IMPACT OF STRATEGIC PLANNING ON ORGANIZATIONAL PERFORMANCE: A STUDY OF ANCHOR UNIVERSITY.

ABSTRACT

The study examined the impact of strategic planning on organizational performance in order to determine if strategic planning has an impact on the performance of an organization, using Anchor University, Lagos as a case study. The study's objectives are, to ascertain whether or not organizational structure leads to improved employee productivity in Anchor University, to ascertain the relationship between leadership effectiveness and level employee productivity in Anchor University, and to ascertain the extent of impact of organizational culture on employee productivity in Anchor University. The population of the study was 316 employees of Anchor University, Lagos. One hundred and seventy seven (177) made up the sample size used in this investigation. This was determined using Taro Yamen's formula. A survey research design was used with the administration of questionnaires to 177 respondents (of which 147 was retrieved) comprising of top level, middle level and junior level staff in Anchor University. The data collected were analyzed using the statistical package for social sciences (SPSS). The simple linear regression statistical method was used in testing the hypothesis using the SPSS. While Cronbach’s Alpha reliability statistics test was used to test the reliability of the research instrument. According to the findings, there is a relationship between the application of strategic planning and organizational performance. It also shows that strategic planning factors, such as, organizational culture, organizational structure and Leadership influences the performance of employees in an organization. For these reasons, it is advised, among other things, that organizations pay closer attention to strategic planning. Finally, employee welfare should also be taken into consideration.

Keywords: Strategic planning, organizational performance, employee productivity.

TABLE OF CONTENTS

DECLARATION……………………………………………………………………..I

CERTIFICATION.………………………………………………………………….II

DEDICATION …………………………………………………………………..…III

ACKNOWLEDGEMENT………………………………………………...………..IV

TABLE OF CONTENTS……………………………………………...………….....V

LIST OF TABLES………………………………………………………..……...…IX

LIST OF FIGURES………………………………………………………..………...X

LIST OF ABBREVIATIONS……………………………………………………...XI

ABSTRACT………………………………………………………………...……...XII

CHAPTER ONE………………………………………………………..…………….1

INTRODUCTION………………………………………………………...………….1

1.1 Background to the study…………………………………………………...………1

1.2 Statement of problem……………………………………………………….……..5

1.3 Objective of the study.…………………………………………………...………..6

1.4 Research questions………………………………………...………………………6

1.5 Research hypothesis…………………………………………….…………………7

1.6 Significance of the study………………………………………….……………….7

1.7 Scope of the study……………………………………………...………………….8

1.8 Limitations…………………………………………………………..…………….8

1.9 Definition of terms…………………………………………………..…………….8

1.10 Profile of the selected organization………………………………………..……..9

CHAPTER TWO………………………………………………..…………………..12

LITERATURE REVIEW…………………………………………………………..12

2.1 Introduction……………………………………………………………..………..12

2.2 Conceptual review……………………………………………………..…………12

2.2.1 Concept of strategy and planning. ……………………………………………..12

2.2.2 Concept of strategic planning………………………………………….……….13

2.2.3 Strategic planning process………………………………………………...……16

2.2.4 Causes of failure of strategic planning……………………………………..…..19

2.2.5 Challenges of strategic planning……………………………………………….20

2.2.6 Benefits of strategic planning…………………………………………..………21

2.2.7 Factors of strategic planning……………………………………..…………….21

2.2.8 Organizational structure………………………………………..………………22

2.2.9 Leadership……………………………………………………………………...23

2.2.10 Organizational culture…………………………………………………….…..25

2.2. 11 Concept of organizational performance……………………………………...26

2.2.12 Employee productivity……………………………………………..…………28

2.3 Theoretical review…………………………………………………………..……31

2.3.1 Resource-based view theory…………………………………………………....31

2.3.2 Organizational theory………………………………………………………..…33

2.3.3 Contigency theory……………………………………………………….……..34

2.4 Empirical review…………………………………………………………………35

2.5 Gap in review of related literature…………………………………………….…44

CHAPTER THREE……………………………………………..………………….45

METHODOLOGY……………………………………………………………….....45

3.1 Introduction……………………………………………………..………..………45

3.2 Research design………………………………………………....………………..45

3.3. Sources of data…………………………………………………………….…….45

3.4.Population of the study………………………………………….……………..…46

3.5. Data analysis technique……………………………………………………….…46

3.6 Sample size determination and sampling method………………………………..46

3.7 Validity of the research instrument………………………………………..……..47

3.8 Reliability of the instrument…………………………………………………..….48

CHAPTER FOUR…………………………………………………………………..49

DATA PRESENTATION AND ANALYSIS…………………………….………..49

4.1 Introduction………………………………………………………………...…….49

4.1.1 Response Rate………………………………………………………………….49

4.2 Data presentation and analysis………………………………………………..….49

4.3 Answering research questions………………………………………...………….52

4.4 Testing hypothesis………………………………………………………………..54

4.5 Discussion of results………………………………………………………..…….57

CHAPTER FIVE………………………………………………...………………….58

SUMMARY, CONCLUSION AND RECOMMENDATIONS………….……….58

5.0 Introduction………………………………………………………………………58

5.1 Summary of findings………….…………………………….……………………58

5.2 Conclusion…………………………………………………..……………………58

5.3 Recommendations……………………………………………..…………………59

5.4 Contribution to knowledge………………………………….……………………59

5.5 Area of further research…………………………………………………………..60

REFERENCES……………………………………………………………………….61

APPENDICES………………………………………………………….….………....69

APPENDIX I:Questionnaire…………………………………………………………69

APPENDIX II: Appendix………………………………………………………….…73

LIST OF TABLES

Table 2.1 Summary of empirical review………………………..……………………38

Table 3.1 Cronbach’s Alpha Reliability Statistics test………….…..………………..48

Table 4.1: Frequency and percentages of respondents……………….………………49

Table 4.2: PPMC between organizational structure and employee productivity…….52

Table 4.3: PPMC between leadership effectiveness and employee productivity…………………………………………………………………………..52

Table 4.4: PPMC between organizational structure and employees productivity ………………………………………………………………………….53

Table 4.5: Regression Summary between organizational structure and employee productivity…………………………………………………..………………………54

Table 4.6: Regression Summary between leadership effectiveness and level of employee productivity…………………………………………….………………….55

Table 4.7: Regression Summary between organizational culture and employee productivity…………………………………………………………………………..56

LIST OF FIGURES

Figure 2.1: Conceptual framework…………………………………………………...38

LIST OF ABBREVIATIONS

PPMC- Pearson product Moment Correlation