The Effect of Strategic Management Practices on Organizational Performance: A Case Study in Gondar Town Water Supply & Sewerage Service Office

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.