RELATIONSHIP BETWEEN STRATEGY IMPLEMENTATION AND PERFORMANCE OF INSURANCE FIRMS IN NAIROBI-KENYA
Abstract
Strategy implementation involves organization of the firm's resources and motivation of the staff to achieve objectives. During the last five years, the insurance industry has undergone a series of changes through financial reforms, advancement of communication and information technologies, globalization of financial services and economic development. The current study analyzed relationship between strategy implementation and performance of insurance firms in Nairobi-Kenya. Specifically the study focused on the following determinants of strategic implementation; leadership style and organizational structure and organizational performance of insurance firm in Nairobi. The study adopted descriptive research design and targeted HR Managers, Policy Managers, operations managers and finance and accounts managers of; Britam, Jubilee, Icea lion, Pan Africa, Cfc life, Kenidia, Old mutual and Madison insurance companies limited. In selection of the study sample, Out of the 275 target population 50% of the target population in the categories of the managers specified were sampled. This study used purposive sampling technique to accurately select 138 respondents. The data generated by the study after fieldwork was edited, coded then entered into a computer for processing using the Statistical Package for Social Sciences (SPSS v.21.0). Descriptive and inferential statistics was used to analyze information generated from respondents. The study findings concluded that, holding all the other factors constant, the organizational performance in the insurance firms in Nairobi County-Kenya was tested against strategy implementation drivers (staff commitment and organizational structure). The study finally recommended that, the managers should always give direction and supervision through different phases of strategy implementation. Implementing a change is often done in phases. The insurance companies’ management needs to be able to identify when each phase of a strategic implementation is complete and be ready to transition the organization to the next phase.
Key Words: Leadership Styles, Organizational Structures, Organizational Performance
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DOI: http://dx.doi.org/10.61426/sjbcm.v4i3.488
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