs [ ]
16 – 20yrs [ ]
21-25yrs [ ]
Above 25yrs [ ]
5. Management Level.
Top Management [ ]
Line management [ ]
Operations management [ ]
6. Have you been involved in any strategy implementation process in the
organization?
Always [ ]
Very Often [ ]
Sometimes [ ]
Rarely [ ]
71
Never [ ]
72
Section B: Human Resource as a Factor Influencing Strategy Implementation
Based on the rating of five; (1) Strongly Disagree, (2) Disagree, (3) Not Sure, (4) Agree
SD D NS A SA
EE1
1. The organization is able to select employees who are
knowledgeable for the tasks assigned 1 2 3 4 5
EE2
2. The environmental factors such as politics and the
job market affect recruitment and selection at the
organization 1 2 3 4 5
EE3
3. The organization uses the competency model while
hiring which results in transparency in the recruitment
and selection process. 1 2 3 4 5
EE4
4. Employees are trained on the knowledge, skills and
abilities required to perform tasks in the organization 1 2 3 4 5
EE5
5. Training and development enhances employee
performance at the organization 1 2 3 4 5
EE6
6. There is an opportunity to put into practice what
employees are trained on after a training and
development program 1 2 3 4 5
EE7
7. Information is conveyed to new employees on the
expectation of their jobs including the human resource
policies of the organization 1 2 3 4 5
EE8
8. New strategies formulated in the organization are
communicated to new employees 1 2 3 4 5
EE9
9. Employees are evaluated on their current and past
performance standards with the view to improve their
performance. 1 2 3 4 5
EE10
10. Through the performance appraisal, the skills
required by employees are identified and action taken
by the management on instilling the skills to their
employees through training 1 2 3 4 5
73
EE11
11. Employees are involved in developing the
performance appraisal system of the organization 1 2 3 4 5
EE12
12. Employees are rewarded as a result of performing
tasks assigned to them which motivates them to
perform better. 1 2 3 4 5
EE13
13. The organization has a favorable compensation and
benefits package 1 2 3 4 5
EE14 14. Salaries of the employees are paid in on time 1 2 3 4 5
EE15
15. The working conditions of employees at the
organization are conducive. 1 2 3 4 5
EE16
16. Employees feel secure in their jobs which leads to
their 1 2 3 4 5
Section C: Communication as a Factor Influencing Strategy Implementation
Based on the rating of five; (1) Strongly Disagree, (2) Disagree, (3) Not Sure, (4) Agree
and (5) Strongly Agree, show your opinion by putting a
Factors SD D NS A SA
MC1 1.Our company used emails in communicating strategy
implementation 1 2 3 4 5
MC2 2.Our company used internal memo in communicating
strategy implementation 1 2 3 4 5
MC3 3.Our company used short message service in
communicating strategy implementation 1 2 3 4 5
MC4 4.Our company used oral presentation in
communicating strategy implementation 1 2 3 4 5
MC5 5. Our company used periodic reports in
communicating strategy implementation. 1 2 3 4 5
74
Section D: Organization Structure as a Factor Influencing Strategy Implementation
Based on the rating of five; (1) Strongly Disagree, (2) Disagree, (3) Not Sure, (4) Agree and
(5) Strongly Agree, show your opinion
SD D NS A SA
OS 1
1. Employees are informed of changes and also
encouraged and motivated towards strategy
implementation in the organization 1 2 3 4 5
OS2
2. Employees have the information they need to do
their work 1 2 3 4 5
OS3
3. There is open communication between employees
and the management at the organization 1 2 3 4 5
OS4
4.The management coordinate activities through the
strategy implementation process 1 2 3 4 5
OS5
5. There are social task forces, project teams and
standing committees formulated to spearhead the
strategy implementation in the organization 1 2 3 4 5
OS6
6.The organization allocates resources such finances
and personnel adequately towards strategy
implementation 1 2 3 4 5
OS7
7.The management ensures that adequate resources are
available to pursue organizational strategies 1 2 3 4 5
OS8
8. The organization is affected by the unexpected and
unpredictable changes in the organization. For example
change in management. 1 2 3 4 5
OS9
9. The organization takes time to respond and adapt to
new changes in the organization. 1 2 3 4 5
OS10
10. As a result of changes in the management, the
organizational structure including departments division
of labor is affected 1 2 3 4 5
75
Section E: Strategy Implementation
Based on the rating of five; (1) Strongly Disagree, (2) Disagree, (3) Not Sure, (4) Agree and
SD D NS A SA
SI1
1. Strategic consensus acts as a shared understanding to a
strategic directive between individuals or groups within
an organization. 1 2 3 4 5
SI2
2. A proper strategy-structure alignment is a necessary
precursor to the successful implementation of new
business strategies. 1 2 3 4 5
SI3
3. Communication is key to strategy implementation
process; strategy must be communicated to all
stakeholders before implementation. 1 2 3 4 5
SI4
4. The leadership culture of senior managers has a
significant effect on decision-making. 1 2 3 4 5
SI5
5. Mobilization of organizational capabilities enables the
firm to advantage of strategic opportunities 1 2 3 4 5
THANK YOU FOR YOUR TIME!!
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