Strategy Implementation: Effect of Organizational Design on the Performance of Commercial Banksin Kenya

Abstract

A plethora of global and domestic forces have accentuated pressure on organization's strategic management practices. Strategy implementation failure rates in most organizations have been reported in the last two decades to be above 60% indicating that most organizations globally underperform in regard to alignment of organizational design to strategy. The purpose of this study, therefore, was to establish the effect of organizational design on the performance of commercial banks in Kenya. The study employed a descriptive research design. The study was conducted in five commercial banks operating in ten counties in the western part of Kenya. Stratified and simple random sampling technique was used to pick a sample size of 307 respondents from a target population of 463 heads of bank sections. Data was collected using structured questionnaires. Descriptive statistics was used to analyze data with the help of Statistical Package for Social Sciences version 22. Data was presented in form of tables, graphs, percentages, frequencies, mean and standard deviation. Pearson's product moment correlation analysis was used to test the strength of the relationship between the variables. The findings showed that there was a correlation between organizational design and the performance of commercial banks. The study concluded that organizational de sign has an effect on the performance of commercial banks in Kenya. The study recommended that a similar study can be carried in other regions to establish the relationship between organizational design and the performance of bank branches.