STRATEGIC MANAGEMENT PRACTICES IN THE MINISTRY OF

WATER AND IRRIGATION, IN KENYA

BY

NZUE HILDA MUTINDI

A RESEARCH PROJECT SUBMITTED IN PARTIAL

FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF
THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION,
SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI

2017
 DECLARATION

I, the undersigned, declare that this is my original work and has not been presented to any

Institution or university.

Signature…………………………… Date…………………………………

NZUE HILDA MUTINDI

D61/84169/2015

This project has been submitted for examination with my approval as the University

supervisor.

Signature…………………………….Date…………………………………..

PROF.MARTIN OGUTU

DEPARTMENT OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS

UNIVERSITY OF NAIROBI.

ii
 DEDICATION

I dedicate this project to my supportive family for their moral support, prayers and

patience throughout my study period. I also dedicate it to my supervisor who has been

assisting me during the process of writing this project

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 ACKNOWLEDGMENT

First, I am indebted to the all-powerful GOD for all the blessings He showered on me and

Protection, and for the free gift of life to seek and share this knowledge with others. I am

deeply obliged to my supervisor, Prof Ogutu and moderator Prof Aosa for their

exemplary guidance and support without whose help; this project would not have been a

success.

I take this opportunity to express my deep gratitude to the lasting memory of my loving

family, and friends who are a constant source of motivation and for their never ending

support and encouragement during this project. Lastly to the University of Nairobi for

offering this courses and for the services they rendered.

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 TABLE OF CONTENTS
DECLARATION............................................................................................................... ii
DEDICATION.................................................................................................................. iii
ACKNOWLEDGMENT ................................................................................................. iv
LIST OF FIGURES ........................................................................................................ vii
ABBREVIATIONS ........................................................................................................ viii
ABSTRACT ...................................................................................................................... ix
CHAPTER ONE: INTRODUCTION ............................................................................. 1
1.1 Background of the study ............................................................................................... 1
1.1.1 Strategic Management Practices ............................................................................ 2
1.1.2 Public Sector in Kenya ........................................................................................... 4
1.1.3 Ministry of Water and Irrigation ............................................................................ 5
1.2 Research Problem ......................................................................................................... 6
1.3 Research Objectives ...................................................................................................... 8
1.4 Value of the study ......................................................................................................... 9
CHAPTER TWO: LITERATURE REVIEW .............................................................. 10
2.1 Introduction ................................................................................................................. 10
2.2 Theoretical Foundation ............................................................................................... 10
2.2.1 Resource based view (RBV) ................................................................................ 10
2.2.2 Activity Based Theory ......................................................................................... 11
2.2.3 Competitive Advantage Theory ........................................................................... 13
2.3 Strategic Management Practices ................................................................................. 14
2.4 Strategic Management and Firm performance ............................................................ 15
2.5 Empirical Studies and research gaps........................................................................... 17
CHAPTER THREE: RESEARCH METHODOLOGY ............................................. 18
3.1 Introduction ................................................................................................................. 18
3.2 Research Design.......................................................................................................... 18
3.3 Data Collection ........................................................................................................... 19
3.4 Data Analysis .............................................................................................................. 19
CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION ................ 21
4.1 Introduction ............................................................................................................. 21

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 4.2 strategic management practices in MWI ................................................................. 21
4.2.1 Strategic implementation process .................................................................... 21
4.2.2 Employee involvement in strategic planning ................................................... 23
4.2.3 Strategy Formulation, Evaluation and control ................................................. 23
4.2.4 Effective communication ..................................................................................... 24
4.3Effects of strategic management practices on performance in the MWI ................. 25
4.4 Discussion Findings ................................................................................................ 25
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMENDATIONS ...... 28
5.1 Introduction ............................................................................................................. 28
5.2 Summary of Findings .............................................................................................. 28
5.3 Conclusion............................................................................................................... 29
5.4 Recommendation of the study ................................................................................. 30
5.5 Limitations of the study........................................................................................... 31
5.6 Suggestions for further research .............................................................................. 32
REFERENCES ................................................................................................................ 33
APPENDIX : INTERVIEW GUIDE ............................................................................. 36

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 LIST OF FIGURES

Figure 1.1: Elements of Strategic Management(Strategic Mangement Process) ............... 4

Figure 2.2: The relationship between the human and subject ........................................... 12

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 ABBREVIATIONS
MWI-Ministry of Water and Irrigation
RBV-Resource Based View
ICT-Information Communication Technology
SWOT-Strengths, Weaknesses, Opportunities and Threats
CS-Cabinet Secretary
MDG-Millennium Development Goals

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 ABSTRACT
The main purpose of the study was to establish the strategic management practices
undertaken at Ministry of Water and Irrigation, Republic of Kenya. The study was carried
out through a case study design where the unit of study was sought to find out the
strategic management practices at the MWI. The study made use of both primary and
secondary data. The respondents of the study were ten (7) heads of departments drawn
from various Sections. They included the Human resource and development Director,
Head of Accounts, Head of ICT, Director Land Reclamation, Chief Economists,
including other representatives. Both the primary and secondary data was qualitative in
nature, and content analysis was used to analyze the data. The findings of the study
established that the strategic management practices in MWI by reviewing the evaluation
of strategic management practices, and the organizational performance. The findings
established that the strategic planning processes are reviewed constantly in order to
improve on performance and performance measures. The role of all heads of Department
is important in strategy management practices, for they act as the link between different
organizational levels as they serve as performance role models. Strategic management
has a process for formulation, implementation and control, which is continuous, which is
affected when the organizational goals and objectives changes. Strategic planning plays a
major role in improving the performance of the organization. A clear vision and mission
is of importance, since it acts as a guideline to the organization. Strategy should have a
clear set of long-term goals, it should define the scope the firm and it should have a clear
statement of what competitive advantage it will achieve and sustain. These long-term
goals should also be well communicated within the organization.

