The Effect Of Strategic Management Practices On Organizational Performance: The Case Of Ethiopian Airlines

Abstract

The objective of the study was to assess the effect of strategic management practices on organizational performance the case of Ethiopian airline. In order to capture the logical structure of the study, both descriptive and explanatory design was employed in this study. Total samples of 315 respondents were drawn out of 12,000 total populations for the study. The respondents were selected using proportionate stratified sampling method. Data were collected through structured questionnaire and interview. The questionnaire was tested for its reliability and found to be reliable, the data collected from the survey was analyzed using SPSS software version 25 and presented in the form of descriptive statistics, person correlation and regression. The results indicated that environmental scanning, (Sig. =.001) strategy formulation, (Sig. =.000), strategy implementation, (Sig. = .000), Strategy Monitoring and evaluation, (Sig. = .000) and challenge of strategy management, (Sig. = .000). This implies that these variables have a statistically significant contribution (Sig<.05). The Model summary of the multiple linear regressions shows that 73.2% of organizational performance level in the airlines depends on the independent variables. The result of the study is useful to organizations that wish to build strategic management practices and improved organization performance level. The study concludes that strategic management practices have positive significant effect on organization performance. Finally, the researcher has come with the suggestions for the strategy management body to improve the level of organization performance. Accordingly, the organization should be concerned and give high attention on participation of employees whenever formulate Strategy, the organization should be effectively communicating with all employees about strategic implementation action plans and provide proper training to their employees regarding the strategy implementation, organization should be reduce employee’s turnover by checking employee pay and other benefits, Organizations should also develop employee rewarding culture and invest on Employees reward to increase motivation, improve productivity, boost employee retention and create a positive work place in organization and the company should also increase number of international airport in domestic to overcome challenge of weather