Strategic Plans, Control and Human Capital Practices: Kenyan Perspective of Organizational Performance

Posted on:Apr 27,2023


Organizational performance in terms of efficiency, customer satisfaction, market share, compliance to policies, acquisition of skills and profits has been a great challenge. The specific objectives guiding the study were to establish the effect of strategic plans, strategic control and human capital development on organizational performance. The study was guided by balance score card model, leadership theory, systems theory and transactional theory. A descriptive research design was adopted in the study. The target population was 15 organization’s senior managers and 125 support staff. Stratified random sampling method was used to select 94 respondents. The study used both a closed and an open-ended questionnaire to collect primary data. Using descriptive statistics such as mean and standard deviation, quantitative data was analyzed and presented in terms of tables, charts and graphs. Inferential statistics such as correlation analysis and multiple regression analysis were used The study established a significant effect of strategic plans, strategic controls and human capital development on organizational performance. The study findings showed that when an organization creates and shares a clear strategic plan, it is able to align every employee around a shared purpose, and proactively pursue set objectives to achieve long-term goals. The study recommends that organization should set performance standards by identifying precisely the results which are desired and develop robust strategic plan, control and competent human resource.


Organizational performance refers to how well managers utilize the present resources so as to meet the needs of clients and achieve the firm’s goals (Muogbo, 2013). Organizations are under increasing pressure to implement strategic systems to keep up with the escalating competition in the global market because they managers to monitor business strategic implementation by means of comparing the actual result with the target, and the strategic goals (Lin & McDonough, 2011). Pryor, Anderson, Toombs & Humphreys (2017) observe that organizational performance is the degree to which an organization has successfully achieved its set objectives because strategy is a more comprehensive, in-depth evaluation of strategic planning, planning, implementation, and other activities related to strategic thinking and practice (Thomas, Sargent and Hardy, 2017)

Yasmin & Musmuliana (2016) observe that organizational performance of Hospitals in South Africa was improved through better working environment, training, skill and management involvement.

In Kenya, Ngumbau (2013) indicates that challenges of implementing performance management systems include lack of clear link between annual corporate planning cycle and performance planning cycle, setting of weak performance measures, complexity of the evaluation tool, under-utilization of performance monitoring tools like tracking sheets and performance boards, inadequate performance feedback mechanisms.

Organizational performance should be measured in terms of financial and non-financial indicators, as per the Balance Scorecard (BSC) model proposed by Kaplan and Norton (1996) such as customer retention and satisfaction, encouraging innovation and process improvement, to motivate staff, and to improve its image. Customer satisfaction and profit were included as indicators of organizational performance based on the arguments of Bodet (2012) and Guo, Xiao & Tang (2015), who’s arguments for compliance to policies and acquisition of skills aims at preventing rule violations, thereby protecting the organization from fines and lawsuits.

Organizational performance should be calculated not only on the basis of market share, return on investment, and profit, but also on the basis of both quality and quantity measurement issues (Markiewicz, 2015) because according to Al-Haddad & Kotnour (2015), organizational performance involves achieving goals by transforming inputs into outcomes. Angle & Perry (2015) argue that the entire organization strives to work efficiently and effectively in order to achieve the best results. Guajardo (2015) argues that for positive gains in organizational efficiency, enterprise leaders should dwell on directing and attract their human control systems, shape and power, together with organizational culture, and strategy This will lead to customer satisfaction profit maximization (Guo, Xiao & Tang, 2015).

In the current study, organizational performance was measured in terms of efficiency, customer satisfaction, market share, compliance to policies, acquisition to skills and profits. The basis of measuring performance ought to be on quality together with quantity indicators, as well as the organization’s market acquisition, return on investment, and profit margin (Richard, 2016). The actual outcome or outcomes of an organization on the basis of its objectives is called organizational performance (Will, 2015).