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 CHAPTER ONE: INTRODUCTION

1.1 Background of the study

Strategic management is all about setting the most important objectives of organization,

prioritizing the most appropriate goals towards set objectives and thereafter working

within set time. Steiner (1979), described it as designing a long term goal and having

ways in order to achieve that goal. Strategic management is all about setting different

objectives for the organizations, analyzing the environment, within which the

organization is and the strategies set. Strategic management attempts to prepare managers

in accommodating any unforeseen changes in future within that environment. This

therefore calls for strategic management to be a process which needs to be always

complete for easy work according to Ansoff, Mc Donnel, (1990) strategic management is

a set of interacting or interdependent components e.g. planning resource allocation etc.

Every organization exists to serve the interests of others, e.g. customers, which should

therefore call for good communication to maintain the long-term relationship between the

parties involved (Cole 2006). Porter(2008),Competitive strategy:Techniques for

analyzing industries suggests that organizations should clearly define their goals, which

entails how the business will compete and objectives to which should be achieved in the

long run.

Resource Based View tends to see varying performance in different firms from the

resources available, rather than the market factor. This theory attempt to explain how

public sector/organizations output is related with the final output in the long-run

(Cynthia, 1995). Most of the public institutions cannot run without the availability of the

1
resources within, these resources have to be identified and evenly distributed. This tends

to see resources as they contribute towards superior firm performance. Its main goal of

strategy formulation is to identify the resources that are of beneficiary to the organization

and if they are limited, to increase them: how firms are different and the effect on the

performance. States that, performance differs across firms can be attributed to the

variance in the firm’s resources. The resources which are unique and are rare to imitate

can provide the basis for competitive advantages. This is because rare resources provide

economic value for the whole organization.

Peter(2005) Suggests that Activity based theory takes the firm’s entire activity set as its

unit of analysis and concentrates on the flow of all the activities unlike Resource Based

theory which is more specific to the resources. It emphasizes the impact of the firm’s

production function on creating value, while placing little attention on differences in

stocks of resources. The main goal in this theory of strategy formulation is to identify and

explore drivers that allow a firm to be more effective. According to Porter (1985) activity

based is characterized by the unit of analysis i.e. different institution’s performance

different activities differently, Systems (Interdependence of activities), activity cost

versus activity drivers. The firm therefore positions its choices of not only which

activities they need to perform but also how those activities are related.

1.1.1 Strategic Management Practices

Pearce and Robinson (2009), Describe strategic management as a process, where long run

objectives, Mission and Vision are integrated in consideration of the environmental

factors within. This process has to be directed by a strategy in place by ensuring that a

competitive advantage is achieved Johnson, Scholes, Whittington(2008) Therefore,

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strategic management is made up of different stages/process which the managers have to

undertake. Stage one entails formulation of a mission and vision statements of the

organization, which acts as the guide to the entire organizations, which act as the guide to

that organization. In stage two, objective (goals) of the organization which are directly

connected with the performance of the firm. A strategy is the crafted to achieve the

objectives enabling the firm to move towards achieving the set objectives on the third

stage according to Sagini (2007). The fourth stage entails actualization of the set plan

(strategy). This stage ensures that the system plan is executed effectively and efficiently.

This is of benefit since it enable the fir to prioritize the activities for the benefits of entire

person involved to execute the strategy Morgan,Levitt,Malek, (2007) lastly, the entire

processes need to be evaluated and initiate any adjustment in the organization.

Charles,Gareth, Melissa (2014), Managers and Supervisors don’t make strategies

decisions in a competitive vacuum, only the efficient and effective companies will in

such situations Competitive advantage can be maintained but only by appreciating how

managers undertake strategic activities within that organization. Government

organizations are expected to utilize the resources allocated effectively, with which it can

be measured through their performance. Managers should therefore take responsibilities

to formulate strategy which guide the other employees to meet their objectives. These

could however be rigid for government ministries which have chained

structures.Alkhafasi (2003), states that strategic management has four elements which

should apply in business operating organizations as shown in the below figure.

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Figure 1.1: Elements of Strategic Management(Strategic Mangement Process)

Strategy
Environmental Strategy Strategy
Evaluation and
Analysis Formulation Implementation
Control

Source: Alkhafasi, 2003.

The above defines the entire process of strategic process which is basically between the

corporation and the environment; internal and external, to handle its mission. An

organization which doesn’t apply these strategic management practices would have great

difficulties in implementing and controlling the set strategies.

1.1.2 Public Sector in Kenya

Government is a single owner, with a common strategy and coordinated arrangements for

making important decisions. Government has a strong interest of ensuring that they meet

future demands, reliability and cost effectively. Strategic Management practices are

important in a firm in that a firm with any change to implement would be a hard task to

undertake in both private and public sectors (Wheelen, 2004). Public Sector engage in

strategic management process in the daily activities towards achieving the set objectives.

It’s through this process that strategies for the organization are determined as suggested

by Thompson & Peteraf (2012).

