Abstract:
The purpose of this study is to examine the effects of strategic management practices on
organizational performance at Awash Insurance Company. . Source of data used was a
close ended Likert Scale based Questionnaire and gathered from a sample of 110
employees that were selected using simple random sampling method. The data obtained
from the survey were then analyzed with the use of SPSS. Data was collected through
questionnaire using statistical tools such as mean, standard deviation, correlation, and
multiple regression analysis. Results of this study indicate that, strategic management
practices dimensions such as (environmental scanning, strategic formulation, strategic
implementation, and evaluation and control) have positive and significant relationship
with organizational performance, but less effect was contributed by the strategic
implementation practice. This research was concluded as strategic management practices
had major influence on the performance of the insurance company. Forwarded
recommendations include strong effort should be given on strategic implementation by
improved goal communication and rewarding systems, evaluation tool advancement and
effectivity linked with technology, taking proactive corrective actions will improve the
organizations effectivity. Researcher also suggests further studies on Strategic
management practices specifically on Africa and Ethiopia cases where we lack information
that is practical to us.
