THE impact OF STRATEGIC MANAGEMENT ON WORKER performance IN A COMPANY
The aim of this study was strategic management as a technique for achieving organizational performance in selected Nigerian deposit money banks in Enugu City. The specific objectives were to ascertain the extent to which value chain influences growth in the profitability of Nigerian deposit money banks, determine the extent of the effects of strategic change on market share in the productivity of Nigerian deposit money banks, examine the extent to which strategic leadership influences the effectiveness of customer satisfaction in Nigerian deposit money banks, and identify the key challenges of adopting strategic management in Nigerian deposit money banks. This study employed a survey design, which is characterized by direct interaction with the population. The study's target population consists of 2,093 individuals, including both senior and junior personnel from the three selected Zenith bank locations in Enugu, Nigeria. The sample size of 336 was determined using a formula created by Taro Yamane. The primary data gathering instruments were a questionnaire and an oral interview guide. The survey was formatted using a 5-point Likert scale. The data was presented using a frequency sample table, and the hypotheses were tested using basic linear regression and Friedman Chi-square. The study indicated that value chain significantly influenced the profitability growth of Nigerian deposit money banks (r = 0.882; F = 1.057E3; t =11.249; p = 0.05). In addition, the study found that the main obstacles to implementing strategic management in Nigerian deposit money institutions were economic and bad structures (X2cal = 492.352 >X2critical = 11.14, p 0.0001 = 0.05) The conclusion of the study is that the performance of deposit money banks depends on the strategies they employ. The study suggests that businesses enhance their efforts to examine and monitor both internal and external elements in order to prevent the unprecedented failure that might be prevented through continuous improvement.
Introduction to the study
Strategic management is a disciplined method that employs the management concepts and processes to determine the corporate aim or mission of an organization. It finds an appropriate target to satisfy the aim, identifies existing possibilities and limits in the environment, and devises a realistic and logical strategy for achieving the objective. Strategic management is a technique adopted by businesses to achieve a prosperous future and aid in their growth. Strategic management hinges on recognizing that people speaking and collaborating will shape the future (Harfield, 1998).
In other words, strategic management derives from both the practice and philosophy of determining and directing organizational relationships within their dynamic context. As a process, it aims to establish approaches and techniques that will assist management in adapting to the dynamics of the present through the use of goals and strategies. Strategic management seeks to implement effective and efficient programs to accomplish the objective of the organization. It alters the manager's perspective on competitors, customers, markets, and even the firm itself. Its major purpose is to heighten management's knowledge of the strategic implications of external events and internal decisions. Modern businesses view strategic management as primarily concerned with actions organizations take to generate competitive advantage and create value for stakeholders (Porter, 1981).
Strategic management is defined by Lawrence and William (1988) as a series of decisions and actions that contribute to the development of an effective strategy or strategies for achieving company objectives. The process of strategic management is how strategists establish objectives and make strategic decisions. Strategic management is primarily concerned with achieving organizational objectives while taking internal and external environmental elements into account.
The essence of comprehensive strategy formulation, according to Porter (1985), is tying a corporation to its environment. Strategic management allows for the systematic administration of change. It enables organizations to organize resources systematically towards a desired future.
Chandler (1962) argues that the success of any strategy is contingent on its structure; hence, for an organization to attain any effective economic performance, it must alter its structure. Strategic management is consistent with the continuous improvement emphasis of the quality movement. In fact, anticipating the needs of stakeholders is a crucial aspect of external analysis.
Shrivastava (1986) extols the concept of strategic field utilizing Giddens' five operational criteria more eloquently (1979). The factual underdetermination of action norms, the universalization of sectional interests, the denial of conflict and contradiction, the normative idealization of sectional ambitions, and the naturalization of the status quo are indicators of its ideology. Shrivastava argued that strategic management was obviously ideological and that strategic rhetoric contributed to legitimizing existing power systems and resource disparities. Shrivastava (1986), drawing from the preceding, sought emancipation in the “development of communicative competence by all subjects that enables them to participate in discourse aimed at liberation from constraints on interaction.” In addition, he urged scholars to “provide less ideologically value-laden and more universal information about strategic management of companies.”
According to Stoney (1998), in the strategic management model, the responsibility for corporate-level decision-making resides within a core of strategic functions that have been released from the day-to-day responsibilities of operational activities, which have been delegated to the lowest possible level of control. The elite (often the “executive board”) is freed from operational concerns and line responsibility, allowing them to focus on strategic thinking and decision-making. The strategic management experience of each banking business is unique, reflecting the organization's specific culture, environment, resources, structure, management style, and other organizational characteristics. However, working with leaders and managers from a variety of firms reveals that similar questions and concerns arise as organizations apply strategic management. Meyer (1991) adds that strategic management is distinguished from other organizational sciences by its emphasis on discovering, explaining, and predicting organizational performance drivers. The central study issue in this discipline is “why do some organizations outperform others?” In contrast to other disciplines' efforts to explain organizational outcomes, strategic management research has long acknowledged that phenomena emanating from multiple levels of analysis play a role in determining organizational effectiveness. To enhance the likelihood of good performance, a company must occupy a thriving strategic group inside a wealthy industry, such as Nigeria's commercial banks. This study is to examine the effects of strategic management as a technique for achieving organizational performance in Nigerian commercial banks.