Most of the public policies have shifted from the traditional way of doing things,

including the organizational design and management. They have improved on current

4
systematic process of improved working performance which aims at achieving the set

objectives

Different public sectors have managed to respond to these though they have been facing a

challenge from the users/employees. Therefore, the ability of the firm to respond to the

critical strategic challenges could be to review the mission and mission of the

organization to give a summary of what they do and what they can and in future.

Government is a complex business requiring high quality decisions. It requires thousands

of decisions to be taken and acted upon each day. The public sector reforms begun in

1986 reflected the realization that our arrangements for government decision making and

management.

1.1.3 Ministry of Water and Irrigation

A ministry is a government institution which is headed by the Cabinet secretary (CS),

assisted by the principal secretaries. Government ministries have bureaucratic structure,

meant to manage a specific sector of public administration. The ministry has greatly

evolved leading to two state departments under i.e. State department of irrigation and

state department of irrigation. The ministry as a whole has different functions which have

been distributed to the state departments. These departments are best done under

coordination of different sections for example, Accounts, Human Resource Management,

Procurement, Water services etc. The sections have different objectives which are

stipulated within certain timeframe to aim at achieving the main organizational goal.

Strategic management practices highly enhance the performance of the employees within

each section.

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Kenya as a country experience some challenges concerned with water services for

example, sanitation due to deterioration of existing facilities which have hence failed to

meet the demand of increasing population. All Kenya people are entitled to access safe

water and basic sanitation which helps in attaining the Millennium Development

Goals(MDGs). This therefore calls for reviews & adoption of the strategic management

practices within the Ministry. This will greatly help in achieving the Mission of the

organization both in Rural and Urban areas. Water is the most important natural resource,

indispensable for life and backbone of growth to all mankind. This therefore calls for a

sound management of all the practices which are undertaken to achieve the end products

and services.

1.2 Research Problem

Strategic management is more of organizational performance, which contributes towards

knowing why a certain organization performs better than others and the work towards

ensuring that competitive advantage is maintained in that organization to achieve the

corporate success. Mainly the competitive advantage position will include; the

environment of that organization, the capability& resources and strategies set by that

organization. Strategic management involves the development of different strategies and

thereafter formulation of policies to achieve the set goals of that organization. This

therefore forms a guideline or framework to which the organization should adapt for

future competitive advantages (Walter, 2003).

Strategic Management is mostly concerned with relating organizational resources to

challenges and the opportunities within which the organization is operating at and

therefore determining the direction to which it should undertake. The government and

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public view ministries as the tools for development and implementation of government

policies hence the management and performance of the ministries are attached with the

main role. They have however been seen not successful, which has been basically related

to the rigid strategic management practices. The motivation behind undertaking this study

is that the ministries have to align their undertakings with a strategy, Mission, Vision and

objectives, which act as guidelines to the entire organization, which has been a great

challenge.

The resources which are needed for this undertaking have to be available and evenly

distributed for effective results.It’s concluded that there is less adoption of the strategic

management practices within the government ministries in Kenya according to the Kenya

Sessional Paper (2014).Most of the studies conducted did not focus on the specific

strategic management practices within the ministries, which called for this study to

establish the strategic management practices within the government of Kenya ministries.

Most of the strategies within the ministries have been identified, that the managers can

carry to achieve a competitive advantage. Most of the decisions and acts have not been

clearly defined, they have to be SMART. The managers must have thorough knowledge

and analysis of the general and competitive organizational environment so as to take right

decisions. Most of these organizations don’t conduct SWOT analysis which familiarizes

the organization with Strengths, Weaknesses, Opportunities and Threats of the

organization from the internal and external environment. Strategic management entails

managing an organization in such a way that it recognizes the environment and ensures

that they compete effectively with their competitors. Pearce,Robinson (2009) suggests

that SWOT analysis answers the question “where are we now”. It plays a key rol in

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strategic plannin, suggestsing that a SWOT analysis constiutes the basis for the other

stages in the strategic planning process.

Kim(2004), Summarizes SWOT analysis as Business Activity planning which should be

undertaken in the real world based on the past and the future happening. The organization

need to be reviewed both internally and externally to help towards the planning of the set

objectives. This is because in cases of any changes, the organization needs to be

prepared. This analysis would lead to minimizing the common external & internal factors

which negatively affect the organization. Given a discontinuous and surprise

environmental turbulence, strategic management practices of an organization should be

flexible, dynamic and entrepreneurial so as to allow timely implementation. It is this gap

that the research will seek to bridge by conducting a study in the Ministry of Water and

Irrigation so as to answer the following questions in relation to the Ministry: What

strategic management practices are adopted by the Ministry of Water and Irrigation?

What are the effects of adopting strategic management on performance in Ministry of

Water and Irrigation?

1.3 Research Objectives

1) To establish strategic management practices adopted by the Ministry of Water and

Irrigation.

2) To establish the effect of adopting strategic management on performance in

Ministry of Water and Irrigation.

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1.4 Value of the study

This study formed a basis of further research to researchers. The study helped in

appreciating the strategic management practices within the ministries of the Government

of Kenya, especially towards achieving the set employees and ensure that information for

better management in Kenyan ministries is maintained by enhancing knowledge of

strategic management strategic practices. It also helps bring into light the importance of

adopting the strategic management practices towards achieving the set objectives.

This study also appreciate the changing environment and explain further on some ways of

analyzing the environment in the strategic formulation, implementation and control. This

study generally help all ministries to evaluate their practices and be able to align that

which doesn’t match the effective management practices. The study act as a guide to the

ministry to enable upgrade adopts any practice which was not earlier in their management

practices. It also form basis of reference in future especially in the strategic management

sector both in private and public and add knowledge to previous studies on strategic

management practices.

