Strategic Plan Implementation and Organizational Performance of National Social Security Fund in Kenya
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Date
2023
Authors
Mbuthia, Michael Mwangi
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Putting the developed strategy plan into practice is referred to as strategic plan implementation. In addition to gathering assets, it involves motivating employees to accomplish goals. An intolerably high percentage of strategic plan implementation failure has been observed by pension funds. This is largely to blame for Kenyan pension funds experiencing a decline in both fixed income and offshore returns in the first quarter of 2020, which were 2.9% and 1.9%, respectively, as opposed to 3.3% and 10.2% in the preceding quarter. NSSF hasn't been able to meet its goals despite putting the strategic plan into practice. For instance, in comparison to the members' contribution in the prior year, member contributions decreased by 2% in 2021.The general objective of the study is to assess how well the National Social Security Fund has executed its strategic plan. Determine the impact of organizational culture, strategic articulation, strategic communication, and strategic resource allocation on organizational performance are the specific goals. The study's findings would be helpful to regulators, policy makers, academics, and other researchers. In the study, Resource Based View Theory, McKinsey 7s Theory of Performance, and the McKinsey 7s Model were analyzed as theoretical pillars. Specifically, the investigation focused on the National Social Security Fund's management team. A cross-sectional design was employed in the study. The sample size, as determined by Slovin's statistical method, was 36 individuals. Proportions of the sample were distributed using stratified random sampling. A semi-structured questionnaire was used to collect primary data, while secondary data was obtained from journal articles and NSSF performance reports. To assess the data tools' validity and internal consistency, a pilot test was conducted. Data from the survey were analysed quantitatively using the Statistical Package for Social Sciences version 26. Descriptive statistics, multiple regression analysis, and correlation analysis were performed on the data. Charts and frequency tables were used to present the results as necessary. The study findings revealed that strategic resource allocation, organizational culture, strategic articulation, and strategic communication were positively related to organizational performance. Further, the regression model was found to be significant with model validity significance less than 0.05. Organization performance is moderately related to the implementation of strategic plans (R) in the model summary. The study concludes that based on the overall mean for strategic resource allocation, NSSF practice of strategic resource allocation is moderate. The study concludes that based on the overall mean for organization culture, pension fund practice of organization culture is moderate. The study concludes that based on the overall mean for strategic articulation, pension fund practice of strategic articulation is moderate. The study concludes that based on the overall mean for strategic communication, pension fund practice of strategic communication is large extent. The study advocates that the management of NSSF ought to ensure time allocation of funds to facilitate strategic plans implementation. The pension fund managers should deploy technological resources during the strategic plan’s execution. This would ensure success in the execution process. In addition, the organization should provide continuous training to its employees on how to carry out strategic plans and the management should avail necessary physical resources to assist in implementing strategic plans.
Description
Research Project Submitted to the School Of Business, Economics and Tourism in Partial Fulfilment of the Requirements for Award of the Master of Business Administration (Strategic Management) of Kenyatta University
Keywords
National Social Security Fund, Kenya