factors influencing strategy implementation in

FACTORS INFLUENCING STRATEGY

IMPLEMENTATION IN ORGANIZATIONS: A STUDY OF

PERNOD RICARD KENYA

BY

NANDI ADIMO RAJULA ALBERT

UNITED STATES INTERNATIONAL UNIVERSITY –

AFRICA

SUMMER 2017

FACTORS INFLUENCING STRATEGY

IMPLEMENTATION IN ORGANIZATIONS: A STUDY OF

PERNOD RICARD KENYA

BY

NANDI ADIMO RAJULA ALBERT

A Research Project Report Submitted to the Chandaria School of

Business in partial fulfillment of the Requirement for the Degree of

Master of Business Administration (MBA)

UNITED STATES INTERNATIONAL UNIVERSITY –

AFRICA

SUMMER 2017

ii

STUDENT’S DECLARATION

I, the undersigned, declare that this is my original work and has not been submitted to any

other institution, or university other than the United States International University –

Africa in Nairobi for academic credit.

Signed_______________________________ Date__________________________

Nandi Adimo: ID No: 625798

This research project report has been presented for examination with my approval as the

appointed supervisor.

Signed_______________________________ Date__________________________

Dr. Joseph Kamau

Signed______________________________ Date__________________________

Dean, Chandaria School of Business

iii

COPYRIGHT

Nandi Adimo © 2017

All rights reserved. No part of this research project report may be photocopied, recorded

or otherwise reproduced, stored in retrieval system or transmitted in any electronic or

mechanical means without prior permission of USIU-A or the author.

iv

ABSTRACT

The purpose of the study was to analyze the key factors affecting strategy implementation

in Pernod Ricard Kenya. The research was led by the following research questions: How

does human resource factors affect strategy implementation at Pernod Ricard Kenya?

How does communication affect strategy implementation at Pernod Ricard Kenya? And,

how does organization structure affect strategy implementation at Pernod Ricard Kenya?

The study used descriptive research design. The target population of the research entailed

the top and middle level employees of Pernod Ricard Kenya Limited with a population of

80 employees. The study was quantitative in nature as data was collected using

questionnaires from both clusters. The questionnaires were distributed by the researcher

to the different respondents and collected after completion. In regard to data analysis, the

demographic data was tabulated using frequency and percentages. For data description,

the Pearson’s correlation was used. The data was presented in the form of tables

according to the research questions through the use of Statistical Package for Social

Science (SPSS).

The study showed that the organization was able to select employees who were

knowledgeable for the tasks assigned, and environmental factors such as politics and the

job market affected recruitment and selection at the organization. The organization used

the competency model while hiring which resulted in transparency in the recruitment and

selection process, and employees were trained on the knowledge, skills and abilities

required to perform tasks in the organization. There was an opportunity to put into

practice what employees were trained on after a training and development program, and

information was conveyed to new employees on the expectation of their jobs including

the human resource policies of the organization.

The study showed that company used emails in communicating strategy implementation,

as well as internal memos while communicating strategy to facilitate implementation. The

organization did not use short message service in communicating strategy implementation

which could be effective given that most if not all employees have mobile phones. The

company used oral presentation in communicating strategy implementation, as well as

periodic reports in communicating strategy implementation.

v

The study showed that employees were informed of changes and also encouraged and

motivated towards strategy implementation in the organization, and they had the

information they needed to do their work. There was open communication between

employees and the management at the organization, and management coordinated

activities through the strategy implementation process. There were social task forces,

project teams and standing committees formulated to spearhead the strategy

implementation in the organization, and resources such as finances and personnel were

adequately allocated for strategy implementation.

The study showed that the organization was affected by the unexpected and unpredictable

changes in management, and it took time to respond and adapt to new internal changes.

The study recommends that Pernod Ricard Kenya management need to establish a

knowledge management culture that would facilitate faster adaptation to change since

systems set in place would guide all employees on what was expected of them in good

time.

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ACKNOWLEDGEMENT

First the acknowledgement goes to the Almighty God for making it possible for me to

undertake this course and finish my research project report. I acknowledge Dr. Joseph

Kamau for supervising and guiding through my research study.

vii

TABLE OF CONTENTS

STUDENT’S DECLARATION ....................................................................................... ii

COPYRIGHT ................................................................................................................... iii

ABSTRACT ...................................................................................................................... iv

ACKNOWLEDGEMENT ............................................................................................... vi

TABLE OF CONTENTS ............................................................................................... vii

LIST OF TABLES .............................................................................................................x

LIST OF FIGURES ......................................................................................................... xi

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

1.0 INTRODUCTION........................................................................................................1

1.1 Background of the Study ...............................................................................................1

1.2 Statement of the Problem ...............................................................................................5

1.3 Purpose of the Study ......................................................................................................6

1.4 Research Questions ........................................................................................................6

1.5 Significance of the Study ...............................................................................................6

1.6 Scope of the Study .........................................................................................................7

1.7 Definition of Terms........................................................................................................8

1.8 Chapter Summary ..........................................................................................................8

CHAPTER TWO ...............................................................................................................9

2.0 LITERATURE REVIEW ...........................................................................................9

2.1 Introduction ....................................................................................................................9

2.2 Human Resource Factors and Strategy Implementation ................................................9

2.3 Communication and Strategy Implementation ............................................................14

2.4 Organization Structure and Strategy Implementation..................................................20

2.5 Chapter Summary ........................................................................................................24

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CHAPTER THREE .....................................................................................................2625

3.0 RESEARCH METHODOLOGY .........................................................................2625

3.1 Introduction ..............................................................................................................2625

3.2 Research Design.......................................................................................................2625

3.3 Population and Sampling Design .............................................................................2625

3.4 Data Collection Methods .........................................................................................2928

3.5 Research Procedures ................................................................................................2928

3.6 Data Analysis Methods ............................................................................................3029

3.7 Chapter Summary ....................................................................................................3130

CHAPTER FOUR ........................................................................................................3231

4.0 RESULTS AND FINDINGS .................................................................................3231

4.1 Introduction ..............................................................................................................3231

4.2 Response Rate ..........................................................................................................3231

4.3 Demographic Characteristics ...................................................................................3231

4.4 Descriptive Statistics of Variables ...........................................................................3635

4.5 Modelling .................................................................................................................4241

4.6 Structural Model Estimation ....................................................................................4644

4.7 Predictive Relevance of the Model ..........................................................................4847

4.8 Chapter Summary ....................................................................................................4847

CHAPTER FIVE .........................................................................................................5048

5.0 DISCUSSIONS, CONCLUSIONS, AND RECOMMENDATIONS .................5048

5.1 Introduction ..............................................................................................................5048

5.2 Summary ..................................................................................................................5048

5.3 Discussions ..............................................................................................................5149

5.4 Conclusions ..............................................................................................................5654

5.5 Recommendations ....................................................................................................5755





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ix

REFERENCES .............................................................................................................5957

APPENDICES ..............................................................................................................6967

APPENDIX I: LETTER OF INTRODUCTION ...........................................................6967

APPENDIX II: QUESTIONNARE ...............................................................................7068

x

LIST OF TABLES

Table 3.1 Population Distribution .................................................................................. 2726

Table 3.2 Sample Size Distribution ............................................................................... 2827

Table 4.1 Response Rate ................................................................................................ 3231

Table 4.2 Employee Engagement .................................................................................. 3837

Table 4.3 Communication .............................................................................................. 3938

Table 4.4 Organization Structure ................................................................................... 4039

Table 4.5 Strategy Implementation ................................................................................ 4241

Table 4.6 Cross Loading ................................................................................................ 4342

Table 4.7 Reliability of Constructs ................................................................................ 4443

Table 4.8 Convergent Validity ...................................................................................... 4443

Table 4.9 Discriminant Validity .................................................................................... 4544

Table 4.10 Regression Coefficients ............................................................................... 4746

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LIST OF FIGURES

Figure 4.1 Gender of Respondents................................................................................. 3332

Figure 4.2 Age of Respondents ...................................................................................... 3332

Figure 4.3 Education Level ............................................................................................ 3433

Figure 4.4 Period in the Organization ............................................................................ 3534

Figure 4.5 Management Level ....................................................................................... 3534

Figure 4.6 Involvement in Strategy Implementation ..................................................... 3635

Figure 4.7: Items Loadings and Path Coefficient .......................................................... 4645

1

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Strategy implementation is the action that moves the organization along its choice of

route towards its goal – the fulfilment of its mission, the achievement of its vision. It is

the realization of intentions (MacLennan, 2012). While many individuals trust that

defining an imaginative and remarkable technique is basic and independent from anyone

else adequate to lead a firm to achievement in the present business world, guaranteeing

that such a procedure works is similarly as critical (Rajasekar, 2014). Considering the

higher failure rates in implementation of strategies, more attention should be given by

executives to implementing the strategy. Several reasons are frequently offered for the

failure of implementing strategy (MacLennan, 2012). Factors that affect strategy

implementation can be categorized as leadership style, information availability and

accuracy, uncertainty, organizational structure, organizational culture, human resources,

and technology (Rajasekar, 2014). Although most authors agree that these factors affect

strategy implementation, each factor’s impact is at a different level and carries a different

force (Rajasekar, 2014).

Viable execution of methodology has progressively turned into the point of each

associations with the target of satisfying key designs and needs. In spite of this, while

making an interpretation of their amazing plans vigorously, unsuitably high

disappointment rates have been accounted for. For those businesses that have a plan in

place, wasting time and energy on the planning process and then not implementing the

plan is very discouraging (Thobani, 2011). Although the topic of implementation may not

be the most exciting thing to talk about, it’s a fundamental business practice that’s critical

for any strategy to take hold (Olsen, 2007). Studies in this area (Hofer & Schendel, 2008;

Rajasekar, 2014; Hrebiniak, 2013; Hernandez, 2015) have focused on problems in

strategy implementation (Al-Ghamdi, 2008). However the range of methodology usage is

huge to the general achievement or disappointment of an association (Thobani, 2011).

Organizations of all stripes routinely attempt strategic change, but many implementation

efforts fail. Change implementation is considered a game of high stakes, where success

can reinvigorate a business, but failure often delivers catastrophic consequences,

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including the firm’s demise (Hofer & Schendel, 2008). Critical actions move a strategic

plan from a document that sits on the shelf to actions that drive business growth. Sadly,

the majority of companies who have strategic plans fail to implement them. The aim of

strategy is to offer directional signals to the organization that permit it to realize its goals

while, at the same time, responding to the opportunities and threats in the environment

(Pearce & Robinson, 2007). Many researchers have identified factors that affect strategy

implementation such as corporate ownership and commitment (Raps, 2005).

Good implementation naturally starts with good strategic input: the soup is only as good

as the ingredients in it. Strategy implementation, therefore, is a connecting loop between

formulation and control. Execution requires regulatory and administrative ability and a

capacity to predict deterrents that emerge in technique usage (Rajasekar, 2014).

Moreover, to underscore the importance of strategy implementation Dimon, the Chief

Executive Officer (CEO) of KP Morgan Chase & Co. suggested that he would rather have

a first-rate execution and second-rate strategy any time than a brilliant idea and mediocre

management (Naidu, 2010).

Strategy implementation always involves more people than strategy formulation. This

presents problems because the larger the number of people involved, the greater the

challenge to execute strategy effectively (Hrebiniak, 2013). Implementation of strategy

essentially pulls a plan apart and diffuses it throughout an organization and its

intermittent systems. Every unit within the organization which is involved should be in a

position to accept the plan, agree to its direction and objectives, and implement specific

actions. In order to effectively and efficiently implement a plan, all individuals involved

in its implementation must function as a whole or the plan is destined for failure (Ukpolo,

2010).