According to Gustafson Sainfort, Eichler, Adams, Bisognano, & Steudel (2016), it will be difficult for organizational managers to determine when certain changes are needed if they do not have knowledge of the organization’s performance. Malaysian firms’ organizational performance is determined by actual output measured against intended goals and objectives. As a result, understanding an organization’s performance rate is critical for its owners or managers in order to decide what adjustments they are able to make (Lo, Wang, Wah & Ramayah, 2016). According to Al-Tit (2017), the overall performance of a Malaysian company may be decided via way of means of how properly the organization plays to acquire its goals.Yasmin & Musmuliana (2016) found important relationship between organizational performance and the work environment, training, skill, and management involvement in Nigeria in Ibadan, Oyo State, Nigeria, at Metro Specialist Hospital (MSH). According to Yasmin & Musmuliana (2016), the maximum crucial factors of organizational overall performance are excessive overall performance and extended shareholder wealth.
According to Goll & Rashid (2017), leadership is important in organizing organizational strategies, and in order to address existing organizational issues, leadership and senior management use a variety of strategies, including training, team building, restructuring, and measurement; all techniques are aimed at making sure that companies compete competitively.
Lusthaus (2018) classifies organizational performance into categories such as how the organization is capable in providing a product and a service through the efficient structures, achieves its set mission and goals, makes a good profit, and has more financial assets than it is spending.
Strategic practices
Strategic plan can be defined as the process of using systematic criteria and rigorous investigation to formulate, implement and control strategy and formally document organizational expectations (Higgins & Vincze, 2013). According to Pillania (2017) strategy practice combines the major objectives of a company, policies, and action plan into a unified whole that explains the manner wherein a corporation achieves its goals and it is a strategy for long-term success. According to Boeker (2017), strategic practice focuses on social behavior, processes, and processes that distinguish organizational strategies and strategic planning. Strategy practice leads to successful achievement of the organization’s mission, vision, and goals (Rahman, Othman, Yajid, Rahman, Yaakob, Masri, & Ibrahim, 2018).
Harris (2016) indicates that strategic practice is the managerial ability to expect, predict, keep flexibility, and motivate others to generate strategic change where appropriate. In addition, due to its ability to improve organizational performance, strategy implementation is a crucial competitive mechanism for all successful organizations to achieve their goals (Genc, 2017). Decision-making is based on a thorough analysis of the current situation, lessons learned from previous plans, expected available resources and chosen priorities. Strategic plan as a measure of strategic practice is proposed by Mintzberg (2015) who argues that human capital development is included as a measure of strategic practice.
Sarason & Tegarden (2013) argue that human capital development is the process of developing the desired knowledge, skills and abilities of the employees to perform well on the job which is achieved through effective training programs resulting into committed and motivated workforce. Agarwala (2013) show that human capital development is an overall effort to achieve cost-effective and firm performance. According to Garavan, Morley, Gunnigle & Collins (2013) developing human capital requires creating and cultivating environment in which human beings can rapidly learn and apply new ideas, competencies, skills, behaviors and attitudes.
Statement of the problem
In the last decade many flower firms in Kenya have collapsed and it is attributed to poor organizational performance due to inefficiency, poor customer satisfaction, low market share, inadequate compliance to policies, low acquisition of skills and marginal profits. The environment in which the Kenyan flower firms operate has been subject to great turbulence (Onyango, 2016). According to Maroa & Muturi (2015) flower industry in Kenya remain to hold environmental changes such as new products and services, political influences and instability among others.
The Kenya’s economy has been on the decline, as a result of post Covid-19 effects, input costs are higher than ever, production technology keeps changing and competition continues to become stiff while global prices for cut flowers has been fluctuating. Therefore, in such occurrences managers have come up with strategic practices like strategic leader’s direction, strategic plans, strategic control and human capital development to improve the organization’s performance in terms of efficiency, customer satisfaction, market share, compliance to policies, acquisition of skills and profits.
Kenyan flower industry has traditionally exported carnations and roses, but the need for profit has moved many growers to diversify into other flower plants and lucrative services such as packing flowers directly on supermarket shelves (Jane, 2018 Flower growers continue to expect to meet customer expectations in the future, as evidenced by the number of new heating houses being built near Lake Naivasha. However, the flower business has become very complex, and growers now need sophisticated market knowledge to make profitable planting and marketing decisionsA study by Titus & Cheruiyot (2016) investigated the strategic and operational relationships of Tea Estate Companies in Nandi County, Kenya and the observation was that visionary leadership was a crucial aspect the has a great influence on Tea estate companies in Nandi Province performance. The study, however, used a purposeful, biased approach to sample bias.
