DETERMINANTS OF STRATEGY IMPLEMENTATION IN AUDITING FIRMS OF

KENYA: A CASE OF PINNACLE AUDIT LIMITED

FRANCIS AYUME CHARLES

BUS-3-1574-1/2016

A thesis submitted in partial fullfillment of the requirements for the award of master of
business administration degree of kenya methodist unimversity

September 2020

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 DECLARATION
I declare that this research is my original work and has not been presented in any other
university.

Sign……………………………………………Date…………………………………………
Mr. Francis Ayume Charles

This research thesis has been submitted for examination with our approval as University
supervisors.

Sign……………………………………………Date…………………………………………
Miss. Mary Mbithi

Sign……………………………………………Date…………………………………………
Mrs. Kirimi Dorothy

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 DEDICATION
This work I dedicated it to my family for their encouragement and support to further my
studies and to my friends who have also been there for me and for being so inspirational in
my life.

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 ACKNOWLEDGEMENT
I would like to express my deepest gratitude to the Almighty God for gracing me with good
health and opportunities to pursue the Master program. I am greatly indebted to my
supervisors who supported me tirelessly Miss. Mary Mbithi and Mrs. Kirimi Dorothy for
their input for work right from start may the helmet of the salvation reign in you forever.

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 ABSTRACT
The global business environment has evolved since 1990’s. This change has brought
companies new realities in the form of new business opportunities for series of growth. This
caused many companies to invest many resources in devising new effective strategies to take
advantage of the new opportunities, protecting their market position, which are crucial to
continued economic existence. It has been true that effect of leadership and organization
culture on strategy implementation and how they contribute strategy implementation
evidence to where data analysis can easily be carry out by a use of a phone. The purpose of
the study was to investigate the factors influencing the implementation of strategic plans in
the Audit firm in South Sudan. The study focus on establishing the factors that influence
strategy implementation. This was done by determining the effect of organization structure
and the Human resource have on implementation of strategic plans. It also addresses the
effect of leadership and organizational culture on strategic implementation and how they
contribute to strategy implementation. The study used quantitative data collection method.
The study used descriptive research design and the target population of this study consisted
of 1830 staffs from various departments. Stratified sampling was used to divide the
population of interest and then sample random probability techniques was also used to further
identify the specific sample to be used for the study. Questionnaires were administered to the
respondents. Data analysis was carried out using statistical techniques with the help of
computer software (SPSS). The study revealed that leadership influence implementation of
strategic plans to a very great extent while organizational culture, organizational structure and
human resource influenced to a great extent. The study sought established that 57.0% of the
variations in implementation of strategic plan were explained jointly by the human resources,
organization culture, organization structure and leadership. These findings further revealed
the independent variables positively influence on the implementation of strategic plans with
leadership had the highest on implementation of strategic plans followed by human resources
then organizational structure and finally organizational culture respectively. The study
recommends that the leaders need to commit themselves more to the employees on the
importance of shared believed and values. This study recommends for review of
organizational structure to ensure that it is more effective in allowing the division of labour,
ease of decision making and flow and clarity of tasks and responsibilities.

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 CHAPTER ONE

1.0 INTRODUCTION
This chapter provides an introduction of the study based on the objectives of the study. The
purpose of the study was to investigate the factors influencing the implementation of strategic
audit plans in South Sudan.

1.1 Background of study

Organizations operate in an ever changing environment. This change is often manifested in
form of modified law, an innovative technology or a new behavior of people or customers;
this forces organizations to react accordingly (Brinkschroder, 2014). Organizations
consequently formulate plans in form strategies in order to gain a competitive edge against
their rivals or to stay afloat in the dynamic business environment. A good strategy should be
of a long term nature, innovative, inspirational and stretching, and it should have a direct
impact on the customer and competition (Corboy and O'Corrbui, 1999). The mission, vision
and major organizational goals form the basis for strategy choice (Buul, 2010).

According to Hrebiniak (2006) formulating a strategy is difficult; making strategy work -

executing the strategy throughout the organization is even more difficult. Hambrick and
Cannella (1989, p.278) state that “Without successful implementation, a strategy is but a
fantasy”. Johnson, Scholes and Whittington (2005) noted that strategy implementation
involves describing how resources are going to be use and allocated to make the chosen
strategic option happen. Strategy execution requires that all aspects of the organization be in
congruence with the strategy and that every individual’s effort be coordinated towards
accomplishing strategic goals (Richard, Kendrick and Vershinina, 2010).