Firms seem to experience significant problems with translating strategy into concrete

activities and results. Planning a steady procedure is troublesome for any administration

group, however making methodology work (implementing it) all through the association

is much more troublesome. Planning a steady procedure is troublesome for any

administration group, however making methodology work (implementing it) all through

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the association is much more troublesome (Verweire, 2014). Zagotta and Robinson

(2002) identified a number of factors which need to be considered in seeking to ensure

that a selected strategy is effectively implemented. In their view (Zagotta & Robinson,

2002), the start point should be that the strategy and proposed actions to be implemented

are understood by all employees at all levels within the organization. To help employees

fulfil their assigned tasks, performance indicators should be made available which

provide early warning metrics when strategic aims are not being met. This permits

employees to take appropriate action to resolve problems before they are unmanageable.

When it comes to strategy implementation, global companies emphasize that, to ensure

strategies are successfully implemented; execution must be built into and across a

planning process (Hernandez, 2015). Most multi-national corporations are successful in

their strategy implementation initiatives because they apply five tips that make their

strategy implementation successful. By aligning their initiatives to create new priorities

and activities they create a measurement tool for them and the existing ones. This ensures

that when they measure them, they are assured that the right initiatives are adapted

(Thobani, 2011). Secondly, they align budgets and performance to structure their budgets

and expenditures in line with their strategies and goals (Hrebiniak, 2013). Thirdly,

structure follows strategy which implies that, they ensure that their structures allow for a

meaningful and efficient strategy implementation process (Hernandez, 2015).

Furthermore, they engage influential employees to contribute meaningfully to their

strategy, this results in a sense of ownership that facilitates their ability to implement

strategy (Hrebiniak, 2013). Thobani (2011) notes that for strategy implementation to be

effective, one needs to have people who share in the same vision. Lastly, these multi-

national corporations evaluate and monitor their strategies and adapt the flexible ones that

respond to the internal and external environments (Hernandez, 2015; Hrebiniak, 2013).

Most organizations in the African continent sometimes appear to experience issues in

actualizing their systems (Naidu, 2010). Various issues in technique usage have been

uncovered examinations and they include: feeble administration obligations in execution,

a nonattendance of correspondence (Okumu, 2003), an absence of sense of duty regarding

the methodology, procedure misconception, unaligned authoritative assets (Ito et al.,

4

2010), and frameworks, poor bearing and duty sharing, lacking capabilities, contending

exercises, and uncontainable ecological variables (Chitale, Mohanty and Nish, 2013).The

aim of strategy is to offer directional signals to the organization that permit it to realize its

goals while, at the same time, responding to the opportunities and threats in the

environment (Pearce & Robinson, 2005).

The biggest challenge and bottlenecks in organizations, especially in the Kenyan context

is successfully implementing and actualizing the policies and strategies that have been set

up by the organization in aid of fulfilling the key objectives (Okumu, 2003). There has

been an increased emergence of multinational corporations in Kenya and with it comes

the headache of implementing strategies so as to ensure synergy and compatibility of

international policies and strategies (Naidu, 2010). Pernod Ricard Kenya is one of six

African market companies to proudly fly the flag of the Pernod Ricard Group. The

French-based Pernod Ricard Group is the world co-leader of the wine and spirits industry,

delivering on leading premium brands such as Chivas Regal, Jameson Whiskey, Absolut

Vodka, and G.H. Mumm Champagne.

Pernod Ricard Kenya was established in 2012, following a successful distribution channel

with Kenyan based Distributors. Over the past five years, it has grown significantly

within the local market and still continues to thrive. Pernod Ricard Kenya is part of a

network of 80 international market companies that promote both the Group’s

international brands and manages local and regional brands like Jameson and The

Glenlivet. With headquarters in Nairobi, Pernod Ricard Kenya has managed to employ

over 100 employees both directly and indirectly through agencies.

As the “creators of conviviality” and backed by sound business values and a belief in

building lasting relationships, the respected Pernod Ricard tradition continues to be

carried forward with vibrancy and passion by the men and women behind Pernod Ricard.

From a humble family business to a major global company, Pernod Ricard has been

driven by an indomitable entrepreneurial spirit, passion and vision. Today, the Pernod

Ricard Group has 19000 employees across the world with 80 market companies covering

four world regions, six brand companies and 96 production sites. The company was

5

formed with the link-up of two French anise-based spirits companies: Pernod Ricard.

According to an article by Grocer, Pernod Ricard brands account for 35% of the total

spirit sales in Kenya (Grocer, 2015). This in itself makes it a formidable force to reckon

with, within the short period of time that the multinational corporation has been operating

in Kenya.

1.2 Statement of the Problem

There are several studies that have been conducted on factors influencing strategy

implementation, for instance: Strohhecker (2016) focused on factors influencing strategy

implementation decisions, Al-Kandi, Asutay, and Dixon (2013) focused on factors

influencing the strategy implementation process and its outcomes in Saudi Arabian

Banks, Rajasekar (2014) studied the factors affecting effective strategy implementation in

a service industry in the Sultanate of Oman, Yang, Guohui, and Eppler (2008) did a

literature review on the factors influencing strategy implementation, and Brinkschroder

(2013) focused on strategy implementation and the key factors, challenges and solutions

influencing it. These studies are related to the study topic, but they were all carried out

internationally, creating a gap for similar studies to be carried out in Kenya.

Similar studies conducted in Kenya include: Mbaka and Mugambi (2014) who focus on

Factors affecting successful strategy implementation in the Water Sector in Kenya,

Guzami (2013) who studied factors influencing strategy implementation in community

based organizations in Seme, a sub-county in Kenya, Kurendi (2013) carried out a study

on factors influencing strategy implementation among flower firms in Naivasha,

Mukhalasie (2014) did an analysis of the factors affecting strategy implementation in

Kenya Commercial Bank, Nabwire (2014) focused on factors affecting implementation of

strategy in Barclays Bank of Kenya, while Kirui (2011) focused on factors influencing

implementation of strategic plans in local authorities in Migori county, and Arumonyang

(2009) did a survey of strategy implementation challenges facing development authorities

in Kenya. From all the studies done in Kenya, it was evident that there existed mixed

results which were inconclusive, and none had been carried out in Pernod Ricard Kenya.

6

From the study’s background, it is clear that a company’s ability to implement its strategy

successfully is a result of its ability to overcome obstacles leading to poor strategy

implementation (Pella et al., 2013). In spite of the fact that defining a reliable strategy is a

troublesome task for any management team, making that strategy work – actualizing it all

through the organization – is considerably more difficult (Hrebiniak, 2013), and

subsequently this study tried to examined the key factors influencing strategy

implementation in Pernod Ricard Kenya. The study focused on how human resource

factors affected strategy implementation at Pernod Ricard Kenya, examined how

communication affected strategy implementation at Pernod Ricard Kenya, and finally

determined how the organization structure affected strategy implementation at Pernod

Ricard Kenya?

1.3 Purpose of the Study


in Pernod Ricard Kenya.

1.4 Research Questions

The research was led by the following research questions:

1.4.1 How does human resource factors affect strategy implementation at Pernod Ricard

Kenya?

1.4.2 How does communication affect strategy implementation at Pernod Ricard

Kenya?

1.4.3 How does organization structure affect strategy implementation at Pernod Ricard

Kenya?

1.5 Significance of the Study

1.5.1 Management of Pernod Ricard Kenya

An efficient strategy implementation has an enormous impact on a company’s success

(Raps, 2004). The management of Pernod Ricard may base their decisions regarding the

importance and priority of strategic implementation. They may be able to select the right

strategy for their organization, implement it competitively in the industry, and evaluate

their performance with an intention of taking the necessary corrective measure essential

7

for fulfillment of the goal of the organization if the need arise in order to fulfill the

organizational goal of becoming self-sustainable and self-reliant.

1.5.2 Policy Makers

Government and non-profit leaders are often hesitant to implement changes to programs

and operations that disrupt the status quo, even when things are not going well for the

organization. This study directly influences the government in terms of decision making

and serves as a rich source of information to policy makers. This study may enable the

government to appreciate that after a business plan is developed and implementation

starts, progress can be only be achieved through carefully implementation process and

staying power of those committed to adopting change. The new way of doing business by

understanding that the process of monitoring performance, evaluating progress, and

mentoring strategy implementation teams is integral to successful goal achievement.

1.5.3 Researchers and Academics

Future scholars and researchers may be able to utilize this research as reference to

empower them and conduct future business research problems in order to come up with

new aspects on strategy implementation. Secondly, they may use this report for reference

and source of secondary data for future research that are related to implementation of

competitive strategies by other organizations in a developing country that are facing

similar implementation problems.

1.6 Scope of the Study

The research focused on Pernod Ricard Employees which has a population of close to one

hundred employees at different job group level. An adequate sample was selected from

the population in the managerial levels which ensured that the information acquired was

not biased as well as a few team leaders from various departments. The study covered a

period of three months, from June to August 2017.

8

1.7 Definition of Terms

1.7.1 Strategic Implementation

Strategy implementation refers to the way an organization structures itself in order to

execute its strategic plan efficiently and achieve its objectives effectively (Alkhafaji,

2013). Hernandez (2015) defines it as the process that turns strategies and plans into

actions in order to accomplish strategic objectives and goals.

1.7.2 Strategy

Strategy is the coordinated set of actions that fulfill a firm’s objectives, purposes and

goals (White, 2011). Thobani (2011) defines strategy simply as a method or plan chosen

to bring about a desired future, such as achievement of a goal or solution to a problem.

1.7.3 Communication

Communication is the act of conveying intended meanings from one entity or group to

another through the use of mutually understood signs and semiotic rules (White, 2011).

McShane and Von Glinow (2005) basically characterize correspondence as the procedure

by which data is transmitted and comprehended between at least two individuals.

1.7.4 Employee Engagement

Representative engagement is a work environment approach bringing about the correct

conditions for all individuals from an association to give their best every day, focused on

their association’s objectives and qualities, spurred to add to hierarchical achievement,

with an improved feeling of their prosperity (Macleod, 2016).

1.8 Chapter Summary

This chapter presents the background of the study and discusses the key factors affecting

implementation of strategy. The purpose of the study has been clearly identified and the

questions used in the study are stated here. The chapter further highlighted the importance

of the study and the scope covered by the study and finally the definition of the terms

used in the research. Chapter two provides the literature review, chapter three provides

the research methodology, chapter four presents results and findings, and chapter five

offers study discussions, conclusions, and recommendations.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction


in Pernod Ricard Kenya. The research was steered by the following research questions:

How does human resource factors affect strategy implementation at Pernod Ricard

Kenya? How does communication affect strategy implementation at Pernod Ricard

Kenya? And, how does organization structure affect strategy implementation at Pernod

Ricard Kenya?

2.2 Human Resource Factors and Strategy Implementation

According to Zaribaf and Hamid (2009), it is difficult to distinguish between strategic

planning and human resource management in most successful organizations since the two

work as a team. Policies and strategies relating to individual management are

implemented through the management function of human resource management (Omolo,

Oginda, & Oso, 2012). Key elements for the success of businesses in strategy

implementation are human resource factors and human resource practioners are best

placed to pioneer the realization of such factors in strategy implementation (Ali, 2013).

Schuler (1998) states that human resource factors are contained in the human resource

function that has eight menus of HRM practices from which companies can choose the

ones that are most viable for implementing their strategy. This research refers to;

employee recruitment and selection, training and development, orientation, performance

appraisal, compensation and benefits and work environment as menus that refer to

particular function areas of HRM.