Kabetu & Iravo’s (2018) research focused on how strategic action influence the work of international aid organizations in Kenya and discovered that discussing strategic direction has a significant impact on UNHabitat implementation in Kenya. The study, however, relied on secondary data that may or may not be relevant to the researcher’s needs. Mui, Basit, & Hassan (2018) investigated the impact of strategic action on the performance of the Malaysian Small and Medium Enterprises (SMEs) organization and ­discovered that leadership vision, strategic direction, and basic competence have a positive impact on organizational performance that is often overlooked. However, a simple sampling method, ­which is an unconventional sampling method, was used in the study. The present study investigated the influence of strategic practices on performance of flamingo flower firm in Nakuru County, Kenya.
1. To establish the effect of strategic plans on organizational performance of flamingo flower firm in Nakuru County, Kenya
2. To evaluate the effect of strategic control on organizational performance of flamingo flower firm in Nakuru County, Kenya
3. To assess the effect of human capital development on organizational performance of flamingo flower firm in Nakuru County, Kenya
Literature review
Strategic plan and organizational performance
Khoshtaria’s (2018) research on how strategic plan impact the performance through strategy implementation, revealed that strategic planning when properly implemented in an organization, is effective in terms of growth.Rintari & Moronge (2014) study explored the impact of strategic planning on the functioning of public institutions targeted 130 management employees of the Public Service Commission of Kenya’s management where 65 respondents strongly agreed that the strategic plans of the Public Service Commission of Kenya positively impacted the performance.
Wun (2019) observed that structures designed for the flow of information from the top were unknown to all employees. The study revealed that employees at Myanmar’s Microfinance Institution were either unaware or unconcerned about program evaluation. Arasa & Obonyo (2018) while investigating how strategic planning influences firm performance discovered that strategic plan was strongly related the firm performance where all strategic plan steps were found to be positively related to company performance.
Auka & Langat’s (2016) study on the impact of strategic planning on Nakuru’s medium-sized businesses performance concluded that strategic planning is crucial for business owners and entrepreneurs seeking a competitive advantage and ensuring survival in a competitive market. Kimutai (2019) observes that increasing market share in both Kenya and other countries has increased efficiency requirements and reduced genes, leading to a market that can only be profitable through high quality production and high marketing.
Ng’ang’a (2018) contends that the role of strategic leaders does not end with the setting of strategic direction because it also entails monitoring the process of implementing the set strategic plans. It is essential that stakeholders are involved in developing the plan to ensure legitimacy, ownership and commitment to the plan (Brews & Purohit, 2017).
Strategic leader’s direction was derived from the implied arguments of James & Grasswitz, 2016 and Keating (2016). Strategic control was included as a measure of strategic practice from the recommendations of Ojera, Ogutu, Siringi & Othuon (2017). Mostly in the organizations efficient leaders perform the common tasks in the strategy making and executing process (James & Grasswitz, 2016). According to Keating (2016) strategic leader’s direction plays a key role in enforcing a strategy because he/she assimilates the strategy with vision to enrich the capability of the firm to perform well or according to the need.
Strategic control and organizational performance
Ndegwa (2013) discovered a significant and positive relationships between the times in which the strategies are used and the company’s financial performance. Gaturu, Waiganjo, Bichang’a, & Oigo (2017) observed that mission hospitals in Kenya have systems in place to adjust or change strategic plans as needed. Rocha, Cunha, Duclos, Veiga, & Neves (2015) research investigated the impact of strategic control systems on performance of the organization and concluded that the positive impact of dynamic tension as a result of balancing of strategic control and performance allows an organization to maintain its competitive advantages.
Pratistha (2016) discovered that firms using Indonesian local technology must try to use strategic controls in anticipation of changing business conditions, establishing strategic strategies, and developing competitive strategies that align with the company so as to be competitive. According to Suneet (2019) strategic control practice aims at identifying, sequencing and timing medium-term interventions for the organization in a comprehensive way. This provides not only an organizational perspective into strategy but also a strategic angle for examining the process of organizing (Spee & Jarzabkowski, 2019).
