EFFECT OF STRATEGY EVALUATION ON PERFORMANCE OF CHEMELIL SUGAR COMPANY IN KISUMU COUNTY, KENYA
Abstract
Purpose of the study: The study examined the effect of strategy evaluation on performance of chemelil sugar company in Kisumu County, Kenya.
Research problem: The performance of chemelil Sugar Company has not been much effective. In 2011, the company's operations stopped due to financial challenges, leading to the company reaching its lowest ebb. The operating environment has been unstable as the sugar production is intense impacting negativity on profitability.
Research methodology: The descriptive research design was deemed the most appropriate research design to be utilized in the study. The target population was 60 respondents from departmental heads, sectional heads, superintendents and foremen. The study conducted a census.
Findings: The study found a strong positive relationship exists between strategy evaluation and performance (r = 0.887, p = 0.004). The coefficient of determination was found to be 25.5% which signified that 25.5% of the variations in the performance can be explained by strategy evaluation while other factors can explain the remaining 74.5%. The regression results established that strategy evaluation is positively and significantly related with performance (β= .587, t = 1.943, p = .048).
Conclusions: The study concluded that a unit increase in strategy evaluation while holding all other factors constant increases performance by 0.587 units. In addition, it was concluded that strategy evaluation facilitates organizational direction setting at it ensures compliance to organizational vision and streamline operations to specific objectives or targets. In addition, the strategy evaluation can help in inspiring and motivating employee as it enables employees measure their performance
Recommendations: The study recommended that it would be strategic for the organization to have strategies that are completely consistent with the organizational overall strategic direction for enhanced performance.
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