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 CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction

This chapter concerns the review of the literature in the previous Chapter. The chapter

covers both theoretical empirical literature. Theoretical literature concentrates more on

the strategic management practices and their relation to the strategy set towards achieving

the organizational objective but in consideration with external and internal environment.

Empirical literature mostly focuses on the studies previously done on the performance.

2.2 Theoretical Foundation

Different authors have had different theories of strategic management. Resourced based

theory is a basis for competitive advantage for all the organizations. Resource based

theory tends to see performance differences across firms as the result of differences

across firms, as the result of differences in efficiency rather than differences in market

power as discussed by Cynthia (1995).

2.2.1 Resource based view (RBV)

Resource based view (RBV) is based on the idea that effective and efficient use of

resources help place that organization in competitive advantage. Powell (2001), sees

Resource based view as one of the widely used and acceted theories of management. This

yjeory operates on two assumption; First, resources are assumed to be unlikely

distributed withi the organization which may leaad to the differences in organization

(Barney 2001b). Second, resources ware assumed to be mobile unevenly (Barney J. ,

2001b) which tends to differentiate the firms. Barney (2001b), suggests that an

10
organization’s resources should hsve at least such attributes as; valuable and non-

substitutable to be a source of competitive advantage to the firm.

Porter (1980), sees the importance of any organization analyzing the competitive

adavantage, defining a strategy then assembling any resources which are needed to

implement that strategy.The resources of the firm will incude; assets, capabilities,

organizational processes, knowledge, information, etc. These are the strengths that the

organization use to imple-ment their strategies (Porter , competiive strategy, 1980)

Resource Based Theory sees performance to be different across all firms/organizations

due to difference in efficiency but not consideration of other factors like market factors.

In explaining then differences, resource-based theories tend to focus on resources and

capabilities that are difficult to imitate, this is according to Conner (1991). sAs a theory it

has its limitations which need to be addressed. Different people have based their

arguments on theoretical literature Incases when a firm is faced with some difficulties or

complexities, it may be difficult to identify which resource of the many within the firm,

account for the firm’s success.

2.2.2 Activity Based Theory

Leontiev(1978) is often recognized as the founder of Activity Theory as it is understood

today i.e. activity is always on the top above goal-oriented actions and the operations

below and activity therefore should be understood and related with the underlying

environment (Kaptelinin, 2005). Activity theory is all about who’s doing what, why and

how. The relationship between the human(doer) and subject(deed) forms the core activity

as at below according to (Helen and Alanah 2014)

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Figure 2.2: The relationship between the human and subject

Subject Object
OUtcome
(Human) (deed)

Source: Helen and Alanah, 2014.

It’s a method which recognizes the casual relationship of cost drivers and cost activities

by measuring the cos and performance of process-related activities and cost objects.

Different costs are allocated to activities based on their use of resourcesRaffish and

Turney(1991). This theory is more of resource consumption unlike spending the

resources. It estimates the cost of resources used in organizational processes to produce

outputs. Two conditions favour the adoption of Activity based systems; relatively high

proportion of overhead in the firm’s cost structure (Cooper, 1992) and high diversity or

complexity in organisational processes or products. (Swenson, 1995) reports the use of

Activity Based Model in different organizations in strategic decision making by

modelling the consumption of resources&refining product cost calculation

Activity Based Theory is all about allocating different activities with different costings in

an organization with resources to all products and services according to the actual

consumption. This guides the organization in prioritizing the activities thereby enabling

the entire organization lay down strategies which gives them framework on what to do.

This approach recognizes the casual relationship of cost drivers to cost activities by

measuring the cost and performance of process related activities and cost drivers to cost

activities by measuring the cost and performance.

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2.2.3 Competitive Advantage Theory

Competitive Advantage Theory is based on Michael Porters works in 1980s.Competitive

advantage arises from a firms planned strategy which helps an organization maintain and

sustain a favourable market position (Porter, Competitive Advantage: Creating and

Sustaining Superior Performance, 1985) . The theory aurgues out that for an organization

to have a competitive edge it has to have an edge over its competitiors.The competitive

edge is achieved through cost differentiation,product diffrentiation and focus

strategy.Competitive advantage introduces the concept of the value chain, a general

framework for thinking strategically about the activities involved in any business and

assessing their relative cost and role in differentiation. It provides the architecture for

describing and assessing strategy linking it to company behavior, and understanding the

sources of competitive advantage.

Competitive advantage is effectively linked with the performance of an organization in

competitive market since it’s all about how a firm puts the management strategies to

practice (Porter, 2008) Competitive Advantage Theory by Michael Porter helps in

analyzing competitiveness of an organization. He Considers the competiveness of an

organization as a function of certain determinants: Factor condition, Demand Condition,

Related and supporting industries and Strategy and structure of the Firm. Porter outlined

ways which an organization can achieve a sustainable advantage ; Cost Leadership-It’s

all about providing the best quality at a lower price as compared to other competing

firms. Differentiation- It’s more about giving better benefits as compared to other

competing firms within that market. E.g. By ensuring that the product/service is unique.

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Focus- Means understanding the target Market and providing the best service of product

for it.

2.3 Strategic Management Practices

Different authors have defined strategic management practices differently, but the overall

meaning is that an organization needs to study the environment (internal & external) and

align the most effective strategy towards achieving the set objectives. The organization

need to focus on its strengths and opportunities to eliminate its weaknesses and any

threats available. This therefore calls for continuous study of the environment for any

organizational survival. This could either be through theoretical or empirical studies.