Ireland & Hitt (2013) identified strategic control as a critical variable which shapes a long-term vision of an organization. According to Lear (2015) determining the organization ‘s direction refers to developing a long-term vision by the strategic leader because the key responsibility of strategic leader’s entails setting the direction that an organization takes through the development of vision, mission, and core values (Bryson ,2014). Okibo & Masika (2017) argue that strategic direction is an aspect that helps leaders in organizations to be orderly and strategic as they lead organizations on a daily basis.
Human capital development and organizational performance
There is a weak but positive role of human capital on the successful running of an organization but management, believes that human capital has a weak association with the performance of a firm. (Deniz, Cimen, Atan, & Kaya,2017). People’s investment and organizational performance have significant positive relationships, therefore, providing quality education as well as relevant training that is linked to industry requirements is recommended (Odhon’g & Omolo ,2015).
Ukenna, Ijeoma, Anionwu, & Olise (2010) found that training and skill, rather than knowledge and education, are the best predictors of human skill performance. Afrah’s (2016) research findings indicate that the role of people in the functioning of the organization is crucial for the profitability of the organization and the practice of human resources is critical in the development of employee capacity. Abdow, Guyo, & Odhiambo (2018) evaluated how human capital development had an impact on Kenya’s petroleum and findings of this study discovered that human resource development has a positive and significant impact on organizational change in Kenya’s petroleum industries.
Maran (2015) indicates that firms seek to optimize workforce through comprehensive human capital development programs not only to achieve business goals but most important is for a long term survival and sustainability. Mahroum (2017) suggests that firms need to invest resources to ensure that employees have the knowledge, skills and competencies they need to work effectively in rapid changing and complex environment. Human Capital Development is a key element in improving productivity as well as sustain competitive advantage (Sharabati & Nour (2015)
Conceptual framework
The framework gives a description of how the variables are related.
Figure 1: provides the independent variables as strategic direction, strategic planning, strategic control and human capital development and dependent variable as organizational performance.
Research design
The research employed a descriptive research design. A descriptive study, according to Kombo & Tromp (2006), is carried out to ascertain and defines the traits of the elements of problem in a scenario. The goal of the design was thus to provide a profile to the investigator or to explain appropriate elements of the phenomena by gathering and presenting information according to the respondents’ viewpoint without modification.
Target population
Cooper, Schindler & Sun (2011) define the target population as a big population that selects a sample can be obtained from. The study targeted flamingo flower firm in Nakuru County because the organization had a bigger share in the flower industry in Kenya. The respondents included the 15 organization’s senior managers and 125 support staff (Flamingo flower firm, HRM Report of 2020). This was because they were straightforwardly engaged with the implementation of the strategy. The target population distribution is set out in Table 1
Sampling design and sample size
Fowler (2013) observes that a sample design specifies how the way in which sample is obtained from a given population. Using the stratified sampling method, respondents were divided into two groups: organizational senior managers and support staff. The selection of the respondents was done through simple random sampling.
The study employed Taro Yamane’s (1967) sample formula for sample size determination, which accounts for a 5% margin of error.
n =  =  = 104 = 104 – 10 = 94
The sample size was 94 respondents which represented 67.1% of total population. A 0.671 was used to calculate the proportionate distribution of sample size. Table 2 illustrates this.
Data collection procedure
The flamingo flower firm’s management and government officials were contacted. The questionnaires were self-administered. In order to guarantee a higher rate of response, respondents were notified of the date on which the questionnaire were compiled, and one respondent from each stratum was appointed to emphasis the need to attend to the questionnaires to their colleagues.
Data collection instrument
For the primary data sources, the study used questionnaires which were in a structured form to improve the answers received from the respondents by enabling them to express their opinions on various elements of the research. The questionnaires were categorized into sections, numbered A, B, C, D, E and F, they were represented by respondents’ background information, strategic direction, strategic planning, strategic control, human capital development and performance respectively. Likert scale was used in constructing the questionnaire that enabled the respondents rate the way they concurred with the listed questions regarding each variable.
Validity of the research instrument
