Influence of Strategic Control on Organizational Performance of Mission Hospitals in Kenya

Abstract

In Kenya, there is increased public concern about health issues because of changes in funding; technology and demand of healthcare services delivery, that has dramatically changed over the last decade. In the context of these challenges, it is imperative for mission hospitals to know what strategic management practices contribute to superior organizational performance. These are the factors that mission hospitals need to treat with renewed emphasis to improve healthcare service delivery and boost the healthcare sector in Kenya. Kenyans are entitled to a life of dignity and access to the highest standards of healthcare service. A healthy population is the most significant capital in steering economic and social development in Kenya; and is guaranteed as a basic human right. Mission hospitals contribute 43% of healthcare service delivery and are committed to proving comprehensive and sustainable quality health care service to all. Strategy cannot be formulated or adjusted to changing circumstances without the process of strategic evaluation (Johnson & Sholes, 2000). Strategic evaluation translates an organization’s strategic goals into a set of interlinked financial and non-financial objectives that are commonly used in firms. Research however indicates that evaluators tend to discount the nonfinancial performance of firms (Johnson, Reckers & Bartlett, 2014) and that the knowledge on specific strategic evaluation systems used in practice and their effectiveness in decision making process are still fragmented and ambiguous (Riccardo et al, 2014). Many Mission hospitals have adopted strategic planning practices to improve their organizational performance. However, it has been found that only 25% of all strategic plans are realized; and that organizational performance declines despite their adoption. Strategic evaluation is not done in organizations; and Church Health Association of Kenya and Ministry of Health identified it as a weakness in Mission hospitals. Knowledge on influence of strategic evaluation on organizational performance is also limited. Hospitals are first points of healthcare service delivery and are indispensable in fostering healthy populations around the world. This study focused on mission hospitals in Kenya that majorly serve the medium and low income groups of the population. In Africa, an old mission hospital was mainly a complex that included a church and a school, besides the mission hospital. This research therefore looked at the influence of strategic evaluation on organizational performance of mission hospitals. Superior organizational performance does not result from well-prepared strategic plans only, but imperative to ensure that the strategic plans are suitable, acceptable to stakeholders and feasible for implementation. Strategic evaluation measures have not kept pace with the rapid changes in the global business environment. While a mission hospital will have many strategic options, usually the question is how a manager will select a strategy that will lead it to success