2.2.1 Employee Recruitment and Selection

Olian and Rynes (2000) indicates that, a company engaged in strategy implementation

requires different types and numbers of employees who are knowledgeable in the current

economy sought through employee recruitment and selection and are seen as the primary

factors of production (DeCenzo & Robbins, 2002). Ahmadi et al. (2012) indicates that

recruitment and selection is the process of attracting and selecting people to serve in an

10

organization. Dowling, Schuler, and Welch (1994) defines the process of recruitment and

selection as searching for and obtaining potential job candidates in sufficient numbers and

quality for the organization to select the most appropriate people to fill the job needs. This

process is a priority in organizations for them to acquire employees with exceptional

skills, knowledge, experience and attitude (Brindusoiu, 2013). According to Cummins

(2015) and Rees and French (2010), it is also the most expensive part of human resource

but still an essential component of any organization where the right people are appointed

and trained to produce good results.

Recruitment process is the beginning of good or bad services in both public and private

organizations. If an organization does poor recruitment, they are faced with long-term

negative effects including; high training and development costs to minimize poor

performance, disciplinary issues, absenteeism, disputes, poor service delivery to

customers, high turnover and low productivity which impacts on staff morale. The

organization is also not able to implement their strategies and their competitive edge and

market share is also lost (Chukwu & Igwe, 2012). Swanepoel, Erasmus, and Schenk

(2008) and Dessler (2011) emphasize that, it is important in the recruitment and selection

process to acquire employees with multidimensional skills and knowledge infusing

organizational capacity and competitiveness.

Referring to the analysis above, it is clear that recruitment and selection is not just a

human resource factor and an administrative function but a strategic process aimed at

contributing to the achievement of organizational objectives (Public Service Commission,

2015). This underlines the significance of recruitment and selection to strategy

implementation process having a well-planned human resource that is well coordinated

and knowledgeable to execute strategies (Lavigna & Hays, 2005).

2.2.2 Training and Development

Training and development is a key human resource management practice that is necessary

for organizations while implementing new strategies (Niazi, 2011). Employees must be

trained to become productive employees and to integrate well in their organizations. Niazi

(2011) states that training and development is a process of transferring Knowledge, Skills

11

and Abilities (KSA) that are required to perform specific tasks in an organization making

this process strategic. Research shows that in order to meet the current and future

challenges of organizations, training and development takes up a big role of learning

actions which involves training of the employees for their present tasks and more so,

knowledge sharing to improve their businesses.

According to Dessler (2006), training is referred to as a method that is applied to provide

new recruits with skills needed to perform their duties and development refers to

broadening the horizon of the employees. Development activities that help an individual

make positive contributions in an organization are refereed as training and development

focuses on factors of maintaining and expanding the performance of individuals in an

organization (Ivancevich, 2001).

Training and development also focuses on career development expanding individual,

group and organizational effectiveness. In strategy implementation, a comprehensive

training and development program help deliberate on the necessary knowledge, skills and

attitudes that assist to achieve organizational goals and also create competitive advantage

(Peteraf, 1993). Niazi (2011) indicates that training and development contributes to

increase in productivity and quality of work in an organization and especially

development reduces staff turnover and absenteeism helping in improving motivation

among the employees. Niazi points out that to stay ahead of the competition,

organizations must incorporate innovation and reinvention which is possible if training

encompasses a wide range of learning actions. Training then becomes part of the

organizations-wide strategy and it is linked to business goals and organizational

performance.

2.2.3 Orientation and Strategy Implementation

Towards execution of proper strategies in organizations, orientation is considered as a key

component to assist in the execution of the employee’s roles (Shehzad & Akhtar, 2012).

Orientation is the process of conveying information to new employees about the

expectation of their jobs and assisting them adapt to the stresses of transition to new jobs

(Gomez-Mejia, Balkin, & Cardy, 2001). Orientation is conducted in informal brief

12

introductions or lengthy formal courses to introduce new employees to the organization.

This introduction is done on the rules and regulation of the organization, hierarchical

structure and the expectation of the organization (Shehzad & Akhtar, 2012). Robbins and

DeCenzo (1999) adds that the orientation program also communicates the relevant human

resource management policies such as work hours, pay procedures, benefits; review the

specific duties and responsibilities of the new member’s job.

According to Geroski, Machin and Reenen (1993) and Praveen, Lilien and Wilson

(1993), the profitability of a firm is seen in strategy, marketing and economic literatures

to be related to the ability of the firm to innovate. In strategy, orientation of a firm leads

to superior performance because of the innovations that are brought to the market

(Gatignon & Xuereb, 2006).This reflects the strategic direction implemented by a firm to

create proper behaviors for continuous superior performance of business (Narver &

Slater, 1990).

Mankins and Steele (2005) pointed out that in various businesses have a strategic

potential value of 63% while Johnson (2004) indicates that 66% of business strategy was

never implemented explaining why companies that develop complex and extensive

strategic plans do not reach competitive advantages. According to Crittenden and

Crittenden (2008), there is a gap between formulation and implementation process since

employees lack knowledge of the company’s strategy contributing to strategy

implementation failure resulting in poor financial performance. However, with proper

orientation of strategies formulated to all employees great success of strategy

implementation is possible.

2.2.4 Performance Appraisal

This is the evaluation of the current and past performance of employees based on the

performance standards with the view to improve performance (Dessler, 2006). The

appraisal can be used to reward employees whose performance is better than others. It

evaluates the work of employees and motivates them to improve their future performance

providing an opportunity to the employees to identify the skills they need in order to

progress within their organization activities (Cleveland, Murphy, & Williams, 2005).

13

Using the performance appraisal of all employees the management of the organization is

able to identify their exemplary employees to spearhead strategy implementation in the

organization.

According to Shehzad and Akhtar (2012), employees must have a say in developing the

performance appraisal system as evidenced by Mayer and Davis (1999) that involving

employees in developing the performance appraisal system leads to favorable reactions to

the process and increases trust for top management. The same involvement of employees

in the strategy implementation process leads to favorable reactions of the process and

increases acceptance of the process in the organization (Shehzad & Akhtar, 2012).

Participation of employees leads to a sense of possession developing the satisfaction of

the strategy implementation process (Cawley, Keeping, & Levy, 1998). Anthony,

Kacmar, and Perrewe (2002) indicates that performance appraisal is important in strategy

implementation process as it is an integral part of an organization’s performance

management process.

2.2.5 Compensation and Benefits

Williams (2005) indicates that compensation and benefits are all forms of pay or rewards

Institutions give to employees in exchange of their services. Employees get a reward in

return of performing the tasks assigned by the administration (Hackett & McDermott,

1999). Bateman and Snell (2007) indicates that a good compensation and benefits

package leads to improved performance of employees. Cherrington (1995) adds that with

a good compensation and benefits package an organization is able to retain employees

who are satisfied and are motivated.

If a compensation and benefits package is less compared to another organizations of the

same nature, employees may leave the organization to join others with a better package. If

an organization experiences high turnover due to a poor compensation and benefits

package, organizations may not achieve strategy implementation (Roberts, 1997).

According to Appelbaum and MacKenzie (1996), the improvement of organizational

performance is related to the innovation of competitive strategies required for successful

14

strategy implementation. The system of compensation and benefits maximize profits

making fairness of the system a pre-requisite.

2.2.6 Work Environment

Shehzad and Akhtar (2012) indicates that working conditions of an organization need to

be conducive to improve on the performance of an organization. The conditions are

conducive when the organization provides employees with a safe healthy environment

which Byars and Rue (1997) indicate that safety and health are important concerns for

organizations today. Delery and Doty (1996); Pfeffer (1995) state that employment

security is an important factor in HRM practices and employees are more cooperative in

strategy implementation process if they feel their jobs are secure. They increase their

efficiency but withdraw from their responsibilities if the environment is not secure.

Shehzad and Akhtar (2012) indicates that job or employment security plays a major role

in harmonizing the interests of the employer and employees in a long-term mutual

commitment relationship like the strategy implementation process and particularly

important in the human resource management context (Levine, 1995).

2.3 Communication and Strategy Implementation

These are the ways that messages and information travel around such as: the verbal

communication, the non-verbal communication and the technology-aided communication,

which accommodates e-mailing, instant messaging, micro-blogging, phones and

ontology, and communities of practice. Verbal communication is considered the spoken

and written modes. Non-verbal communication on the other hand, is the communication

that transcends the written or spoken word (Lechener & Floyd, 2012). They identified

that non-verbal communication channels incorporates much more complex aspects, and

grouped them into 4 categories.

15

Guohui and Eppler (2011) find that organizations where employees have easy access to

management through open and supportive communication climates tend to outperform

those with more restrictive communication environments (Lechner, Frankenberg &

Floyd, 2010). Also the findings of Lehtimäk and Karintau (2012) show that effective

communication is a key requirement for effective strategy implementation. Authoritative

correspondence assumes an imperative part in preparing, information spread and getting

the hang of amid the procedure of system execution. Truth be told, correspondence is

inescapable in each part of system execution, as it relates intricately to arranging forms,

authoritative setting and usage of destinations. Correspondence obstructions are

accounted for more often than some other sort of hindrances.

The corporate communication function is the department or unit whose purpose is

facilitate strategy implementation through communication (Mazzola & Kellermanns,

2010). This department can also serve as the antenna of an organization, receiving

reactions from key constituencies to the strategy of the firm. Mazzola and Kellermanns

(2010) found that the alignment between the corporate communication function and the

strategic implementation process was particularly visible in those companies that were

going through fundamental strategic change: All of the firms studied were involved in

significant efforts in internal communications and felt that IT was central to the success of

the function, particularly in terms of implementing strategy and building reputation

(Roberts & Kaiser, 2011).

The significance of correspondence amid proposed change has been observationally

shown and usually concurred among specialists. The exact picture showed up

demonstrated that authoritative change and correspondence process are inseparably

related procedures. Late investigations about correspondence demonstrate that

correspondence has positive connection with numerous hierarchical yields like

authoritative responsibility, execution, authoritative citizenship practices, and occupation

fulfillment. Conversely correspondence disappointment may cause functionless outcomes

like anxiety, work disappointment, low put stock in, diminish in authoritative

responsibility, severance aim, and nonattendance (Malmelin, 2007) and this can influence

association's effectiveness contrarily (Zhang and Agarwal, 2009). Correspondence amid

16

authoritative change diminishes imperviousness to change. At the point when

imperviousness to change levels is low inside an association, the change-exertion ends up

being more beneficial. The change design is reliant of limit of the association to change

the individual execution of every representative. Since authoritative change acquaints

variety of assignments given with singular workers, transmission of data to these

representatives on future change is a fundamental and integrative piece of the change

techniques.

2.3.1 Email

Many employees purport to prefer email as an information source, even while noting the

overload of messages they receive each day (Zvoch, 2012). While email is highly

convenient for both sender and receiver, it is an impersonal medium and lacks the

richness of other information sources (Ketola, 2010). Since email is asynchronous in that

there are delays in sending, receiving, and responding, it is not the optimal medium for

conveying delicate or complicated information or to influence, persuade, or sell an idea. It

is most useful for announcements to communicate the same thing to many people, to keep

employees informed about an issue they already know about, and to reach geographically

dispersed employees (Ronél, 2014). Emails lead to Productivity, Increased

communication, collaboration, networking, and creativity and also provide a Forum to air

opinions and views (Steyn & Niemann, 2010).

E-mail is still the most prevalent form of computer-mediated communication within

organizations. Moreover, the increasing use of mobile devices in business has given the

experience of e-mail a new dimension. Therefore, in the present paper we focus

predominantly on the impact of e-mail, provided by personal computers as well as smart

mobile devices, on organizational life. There is a still increasing number of studies on the

social psychological aspects of computer-mediated communication, but to date the impact

of mobile e-mail on organizational life has been neglected. With every new innovative

technology there are advantages and disadvantages in using it. The original idea of e-mail

was that it facilitates our communication and makes lives at work easier. Unfortunately,

there are, besides advantages also side effects. This theoretical paper aims to overview the

impact of e-mail on organizational life (McKenna & Bargh, 2000).

