Abstract: Changes in the business environment are leading to new and greater demands on strategic planning systems. Existing literature shows that strategic planning significantly enhances organizational performance. However, some organizations do not have a strategic plan. Additionally, most organizations develop strategic plan with a view of making managerial and administrative tasks easy and not with a thinking of improving performance. The aim of this study was to assess the effect of strategic planning on organizational performance. The study was conducted at Institution of Engineers Rwanda (IER) headquarters in Remera, Gasabo district, Rwanda. It adopted a cross sectional research design. A total of 322 employees and registered members from Institution of engineers Rwanda formed the target population. A sample size of 178 employees was determined using Slovin’s formula. Stratified random sampling method was used to obtain study samples. The study used both primary data and secondary data. Primary data was collected using questionnaires. Collected data was analyzed using statistical package for social science. Descriptive analysis was done to obtain frequencies and percentage of study variables. Pearson correlation and regression analysis were carried out to determine the relationship between strategic planning and organizational performance. Multiple regression analysis was employed to determine relationship between strategic planning and organization performance. Data was presented in tables, charts, figures and mathematical expressions. Ordinary least squares (OLS) regression method of analysis was adopted to determine the inferential statistics. The findings indicated that the beta coefficients of the resulting model indicate that strategy formulation, implementation and control had positive effect on institute of engineers of Rwanda performance with slopes of β1=0.306, β2= 0.236 and β3= 0.358 respectfully. The study results show that there was positive and statistically significant relationship between Strategy formulation, strategy implementation and strategy evaluation and control at P value 0.000< 0.05. Given the findings of the study strategy implementation competence as well as the control environment are important drivers of organizational performance. It implies that implementation and control initiatives undertaken are significant aspects of an effective strategic management practice for Institution of engineers Rwanda. The study recommends that institutions of engineers in Rwanda need to prepare plans to cope with changes as they face dynamically changing environments especially such changes may be unpredictable and may occur suddenly. Being a case study, the findings of this study cannot be generalized to other public institutions in Rwanda since various institutions have different structures. The study therefore recommends further studies on effects of strategic planning practices on public institutions performance.
Keywords: strategy formulation, public institutions, Institution of Engineers Rwanda, Performance.
Title: EFFECT OF STRATEGIC PLANNING ON ORGANIZATIONAL PERFORMANCE: A CASE OF INSTITUTION OF ENGINEERS RWANDA
Author: RUTEMBESA EPIMAQUE, Dr. PATRICK MULYUNGI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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