The effect of strategic management practices on organizational performance at Awash Insurance Company

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.