17

2.3.2 Memos and Messages

Memorandums (memos) are the most common form of written communication within

organizations. Generally, there is a standard format adopted by the organization. Memos

are used to: inform the recipient of events or activities, initiate or summarize action and

confirm what has already been communicated orally (Nahapiet, 2009). Written messages

are less formal than memos and tend to be used between people who work closely

together. They may be telephone messages or simply notes left on someone else’s desk

while they are out of the office. However informal, it is worth taking the trouble to write

clearly and concisely. A garbled or illegible message is worth than useless (Roberts &

Kaiser, 2011).

Many organizations produce brochures, leaflets, or handbooks for their customers and the

general public. These are useful to: summarize information for customers, provide

information on the services offered by the organization, advice readers as to the best

course of action to take when facing specific problems (Steyn & Niemann, 2010).

Letters are usually produced to be sent outside the organization. They are not generally

used inside an organization, except to confirm key decisions made about the performance

or progress of individual employees. These letters typically concern promotions,

transfers, the results of a disciplinary meeting, formal warnings and confirmation of

resignation. Letters are an efficient means of communication when: - it is necessary to

inform the receiver officially of a decision taken by the organization - a formal request for

information or action is required (Julian & Olaf, 2012).

2.3.3 Meetings and Oral Presentation

An effective meeting, whether formal or informal, is a highly efficient tool of

communication. Ideally, everyone at the meeting has the opportunity to speak, listen to

what is said, and discuss the issues. On the other hand, badly planned or poorly chaired

meetings can waste everyone’s time and less confident people may not find it easy to

participate fully (Keyton, 2011).

18

Oral presentations may be necessary to communicate an argument or a message to a

group of people quickly and effectively. Again, this could be a formal occasion, or a less

formal briefing to a group of staff (Steyn & Niemann, 2010). The most informal and

frequent type of oral communication is simple face to face conversation. You may

approach a colleague to gain information, discuss a problem or issue, persuade them to

accept your point of view, get to know them, initiate action, impress, amuse or pass the

time of day with them. In many circumstances a more formal method of communication

would be inappropriate. Oral communication of this nature is particularly appropriate for

personal matters, or when a manager wishes to praise or reward an employee (Keyton,

2011).

Interviews are a form of oral communication in which information is obtained from one

person by one or a panel of interviewers. Very occasionally a group of people may be

interviewed together. Interviews are used for: selecting employees, gathering information,

counseling, appraising employees, disciplinary hearings. The interviewee is usually given

the opportunity to ask any questions they might have or clarify matters that have arisen

(Steyn & Niemann, 2010).

Telephone conversations are another very common form of oral communication. The

telephone has the advantage of speed and accessibility. It is often easier to pick up the

telephone and dial a colleague than it is to walk across a building to see them. Likewise it

is a very effective means of communicating quickly and directly with an individual in a

different location. Communications technology is improving and expanding rapidly

(Keyton, 2011).

2.3.4 Reports

Written reports are another widely used form of communication. We can distinguish

between two types of report: the descriptive report and the analytical report. The

descriptive report is simply an account of events, or collection of facts. The analytical

report gives meaning to facts and concepts by analyzing the facts presented, suggesting

conclusions and recommending possible solutions to problems (Yang, Guohui & Eppler,

2011). Newsletters or bulletins can be used to communicate general information or

19

management policy to all staff or sections of staff within the organization. These may be

distributed or posted on a notice board (Steyn & Niemann, 2010).

Minutes are a formal written record of what has been discussed and agreed at meetings.

They may be:- verbatim records (a complete word-for-word account) a full discussion

record where summaries of all the main contributions are minute a summary of the

meeting as a whole containing decisions reached (with reasons) and a list of actions to be

taken and those responsible for doing so - decision only/action only minutes (Mats and

Charlotte, 2014). Manuals or handbooks are used widely by organizations to provide

employees with a written set of instructions or guidelines as to the procedure to be

followed when carrying out their duties (Yang, Guohui & Eppler, 2011).

Reports play various roles in the organization; Business reports are written to

communicate. Sometimes they are written as a means to attract investors to your

organization. Business reports are also written for employees, to keep them abreast of a

company’s goals and achievements. Whichever audience the report is written for, the

purpose is to communicate specific information about your business. Reports are also

written to illustrate a specific problem within the company. These types of reports present

a problem along with solutions to help correct the problems. This type of report is often

directed at employees. An example problem that a business report may address for

employees would be a situation in which the company may be looking to downsize. This

affects employees. The business report might state the standing of the business and why it

may be forced to downsize. The report may also enlist the help of employees to find ways

to avoid the down size.

A report might be written from a financial statement perspective. This type of business

report will be aimed at advisers. To an extent, it can be used to inform employees about

the financial standing of the company as well. A business report may be presented for this

purpose at the end of each fiscal year. A report can also be important when setting up

marketing strategies. Before entering a new market or targeting consumers, a company

may write a business report that an advertising agency can use to help devise a marketing

strategy. There may also be a separate report written to help obtain financing for a media

20

push. A business report is above all the best way a company has to communicate vital

financial and background information to others. Many larger companies that write

business reports throughout the year to employees and for board members hire a staff that

do nothing but keep abreast of company changes and write current business reports.

Depending on the situation, failing to have a well-written business report to present when

you need one can make it difficult to acquire funding, cause company turmoil or may

make it difficult to achieve company goals.

2.4 Organization Structure and Strategy Implementation

Organizational structure presents how people interact with each other, how

communication flows, and how power relationships are defined reflecting on the value

based choice made by a company and how job tasks are formally divided, grouped and

coordinated (Munyoroku, 2012). According to Distelzweig (2004), organizational

structure refers to the way an organization arranges people and jobs so that its work can

be performed and its goals met. Rajasekar (2014) indicates that organizational structures

are necessary for employees to act readily on the knowledge developed to craft and

implement strategy. The structures provides a visual explanation of the decision making

process and resource allocation. Bhimani and Langfield (2007) found the process of

strategy implementation to be structural and formal in their study to investigate the

organizational structure influences in strategy implementation. Forman and Argenti

(2005) found out that internal communication of a company has an overarching hand that

makes strategy and also contributes to successfully implement the strategy.

Wheelen and Hunger (2006) indicates that organizational structure plays an important

role in increasing the consistency of successful results in strategy implementation.

According to Olson et al. (2005), organizational structure involves formalization,

centralization, and specialization key dimensions of organizational structure that

influence communication, coordination, resource allocation and environmental turbulence

while implementing strategies. These influences are discussed further in this section.

2.4.1 Communication and Strategy Implementation

21

Andersson and Zbirenko (2014) indicates that, communication as a tool used to create,

modify, and end relationships between people. It is also a channel of influence, a

mechanism of change and a critical dimension of an organization structure. Andersson

and Zbirenko concluded that communication is a crucial dimension for effective and

efficient organizational functioning. According to Bloisi, Cook, and Hunsaker (2007),

internal communication in an organization should be established and maintained by the

management in upward, downward, and horizontal directions. This is communication

between managers and employees as well as between workers on the same level.

Communication in an organization transmits directions or ideas along the lines of

command; providing confirmations, information, and feedback upwards; informing staff

on changes, encouraging and motivating employees (Bloisi et al., 2007). Taylor (2007)

shows that, authoritative structure in many organizations characterizes the modes and

tone of correspondence. He argued that highly stratified organizations have formal

methods of communication which is conducted between managers and employees and

small organizations may have informal communication as companies leverage on their

flat nature. Taylor contended that vital pioneers must figure out how to coordinate the

fitting style of correspondence to organization standards as they are currently system

execution.

Research shows that, organizations where employees have simple access to management

through open communication outperform those in a restrictive communication

environment (Rapert, Velliquette, and Garretson, 2002). According to Peng and Litteljohn

(2001), effective communication is key to effective strategy implementation. Hence

Communication as an impact of organizational structure and assumes a key role in

training of employees, information spread and learning during the process of strategy

implementation. Yang, Guohui and Eppler (2008) states that in strategy implementation,

communication is unavoidable and it relates impressively to sorting out procedures,

organizational context and implementation objectives which, thus, affect the procedure of

implementation.

2.4.2 Coordination and Strategy Implementation

22

Coordination of activities in an organization is critical to the success of strategy

implementation. It is important to note that coordination is a result of structures put in

place in an organization. According to Richard (1998), coordination of activities of

organizational units is accomplished through positioning of activities in the hierarchy of

authority. The power to coordinate activities during strategy implementation is then

placed on the mangers in the organization since they have more authority over more

organizational units and the power to coordinate, integrate, and arrange the cooperation of

the units under their supervision becomes an easy process (Barrows, 2014).

Through the organizational structure, coordination of strategic efforts is also achieved

through informal meetings, social task forces, project teams and standing committees.

The process of negotiating and deciding on the objectives and strategies of each

organizational unit, making sure the related activities mesh suitably and help coordinate

operations across organization units (Barrows, 2014). Richard (1998) adds that,

organizations generally respond positively to strategy implementation process if there is a

coordination mechanism put in place. The organization's structure at any point in time is

the sum total or the mechanisms it has developed and modified to achieve control and

coordination of strategies of organizations.

According to Edinger (2012), coordination additionally includes cascading of the strategy

throughout the organization getting to the practical and strategic components of

individuals' occupations every day. Managers are at the forefront in this process and help

in translating the elements of the strategy to the functional areas in the organization.

Doing this, allows the coordinators who are mostly managers in the organization own the

process of strategy implementation (Barrows, 2014).

2.4.3 Resource Allocation

Strategy implementation includes designing the organization's structure, allocating

resources, developing information and decision process, and managing human resources,

including such areas as the reward system, approaches to leadership, and staffing (Barnat

2005). Asset allotment is a focal administration action that considers methodology

execution. 1 The genuine estimation of any asset allotment program lies in the subsequent

achievement of an association's destinations. Elements do exist that forbid compelling

23

asset distribution, including an over-insurance of assets, excessively extraordinary an

accentuation on short-run budgetary criteria, hierarchical governmental issues, unclear

methodology focuses on, a hesitance to go out on a limb, and an absence of adequate

learning (Barnat, 2015). The author further states that the most prevalent way of

evaluating and defining resources is by their functional areas of finance, research and

development, human resources, operations and marketing.

According to Vanguard Papers (2015) effective resources allocation enhances

administrative efficiency. The strategic plan captures the organization’s aspirations

whereas implementation creates the required infrastructure needed to put the plan into

action. Resource allocation plays a key role in strategy implementation since it focuses on

the acquisition, commitment and allocation of finance, personnel and other key resources

that the organization requires to achieve its objectives. Assets sending must be talked

about as right on time as conceivable in the entire usage arranging process, and these

assets; budgetary, individual and time, must be incorporated into the organization's

financial plan from the earliest starting point (Mankins and Steele, 2005). Appropriate

asset distribution and planning gives the association upper hand by upgrading its center

skills and capacity.

Proper asset allotment and planning gives the association upper hand by redesigning its

center abilities and limit. The management holds the responsibility of ensuring that

adequate resources are available to pursue organizational strategy (Vanguard Papers,

2015). In a study on the effects of resource strength on strategy implementation in

insurance companies in Kenya, the findings established that resource strength

significantly determines strategy implementation. Most notably resource strength in the

study areas impact strategy implementation through adequate resource base matching

firm’s needs; firm always being able to meet its set resource department goals and

objectives; access to cost efficient resources; operations never delayed or halted due to

resource unavailability; efficient and reliable resource sourcing mechanisms and adequate

and efficient human resources in this case, competent employees (Kibicho, 2015). In

study recommendations, Kibicho (2015) reveals the importance of many strategy

implementation facilitating factors relate to resource strength and this he says is both

financial as well as knowledge resources. Flexibility in budgetary allocation should be

24

observed as well as transmission of knowledge through accessible routes, such as

intensive training and consultation on key implementation processes.