Implementing the strategic management practices is more challenging according to

Thompson and Strickland (2003). Its more time consuming it will include designing the

organization’s structure, distributing resources, developing decision making process and

managing human resource. Cynthia (1995), states that the field of strategy has taken

shape around a framework.

The expertise of the employees depends on employee’s knowledge for success. The firms

will require structures to support the creative process of these individuals

(Berley,Laudon, 2006) . Institutions have to look to their internal resources for the

formulation, implementation and evaluation of strategic management practices, which

hence calls for effective and efficient employees.

Strategic management practices consist of the analyses, decisions and different actions

which a firm can adopt to ensure that their competitive advantage is maintained. These

should therefore be enabled in the daily strategic management of the organization. Nag

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(2011) States that strategic management enables an institution to be able to shape it, for

future benefits, instead of waiting to react after something has happened, e.g. Change.

Strategic management practices can lead towards either financial or non-financial

benefits for the entire organization.

Paul (2015), States that with the growth of formal strategic planning by government it is

possible to argue that policy making in ministries should take the governments strategic

documents a framework for their policy developments work. Government employees are

engaged in policy development could be advised that they should analyze government

strategy documents and then ensure that they develop policy in line with the relevant

strategies which will mean that policies are also helping to deliver government strategies.

Alkhafasi (2003), suggests that strategic management plays a major role in developing an

awareness of processes which different orgaizations require to achieve the set objectives

through effective inter-working of all departments within that organization. This

therefore calls for frequent training of all the managers to develop their ability towards

the interelationship of the departments, thereby facing challenges which could come up

within that competitive environment. He further insists that a clear understanding of the

strategic process as an important tool for the organization to be competitive within its

working environment.

2.4 Strategic Management and Firm performance

Resources indicates that organizations which have adopted strategic management

practices are more successful than those which have not have not yet adopted these

practices according to Johnson and Scholes (2002). This applies because its assumed that

15
the focus is based on the most important things; prioritization is applied. Allocations of

resources within the organization e.g. time is properly managed, becomes efficient and

easier. Institutions which have applied the strategic management concepts have

responded positively in terms of productivity and profitability as compared to those

which ain’t for the systematic activities. This is because the systematic doing institutions

tend to foresee future outcomes based on the external and internal environment of that

organization. Firms which underestimate the strengths of their competitors often end up

to poor performance. Strategic management offers different benefits, including

competitive advantage for example through environmental scanning, external threats can

be reduced and opportunities utilized and thereby increasing the overall employee

productivity.

Strategic management contributes in problem-solving within the organization any

unforeseen challenges e.g. change management can be managed. Strategic management

empowers employers/employees towards their responsibilities. This is by ensuring that

everyone within that institution knows what is expected of them, through the vision,

mission and objective statements set. The entire strategic management process forms a

basis of identifying the strategic management practices within the institution.

There is a rapid change in the business environment within which any institution operates

for example in the Technology field which has led to increase in competition. For a firm

therefore to survive in such a competitive environment, it has to set some strategies,

which act as guidelines towards achieving the set objectives of the organization.

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2.5 Empirical Studies and research gaps.

This study is based on three theories that are: Resource-Based by Wernerfelt (1984),

Competitive Advantage by Michael Porter 1980’s and Activity based theory to try and

explain the importance of change management to an organization. The resource based

theory suggests that organizations can achieve competitive advantage based on effective

and efficient use of resources. Activity based theory recognizes the relationship between

cost driver and cost activities. Competitive advantage theory outlines ways which an

organization can achieve a sustainable advantage through cost leadership, differentiation

and focus. The literature review has identified the importance of strategic management

practices towards performance of an organization. The literature review Identified some

of the benefits of strategic management as; effective and fast decision making, long term

benefits for the organization through forecasting and incorporates preparation for future

opportunities, risks and market trends. Implementing strategic management in an

organization has some challenges for example resistance of change and resource capacity,

competition and political instability, from the previous literature review. It is the

researchers hope that the process and its outcomes will help demystify strategic

management for the modest business person operating at the lowest levels of the

economy

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 CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

This chapter describes how the study was carried out at the specific time set. It entails the

Research design, considered for the study conducted, how the data was collected and

thereby analyzed from the sample design of the population for generation of the findings

for the report given e.g. through publication research, Interviews, surveys etc. It describes

the research methodology that was employed within the study. Research methodology

provides validity, objectivity and accuracy of any data collected.

3.2 Research Design

The research employs a case study method in establishing its objectives. A case is a form

of qualitative analysis which attempts to define a specific subject. Through a case study

to be done in the Ministry of Water and Irrigation a problem the research is aimed at

solving the research problem.A case study is the most appropriate to use since it

facilitates a thorough study and analysis for the final conclusion. According to Cooper &

Schindler (2003) case studies are used in situations where the resercher wants to place

more emphasis on a full contextual analysis of fewer events or conditions.Any stress on

details provides valuable insights for problem solving and evaluating.

The case study method adopted was done in the Ministry of Water and Irrigation to get an

insight on strategic management practices adopted by the ministry and their effects on

performance. This method enabled the researcher to have an in-depth account since it is a

very popular method of qualitative analysis which employs complete observation the

institution.

