Strategic Management and Organizational Productivity in the Banking Sector.
ABSTRACT
The study is on the impact of strategic management on organizational productivity in the banking sector, with UBA as the case study. The study is done with a view of identifying the major benefits of managing strategically and also highlights the challenges faced by organizations as a result of not applying strategic planning into its management process.
The methodology adopted involved the use of primary data, through structured questionnaire collected from 160 respondents, randomly selected and determined through Yaro Yam en’s rule. The data obtained were analysed and further subjected to Chisquare statistical tool in testing the hypothesis.
The result obtained showed that productivity in the banking sector can be improved by the application of strategic management. We can therefore conclude that strategic management, if properly applied can be a major booster of organizational productivity.
BACKGROUND OF STUDY
The spate of competition among organizations has necessitated the need for improved performance if they are to realize their corporate goals.
The socio-political environment of businesses is also ever changing and thus imposes upon these entities the challenges of managing that change in order to sustain performance. Resources are limited, consumer demands are primarily directed by prices, and as such businesses and firms could not sell everything they produced.
Little attention being paid to competitors and relative competitive strength of the business, mainly due to the perception of the environment as being relatively stable and simple.
“During and after the oil crises of 1973, the world economy virtually collapsed with both inflation and stagnation at the same time, leading consumer demands to change to high quality goods and services, which in turn led to fierce international competition. (Garth, Andrea & Podolny, 2001: 25).
This trend in the socio-economic environment unfortunately continued into the 1980s where western corporations could only look as their Japanese counterparts proved capable of combining high performance in areas of productivity,
timeline and quality with a high degree of motivation and commitment from their employees. These developments resulted in both technological and economic changes that were difficult to predict with common forecasting methods.
Techniques to explain product/market cost behaviour and the dynamics of international business competition were developed and refined. One of such techniques for overcoming such problems posed by strategic changes is strategic management. M
anagement researchers have maintained that at the heart of organizational performance and productivity are three determinants: Strategy, capacity and the environment.
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StudentsandScholarship Team.
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