2.4.4 Environmental Turbulence

Turbulence is defined as the dynamism in the environment that involves rapid unexpected

change in the environment sub dimensions (Conner, 2006; Vorhies, 2007). Barnat (2005)

shows that natural turbulence exists when changes are unforeseen and flighty and the

weights for change at which the association must have the ability to respond to the change

are key ecological issues. According to Barnat (2005), environmental turbulence appears

to influence structure in terms of formation of departments division of labor, the

configuration of the organization, and the allocation of power within the organization

which flows from strategy.

In turbulent environments, there are many unexpected changes. Turbulence is the natural

state of the world Benton and Lloyd (2012) caused by the changes in the various

environmental factors as a result of advances in technology (Iansiti, 2005). The result of

this development in environmental turbulence has been the reduction of orderly

competition, an expanding requirement for data, advancement and faster cycles of

improvement, and more trouble in foreseeing customer, product and service requirements

(Pine, Victor, and Boynton, 2006).

As a result of the turbulent environment, businesses processes have to be streamlined in

the organization to allow for flow of information and decision processes within the

organization which in turn affect strategy implementation positively (Barnat, 2005) This

is to give to give people accurate and timely information upon which to make decisions.

Reward systems need to be structured so that people's behavior corresponds with the

purpose of the strategy (Byars & Rue, 1997).

2.5 Chapter Summary

This chapter has broadly reviewed the literature on the factors influencing the

implementation of strategic plans in organizations. The first research question looked at

the influence of human resource factors on strategic implementation. The second research

25

question looked at the influence of communication on strategy implementation. The third

addressed the influence of organizational structure on strategy implementation. Chapter

three of the research traces the design and methodology of the study. It describes the

design that was adopted by this research to achieve the appropriate objectives.

26

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

This section presents the research methodology that was used when carrying the research.

This section describes the research design, population and sampling design. It offers

readers the population, sample frame, sampling technique, and the study’s sample size.

The chapter explains on the information collection techniques, research procedures, and

information analysis methods.

3.2 Research Design

Research design is the procedure for collection and analysis of data in a manner that aims

to combine relevance with the research purpose (Collins, 2010). It constitutes the

blueprint for collection, estimation and examination of information (Saunders, Lewis, and

Thornhill, 2012) Research design is used to structure the research, as well as to show how

each of the major parts of the research project, the samples or groups, and the research

tools and analysis all work together in order to try to address the central research

questions at hand (Saunders, Lewis, & Thornhill, 2012). Understanding the relationships

between designs and thinking about the strengths and weaknesses of different designs is

important in making design choices (Collins, 2010).

The study used descriptive research design. The design was suitable for this study

because it facilitated the description of how human resource, organizational

communication, and organizational structure (independent variables) influenced strategy

implementation (dependent variable). The design was also used because descriptive

designs ensures that all population elements are considered.

3.3 Population and Sampling Design

3.3.1 Population

A population is the totality of items or objects under consideration (Levy & Lemeshow,

2013). Population definition identifies and describes the elements of the population.

Target population is the total number of elements of a specific population relevant to the

27

research study (Neelankavil, 2015). The target population of this study entailed the

employees of Pernod Ricard Kenya who were responsible for implementing strategic

plans in the organization and was composed of top and middle level managers whose total

number was 80 employees and was distributed as shown on Table 3.1.

Table 3.1 Population Distribution

Population Distribution

Number Percentage

Total No. of top level managers 30 37.5

Total Number of midlevel managers 50 62.5

Total 80 100

Source: Pernod Ricard Kenya (2017)

3.3.2 Sampling Design

Sampling design encompasses all aspects of how to group units on the frame, determine

the sample size, allocate the sample to the various classifications of frame units, and

finally, select the sample (Mertens & Wilson, 2012). Simply, a sample design is the

framework, or road map, that serves as the basis for the selection of a survey sample and

affects many other important aspects of a survey as well (Saunders, Lewis & Thornhill,

2012).

3.3.2.1 Sampling Frame

A sampling frame is the list of components from which a sample is chosen (Levy &

Lemeshow, 2013). Sampling frame is a list of elements composing of the study

population. Rubin (2011) states that, properly drawn samples should provide information

appropriate for describing the target population elements and nothing more. In regard to

this study, the focus was on Pernod Ricard Kenya, and therefore, the sample frame was

drawn from the Human Resources Department, and it contained a list of official

employees in top and mid-level management in the organization. The information

acquired was accurate, and thus adequate for meeting the specific objectives of the study.

28

3.3.2.2 Sampling Technique

Sampling is characterized as the way toward choosing various people for an examination

such that they speak to the bigger gathering from which they are chosen (Bradford and

Cullen, 2012). This examination utilized a statistics think about. Levy and Lemeshow

(2013) characterize an enumeration consider as a method of efficiently securing and

recording data about the individuals from a given populace. Rubin (2011) characterize an

evaluation as the investigation of each unit, everybody or everything in a populace, it is

otherwise called an entire identification which implies a total check.

As indicated by Beri (2013), a census study provide a true measure of the population by

eliminating the sampling error. Collect and Lemeshow (2013) additionally express that a

census gives a benchmark data that might be gotten for future studies and a detailed

information about all the little sub-bunches inside the population that will probably be

accessible. Therefore, the researcher considered the design as suitable for the study.

3.3.2.3 Sample Size

Saunders, Lewis and Thornhill (2012) characterize the sample size as a littler

arrangement of the greater populace, and battle that the research must be accurately been

illustrative of the populace and the necessity for the researcher to ensure that the

subdivisions associated with the investigation are precisely catered for. Given the nature

of the sampling technique adopted for the study was a census, the sample size under

consideration was all the 80 employees of Pernod Ricard Kenya who were responsible for

implementing strategic plans within the organization and was composed of top and

middle level managers.

Table 3.2 Sample Size Distribution

Management Levels

Sample Size Distribution

Number Percentage Sample Size

Total No. of Top Level Managers 30 100 30

Total No. of Middle Level Managers 50 100 50

Total 80 100 80

29

3.4 Data Collection Methods

The study relied on primary data which was collected using questionnaires. Mertens and

Wilson (2012) define a questionnaire as a list of questions on a specific topic compiled by

the researcher to which answers and information are required. They further state that the

use of questionnaires is cost effective, easy to analyze, familiar to most people, reduces

bias and are considered less intrusive. The questionnaire was self-administered. Saunders,

Lewis and Thornhill (2012), state that self-administered questionnaires are usually

completed by the respondents. Such questionnaires are sent electronically using the

Internet, posted to respondents or delivered by hand to each respondent and collected

later. Responses to interviewer-completed questionnaires are recorded by the interviewer

on the basis of each respondent’s answers.

For the purpose of this study, the questionnaires communicated to the respondents the

intended and elicited responses in terms of empirical data necessary for analysis. The

research questions guided the research instrument. The questionnaire was structured and

contained closed-ended questions. The questionnaire used a five point likert scale and

was divided into five sections which were as follows: section A sought to determine the

respondents’ general information, section B sought to examine the human resource as a

factor influencing strategy implementation, section C sought to determine the

communication as a factor influencing strategy implementation, section D sought to

examine the organization structure as a factor influencing strategy implementation, and

section E sought to determine the strategy implementation.

3.5 Research Procedures

The questionnaires were designed by the researcher in light of the research questions

were pre-tested to determine the suitability of the instrument before the real organization.

According to Gideon (2012), the purpose behind leading pilot testing is to detect

weakness in design and instrumentation and to give proxy information to selection of a

likelihood test. According to Vaus (2014), at least four things should be carefully

checked: flow, question skips, timing and respondent’s interest and attention. Pre-testing

was done by administering the survey to 10 respondents who were excluded in the

genuine study. This empowered the researcher to fine-tune the questionnaire for

30

objectivity and efficiency of the process. This enabled the researcher to fine-tune the

questionnaire for objectivity and efficiency of the process.

Content validity was ascertained by making sure that questionnaire items sufficiently

covered the research objectives (Kothari, 2005). Reliability is characterized as the

measure of how much the measuring instrument comes about into steady outcome or

information after rehashed trials (Mugenda and Mugenda). In this study, Cronbach's

Alpha Test was utilized to test reliability of the questionnaire. Cronbach’s Alpha

Reliability coefficients above 0.7 judged whether the reliability level was satisfactory.

Once the pre-test was completed, the researcher made the necessary adjustments to the

questionnaire and later administer the improved questionnaires individually to the target

population. High ethical standards were also strictly adhered, the researcher ensured that

privacy and confidentiality of the participants was respected. The questionnaire ensured

that the respondents did not identify themselves by names, addresses, and personal phone

numbers. The researcher explained to the population the need for the study to facilitate

truthful responses from the respondents. The researcher carried out a follow-up on the

data collection by personally visiting the respondents to encourage a high response rate

for the study. The researcher came up with a schedule that was followed during every

visit to the organization. The respondents were given 5 days to fill the questionnaire

which was estimated to take twenty minutes to complete. This was done to ensure that the

respondents did not rush through the exercise.

3.6 Data Analysis Methods

The data was collected in the form of discrete quantitative variables. It was thoroughly

checked for completeness and comprehensiveness. The Statistical Package for the Social

Sciences (SPSS) program version 22.0 was used to analyze the data. Data was analyzed

through calculation of percentages. Descriptive statistics and frequencies were applied to

establish patterns, correlations and to make it easier for the interpretation of implications

of the study. Descriptive analysis included a measure of central tendency which were

Mean, and Standard Deviation. Finally, presentation of data was in the form of tables and

figures.

31

3.7 Chapter Summary

This chapter has focused on the research methods that were adopted in conducting the

study. The chapter has discussed in detail the research design, population and sampling

design, data collection methods, research procedures and data analysis methods. Primary

data was gathered utilizing questionnaires. Chapter four provides the study results and

findings.

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CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

The purpose of this study was to find out the factors influencing strategic implementation

in organizations. This chapter represents the data analysis results, presentation and

interpretation.

4.2 Response Rate

Table 4.1 indicates the response rate. Out of 64 questionnaires hand delivered to the

respective respondents, 48 were returned bringing the response rate to 75%. This rate was

above the expected response rate of 50-75% and thus was sufficient to perform data

analysis.

Table 4.1 Response Rate

Category Frequency Percentage

Responded 48 75

Not Responded 16 25

Total 64 100

4.3 Demographic Characteristics

4.3.1 Gender of the Respondents

Respondents were requested to specify their gender and their reply was represented in

Figure 4.1. 58% of the respondents who constituted the majority were male and 42% were

female. This indicates that more male took part in the study than the females.

33

Figure 4.1 Gender of Respondents

4.3.2 Age of the Respondents

Respondents were requested to specify their age and their reply was represented in Figure

4.2. From the findings it is clear that the respondents were spread out to various age

brackets, majority of the respondents 68% were between the age brackets of 20 – 30

years, 26% were between the age brackets of 31 – 40 years, 3% were between 41-50

years, 3% were above 50years.

Figure 4.2 Age of Respondents

34

4.3.3 Level of Education of the Respondents

Respondents were requested to specify their education level and their reply was

represented in Figure 4.3. 49% of the respondents were undergraduates, 26% had

diplomas, 15% were graduates, 8% were certificate holders and 1% had higher diplomas.

Figure 4.3 Education Level

4.3.4 Period in the Organization

Respondents were requested to specify the period they had worked in the organization

and their reply was represented in Figure 4.4. Majority of the respondents (63%)

indicated that they have worked in the organization for a period of 0-5 years, 27% for a

period of 6-10 years, 7% for a period of 11-15 years, 1% for a period of 16-20 years and

1% for a period of 21-25 years.

