IGNATIUS AJURU UNIVERSITY OF EDUCATION

RUMUOLUMENI, P.M.B. 5047

PORT HARCOURT
NIGERIA

POSTGRADUATE SCHOOL

STRATEGIC MANAGEMENT AND ORGANIZATIONAL PERFORMANCE

BY

KITA EKELE
IAUE/2021/MGT/PhD/0058

A SEMINAR PAPER PRESENTED NO THE DEPARTMENT OF MANAGEMENT, FACULTY OF

MANAGEMENT SCIENCES, IGNATIUS AJURU UNIVERSITY OF EDUCATION

SUPERVISOR: PROF. LOVEDAY OKERE

SEPTEMBER, 2023
 INTRODUCTION
 Strategic management is a field that deals with the major intended and emergent initiatives taken
by general managers on behalf of owners, involving utilization of resources, to enhance the
performance of firms in their external environments. (Nag, Hambrick, Chen 2007).

 It entails specifying the organization's mission, vision and objectives, developing policies and
plans, often in terms of projects and programs, which are designed to achieve these objectives,
and then allocating resources to implement the policies and plans, projects and programs.
Strategic management is a level of managerial activity under setting goals and over tactics while
organizational performance.

 Strategic management is involved in deploying a firm’s internal strengths and weakness to take
advantage of its external opportunities and minimize its external threats/problems (Adeleke,
Ogundele and Oyenuga, 2008). Thomas Bateman and Scott Snell defined Strategic management
is a process that involves managers from all parts of the organization in the formulation and
implementation of strategic goals and strategies. They defined strategy as a pattern of action and
resource allocation designed to achieve the organizational goals. Thompson and Strickland
(2003) defined it as the manager’s tasks of crafting, implementing and executing company
strategies.

 Organizational performance is concerned with the overall productivity in an organization in

terms of stock turnover, customers, profitability and market share. The concept of organizational
performance is core to businesses because the major objective of businesses is to make profits.
 Statement of Problem
 Lack of internal career leader: A career system is necessary to focus individual attention
on the strategic issues facing an organization over the long term. A long-term
perspective induces organizational commitment and loyalty. It enables individuals and
organizations to invest training and productivity improvements knowing that they will
reap the benefits from that enhanced knowledge and technique.
 Lack of formal training system: the importance of training has been a Neglected area
and too much of what goes on in today's organization requires specific adaptation.
Therefore managers' functions is the development the people for future advancement.
 Lack of employee voice/participation: A theory of individual self- interest, which not
only operates in terms of the economic market but with respect to socio-political values
is primary an attempt to explain an organization survival.
 Lack of broadly defined jobs: problems arise when individuals are designed to jobs
officially having lower grades, and a lower grade assignment might be seen
psychological as a career setback.
 Conceptual Framework

STRATEGIC MANAGEMENT ORGANIZATIONAL PERFORMANCE

STRATEGY FORMULATION EFFICIENCY

STRATEGY CREATION Leadership

EFFECTIVENESS

STRATEGY EVALUATION PROFITABILITY

Figure 1.1 Conceptual Framework on the Relationship between strategic management and
organizational performance.
Source: conceptualized by the researcher (2023)
 Aim and Objectives
The aim and objectives of the study is to examine strategic management
and organizational performance.
1. To examine the relationship between strategy formulation and
organizational efficiency
2. To examine the relationship between strategy formulation and
organizational effectiveness
3. To examine the relationship between strategy formulation and
organizational profitability
4. To examine the relationship between strategy creation and
organizational efficiency
5. To examine the relationship between strategy creation and
organizational efficiency
6. To examine the relationship between strategy creation and
organizational effectiveness
 Research Question
In other to accomplish the objectives stated above, the following research
questions were developed to guide the investigation.
1. What is the relationship between cultural diversity and Employee
Productivity of hospitality industry in Port Harcourt?
2 What is the relationship between diversity and Employee Productivity
of hospitality industry in Port Harcourt?
3 What is the relationship between gender diversity and Employee
Productivity of hospitality industry in Port Harcourt?
4 What is the relationship between leadership styles influences the
relationship between Workplace Diversity and Employee’s
Productivity of hospitality industry in Port Harcourt?
 Significance of the Study
One of the aims of the study is to bring to bear the relationship between strategic
management and performance in the savings and loans sector. The findings will reveal
the importance of strategic management as a key objective of the study. The study will
further identify the success factors of strategic management which will guide players
in the sector on what factors to pursue in implementing strategic management in their
organizations.