Barnely and Hesterly (2008) noted that the ability to implement a strategy depends on the
adjustments of a firm’s structure, its management controls, and its compensation policies to
be consistent with that strategy. Strategies are implemented through changes in structure,
leadership, information and controls systems, and human resources (Richard, Kendrick and
Vershinina, 2010). According to Thompson and Strickland (2007), strategy implementation
can be considered successful if things go smoothly enough that the company meets or beats
its strategic and financial performance target and shows good progress in achieving
management strategic vision.
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In most public organizations, strategy execution is a depressing failure (Dooley, R.S.,
Fryxell, G.E., and Judge, W.Q.2010). Floyd and Wooldridge (2010) concur that formulating
strategy is challenging, but translating strategy into reality is often even more difficult. Less
than 50% of formulated strategies get implemented. According to Dess and Priem (2011),
great strategies are worth nothing if they cannot be implemented. Regularly cited as a top
managers’ priority, execution has emerged as the key to achieving superior organizational
results. Strategy execution is important but difficult because implementation activities take a
longer time frame than formulation requires involvement of more people and there’s greater
task complexity, and there’s need for sequential and simultaneous thinking on part of
implementation managers. In view of these factors, research into strategy implementation is
also difficult because it entails the need to look at it over time; presents conceptual and
methodological challenges as it involves multiple variables which interact with each other
and show reciprocal causality (Judge and Stahl, 2012).
Implementing strategies successfully is important for any organization, both in the public and
private organizations. As opposed to largely financial performance in the private sector, the
major task of managers in the public sector is to assure service delivery in their organizations
(Chimhanzi, 2011). To this end, one of the concepts that has been developed and is very
useful and important to management is strategy. Various leading management scholars and
practitioners have underscored the importance of this concept. (Brenes, E.R, Mena, M. and
Molina, G.E. 2007) define strategy as the determination of the basic long-term goals and
objectives of an organization, and the adoption of courses of action and the allocation of
resources necessary for carrying out these goals. Chandler considers strategy as a means of
establishing the purpose of an organization by specifying its longterm goals and objectives,
action plans and resource allocation patterns to achieve the set goals and objectives.
The Government introduced Performance Contracting in the Public Service as one of the
tools to improve service delivery. Since its introduction in 2016, the notion of strategy
became prominent in the public sector, all focusing geared towards addressing the
performance contracts. In the 20016-2007 Public Service Reforms, the Government started
implementing the Economic Recovery Strategy (ERS) for Wealth and Employment Creation.
The ERS was based on the pillars of macro-economic stability, economic growth,
strengthening the institutions of governance and rehabilitation of physical infrastructure as
well as investment in human capital. The ERS also acknowledged the role of the Public
Service as the key driver of the desired growth. The government proposed wide ranging
Public Service Reforms in the Civil Service, Local Government and Public Enterprises (State
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Corporations). The reforms the government has initiated include rapid result initiative,
performance contracting, Citizen Service delivery charter, transformational leadership value
and ethics and institutional capacity building.

Keegan (2004) stated that the rate of successfully implemented strategies is between 20% and
40%. Globally, strategy implementation is slowly taking into account functional areas such as
accounting, marketing, human resource management, or information management.

In United States of America, a study by the KPMG audit services revealed that 85%
Of strategies are unsuccessful and single most important cause of this is believed to be the
weak application of the strategies (Koseoglu, 2009). During planning, Challenges include
lack of consensus among decision makers, lack of identification of major problems, lack of
effective role formulators, unsuitable training system and unclear regulation and executive
policies. In the implementation stage obstacles include incompatible organizational culture,
competing activities among people, lack of adequate communication, lack of effective co-
ordination and “Lack of adequate information system.

In the United Kingdom, in the financial sector revealed that out of the 100% surveyed
Organizations 90% organizations failed in implementation of their strategy smoothly and
only 20% organizations were successful in implementation (Shamim, Ahmed, Gavazzi,
Gohil, Thomas, Poulsen and Dasgupta, 2013). The main reasons for strategy implementation
failure were improper monetization political influence, lack of responsibility acceptance, idle
human resources and incremental budget rather than activity base budget. In Iran a failure
rate of 70% is reported and is attributed to unclear strategy, non-acceptor organizational
culture, resource limitation, improper management team and divergent organizational
structure.