35

Figure 4.4 Period in the Organization

4.3.5 Management Level

The respondents were asked to indicate their level of management and the findings

presented in figure 4.5. 52% of the respondents who were the majority were line

managers, 34% were operations manager and 14% were top management.

Figure 4.5 Management Level

Formatted: Caption

36

4.3.6 Involvement in Strategy Implementation

The respondents were asked to indicate whether they have been involved in any strategy

implementation in the organization. The results are presented in figure 4.6. From the

findings, 44% indicated that they have been involved in strategy implementation process

very often, 25% indicated that sometimes they are involved in strategy implementation

process, 12% indicated that they are involved in strategy implementation process always,

7% indicated that they rarely are they involved in strategy implementation process, and

12% indicated that they are never they are involved in strategy implementation process.

Figure 4.6 Involvement in Strategy Implementation

4.4 Descriptive Statistics of Variables

4.4.1 Employee Engagement

The respondents of this study were asked to indicate their ratings in reference to the

variable employee engagement on strategy implementation. The findings are as indicated

in table 4.2.

The findings indicated that 42% of the respondents agreed that the organization is able to

select employees who are knowledgeable for the tasks assigned, 57% agreed that the

environmental factors such as politics and the job market affect recruitment and selection

37

at the organization, 60% agreed that the organization uses the competency model while

hiring which results in transparency in the recruitment and selection process, 69% agreed

that employees are trained on the knowledge, skills and abilities required to perform tasks

in the organization, 68% agreed that training and development enhances employee

performance at the organization, 65% agreed that there is an opportunity to put into

practice what employees are trained on after a training and development program, 40%

agreed that information is conveyed to new employees on the expectation of their jobs

including the human resource policies of the organization, 54% agreed that new strategies

formulated in the organization are communicated to new employees, 55% agreed that

employees are evaluated on their current and past performance standards with the view to

improve their performance, 66% agreed that through the performance appraisal, the skills

required by employees are identified and action taken by the management on instilling the

skills to their employees through training, 53% agreed that employees are involved in

developing the performance appraisal system of the organization, 57% agreed that

employees are rewarded as a result of performing tasks assigned to them which motivates

them to perform better, 59% agreed that the organization has a favorable compensation

and benefits package, 62% agreed that salaries of the employees are paid in on time, 62%

agreed that the working conditions of employees at the organization are conducive and

60% agreed that employees feel secure in their jobs which leads to their motivation.

38

Table 4.2 Employee Engagement

Employee Engagement SD

(%)

D

(%)

S

(%)

A

(%)

SA

(%)

The organization is able to select employees who are

knowledgeable for the tasks assigned 6 12 41 36 6

The environmental factors such as politics and the job

market affect recruitment and selection at the

organization

0 10 34 51 6

The organization uses the competency model while

hiring which results in transparency in the recruitment

and selection process.

1 12 26 48 12

Employees are trained on the knowledge, skills and

abilities required to perform tasks in the organization 1 14 16 48 21

Training and development enhances employee

performance at the organization 1 11 19 49 19

There is an opportunity to put into practice what

employees are trained on after a training and

development program

3 8 23 49 16

Information is conveyed to new employees on the

expectation of their jobs including the human resource

policies of the organization

7 15 38 34 6

New strategies formulated in the organization are

communicated to new employees 4 14 29 51 3

Employees are evaluated on their current and past

performance standards with the view to improve their

performance.

4 4 37 45 10

Through the performance appraisal, the skills required

by employees are identified and action taken by the

management on instilling the skills to their employees

through training

1 8 25 45 21

Employees are involved in developing the performance

appraisal system of the organization 3 10 34 41 12

Employees are rewarded as a result of performing tasks

assigned to them which motivates them to perform

better.

1 12 29 45 12

The organization has a favorable compensation and

benefits package 0 3 38 48 11

Salaries of the employees are paid in on time 3 15 21 37 25

The working conditions of employees at the

organization are conducive. 3 7 29 51 11

Employees feel secure in their jobs which leads to their

motivation. 8 11 21 37 23

KEY: SA-Strongly Agree, A-Agree, N-Neutral, D- Disagree, SD-Strongly disagree

39

4.4.2 Communication

The study sought to find out the respondents opinion in reference to the variable

communication on strategy implementation, the findings are as shown in table 4.3.The

findings indicate that 61% of the respondents agreed that their company used emails in

communicating strategy implementation, 58% agreed that their company used internal

memo in communicating strategy implementation, 45% agreed that their company used

short message service in communicating strategy implementation, 56% agreed that their

company used oral presentation in communicating strategy implementation and 33%

agreed that their company used periodic reports in communicating strategy

implementation.

Table 4.3 Communication

Communication SD

(%)

D

(%)

S

(%)

A

(%)

SA

(%)

Our company used emails in communicating strategy

implementation 0 11 29 51 10

Our company used internal memo in communicating

strategy implementation 1 7 34 48 10

Our company used short message service in

communicating strategy implementation 18 11 26 37 8

Our company used oral presentation in communicating


Our company used periodic reports in communicating

strategy implementation. 11 12 44 26 7


4.4.3 Organization Structure

The study sought to find out how organization structure affects strategy implementation

and the findings are as presented in table 4.4.

40

Table 4.4 Organization Structure

Organization Structure SD

(%)

D

(%)

S

(%)

A

(%)

SA

(%)

Employees are informed of changes and also encouraged

and motivated towards strategy implementation in the

organization

5 9 32 47 7

Employees have the information they need to do their

work 1 10 28 47 14

There is open communication between employees and

the management at the organization 0 19 34 37 10

The management coordinate activities through the

strategy implementation process 4 12 26 44 14

There are social task forces, project teams and standing

committees formulated to spearhead the strategy

implementation in the organization

3 12 30 47 8

The organization allocates resources such finances and

personnel adequately towards strategy implementation 0 11 29 45 15

The management ensures that adequate resources are

available to pursue organizational strategies 0 13 32 43 12

The organization is affected by the unexpected and

unpredictable changes in the organization. For example

change in management.

3 10 23 41 23

The organization takes time to respond and adapt to new

changes in the organization. 1 10 25 41 23

As a result of changes in the management, the

organizational structure including departments division

of labor is affected

3 10 22 43 23


The findings indicated that 54% agreed that employees are informed of changes and also

encouraged and motivated towards strategy implementation in the organization, 61%

41

agreed that employees have the information they need to do their work, 47% agreed that

there is open communication between employees and the management at the

organization, 58% agreed that the management coordinate activities through the strategy

implementation process, 55% agreed that there are social task forces, project teams and

standing committees formulated to spearhead the strategy implementation in the

organization, 60% agreed that the organization allocates resources such finances and

personnel adequately towards strategy implementation, 55% agreed that the management

ensures that adequate resources are available to pursue organizational strategies, 64%

agreed that the organization is affected by the unexpected and unpredictable changes in

the organization. For example change in management, 64% agreed that the organization

takes time to respond and adapt to new changes in the organization and 66% agreed that

as a result of changes in the management, the organizational structure including

departments division of labour is affected.

4.4.4 Strategy Implementation

The study sought to find out the respondents opinion on Strategy Implementation in their

organization, the findings are as shown in table 4.5. The findings indicate that 67%

strategic consensus acts as a shared understanding to a strategic directive between

individuals or groups within an organization, 74% agreed that a proper strategy-structure

alignment is a necessary precursor to the successful implementation of new business

strategies, 78% agreed that communication is key to strategy implementation process;

strategy must be communicated to all stakeholders before implementation, 78% agreed

that the leadership culture of senior managers has a significant effect on decision-making

and 79% agreed that mobilization of organizational capabilities enables the firm to

advantage of strategic opportunities.

42

Table 4.5 Strategy Implementation

Strategy Implementation SD

(%)

D

(%)

S

(%)

A

(%)

SA

(%)

Strategic consensus acts as a shared understanding to a

strategic directive between individuals or groups within

an organization.

6 13 14 52 15

A proper strategy-structure alignment is a necessary

precursor to the successful implementation of new

business strategies.

1 3 22 49 25

Communication is key to strategy implementation

process; strategy must be communicated to all

stakeholders before implementation.

1 2 19 52 26

The leadership culture of senior managers has a

significant effect on decision-making. 1 6 15 52 26

Mobilization of organizational capabilities enables the

firm to advantage of strategic opportunities 3 3 15 46 33


4.5 Modelling

The information investigation took after a two-stage approach. Initially the estimation

display was surveyed and investigated to affirm develop legitimacy. The second step

included building up the connections between every single inert variable utilizing

structural equation modelling (SEM). PLS calculation and Bootstrapping calculation was

done through SmartPLS 2.0

4.5.1 Measurement Model

The corroborative factor investigation was directed keeping in mind the end goal to

survey the degree to which the watched information fits the pre-indicated hypothetically

determined model. The model fits for the estimation demonstrate in partial least squares

(PLS) were approved utilizing four criteria. These were build uni-dimensionality, develop

unwavering quality, focalized legitimacy and discriminant legitimacy (Hair et al., 2011).

43

4.5.1 Construct Uni-Dimensionality

Construct uni-dimensionality was at first surveyed by confirming that the estimation

items measured the particular construct. Additionally develop uni-dimensionality was

performed through the confirmation of the cross loadings of scales and constructs to

guarantee that the scales stacked intensely on the pertinent builds. The loadings and cross

loadings are demonstrated in table 4.6. Every one of the loadings and cross loadings were

sufficient and exhibited develop uni-dimensionality

Table 4.6 Cross Loading

Item Communication Engagement Implementation Structure T

statistic P values

EE13 0.267 0.743 0.330 0.374 17.992 0.000

EE14 0.348 0.854 0.142 0.343 44.265 0.000

EE15 0.103 0.803 0.333 0.361 23.658 0.000

EE16 0.172 0.578 0.220 0.237 6.858 0.000

EE7 0.329 0.732 0.390 0.290 20.598 0.000

EE8 0.411 0.560 0.268 0.143 7.725 0.000

MC1 0.768 0.361 0.232 0.196 5.755 0.000

MC5 0.752 0.357 0.226 0.342 5.272 0.000

OS1 0.187 0.125 0.311 0.781 13.656 0.000

OS10 0.115 0.255 0.108 0.560 3.676 0.000

OS2 0.328 0.222 0.166 0.615 5.289 0.000

OS7 0.354 0.327 0.261 0.806 11.998 0.000

OS8 0.116 0.134 0.254 0.592 5.229 0.000

SI1 0.196 0.391 0.785 0.293 23.536 0.000

SI2 0.175 0.158 0.857 0.285 19.982 0.000

SI3 0.196 0.253 0.774 0.202 16.556 0.000

SI4 0.325 0.350 0.827 0.286 26.504 0.000

SI5 0.289 0.205 0.753 0.311 12.841 0.000

44

4.5.2 Construct Reliability

Construct reliability was measured by calculating the composite reliability and the

cronbach alpha of the paradigms. Composite reliability factors were assessed through

SmartPLS. The Cronbach alphas were all above the 0.6 threshold as specified for PLS

analysis (Hair et al., 2010) indicating good reliability and composite reliability of

reflective items were all above the acceptable 0.7 threshold which means all the variables

in the study exhibited construct reliability. All constructs had an acceptable reliability

levels because the composite reliability scores for all constructs were above the 0.7

threshold. Results of construct reliability were indicated in Table 4.7.