Testing of validity is done to determine whether the tools will give accurate results as expected (Orodho, 2005). Therefore, in the current study, a content validity was determined. In addition, to ensure clarity the supervisor was consulted to give guidance on questionnaire. The study made use of Shore & Tetrick’s proposed construct validity in 2009 to determine validity by looking at whether the instrument corresponds to the ideas and hypothetical expectations. The face validity was also applied by assessing whether the procedural measures used are valid to each variable. In addition, content validity was applied to make sure that the instrument bears clarity and expresses a language that can be easily understood by ensuring that the words used are familiar to best of the respondents’ knowledge.
Reliability of the research instrument
The internal consistency of the questionnaire was tested using the reliability test described by Cooper and Schindler (2011). Cronbach alpha test measured the reliability, with the Cronbach alpha coefficient calculated from the data collected. Mugenda & Mugenda (2003), advises that a test score lying between 0 to 1, with higher test scores indicas that the instrument is more reliable. Furthermore, Mugenda & Mugenda (2003) recommend that if the alpha value is at 0.7 or more then the reliability is good. As a result, as shown in Table 3.3, this study obtained a 0.805 coefficient.
Data analysis and presentation.
The information gathered using questionnaires were done by editing, cleaning and categorizing the as per the theme for meaningful presentation of data. In accordance with the research variables, thematically analyzed qualitative information was described in narrative form. The process of analyzing data in quantitative nature was done descriptively using means and standard deviations. The presentation of the results was done in a tables or a figure which were generated using the Statistical Package for Social Sciences (SPSS) version 21.0. Description of inferential statistics was done involving the correlation and regressions analysis that presented the way the variables related to one another.
The final form of equation was:
Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε
Y = Organizational Performance
X1 = Strategic leader’s direction
X2 = Strategic plans
X3 = Strategic control
X2 = Human Capital Development
β1, β2, β3 and β4 = coefficients
ε = error term
Results and discussion
Response rate
The sample size for the study was 94 respondents constituting of organization’s senior managers and support staff of Flamingo flower firm.
Table 3 indicates that organizational senior managers’ response rate was at 90.0% and that of the support staff was at 96.4%. The overall response rate stood at 95.7 percent. Mugenda and Mugenda (2003), note that if the study achieves a response rate of above 50% then it is fit for analysis. In that case a 95.7% response rate of the current was considered enough for analysis.
Descriptive statistics
Findings from the descriptive analysis were presented using Mean (M) and Standard deviation (SD) for research purposes. The findings are presented as follows:
Respondents agreed that a strategic plan enables organizations to anticipate their future and plan accordingly (mean of 4.66). However, forecasting of the future and plan was minimum (standard deviation of 0.34). Long term plan allows an organization to increase its market share as given by mean of 4.61. Variation was too low (standard deviation of 0.39). The findings collaborate with the results of a Rintari & Moronge (2014) study that focused on how strategic planning influences Kenyan public institutions performance. The study found that the strategic plans of the Public Service Commission of Kenya had a positive impact on their performance. The research concentrated on government institutions in Kenya.
The respondents agreed that strategic plans determine organizational performance (mean of 4.09) whose variance was low (standard deviation of 0.01). The organization short term plan determines level of efficiency (mean of 3.99) which in turn varied slightly (standard deviation of 1.01). Strategic plans enable the firm to flag its potential internal/external shocks (mean of 3.83) little variation with little variation of (standard deviation of 1.17) and prepare the firm to be more effective in adapting. Therefore, there was little variation flagging and effectiveness. The finding is consistent with Arasa & Obonyo’s (2018) study outcome which correlation analysis results show that there is a strong relationship between strategic planning and strong performance. The study was based on small-scale industrial enterprises located in the Gachsaran industrial area.
The respondents somewhat agreed that the organization medium term plan helps the firm to increase profits (mean of 3.22) which slightly varied (standard deviation of 1.78). The results differ with the findings of Auka & Langat’s (2016) research on how strategic planning affects operations of SMEs in Nakuru. The findings showed that strategic planning had significantly influenced the performance. The findings underscore the importance of strategic planning for business owners and entrepreneurs to gain competitive advantage and ensure survival in a competitive market.
The aggregate mean of 4.07 indicate that the respondents agreed that strategic plans influence organizational performance of flamingo flower firms in Nakuru County. However, the variation in performance was low (standard deviation of 0.93). The result corroborates with the results of Koshtaria (2018) research which focused on how strategic planning had an influence on performance of firms. It was revealed that strategic planning, when well implemented in the organization, is effective for growth. The study concentrated on the organization’s financial aspects.
