Abstract

EFFECT OF CORPORATE CULTURE ON IMPLEMENTATION OF STRATEGIC PLAN; A CASE OF KENYA POWER COMPANY, KISUMU

Monalisa Atieno Dullo, Dr. Elizabeth NambuswaMakokha (PhD), Prof. Gregory S. Namusonge

Volume: 8 Issue: 4 2018

Abstract:

The study analyzed the effects of corporate culture on implementation of strategic plan at Kenya Power Company, Kisumu. The specific objectives were; to determine the effect of team orientation culture on effective implementation of strategic plan at Kenya Power Company, Kisumu. The study emphasized the effect of corporate culture on implementation of strategic plan. The company management will appreciate their role in ensuring that the strategic plans are effectively implemented so as to achieve and retain high levels of competitiveness more so in the service industry where the competition is ever increasing. The study was done at Kenya Power, Kisumu Branch involving the company staff. Kenya power Kisumu Branch has a total of 416 employees who were sampled and engaged in the study. Descriptive research design was used in this study and the Population comprised the senior standard staff, standard staff and union staff of Kenya Power Company, Kisumu. The researcher applied a stratified sampling technique of 30%. A closed ended questionnaire was employed as the data collection instrument since the research was quantitative. Its validity was established through a pilot test at Kenya Power, Kakamega branch where 10 questionnaires were administered. Reliability test was through the Cronbach alpha coefficients that were obtained from the SPSS to determine the internal consistency. The questionnaire with Cronbach Alpha of 0.7 and above was adopted. Data collected was analyzed using the SPSS software. The relationship between variables was established through correlation analysis. The regression analysis and ANOVA was used to test the effect of corporate culture on implementation of strategic plans. The dependent variable was implementation of strategic plans (Y), the Team orientation culture was the independent variable. The responses received formed 92% response rate. The regression equation showing the relationship between the dependent and independent variables. Descriptive analysis was done by the use of frequency distributions and means as measured by percentages. The results showed a significant positive relationship of the three variables and implementation of strategic plans 0.57, 0.453 and 0.39 for team orientation culture, people orientation culture and innovative culture respectively. From the study findings, it can be concluded that Team orientation culture has significant effect on implementation of strategic plans, The companies seeking to have effective strategic plan implementation, there should be greater focus on building effective teams through team training to tap on the benefits of functional work groups and company management should focus on employee empowerment through a series of training programmes, seminars and workshops to equip them with knowledge and skills essential in implementing the strategic plans. Subsequent studies should also consider the effect of corporate culture on aspects like employee performance, employee cohesion and overall organization performance especially private sector institutions, manufacturing firms and learning institutions that may have challenges implementing their strategic plans.

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