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3.3 Data Collection

The study seeks to use both secondary and primary data. For primary data in-depth

interviews were conducted and the interviewees were be head of Departments in key

departments such as Operations, IT, Human resource, Finance and Marketing. Different

questions were used to get information from the interviewee. For example Open ended

questions were used to serve as a guide during the interview. The various sections were

aimed at obtaining information on firstly; demographic of the respondents, secondly

questions on strategic management practices adopted by the Organization and lastly the

effects of adopting strategic management towards the performance of the organization.

The interviewees were issued with these interview questions prior to the interview dates

so that they can familiarize themselves of what is expected of them. An interview guide

was important because provided a platform for in-depth exploration of the issues under

investigation. The interviews were conducted on head of departments because they are

directly involved in policy making decisions which touch on change management in the

organization. The questions were open ended accompanied by probing questions where

necessary to allow clarifications so as to obtain in-depth information. Secondary data was

to be obtained from various sources such as the ministry’s websites and reports.

Secondary data was used to supplement the primary data collected since it’s easily

accessible and it can be used to create new insights.

3.4 Data Analysis

The data collected from the interviews was analyzed to determine its consistency,

completeness and accuracy. The data collected used content analysis as a basis of

analysis since it is qualitative in nature. According to Cooper & Schindler ( 2003)

19
analytical method involves observation thus it is highly accurate to use. Data analysis

entailed a thorough check of all the information obtained from the respondents.The data

obtained was then to be set down,a summary obtained,interpretations drawn, and a

conclusion to be made to generate a view of how the objectives were achieved.

20
CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION

4.1 Introduction

This chapter presents the findings of research, which was guided by the interview guide,

in determining the strategic management practices and their effects towards performance

in the ministry of Water and Irrigation. Findings are also explained in comparison with

literature by other authors within this field. Content analysis was used in this study

because the researcher used an interview guide. The total number of respondents who

were interviewed was seven. All the respondents were Heads of Departments, including;

Head Accounts Unit, Director Land reclamation, Chief Economist, Director Human

Resource, Chief Finance Officer, Including others.

4.2 strategic management practices in Ministry of Water and Irrigation

The Strategic management practices adopted by the Ministry of water and Irrigation were

outweighed as to whether they are in line with the accepted strategic management

concepts and practices. Data was collected on the strategic management practices adopted

by MWI, after which the practices were evaluated in consideration with the acceptable

concepts of strategic management process, which included; Vision, Mission and

objectives, environmental scanning(SWOT Analysis), resource allocation, Succession

management and organizational structure. The practices were as discussed below;

4.2.1 Strategic implementation process

The study determined the role of respondents in the Ministry of Water and Irrigation,

Republic of Kenya, in the strategic management process. At one of the phases of the

21
strategic management process; the execution stage, a manager plays a very important

role. Managers act as link between all levels of management including upper, middle and

lower levels of management. Previous studies have found a positive connection between

the middle leveled managers towards strategic planning and effective performance.

Middle managers find two challenge which need to be studied; the linkage and the

influence of the managers considering both internal and external environmental factors.

The next phase after implementation compares the set results achieved with the target

results as at the strategic plan. From the respondents, it was clear that MWI holds annual

performance reviews, normally based on the set targets for each individual. Most

managers don’t evaluate their unit’s performance against the annual work plan targets.

The respondents came out that in preparing the annual work plans, priority is mostly

given to previously unachieved targets. The Ministry’s performance review is done in

every quarter of the financial year. The employees within the organization derive their

activities from the work plans set for Departments, which is a great challenge because

these activities keep on changings.

Strategy implementation is all about practicing the set strategy within the organization to

meet the set goals. This is all about bringing the strategic plan into reality. This can be

through budgets or policies set which hence calls for coordination between the

management and the personnel. The findings of the study correlate to Johnson and

Scholes (2002), who describe strategy as a plan forming a pattern related to the

organization’s activities; derived from the objectives of the organization which help it

achieve the set goals. The strategy of the firm is based under internal and external

22
environment within which the firm operates. According to Coulter(2005), objectives are

created accordance with the performance which can be done.

4.2.2 Employee involvement in strategic planning

The study clearly indicated that employees are often excluded in most meetings

concerning strategic planning process issues. This process is seen as a critical process

which mostly require experts to contribute thereby excluding the most important and

crucial team ; the managers and employees. This is because they believe that these are the

people who implement the strategy and therefore should not be involved in creation

because they would make strategies which favor them by considering opportunities

without much regards for possibilities and limits.

4.2.3 Strategy Formulation, Evaluation and control

Respondents corresponded that MWI undertakes planning processes e.g. procurements

and planning processes annually. They were also in agreement that the ministry has a

strategic plan for example, the vision 2030 document for strategic plans in different areas.

The respondents shared their views that’s all heads of departments were involved in

drafting strategic plan document, which was not however the final copy. The respondents

agreed that the Ministry had a Vision, Mission and Objectives which should act as a

guidance to their daily activities although most of them could not remember them. Most

of the respondents were in agreement that the MWI has strengths, opportunities,

weaknesses and threats which greatly affect the performance of the organization. The

MWI has strategic issues that should be addressed in the long term .e.g. budget for the

various activities, which had not yet be financed which therefore calls for the ministry to

23
get sources from elsewhere, including the donors. They agreed that they never receive

enough resources to achieve most of the laid down projects. The strategic management

draft purposes to add more policies and review the already existing to reflect current

practices.