Table 4.7 Reliability of Constructs

Construct

Number

of items

Cronbach’s

Alpha

Composite

Reliability Items removed

Communication 2 0.705 0.733 MC2,MC3,MC4

Employee

Engagement 6

0.809 0.863

EE1,EE2,EE3,EE4,EE5,E

E6,

EE9EE10EE11,EE12,EE1

6

Strategy

Implementation 5

0.860 0.899 None

Organization

Structure 5

0.713 0.807 OS3,0S4,OS5,OS6,OS9

4.5.3 Convergent Validity

Convergent Validity Convergent legitimacy alludes to how much at least two things that

measure a construct in theory converge or share high extent of variance in actuality. It is

measured by three measures; factor loadings, composite reliability (CR) and normal

fluctuation extricated (NFE). Merged legitimacy is accomplished if composite

unwavering quality esteems for the develop are slightest 0.7 and the normal fluctuation

separated (AVE) are no less than 0.5 (Hair et al., 2010). Likewise all factor loadings

ought to be factually critical and ought to be over 0.5, as demonstrated in table 4.6, 4.7

and 4.8

45

Table 4.8. Convergent Validity

Construct Number of items AVE

Communication 2 0.578

Employee Engagement 6 0.518

Strategy Implementation 5 0.640

Organization Structure 5 0.506

4.5.4 Discriminant Validity

Discriminant Validity Discriminant Validity is the degree to which things measuring one

construct differentiate from things measuring different constructs. There are two criteria

to survey the discriminant Validity. The main model is that the inter construct relationship

ought not to be higher than 0.9. The second model is the square base of the Average

Variance Extracted (AVE) of the construct ought to be bigger than its relationship with

alternate builds. As in relationship network showed in Table 4.9 the slanting components

are the square foundation of the normal fluctuation separated of all the inert construct.

The discriminant legitimacy is expected if the corner to corner components are higher

than other off-slanting components in their lines and segments. This circumstance is

clearly the case in the relationship grid and in this manner the discriminant legitimacy is

affirmed.

Table 4.9 Discriminant Validity

Construct Communication Employee

Engagement

Strategy

Implementation

Organization

Structure

Communication 0.760

Employee

Engagement 0.472 0.720

Strategy

Implementation 0.301 0.473 0.800

Organization

Structure 0.486 0.412 0.351 0.711

46

4.6 Structural Model Estimation

Having established the validity and the reliability of the measurement model, the next

step was to test the hypothesized relationship by running PLS algorithm and

Bootstrapping algorithm in SmartPLS 2.0.

Figure 4.7: Items Loadings and Path Coefficient

47

Figure 4.8: Significance of Factor Loadings and Path Coefficient

Table 4.10 Regression Coefficients

Path coefficient Standard Error T Statistics P

Values

Communication ->

Implementation 0.234 0.096 2.443 0.017

Engagement ->

Implementation 0.385 0.056 6.845 0.000

Structure -> Implementation 0.175 0.059 2.988 0.004

48

4.6.1 Communication and Strategy Implementation

Communication was found to have a positive and statistically significant relationship with

Strategy implementation. The path coefficient was positive and significant at the 0.05

level (β=0.234, T-value =2.443 p<0.05) as indicated in table 4.10 and figure 4.7 and 4.8.

The positive relationship means if, communication increases by 1, strategy

implementation in will increase by 0.234.

4.6.2 Employee Engagement and Strategy Implementation

Employee engagement was found to have a positive and statistically significant

relationship with Strategy implementation. The path coefficient was positive and

significant at the 0.05 level (β=0.385, T-value =6.845 p<0.05) as indicated in table 4.10

and figure 4.7 and 4.8. The positive relationship means if, Employee engagement

increases by 1, strategy implementation in will increase by 0.385.

4.6.3 Organization Structure and Strategy Implementation

Organization structure was found to have a positive and statistically significant

relationship with Strategy implementation. The path coefficient was positive and

significant at the 0.05 level (β=0.175, T-value =2.988 p<0.05) as indicated in table 4.10

and figure 4.7 and 4.8. The positive relationship means if, Organization structure

increases by 1, strategy implementation in will increase by 0.175.

4.7 Predictive Relevance of the Model

The quality of the structural model can be assessed by R2 which shows the variance in the

endogenous variable that is explained by the exogenous variables. Based on the results

reported in figure 4.6, the R2 was found to be 0.454 indicating that Employee

engagement, communication and organization structure can account for 45.4% of the

variance in the strategy implementation.

4.8 Chapter Summary

The chapter has presented the study findings using that were obtained from the

questionnaires. The analysis has been done using descriptive statistics of means and

percentages to explain the findings. Pearson Correlation analysis was used to determine

49

significant elements for human resource, communication, and organization structure

factors. Inferential statistics has been used to show the relationship that exists between

human resource, communication, and organization structure factors and strategy

implementation. Presentations have been made using tables and figures and brief

explanations of the same have been offered. The next chapter presents the study

discussions, conclusions, and recommendations.

50

CHAPTER FIVE

5.0 DISCUSSIONS, CONCLUSIONS, AND RECOMMENDATIONS

5.1 Introduction

This chapter is divided into different sections which are as per the following: area 5.1

introduction, section 5.2 summary of findings, segment 5.3 discussions, section 5.4

conclusions, and section 5.5 recommendations for improvement, and recommendations

for further studies.

5.2 Summary


in Pernod Ricard Kenya. The research was led by the following research questions: How

does human resource factors affect strategy implementation at Pernod Ricard Kenya?

How does communication affect strategy implementation at Pernod Ricard Kenya? And,

how does organization structure affect strategy implementation at Pernod Ricard Kenya?

The study used descriptive research design. The target population of the research entailed

the top and middle level employees of Pernod Ricard Kenya Limited with a population of

80 employees. The study was quantitative in nature as data was collected using

questionnaires from both clusters. The questionnaires were distributed by the researcher

to the different respondents and collected after completion. In regard to data analysis, the

demographic data was tabulated using frequency and percentages. For data description,

the Pearson’s correlation was used. The data was presented in the form of tables

according to the research questions through the use of Statistical Package for Social

Science (SPSS).

The study showed that the organization was able to select employees who were






51



the human resource policies of the organization.

The study showed that company used emails in communicating strategy implementation,

as well as internal memos while communicating strategy to facilitate implementation. The

organization did not use short message service in communicating strategy implementation

which could be effective given that most if not all employees have mobile phones. The

company used oral presentation in communicating strategy implementation, as well as

periodic reports in communicating strategy implementation.

The study showed that employees were informed of changes and also encouraged and







adequately allocated for strategy implementation.

5.3 Discussions

5.3.1 Human Resource as a Factor Influencing Strategy Implementation

The study showed that the organization is able to select employees who are

knowledgeable for the tasks assigned. These results are in concurrence with Barnat

(2015) who states that, factors do exist that disallow powerful asset portion, include

absence of adequate learning. The study showed that the organization uses the

competency model while hiring which results in transparency in the recruitment and

selection process. The study showed that employees are trained on the knowledge, skills

and abilities required to perform tasks in the organization. These results are in agreement

with Niazi (2011) who states that, training and development is a process of transferring

Knowledge, Skills and Abilities (KSA) that are required to perform specific tasks in an

organization making this process strategic.

52

The study showed that training and development enhances employee performance at the

organization. These results are in agreement with Peteraf (1993) who states that, in

strategy implementation, a comprehensive training and development program help

deliberate on the necessary knowledge, skills and attitudes that assist to achieve

organizational goals and also create competitive advantage. The study showed that there

is an opportunity to put into practice what employees are trained on after a training and

development program. These results are in agreement with Niazi (2011) who points out

that, to stay ahead of the competition, organizations must incorporate innovation and

reinvention which is possible if training encompasses a wide range of learning actions.

Training then becomes part of the organizations-wide strategy and it is linked to business

goals and organizational performance.

The study showed that information is conveyed to new employees on the expectation of

their jobs including the human resource policies of the organization. These results are in

agreement with Gomez-Mejia, Balkin and Cardy (2001) who state that, orientation is the

process of conveying information to new employees about the expectation of their jobs

and assisting them adapt to the stresses of transition to new jobs. Robbins and DeCenzo

(1999) adds that the orientation program also communicates the relevant human resource

management policies such as work hours, pay procedures, benefits; review the specific

duties and responsibilities of the new member’s job. The study showed that new strategies

formulated in the organization are communicated to new employees. These results are in

agreement with Gatignon and Xuereb (2006) who state that, in strategy, orientation of a

firm leads to superior performance because of the innovations that are brought to the

market. Narver and Slater (1990) opine that, this reflects the strategic direction

implemented by a firm to create proper behaviors for continuous superior performance of

business.

The study showed that employees are evaluated on their current and past performance

standards with the view to improve their performance. These results are in agreement

with Dessler (2006) who states that, performance appraisal is the evaluation of the current

and past performance of employees based on the performance standards with the view to

improve performance, and that, this appraisal can be used to reward employees whose

performance is better than others. The study showed that employees are not involved in

53

developing the performance appraisal system of the organization. These results differ

with Shehzad and Akhtar (2012) who state that, employees must have a say in developing

the performance appraisal system as evidenced by Mayer and Davis (1999) that involving

employees in developing the performance appraisal system leads to favorable reactions to

the process and increases trust for top management.

The study showed that employees are rewarded as a result of performing tasks assigned to

them which motivates them to perform better. These results are in agreement with

Williams (2005) who indicates that, compensation and benefits are all forms of pay or

rewards, and institutions give to employees in exchange of their services. Hackett and

McDermott (1999) note that, employees get a reward in return of performing the tasks

assigned by the administration. The study showed that the organization has a favorable

compensation and benefits package.

5.3.2 Communication as a Factor Influencing Strategy Implementation

The study showed that the company used emails in communicating strategy

implementation. These results are in agreement with Zvoch (2012) who states that, many

employees purport to prefer email as an information source, even while noting the

overload of messages they receive each day. Ketola (2010) also notes that, while email is

highly convenient for both sender and receiver, it is an impersonal medium and lacks the

richness of other information sources, and email is asynchronous in that there are delays

in sending, receiving, and responding, it is not the optimal medium for conveying delicate

or complicated information or to influence, persuade, or sell an idea.

The study showed that the company used internal memo in communicating strategy

implementation. These results are in agreement with Nahapiet (2009) who state that,

memorandums (memos) are the most common form of written communication within

organizations. Generally, there is a standard format adopted by the organization. Memos

are used to: inform the recipient of events or activities, initiate or summarize action and

confirm what has already been communicated orally, and that, written messages are less

formal than memos and tend to be used between people who work closely together.

54

The study showed that the company did not use short message service in communicating

strategy implementation. These results differ with Roberts and Kaiser (2011) who state

that, written messages are less formal than memos and tend to be used between people

who work closely together. They may be telephone messages or simply notes left on

someone else’s desk while they are out of the office. However informal, it is worth taking

the trouble to write clearly and concisely since a garbled or illegible message is worth

than useless.

The study showed that the company used oral presentation in communicating strategy

implementation. These results are in agreement with Steyn and Niemann (2010) who state

that, oral presentations may be necessary to communicate an argument or a message to a

group of people quickly and effectively. Again, this could be a formal occasion, or a less

formal briefing to a group of staff. The most informal and frequent type of oral

communication is simple face to face conversation. Keyton (2011) reiterates that, oral

communication of this nature is particularly appropriate for personal matters, or when a

manager wishes to praise or reward an employee.

The study showed that the company used periodic reports in communicating strategy

implementation. These results are in agreement with Yang, Guohui and Eppler (2011)

who state that, written reports are another widely used form of communication.

Descriptive report is simply an account of events, or collection of facts, while analytical

report gives meaning to facts and concepts by analyzing the facts presented, suggesting

conclusions and recommending possible solutions to problems, and newsletters or

bulletins can be used to communicate general information or management policy to all

staff or sections of staff within the organization.

