Strategic Management Practices, Organizational Culture and Organizational Perfomance: a Case Study of Pz Cussons East Africa

Abstract

In the corporate world, the business environment is rapidly changing necessitating organisations to adopt strategic management practices that give them a competitive edge and lead to improved organisational performance. Several areas have been identified as bringing in the much needed edge in performance of any firm in any industry. One key area that results in improvement of performance is Strategic Management Practices. The organizational culture should be aligned with the strategies that are being implemented by the company. The focus of this study was directed on how the top management of PZCEA is selectively using strategic management practices to influence organizational performance in an environment which is conducive to all. The purpose of this study was to determine the association between strategic management practices, organizational culture and organizational performance in private companies in Kenya, a case of PZ Cussons East Africa Limited. The research focused on this because performance of all organizations within an economic system is critical for economic growth and development. The researcher employed a qualitative design to capture the data. A case study was used in order to get an in-depth understanding of the organization. Primarily data was obtained through face to face interviews conducted on employees at different management levels. An interview guide was circulated in advance to prepare the respondents and help them get required facts in goodtime. Secondary data was also collected from the existing documentation in the company website as well as similar studies done on the topic. The study established that the institution’s performance was closely associated to the strategy and the culture of the organisation. The study identified the strategic management practices adopted by PZC EA and the positive correlation with performance of the organisation in the right environment. The organisation has a strategic plan that guides them which is operationalized and institutionalised making implementation flawless. The cultures of the organisation and the values that guide the organisation have also led to a better performance of the firm. For successful implementation of the strategy, culture must be enabling. From the analysis of the findings it was noted that strategy implementation was not always a smooth process but a process that was faced with different challenges. Strategy was implemented by all employees in the organization. It was broken down, simplified for all employees to understand and cascaded to the different employees.