The effects of strategic planning on organizational performance: the case of Bishoftu City Administration
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Date
2022-05-02
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A.A.U
Abstract
This study investigates the impact of strategic planning on the organizational performance of the
Bishoftu City Administration in Ethiopia. The research explores the contributions of strategic
formulation, implementation, control & evaluation, management participation, and financial
management to organizational performance. A mixed-methods approach was employed, utilizing
both descriptive and explanatory research designs. Data were collected through surveys
distributed among employees of Bishoftu City Administration and supplemented by document
analysis. Regression analysis was conducted to examine the effect of strategic planning variables
on organizational performance. Key findings indicate that strategic planning significantly
influences organizational performance, with approximately 52.3% of the variability in
performance attributed to strategic planning variables. Specifically, management participation
and financial management emerged as significant contributors to performance, followed by
strategic formulation and control & evaluation. However, strategic implementation did not
demonstrate a statistically significant impact on performance. The study highlights the
importance of effective strategic planning in enhancing organizational performance. It
underscores the need for clear and attainable goals, strong communication, and active
management participation in strategic planning processes. Additionally, the findings suggest the
importance of continuous evaluation and adaptation of strategies to address uncertainties and
challenges. Management participation and financial management significantly influence
organizational performance, other areas, such as strategic implementation, may require further
refinement. Overall, this research provides valuable insights into the role of strategic planning in
organizational performance within the context of Bishoftu City Administration. The findings
offer practical implications for improving strategic planning processes and enhancing
organizational effectiveness in similar public sector settings.