Plans which have been formulated are then implemented i.e. actualization. Resources

should be adequately allocated for the implementation. Policies have also to be in place

for the success of implantation phase. This is the most challenging phase in that effective

communication and leadership is required with every employee knowing their

responsibilities. The responsibilities of the respondents are in line with the mandate of the

ministry. Poor communication within the ministry came out as one of the main challenges

which therefore hinders the organizational performance. E.g. some of the technical

sections had been separated which the respondents didn’t know.

4.2.4 Effective communication

It’s clear that from the strategic plan, communication is recognized, but doesn’t specify

on how the content would be communicated may be to the stakeholders. Respondents

didn’t have the information that they were among the stakeholders. Many changes have

been experienced by the Ministry of Water and Irrigation. It has to two state departments;

State department of Water and state department of Irrigation. Majority of the employees

say that they were not involved in these changes. They respondents agreed that they were

not prepared for this for instance a formal communication. However, all the respondents

agreed that this split was a positive move especially in job creation. Some employees

thought that the organizational culture does not promote teamwork within the

organization, not even adding value to good performance. One of the heads of department

24
thought that poor performers are rewarded all the time therefore demotivating the others.

The issue of organizational seemed not understood from the respondents as could have

been guidance from the stated core values. It was also clear that some respondents didn’t

even know to which state department they belonged. It was noted that most of the

departments didn’t have the directors but only the acting directors or representatives.

4.3Effects of strategic management practices on performance in the

Ministry of Water and Irrigation

The study findings established that organizational performance is closely associated with

the strategic management practices. These strategic management practices can help to

improve the performance of the organization by committing to the strategic planning

procedures. Engaging employees ensures that there is support for implementing the

formulated strategies which therefore motivates the employees to work and thereby

effectively perform. Stakeholders in general should be involved in the implementation

stage which is a sign of respect to their interests. Organizations should set out benefits

clearly defined by, which should reflect the mandate of the organization. The Ministry of

Water and Irrigation needs a strategic plan, which is well communicated and adhered to.

Without this, the ministry’s performance, allocation & management of the resources and

the general planning will not be effective.

4.4 Discussion Findings

The findings of the study are in agreement with those of Poister and Streib(2005) who

concluded that strategic management planning in public organizations was slowly

moving. Backoff, Weschsler and Crew(1993) explains about slow adoption rate by the

difficulty in designing and implementing the strategic management plans. Ministry of

25
Water and Irrigation has experienced changes to which it made responses. This agrees

with those of Ogwora(2003) and Kathuku(2004), who had a conclusion that Kenyan

organizations respond to changes arising with internal and external environment.

This study was basically based on different theories including Resource Based theory,

which is based on the idea that effective and efficient use of resources help place that

organization in competitive advantage, Competitive Theory aurgues out that for an

organization to have a competitive edge it has to have an edge over its competitiors and

Activity based theory is all about who’s doing what, why and how .The draft strategic

plan includes budget for the various activities and projects undertaken by the ministry of

Water and Irrigation, However the funds allocated yearly seem not to cater the

expectations of the Ministry. The Respondents indicated that MWI is sometimes

underfunded by the Government which even calls for Donors to intervene, which clearly

shows that the strategic plan is not yet adopted.

The study identified that the MWI has embarked on strategic management planning but

yet to fully comply with the government to institute the strategic planning, which clearly

explains the differences in the views of the respondents of strategic management

practices. Most of the Heads were new in their departments which could have led to the

reason behind being uninformed about the strategic plans. This even has affected their

interests towards implementing the plans since they were not involved in the

preparations. If strategic plans are properly managed e.g. through involvement of all

parties then this would lead to an organizational culture. Strategic plans are expected to

be guidelines and therefore as reference for all the activities and decisions of the

organization. Lack of a strategic plan within the organization clearly explains why most
26
of the Heads of Departments cited underfunding as a challenge towards the

organizational performance. A plan enables an organization to even prioritize activities

and even allocate resources based on the mandate. This mandate (Vision, Mission and

Objectives) need to be clearly communicated and understood by everyone.

27
 CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMENDATIONS

5.1 Introduction

This Chapter gives a summary, conclusion and recommendations from the study findings

carried out. This chapter also gives suggestions for further studies. The study was on

strategic management practices undertaken in the Ministry of Water and Irrigation

5.2 Summary of Findings

The research was on strategic management practices undertaken in the Ministry of Water

and Irrigation .The findings brought out that Strategic management process is mainly the

responsibility of the managers within that organization especially in the execution stage.

Managers and employees are often excluded from the strategic planning process because

some experts believe it is not a good idea for the strategy process be influenced by those

supposed to implement them. This is because these employees may view the world in a

different ways for example, in limitations where a strategy is supposed to consider

opportunity. Strategic management process are reviewed more often in order to improve

on performance. Performance measures also assists in to determine when a strategy

within an organization requires adjustment. Strategy is a continuous process rather which

includes several phases; planning, Implementation and evaluation. Evaluation some

organizations involves how the strategy has been implemented and its outcomes.

Implementation process can vary from different organizations, with strategic plans .The

strategic process in planning and implementation include; evaluate the strategic plan;

creating a vision for implementing the strategic plan; selecting an implementation team;

scheduling meetings

28
especially for progress reports. Pressure towards achieving the set targets is very high and

to ensure that people’s performance is directly associated with the organizational goals.

Performance can be managed through the performance management process. The key

performance indicators are mostly based on the very critical aspects/areas of our

organization’s performance. Key performance indicators are metrics used to help a

business measure it’s progress towards achieving its success factors, and can be

expressed in either financial or non-financial terms. Strategic management is a process

which an organization develops and implements laid down plans that are related to the

organizational goals and objectives. This process is not rigid in that whenever the

organizational goals objectives changes, this also changes the entire process.

