Abstract:
The purpose of this study is to examine the effect of strategic management practices on the
performance of Gondar Town Water Supply and Sewerage Service office. The study compared
these practices with the widely accepted theoretical concepts in the field. The study utilized
quantitative data as a primary source. To gather Quantitative data 134 questionnaires were
distributed to the management staff and employees. Secondary sources of data including the
organization’s strategic plans, annual reports, financial statements and budget preparation
guidelines were utilized. Hence, to draw a representative sample of the population stratified
random sampling technique was employed. The application used to analyze the collected data
was the Statistical Package for Social Sciences version 16. Pearson Correlation and multiple
regression analysis were used to establish the relationship between the independent and
dependent constructs of the research. Findings of this study revealed that there is a significant
and strong correlation between strategic management practices and organizational
performance. Moreover, the study indicated that there is significant effect of strategic
formulation, implementation, evaluation and control on predicting the organization’s
performance. Of these relationships, strategic control emerged as the strongest factor which
influences the organization’s performance. Depending on the findings, practical implication of
this study is, in order to ensure high level of organizational performance Gondar Town Water
Supply and Sewerage Service Office should improve its strategic management practices
continuously. Furthermore, this research can be further explored by adding more strategic
management process elements like environmental scanning and others which could influence
organizational performance.
