THE EFFECT OF STRATEGIC MANAGEMENT PRACTICES ON PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS

This study examined the effect of strategic management practices on performance of commercial banks. Four research questions and four hypotheses guided this research. This study employed the survey research design and their employees totaled into 420, which served as the study's population, out of which 240 employees were sampled using Taro Yamane's formula. The instrument for data collection was a self-structured questionnaire. Out of the 240 copies administered, only 226 were found usable for further data analysis and both descriptive and Pearson's and Spearman's rank correlation statistics were employed to analyze the study's data and hypotheses. According to the research, strategic planning has a significant impact on organizational performance. The study also discovered that communication had the least impact on the organizational performance. Furthermore, the study demonstrated that strategy formulation has no significant impact on the selected banks performance. The study also shows that strategy implementation has a significant impact on the selected banks performance. Finally, it was discovered that strategy control has no significant impact on the selected bank's performance. Based on the findings, the researcher recommended that corporate level managers should formulate policies that guide the development of strategic planning and ensure involvement of stakeholders in the strategic management process. It is also crucial for management of the selected banks to enhance the activities and practices that would ensure institutionalization and operationalization of strategy are efficiently undertaken. Furthermore communication should be enhanced to provide prompt and sufficient information to all stakeholders as per the strategic choices made by the selected banks. All the stakeholders should be adequately facilitated to efficiently and effectively execute their corporate obligations both individually and collectively. Conclusively management of the selected banks should foster activities and practices on participatory target setting, standard practices, performance measurement, feedback and remedial measures.