Academia.eduAcademia.edu
European Journal of Economic and Financial Research ISSN: 2501-9430 ISSN-L: 2501-9430 Available on-line at: http://www.oapub.org/soc Volume 2 │ Issue 3 │ 2017 doi: 10.5281/zenodo.889962 RELATIONSHIP BETWEEN STRATEGY FORMULATION AND PERFORMANCE OF PUBLIC ORGANIZATION IN ISIOLO COUNTY GOVERNMENT Adan Santurai, Wilson Muema, Clement Nkaabu School of Business and Economics, Kenya Methodist University, Kenya Abstract: Strategic formulation is a management tool for measuring negotiated performance targets. It is a freely negotiated performance agreement between the government, acting as the owner of public agency on one hand, and the management of the agency on the other hand. The County government strategies are anchored on the Kenya Vision 2030. In revising their strategies, the County government needs to employ participatory approach, relying on the consensus of stakeholder groups, including civil society, the private sector and donor partners. The study focused on Isiolo county government. This is because the county government has been formulating and implements their strategies for the period of 3 years. The study involved all the management employees who include head of department of the county government. There were 63 managerial staff who were involved in the study. The study adopted descriptive research design. The study adopted a census sample design since the target population was manageable and the respondents were within systems that can be accessed easily hence the sample size which was 63 respondents. The questionnaire was used to collect the data from the sample. Descriptive statistics which includes frequencies and percentages were used. Pearson correlation was used in hypothesis testing. The analyzed data was thereafter be presented for better comparison using tables. The study concludes that successful formulation of strategic plan has taken root among the County governments. The study concluded that there no leadership training that equips leaders on strategic plans formulation. The study recommends that the leadership should provide the required Copyright © The Author(s). All Rights Reserved. © 2015 – 2017 Open Access Publishing Group 206 Adan Santura,Wilson Muema, Clement Nkaabu RELATIONSHIP BETWEEN STRATEGY FORMULATION AND PERFORMANCE OF PUBLIC ORGANIZATION IN ISIOLO COUNTY GOVERNMENT support to ensure that strategic plans formulated influences the county government performance. JEL: D73, H83, J88 Keywords: relationship, strategy formulation, performance, public organization, county government 1. Background of the Study According to Hilmer (2011), sstrategic formulation is a management tool for measuring negotiated performance targets. It is a freely negotiated performance agreement between the government, acting as the owner of public agency on one hand, and the management of the agency on the other hand. The strategic formulation specifies the mutual performance obligations, intentions and the responsibilities of the two parties. Similarly, it also addresses economic/social and other tasks to be discharged for economic or other gain. It organizes and defines tasks so that management could perform them systematically, purposefully and with reasonable probability of achievement. According to a study done by Yabs (2010) on strategy formulation in Indian public organizations found that well developed strategy has led to increased performance in the organization. The study also found that strategies in public organizations are formulated in three levels that is; corporate, business and functional level. At corporate level, strategies are formulated by the top level management or the board of directors. At business level strategies are formulated by middle level managers for example; human resource manager, marketing manager, production manager among others (Tapinos et al., 2005). For downloading the full article, please access the following link: https://oapub.org/soc/index.php/EJEFR/article/view/191 European Journal of Economic and Financial Research - Volume 2 │ Issue 3 │ 2017 207