The respondents agreed that strategic control allow the firm to make continuous compliance to policies (mean of 4.72) whose variance was low (standard deviation of 0.28) Actual performance present specific level of efficiency (mean of 4.72 which did not vary much (standard deviation of 0.43). The finding is similar to the results of a study by Gaturu, Waiganjo, Bichang’a & Oigo (2017) which indicated that strategic control influences performance of Kenyan Mission Hospitals. Results revealed that mission hospitals in Kenya have systems in place to adjust or change strategic plans as needed. The research utilized none probabilistic method of sampling, which could not be representative of the population.
The respondents agreed that variance leads to evaluation of customer satisfaction (mean of 4.34 which in turn had a low variation (standard deviation of 0.66). Performance standards prompt organization to facilitate acquisition of skills (mean of 3.56). There was slight variance in acquisition of skills (standard deviation of 1.44). The findings concur with the research results of Rocha, Cunha, Duclós, Veiga & Neves (2015).
The research that examined the influence of strategic management systems on organizational performance from a resource-based perspective. Evidence suggests that the positive impact of volatility arising from the balance of use of strategic controls in performance allows a third-party company to maintain its competitive advantage.
The findings are similar to the results of Ong’ombe’s (2019) study examined the influence of strategy control on the organization Performance: According to the findings of Ong’ombe’s (2019) study, the hotels in Kisumu County, strategy control had a positive significant on performance.
It was observed that strategic control enables the firm to secure compliance to policies (mean score of 3.42) with a slight variance (standard deviation of 1.58) and that strategic control determines organizational performance to a moderate extent (mean score of 3.38) and with a slight variance of performance (standard deviation of 1.62).
The results differ with the Lubanga’s (2019) study, which focused on the influence of strategic management strategies on non-financial performance: A case of Nairobi hospital results revealed that strategic control is widely used in mechanical hospitals. Strategic management, as one of the most important components of strategic management, was seen to have a vital and relevant instrument in enhancing organizational performance and efficiency.
The aggregate mean of 3.99 indicate that the respondents agreed that strategic control influences organizational performance which varied slightly (standard deviation of 1.01). The results are aligned to findings of Pratista (2016), who investigated the impact of strategic management, strategic direction, and business environment on competitive strategies and its influences on performance of businesses and results show a diverse association.
The findings indicated that talent management is associated with acquired skills in the organization (mean of 4.59) though with low variation in acquired skills (standard deviation of 0.41). Human capital development affects performance (mean of 4.52) which in turn had a low variation (standard deviation of 0.48). Odhon’g & Omolo’s (2015) investigated the influence of human capital on incomplete Kenya pharmaceutical companies.
The findings found that human capital was positively related to organizational performance. Cluster samples was used that tend to have a larger sample error. The current study used a stratified sample method. The findings of the current study support the results of a study by Rahman & Akhter (2021) on the influence of human capital on banking operations. The results revealed that staff training, level of knowledge, and skills were positively correlated with banking performance.
Training leads to continuous improvement in the organization (mean of 4.25) variation in improvement was low (standard deviation of 0.75). Level of expertise in the organization enhances customer satisfaction (mean of 3.92). There was some variance in customer satisfaction (standard deviation of 1.08). Talent management is associated with acquired skills in the organization (mean of 4.59) but a low variation in acquired skills (standard deviation of 0.41). The results concur with Ukenna, Ijeoma, Anionwu & Olise’s (2010) study outcomes.
The focus of the study was on the impact of investment on human development in the organization, and the findings showed that training and skills are better predictor of human success than knowledge and education. The results also support the findings by Hashim, Osman & Alhabshi’s (2020) study that evaluated the intellectual capital effect on organizational performance. The research discovered that intellectual capital had a substantial impact on Malaysian firm’s performance.
The aggregate mean of 4.16 indicate that the human capital development influenced the organizational performance of flamingo flower firm in Nakuru County. However, there was low variation in organizational performance (standard deviation of 0.84). The result is consistent with the outcome of Deniz, Cimen, Atan, & Kaya’s (2017) study, on how human capital had an impact of performance in healthcare organizations. The observation was that human capital had a positive influence on performance.
The respondents agreed that efficiency of operations of the organization affect organizational performance (mean of 4.67) though with very low variance (standard deviation of 0.33). The market share influences organizational performance (mean of 4.48) but variance was low (standard deviation of 0.52). According to Venkatraman & Ramanujam (2016) market share is an important factor in market competition, or how well a company performs compared to its competitors.