Statement of the problem
The acute period of the global financial crisis has passed, and economic recovery is starting. However, the recovery is fragile and surprisingly alarming, as the growth impact of financial and monetary policies diminishes. Politically and socially problematic are continued forays into more robust financial relationships, high levels of debt, and stagnant development in developed nations. Organizations are seeking development, but much of the fine-tuning has been achieved, thanks to the technological revolution and CBN's recent emphasis on cost reduction. Despite this, CEOs and managers are under unrelenting performance pressure because the competition is fierce. Organizations want to increase revenue, boost productivity, achieve their objectives, operate more efficiently and effectively, be good corporate citizens, have happy, motivated employees, retain satisfied and profitable customers, and, most importantly, discover that elusive sustainable competitive advantage.
A strategic management strategy is essential for a business to achieve its goals. The issue is that many firms rely on a five-year strategic plan that is split down into annual budgets, quarterly projections, and monthly reports, and is frequently separated from actual occurrences. To take advantage of new opportunities and mitigate risks in a competitive environment, bank executives must continuously examine their strategic management plan and remain resolute in the face of adversity. Despite the pervasive dangerous environment in Nigerian financial institutions, management has failed to invest more time and effort in environmental analysis to determine what is wrong and what steps must be taken to address the problem. For strategic management to result in higher performance, all process steps must be controlled efficiently. A clever strategy may elevate a company's performance and position in the marketplace. Unfortunately, the majority of businesses struggle with implementation and hence fail at performance improvement.
Despite the fact that strategic planning has brought about a far-reaching revolution that has dramatically altered most business landscapes, the Nigerian banking industries are still hampered by a few limitations. Some of these constraints include the incorrect application of strategic planning by Nigerian Deposit money banks, the unethical attitude and conduct of bank managers and board of directors, the poor organizational structure, and the workers' failure to comply with the rules and standards in order to achieve the strategic objectives. To enhance performance, the deployment of strategic management in the commercial banking industry is imperative in light of this perilous position. Strategic management is vital to the performance of a business.
The purpose of the study
This study aims to analyze Strategic Management as an instrument for achieving Organizational Performance at Zenith bank. The particular aims were to:
Determine how value chain impacts the profitability of Zenith bank.
Determine the amount to which strategic shift affects Zenith Bank's market share in Nigeria.
Determine the extent to which strategic leadership influences customer satisfaction at Nigeria's Zenith bank.
Determine the primary obstacles to Zenith bank's adoption of strategic management.
The following questions will be used as a guide for the researcher:
How does the value chain effect the profitability of Nigerian Zenith Bank?
How does strategic change effect the productivity of Nigerian Zenith Bank?
To what extent does Zenith Bank Nigerian's strategic leadership impact customer satisfaction?
What are the primary obstacles to Zenith Bank's adoption of strategic management?
The following hypotheses will lead the research:
Value chain has a substantial impact on the profitability of Nigeria's Zenith bank.
Strategic change has a substantial positive effect on the productivity of Nigeria's Zenith bank.
Importance of the research
This report will be of tremendous value to the Nigerian public, management and staff of the banks,
The banking industry has made significant contributions to the development of Nigerian society. This is true since it plays a significant part in our society in terms of the multiple financial aids it provides to the larger community. Considering the role of the banking industry in directing economic development and national growth, the study will be of considerable importance.
Directors or Board Members and Employee
This study will aid executives and boards in understanding the significance of strategic management on commercial bank performance. This will assist them in identifying areas for improvement and making strategic decisions that will boost performance. The study will also assist commercial bank management and personnel in determining the optimal method for deploying feedback strategies and devices.
Policy makers (government and regulators)
This study will assist policymakers (government and regulators) in determining whether any improvement in the performance of commercial banks and financial industries can be directly ascribed to strategic management. Consequently, the research will aid policymakers in ensuring high performance.
Scope of the study
The subject of the study is strategic management as a tool for achieving peak organizational performance. The selected bank branches in the state of Enugu are the Emen branch and the ninth mile branch, both of which are located in Enugu city. These banks were selected because they met the 25 billion dollar capital requirement, are listed on the Nigerian stock exchange, and operate similarly. The study spans the years 2007 through 2012.
limitation of the study
Position of Respondents
Some of the management's reluctance to divulge strategic information under the guise of confidentiality was a limitation of the study. Additionally, some of the respondents exhibited a negative attitude towards the study due to the absence of a financial incentive, while others refused to provide the necessary data due to their ignorance of the study's primary objective.
Lack of access to research materials
Being a new subject of research in Nigeria, the lack of research materials inevitably slowed down the researcher's progress. This limitation was mitigated by subscribing to internet publications for study resources.
Definition of terms
This study's key terms were derived from the contextual definition:
Corporate Strategy: corporate strategy is a strategy based on the experiences, assumptions, and beliefs of management over time, which may eventually permeate the firm as a whole.
Strategic Leadership: Strategic leadership is concerned with transforming an organization's vision and values, culture and climate, structure and systems, in addition to its strategy.
Strategic Decision Making: According to strategic decision making, organizations adapt to their circumstances through strategic decision making.
Strategic Change: A reorganization of a company's business or marketing plan that is often implemented in order to attain an essential goal.
Strategic Management: strategic management is a series of decisions and actions that result in the development of an effective strategy or strategies to assist in the achievement of company objectives. In other words, it focuses on the actions firms do to generate competitive advantage and produce value for stakeholders.
Customer Satisfaction is an emotional response to the experiences provided by and related with specific products or services purchased, retail establishments, or even molecular patterns of activity such as shopping and buyer behavior, as well as the broader marketplace.
THE IMPACT OF STRATEGIC MANAGEMENT ON WORKER PERFORMANCE IN A COMPANY