The Effects of Strategic Management on Workers Performance in an Organization (a Case Study of Zenith Bank Plc)
CHAPTER ONE
Objective of the study
The broad objective of this study is to investigate Strategic Management as a tool for the attainment of Organizational Performance in Zenith bank. The specific objectives sought to:
- Ascertain the extent to which value chain affects profitability of Zenith bank.
- Determine the extent strategic change affect market share of Zenith Bank in Nigerian.
- Examine the extent strategic leadership affects customer satisfaction Zenith bank’ Nigerian.
- Determine the key challenges of adopting strategic management by Zenith bank’.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved, assesses its competitors and set goals and strategies to meet all existing and potential competitors, and then reassess each strategy annually or quarterly (i.e. regularly) to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet charged circumstances, new technology, new competitors, a new economic environment, or a new social, financial or political environment (Lamb, 1984). Achieving a competitive advantage position and enhancing firm performance relative to their competitors are the main objectives that business organizations in particular should strive to attain (Raduan, Jegak, Haslinda and Alimin, 2009).
Conceptual Review
Concept of Strategy and Strategic Management
Strategy is the determination of the basic term goals and objectives of an enterprise, and the adoption of course of action and the allocation of resources necessary for carrying out those goals Chandler (1962). In Chandler definition of strategy he attempts to view that strategy is as much as about defining goals and objectives as it is about providing the means for achieving them.
Ansoff and McDonnell (1990) also separate goal setting (concerned with ends) from strategy (concerned with means). On the subject of strategic management they provide the following definition: Strategic management is a systematic approach for managing strategic change, which consists of the following:
- Positioning of the firm through strategy and capability planning.
- Real-time strategic response through issue management.
- Systematic management of resistance during strategic implementation.
Lawrence and William (1988) define strategic management as a stream of decisions and actions, which leads to the development of an effective strategy or strategies to help achieve corporate objectives. In another words, it is concerned primarily with the actions organizations take to achieve competitive advantage and create value for organization and stakeholders.
Strategy and market positions are necessary to set directions for a firm and to outsmart competitors or at least enable it to overcome threatening environment. A good strategy when adequately implemented can ensure a topmost position for the weakest firm among other superior competitors, but without good strategies. Strategic planning if well conceptualized and implemented with an organization should result in strategic management. Strategic management treats strategic thinking as a pervasive concept for running a business organization and regards strategic planning as an instrument around which all other control system budgeting, information, reward and organization can be integrated. Strategic planning specifically entails the allocation of resources to programmed activities in such a way as to achieve a set of business goals in a dynamic competitive environment. Glueck and Jauch (1984) posit that strategic management as a steam of decisions and actions that lead to the development of effective strategies to help achieve corporate objectives.
Mintzberg (1991) sees strategy as 5 P’s – plans, ploys, patterns, position and perspective. He describes a plan as ‘some sort of consciously intended course of action’. In this situation organizations are expected to decide what they want to do and how they intend to achieve it. Failure of many organizations in recent times has been attributed to poor plan. A ploy is a sub-set of a plan, and is a strategy in the sense of a strategies (i.e. trick designed to put a rival company off the sent by disguising the real intention of the company).
CHAPTER THREE
METHODOLOGY
This chapter covers the research design, sources of data, population of the study, sample size determination, description of the instrument; validity and reliability of the instrument, and methods of data analysis. Research methodology encompasses all the overall plan, design and instruments that guided the systematic procedures techniques and process for data collection.
Research Design
The research design adopted for this study is the survey method. This method is considered appropriate because it deals with large population of people/respondents with different characteristics and domicile in different locations.
Sources of Data
The sources of data comprised both primary and secondary.
Primary Source
This consists of data collected through questionnaire, oral interview, and personal observation.
Secondary Source
This comprises of all materials and works that relates to the study found in published articles, unpublished seminars and work shop papers, annual, quarterly and weekly journals, magazines, gazettes, textbooks and internet materials.
Population of the Study
The target population of the study 2,093 consisted of the senior and junior staff of three zenith bank branches all within Enugu Metropolis. These branches were chosen because they met the 25billion capital based, with similar mode of operation. The banks were selected based on their coverage, managerial capability and reliance.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Introduction
The data collected in the course of this study are presented descriptively using frequency and percentage tables, mean and standard deviation, while the results of the various hypotheses testing are presented and analyzed. These were done with the aid of the SPSS 17.0 statistical software.
Data Presentation
The data collected from the respondents are presented and analyzed according to the various study objectives below. In analyzing the data presented, the below scale and decision rule are used.
Demographic Characteristics of the Respondents
The job position, length of period in service and educational qualifications of the respondents are presented
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
Summary of Findings
The findings include the following:
Value chain to a great extent affected growth in Nigerian Deposit money Banks profitability (r = 0.882; F = 1.057E3; t =11. 249; p = 0.05).
Strategic change to a great extent has effect on market share in Nigerian Deposit money Banks productivity (r = 0.917 ; F = 11. 596E3; t = 21.169; p = 0.05).
Strategic leadership to a great extent affected customer satisfaction in Nigerian Deposit money Banks effectiveness (r = 0. 573 ; F= 148.292; t = 5.866; p = 0.05).
Economic and poor structures are the key challenges of adopting strategic management in Nigerian Deposit money Banks (X2cal = 492.352 > X2critical = 11.14, p 0.000 <α = 0.05).
Conclusion
The study examined strategic management as a tool for the attainment of organizational performance in Nigerian Deposit money Banks. Strategic management is a way of integrating the activities of the diverse functional departments of a firm. It focused on determining why organizations fail or succeed by need assessment and employ strategies to avert it. The banking industry has remained turbulent and hostile over time due to sophisticated technology bad macro and micro policy; it is therefore the responsibility of organizations and managers to adapt proper strategy to gain comparative advantage in the industry. Strategic management is poised in creating a sustainable competitive advantage. However, the results of this study led to the conclusion that Value chain to a great extent affected growth in Nigerian Deposit Banks profitability, Strategic change to a great extent has effect on market share in Nigerian Deposit money Banks productivity, Strategic leadership to a great extent affected customer satisfaction in Nigerian money Deposit money Banks effectiveness and Economic and poor structures are the key challenges of adopting strategic management in Nigerian Deposit money Banks). The general finding reveal that strategic management is a tool for the attainment of organizational performance. The study therefore concluded that, the performance of deposit money Banks depend on the types of strategic they adopted.
Recommendations
The following suggestions were provided based on the findings:.
- Organization should intensify every effort to assess and monitor both internal and external variables in order to checkmate the unprecedented failure that could be controlled by continuous improvement.
- Organizations should embrace and adapt to changes in order to be innovation- driven and sustainable.
- Organizations should promote and encourage effective leadership style that should be progressive–minded and customer-driven.
Organizations should employ equity, fairness and all-encompassing factors in setting their structure and aligns it to their goals.
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