The study will further identify the pitfalls in the implementation of strategic
management so the organizations will avoid the consequences. Also, the study will
contribute to literature on strategic management and serve as a reference material to
guide other researchers who will undertake similar studies.
 Conceptual Review
Theoretical Framework -Resource-Based Theory

The theory upon which this study hinges upon is the resource-based theory of the firm which combines
concepts from organizational economics and strategic management (Barney, 1991). In this theory, the
competitive advantage and superior performance of an organization is explained by the distinctiveness
of its capabilities (Johnson, Scholes and Whittington, 2008). The resource-based view (RBV) as a
basis for the competitive advantage of a firm lies primarily in the application of a bundle of valuable
tangible or intangible resources at the firm's disposal (Wernerfelt, 1984; Rumelt, 1984; Penrose, 1959;
Wernerfelt, 1995). To transform a short-run competitive advantage into a sustained competitive
advantage requires that these resources are heterogeneous in nature and not perfectly mobile.
Effectively, this translates into valuable resources that are neither perfectly imitable nor substitutable
without great effort (Barney, 1991).
 Theoretical
Equity Theory Developed by Adams (1963).
Review
The equity theory was introduced Adams (1963) with the view that fairness and
equity are very crucial elements of a motivated individual. This theory states that
“individuals are driven by frankness, and if they identify inequalities in the input or
output rations of themselves and their referent group, they will seek to adjust their
input to reach their perceived equity” (Adams, 1963).
The theory posits that employees seek to maintain equity between the input they
bring into a job (education, time, experience, commitment and effort) and the
outcome they receive from it (promotion, recognition and increased pay) against
the perceived inputs and outcomes of other employees. An example is when
employees compare the work they do to someone else that receives a higher salary
than them. They may conclude that the person may be doing lesser work compared
to them, while receiving a bigger compensation (Kandpal, 2015). In such a
scenario, the person evaluates their own effort-to-compensation ratio to that of
another person, and the end result is a loss in motivation. When compared to
others, individuals want to get paid fairly according to the contributions in the
organization.

Empirical Review
Strategic management is an important aspect of management that elicits research interest among
scholars and practitioners. This can be attributed to the universal application of this aspect of
management discipline. One of the recent conceptual studies in Nigeria (Ujunwa&Modebe, 2012)
advocated for the adoption of strategic management approach in ensuring capital market efficiency
following the perceived pivotal role the capital market in economic development. The strategic
measure they reviewed ranged from effective regulation to achieving favorable macroeconomic
environment. They posited that these strategies will not only promote the efficiency of the capital
market, but will leverage the role of the capital market in promoting economic growth.
 Umar (2005) explored the impact of strategic management as a tool of achieving an effective and
efficient merger and acquisition at Nestle and Lever Brothers PLC. Based on the findings of the
study, it was study concluded that strategic management played a very important role in the success,
growth and survival of the company, particularly where merger was concerned. Adeyemi (1992)
discovered that there is a positive correlation between strategic management and organizational
performance in some selected Nigeria banks. Dauda, Akingbade and Akinlabi (2010) examined the
influence of strategic management on corporate performance in selected small scale enterprises in
Lagos Metropolis, Nigeria. Their findings revealed that strategic management practices enhance
both organizational profitability and company market share and it was .concluded that strategic
management practices enhance both organizational profitability and company market share and
therefore suggest that strategic planning concepts should be adopted by business organizations.
Fiberesima and Abdul Rani (2013) examined the impact of strategic management on business
success in Nigeria. The study concluded that strategic management was found to be positively
related to corporate success, and strategic management practices improve business success.
 Gap in Literature
Strategic management is a vital process for organizations to achieve their goals and objectives in a competitive
environment. However, the relationship between strategic management and organizational performance is not
well understood and empirically tested. Previous studies have used different definitions, frameworks,
methodologies, and measures of strategic management and organizational performance, leading to inconsistent
and inconclusive results. Moreover, most of the existing literature has focused on large and established firms in
developed countries or sectors, neglecting the context and characteristics of small and medium enterprises
(SMEs), emerging markets, and dynamic industries. Therefore, there is a need for more comprehensive, rigorous,
and contextualized research on how strategic management affects organizational performance in various settings
and conditions.
 Summary
The topic “Strategic Management and organizational performance”
is about how organizations plan, implement, and evaluate their
strategies to achieve their goals and objectives in a competitive
environment. It also examines how different factors, such as
organizational size, industry, culture, innovation, leadership, and
stakeholder involvement, affect the relationship between strategic
management and organizational performance. The topic is
important for both researchers and practitioners who wants to
understand and improve the effectiveness and efficiency of
organizations in various settings and conditions.
 Recommendations
 To conduct a systematic review and meta-analysis of the existing studies on the link
between strategic management and organizational performance, using a clear and
consistent definitions, framework, methodology, and measure of both concept.
 To explore the moderating and mediating factors that influence the relationship between
strategic management and organizational performance, such as organizational size,
industry, culture, innovation, leadership, and stakeholder involvement.
 To examine the impact of strategic management on organizational performance in
different context and conditions, such as SMEs, emerging markets, and dynamic
industries, using comparative and longitudinal research designs.
 To develop and test new theoretical models and empirical methods that can capture the
complexity and dynamics of strategic management and organizational performance in a
contemporary business environment.
 Contribution to Knowledge
14
1. To explore how different types of strategic management approaches affects
the performance of organizations in various contexts and industries. For
example, one could examine how strategic planning, strategic thinking, and
strategic learning influence the financial, operational and social outcomes of
organizations.

2. To investigate how strategic performance management can help

organizations align their vision, mission, and goals with their actions and
result.

3. To analyze how organizational performance can be influenced by external

factors, such as environmental uncertainty, competition, and stakeholder
expectations.
See References in Main Work

THANK YOU