The study determined a framework related to organizational performance e.g. planning.

The study established that planning is not closely linked to the performance of the

employees. Strategic planning can help to improve the performance of the organization

by committing the planning procedures. The researcher found out that planning is mainly

done throughout the system by a certain framework and committees responsible. The

findings also established that there is a period evaluation of strategic plans, which is

normally done quarterly, which is necessary to have towards making a comprehensive

plan for the organization.

5.3 Conclusion

The findings of the study shows that MWI has approached the process of strategic

planning though different challenges are experienced in completing the process. These

challenges need to be handled to ensure objectives of the entire organization are met.

29
This therefore calls for the Ministry to find different ways of completing the strategic

planning process. This is because the strategic plan plays a very important role within the

organization, especially towards the long-term plans of the Ministry. The Ministry should

also engage in strategic management practices to achieve its strategic objectives.

The organizational management should also ensure that the top management is involved

in the strategic management process. The ministry should also ensure that policies

organizational structure are in place to support the implementation of the plans set.

Effective communication should also be maintained within the organization to every

party involved for example, employees, customers, which ensures that not only that

strategic plan is understood but also knowing that they play a role in implementing it.

5.4 Recommendation of the study

The study suggests that all managers in the Ministry be trained on the Strategic

Management process. The training will probably help the ministry to address challenges

both from internal and external environment and even be able to get a strategic plan

which can be communicated within the organization and thereafter implement it. The

study also recommends that any changes in the ministry of water and irrigation should be

effectively managed and communicated to the concerned party for improvement in

performance. The changes can be managed by ensuring that strategies are in place to deal

with the changes. They should also train the employees on how to adapt changes in case

they come up.

Changes within the ministry should be closely monitored and negative changes occurring

should be well managed before the impact is felt by the entire organization. Proper

30
allocation of resources both financial and human, should be adequate for the strategic

plan to work. Resource based planning should guide the ministry in making decisions,

this is to ensure that all departments remain effective in their areas of specialization

which thereafter leads to better performance from the entire organization. Resource based

view will guide the management in distributing resources allocated, thereby not

excluding some important projects which could be left out in cases of activity based

view.

5.5 Limitations of the study

The respondents were so green in their managerial positions due to the formation of the

two state departments; State department of Water and State department of Irrigation

effect which could have compromised the reliability of the date collected. Some were

even acting, which could have limited the knowledge in terms of experience. Many

changes were taking place during the period of study which also could have affected the

data collected for example politics within the country as a factor.

The study also relied heavily on secondary data, which could be inaccurate. This data

could have been wrongly interpreted thereby affecting the accuracy of the data. There are

different Ministries in Kenya, which could have different ways of doing things. The

findings of the study also applied to the MWI, which could be different in other Kenyan

ministries. Therefore the information collected cannot be generalized before conducting a

survey in all the other ministries.

31
5.6 Suggestions for further research

The organization should consider the external and internal environment when coming up

with the strategy of the organization, for example the changing technology and market

opportunities. The strategy should be in a position to place the organization in

competitive advantage position, within the environment which it’s working in. The

strategy should also be clear from where the organization is currently and where it’s

moving towards. The objectives of the organization should be placed in a position to

which performance will be measured, in consideration of the SWOT analysis.

The study recommends a further study on challenges impeding the implementation of a

strategic plan in the MWI. A study on these challenges would improve on the

development of strategic plan for the Ministry of Water and Irrigation which would

improve the performance of the employees and thereafter services delivered effectively

and efficiently.

32
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 APPENDIX : INTERVIEW GUIDE

SECTION ONE: GENERAL INFORMATION

Name of the respondent: (optional)…………………………….

Department……………………………………………………...

Position………………………………………………………….

Number of years worked in the ministry of water and Irrigation……….

Number of years worked in current position...............................

SECTION B: STRATEGIC MANAGEMENT PRACTICES WITHIN THE

ORGANISATION

Has the Ministry articulated a vision and Mission and defined a set of value statements?

When the Vision and Mission statement was lastly updated?

Do you feel that your current Mission statement is compatible with activities being

carried on by the Ministry?

Is Strategic management communicated to the entire organization? If yes who does this

and how is it done?

How does the Ministry deal with any changes which may raise within the environment?

How does the Ministry ensure that strategic management practices are maintained in the

following areas;

• Organizational structure

• Succession management

• Resources Allocation of the organization

• The output of the organization E.g. in terms of services

• The strategy of the organization

36
SECTION C: EFFECT OF ADOPTING STRATEGIC MANAGEMENT

PRACTICES ON PERFOMANCE.

Has the Ministry developed a set of key performance indicators?

Has the Ministry developed some forms of accountability to track the issues of strategic

activities?

Rate the Ministry’s ongoing evaluation practices as it relates to strategic initiatives

What are the main challenges experienced in adopting strategic management practices

within the Ministry?

Rate your Ministry’s effectiveness at evaluating the impact of changes subsequent to

initial strategy.

Rate the level of participation in strategy evaluation for different levels of management.

Does your Ministry support staff involvement during Strategy implementation? If so

how has this done and how effective is it?

Are strategic planning Implementation steps and processes working correctly?

What do you understand by the term SWOT analysis, and has the Ministry conducted any

SWOT analysis?

Is SWOT analysis employed when dealing with significant issues outside of strategic

planning?

Does The Institution have a framework on fixing benchmark of performance?

37