The respondents agreed that compliance to policies, improvements, profits, acquired skills and that customer satisfaction are important in organizational performance (mean of 4.41, 4.34, 4.14 and 4.06 respectively) Whose variance was standard deviation of (0.66, 0.86, 0.94 and 1.11 in that order).
The observation by Al-Haddad & Kotnour (2015) showed that the firm’s performance involves achieving the goals of a business by transforming ideas into results. Therefore, this indicates that performance is laid on the basis of financial and non- financial ­organizational factors. Lusthaus (2018) ranks the organization’s performance into categories that include the capability of the firm in providing better products and services. It is also categorized into a well-functioning design, achieving its intended goal and achieving its objectives, profiting assets and being more financially viable.
The aggregate mean of 4.28 indicate that efficiency, customer satisfaction, market share, compliance to policies, acquisition of skills and profits influence organizational performance of flamingo flower firm in Nakuru County, Kenya. However, organizational performance didn’t vary much (standard deviation of 0.72). According to Guajardo (2015), business leaders must pay attention in the alignment, involvement of individuals, systems in managing human resources, structuring, power, culture and strategy to build organizational efficiency.
Results of regression analysis
The achieved p-value of 0.000 which is below 0.05, indicating that the strategic plans were significant when tested at 5% level of significance.
When tested at 5% level of significance, the p-value of 0.002 indicated that the strategic control was significant.
When tested at the 5% level of significance, the p-value of 0.001b is less than 0.05, indicating that human capital development was significant.
The results as demonstrated in Table 4.10 is that 0.874 as the value of constant represents the value at which the performance changes when and human capital are kept at constant.
Y = 0.874 + 0.897X1 + 0.506X2 + 0.525X3 + ε
Y = Organizational Performance
X1 = Strategic leader’s direction
X2 = Strategic control
X3 = Strategic plans
X4 = Human capital development
The study found that 0.897 units represented the amount by ­which the performance changes when strategic control is changed by one unit, strategic plans and human capital development ­constant.
Approximately 0.506 units represented the amount by which the organizational performance changes when strategic plans are changed by one keeping strategic control and human capital development constant. Organizational performance changes by 0.525 units when human capital development is changed by one unit keeping strategic control and strategic plans constant.
Management and staff of organizations gain from the research findings in discovering how strategic practices affect performance. The results benefit national, county governments and policy makers in drafting policies that enable the organizations respond changes. This research adds information to existing body knowledge
The study concluded that strategic control is concerned with tracking the strategy as it is being implemented, detecting problems or changes in the premises and making necessary adjustments. Strategic controls are intended to steer the company towards its long-term strategic direction. After a strategy is selected, it is implemented over time so as to guide a firm within a rapidly changing environment. The purpose of strategic control is to identify whether the organization should continue with its present strategy or modify it is the light of changed circumstances.
The study concluded that when an organization creates and ­shares a clear strategic plan it is able to align every employee around a shared purpose, proactively set objectives to help in getting where it wants to be, define long-term goals, and then set shorter-term goals to support them, assess its current situation and any opportunities or threats, the organization becomes more durable because it is thinking long-term and increases motivation and engagement.
The study concluded that human capital development creates a strong organizational culture that promotes employee development, honest feedback and commitment to company goals. It gives employees more control over their careers and encourages them to dedicate their skills and talent to the employer for the long term. When an organization invests in professional development for its staff leads to greater job satisfaction, improves retention rates and help to grow its employee engagement increasing their productivity levels thus higher organizational performance.
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Dr. Chris Simon Sitienei Kipkorir
School of Business, Economics and Tourism,
Kenyatta University, Box 43844-00100 Nairobi City, Kenya

Daniel Kibet Koech, PhD Student
Károly Ihrig Doctoral School of Management and Business,
University of Debrecen, Debrecen, Hungary

Esayas Degago PhD Student
Károly Ihrig Doctoral School of Management and Business,
University of Debrecen, Debrecen, Hungary

Shah Ali Murtaza PhD Student
Károly Ihrig Doctoral School of Management and Business,
University of Debrecen, Debrecen, Hungary

Dr. Attila Szakács College Associate Professor
Institute of Marketing and Commerce, Faculty of Economics and Business, University of Debrecen

Dr. Edina Molnár
Psychological Department, Social Sciences Institute, Faculty of Health Sciences University of Debrecen