5.3.3 Organization Structure as a Factor Influencing Strategy Implementation

The study showed that employees are informed of changes and also encouraged and

motivated towards strategy implementation in the organization. These results are in

agreement with Bloisi et al. (20070 who state that, communication in an organization

transmits directions or ideas along the lines of command; providing confirmations,

information, and feedback upwards; informing staff on changes, encouraging and

55

motivating employees. The study showed that employees have the information they need

to do their work. These results are in agreement with Taylor (2007) who indicates that,

organizational structure in many companies defines the modes and tone of

communication. He argued that highly stratified organizations have formal methods of

communication which is conducted between managers and employees and small

organizations may have informal communication as companies leverage on their flat

nature. The study also demonstrated that there is open communication amongst workers

and the management at the organization. These results are in agreement with Rapert,

Velliquette and Garretson (2002) who state that, research shows that, organizations where

employees have easy access to management through open communication outperform

those in a restrictive communication environment.

The study showed that the management organize exercises through the strategy

implementation process. These results are in agreement with Barrows (2014) who state

that, the power to coordinate activities during strategy implementation is then placed on

the mangers in the organization since they have more authority over more organizational

units and the power to coordinate, integrate, and arrange the cooperation of the units

under their supervision becomes an easy process. The study demonstrated that there are

social task forces, extend groups and standing committees detailed to lead the strategy

implementation in the organization. These results are in agreement with Barrows (2014)

who state that, through the organizational structure, coordination of strategic efforts is

also achieved through informal meetings, social task forces, project teams and standing

committees. Edinger (2012) additionally expresses that, coordination likewise includes

cascading of the strategy all through the organization getting to the reasonable and

strategic components of individuals' jobs every day.

The study showed that the organization allocates resources such finances and personnel

adequately towards strategy implementation. These results are in agreement with Barnat

(2005) who show that, strategy implementation includes designing the organization's

structure, allocating resources, developing information and decision process, and

managing human resources, including such areas as the reward system, approaches to

leadership, and staffing. The study also demonstrated that the management guarantees

56

that sufficient resources are accessible to pursue organizational strategies. These

outcomes are in concurrence with Vanguard Papers (2015) that states, suitable resource

allocation and budgeting gives the organization competitive advantage by improving its

core abilities and capacity. The management holds the responsibility of ensuring that

adequate resources are available to pursue organizational strategy.

The study showed that the organization is influenced by the unxpected and unpredictable

changes in the organization, for example, change in management. These outcomes are in

concurrence with Barnat (2005) who observed that, environmental turbulence exists when

changes are startling and flighty and the weights for change at which the organization

must have the capacity to react to the change are key environmental issues. The study

showed that the organization takes time to respond and adapt to new changes in the

organization. These outcomes are in concurrence with Barnat (2005) who observed that,

environmental turbulence exists when changes are startling and flighty and the weights

for change at which the organization must have the capacity to react to the change are key

environmental issues. The study also showed that as a result of changes in the

management, the organizational structure including departments division of labor is

affected. These results are in agreement with Barnat (2005) who observed that,

environmental turbulence appears to influence structure in terms of formation of

departments division of labor, the configuration of the organization, and the allocation of

power within the organization which flows from strategy.

5.4 Conclusions

5.4.1 Human Resource as a Factor Influencing Strategy Implementation

The study concludes that the organization was able to select employees who were








the human resource policies of the organization. Employees were not involved in

57

developing the performance appraisal system of the organization, however, they were

rewarded as a result of performing tasks assigned to them which motivated them to

perform better.

5.4.2 Communication as a Factor Influencing Strategy Implementation

The study concludes that company used emails in communicating strategy

implementation, as well as internal memos while communicating strategy to facilitate

implementation. The organization did not use short message service in communicating

strategy implementation which could be effective given that most if not all employees

have mobile phones. The company used oral presentation in communicating strategy

implementation, as well as periodic reports in communicating strategy implementation. It

can be concluded that the organization employed the use of formal communication

channels while communicating strategy implementation and disregarded informal

channels.

5.4.3 Organization Structure as a Factor Influencing Strategy Implementation

The study concludes that employees were informed of changes and also encouraged and







adequately allocated for strategy implementation. The organization was affected by the

unexpected and unpredictable changes in management, and the organization took time to

respond and adapt to new internal changes.

5.5 Recommendations

5.5.1 Recommendations for Improvement

5.5.1.1 Human Resource as a Factor Influencing Strategy Implementation

The study showed that employees were not involved in developing the performance

appraisal system of the organization. The study recommends the management of Pernod

58

Ricard Kenya to involve employees in the creation of a performance appraisal tool which

will facilitate favorable reactions to the process, increase top management trust, as well as

increase acceptance of the process in the organization.

5.5.1.2 Communication as a Factor Influencing Strategy Implementation

The study revealed that the organization did not use short message service in

communicating strategy implementation. The study recommends the management of

Pernod Ricard Kenya to come up with a communication channel that would employ the

use of SMS to reach out to all employees. This could be achieved through divisional, or

departmental message groups that can be used to inform employees about meetings that

would facilitate better quorums during strategy discussions.

5.5.1.3 Organization Structure as a Factor Influencing Strategy Implementation

The study showed that the organization was affected by the unexpected and unpredictable

changes in management, and it took time to respond and adapt to new internal changes.

The study recommends that Pernod Ricard Kenya management need to establish a

knowledge management culture that would facilitate faster adaptation to change since

systems set in place would guide all employees on what was expected of them in good

time.

5.5.2 Recommendations for Further Studies

This research focused on Pernod Ricard Employees which had a population of close to

one hundred employees at different job group level, and it analyzed the key factors

affecting strategy implementation. The study was limited in that it only focused on one

organization and three variables including: human resource, communication, and

organization structure. The study therefore recommends that similar studies be conducted

in other organizations within all the industries in the country for a broader picture of how

various factors affect strategy implementation across board. The study also recommends

future scholars to focus on other variables excluding the ones mentioned in this study to

provide a deeper understanding of how various factors influence strategy implementation

inn organizations.

59

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69

APPENDICES

APPENDIX I: LETTER OF INTRODUCTION

United States International University – Africa,

P.O. BOX 14634 – 00800,

Nairobi, Kenya.

To Whom It May Concern,

I am a graduate student at the United States International University in partial fulfillment

of the requirement for the degree of Masters of Business Administration (MBA) Strategic

Management option. I am conducting a study to determine the Factors Influencing the

Implementation of Strategic Plans in Organizations.

The information provided by respondents will be protected by the principle of

confidentiality. Your participation is very imperative for the accomplishment of this study

and it will be highly appreciated. Should you have any questions or concerns with regards

to the questionnaire, please do not hesitate to contact me through my contact provided

above.

Thank you for your cooperation and time.

Yours Sincerely,

Nandi Adimo Albert.

70

APPENDIX II: QUESTIONNARE

Section A: General Information

1. Gender:

Male [ ]

Female [ ]

2. Age:

20-30yrs [ ]

31-40yrs [ ]

41-50yrs [ ]

Above 50yrs [ ]

3. Highest Level of Education

: Certificate [ ]

Diploma [ ]

Undergraduate [ ]

Graduate [ ]

Higher Diploma [ ]

Post Graduate [ ]

4. Number of years you have worked in the organization?

0 – 5yrs [ ]

66 – 10yrs [ ]

11 – 15yrs [ ]

16 – 20yrs [ ]

21-25yrs [ ]

Above 25yrs [ ]

5. Management Level.

Top Management [ ]

Line management [ ]

Operations management [ ]

6. Have you been involved in any strategy implementation process in the

organization?

Always [ ]

Very Often [ ]

Sometimes [ ]

Rarely [ ]

71

Never [ ]

72

Section B: Human Resource as a Factor Influencing Strategy Implementation

Based on the rating of five; (1) Strongly Disagree, (2) Disagree, (3) Not Sure, (4) Agree

SD D NS A SA

EE1

1. The organization is able to select employees who are

knowledgeable for the tasks assigned 1 2 3 4 5

EE2

2. The environmental factors such as politics and the

job market affect recruitment and selection at the

organization 1 2 3 4 5

EE3

3. The organization uses the competency model while

hiring which results in transparency in the recruitment

and selection process. 1 2 3 4 5

EE4

4. Employees are trained on the knowledge, skills and

abilities required to perform tasks in the organization 1 2 3 4 5

EE5

5. Training and development enhances employee

performance at the organization 1 2 3 4 5

EE6

6. There is an opportunity to put into practice what

employees are trained on after a training and

development program 1 2 3 4 5

EE7

7. Information is conveyed to new employees on the

expectation of their jobs including the human resource

policies of the organization 1 2 3 4 5

EE8

8. New strategies formulated in the organization are

communicated to new employees 1 2 3 4 5

EE9

9. Employees are evaluated on their current and past

performance standards with the view to improve their

performance. 1 2 3 4 5

EE10

10. Through the performance appraisal, the skills

required by employees are identified and action taken

by the management on instilling the skills to their

employees through training 1 2 3 4 5

73

EE11

11. Employees are involved in developing the

performance appraisal system of the organization 1 2 3 4 5

EE12

12. Employees are rewarded as a result of performing

tasks assigned to them which motivates them to

perform better. 1 2 3 4 5

EE13

13. The organization has a favorable compensation and

benefits package 1 2 3 4 5

EE14 14. Salaries of the employees are paid in on time 1 2 3 4 5

EE15

15. The working conditions of employees at the

organization are conducive. 1 2 3 4 5

EE16

16. Employees feel secure in their jobs which leads to

their 1 2 3 4 5

Section C: Communication as a Factor Influencing Strategy Implementation

Based on the rating of five; (1) Strongly Disagree, (2) Disagree, (3) Not Sure, (4) Agree

and (5) Strongly Agree, show your opinion by putting a

Factors SD D NS A SA

MC1 1.Our company used emails in communicating strategy


MC2 2.Our company used internal memo in communicating


MC3 3.Our company used short message service in


MC4 4.Our company used oral presentation in


MC5 5. Our company used periodic reports in

communicating strategy implementation. 1 2 3 4 5

74

Section D: Organization Structure as a Factor Influencing Strategy Implementation

Based on the rating of five; (1) Strongly Disagree, (2) Disagree, (3) Not Sure, (4) Agree and

(5) Strongly Agree, show your opinion

SD D NS A SA

OS 1

1. Employees are informed of changes and also

encouraged and motivated towards strategy

implementation in the organization 1 2 3 4 5

OS2

2. Employees have the information they need to do

their work 1 2 3 4 5

OS3

3. There is open communication between employees

and the management at the organization 1 2 3 4 5

OS4

4.The management coordinate activities through the

strategy implementation process 1 2 3 4 5

OS5

5. There are social task forces, project teams and

standing committees formulated to spearhead the

strategy implementation in the organization 1 2 3 4 5

OS6

6.The organization allocates resources such finances

and personnel adequately towards strategy


OS7

7.The management ensures that adequate resources are

available to pursue organizational strategies 1 2 3 4 5

OS8

8. The organization is affected by the unexpected and

unpredictable changes in the organization. For example

change in management. 1 2 3 4 5

OS9

9. The organization takes time to respond and adapt to

new changes in the organization. 1 2 3 4 5

OS10

10. As a result of changes in the management, the

organizational structure including departments division

of labor is affected 1 2 3 4 5

75

Section E: Strategy Implementation

Based on the rating of five; (1) Strongly Disagree, (2) Disagree, (3) Not Sure, (4) Agree and

SD D NS A SA

SI1

1. Strategic consensus acts as a shared understanding to a

strategic directive between individuals or groups within

an organization. 1 2 3 4 5

SI2

2. A proper strategy-structure alignment is a necessary

precursor to the successful implementation of new

business strategies. 1 2 3 4 5

SI3

3. Communication is key to strategy implementation

process; strategy must be communicated to all

stakeholders before implementation. 1 2 3 4 5

SI4

4. The leadership culture of senior managers has a

significant effect on decision-making. 1 2 3 4 5

SI5

5. Mobilization of organizational capabilities enables the

firm to advantage of strategic opportunities 1 2 3 4 5

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