In South Africa, compensation management, managerial behaviour, institutional policies and

resource allocation have a considerable impact on successful strategy implementation within
public schools. However, on a lean success scale of one (not successful) to ten (successful)
90% of organizations do not score more than three while only 10% score more than eight. In
Nigeria, reasons for strategy implementation include poor understanding of the strategy by
the workforce and ineffective communication of the strategy to the workforce.

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The audit company in South Sudan is quite crowded. As at 31st December 2014, there were
55 insurance companies (FRA, 2016). Among them, there are 30 audit firm service providers.
The industry is governed by the financial audit Act and is regulated by finance regulatory
Authority (FRA). Kenya’s Audit industry leads within the East Africa Community (a trading
block of Kenya, Uganda and Tanzania, Burundi, Rwanda), and is a key player in the
COMESA region, (Common Market for Eastern and Southern Africa).

1.2 Statement of the Problem

Organizational culture is considered the “glue” that holds an organization together and for
others, the “compass” that provides direction (Cameron, 2005). Organizational leadership on
the other hand is the process that ensures the organizational is constantly moving forward by
seeking new opportunities to improve the competitiveness of the firm (Chathoth and Olsen,
2002).
According to Barney (1991) organizational resources are strengths a firm can conceive to and
implement their strategies. Organizational structure consists of activities such as task
allocation, coordination and supervision, which are directed towards the achievement of
organizational aims (Lin and Germain, 2003). These factors are expected to influence the
strategy implementation in organizations irrespective of whether they are in the public or the
private sector.
The transition from idea to reality or stated differently, the link between strategy and
implementation is complex. The literature suggests that successful strategy implementation is
difficult to achieve for six key reasons (Pateman, 2008). These includes continuing pressure
from stakeholders for greater profitability, increased organizations’ complexity, difficult
challenge faced by executives , low levels of managers participation across all functions at an
early stage of executing strategy, difficulty in securing the required resources to execute the
strategy and executives know more about strategy formulation than strategy implementation
(Hrebiniak, 2008).
Public sector organizations worldwide are under pressure to increase efficiency while
delivering improved and integrated services (Higgins, 2005). However, most of the more
recent reforms, under the influence of the New Public Management (NPM), have been driven
by a combination of economic, social, political and technological factors, which has triggered
the quest for efficiency and for ways to cut the cost of delivering public services
(Chemengich, 2013).

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Proper implementation of strategies is a requirement for improved service delivery in a
turbulent environment. A strategic plan for dealing with strategy implementation challenges
serves as a longterm solution to this problem in most organizations. Reed & Buckley (1988)
argue that implementation of strategy is a way in which a company creates the organizational
arrangement that allows it to pursue its strategy most effectively.

Okumus (2010) noted that despite the importance that strategy execution has, more research
has been carried out into strategy formulation while few have been carried out with regard to
strategy implementation.
Most of the previous studies were too broad and did not address the problem of this study
which is to investigate the determinants of strategy implementation in the ministry of finance
department. This study, therefore sought to investigate the determinants of strategy
implementation in the audit firms of South Sudan in order to fill the gap.

1.3. General Objectives

1.3.1 Research Objectives
The general objective of this study was to determine the factors affecting the implementation
of strategies at the auditing firms in Kenya.

1.3.1 Specific Objectives

The following specific objectives that will guide the study;
i. To determine the influence of organizational culture on strategy implementation
with the audit firms in Kenya.
ii. To investigate the influence of organizational leadership on strategy
implementation with the audit firms in South Sudan.
iii. To examine the influence of resources on strategy implementation at the audit
firms in Kenya.
iv. To determine the effect of organizational structure on strategy implementation at
Audit firms in South Sudan.

1.4 Research question

The study concentrated basically on Pinnacle audit firm in Kenya.
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 i. What are the determinants that influence organization culture
ii. What roles is the organization leadership play in supporting its performance
iii. How should organization resources be utilize to enable the firm meets its
obligation
iv. and how could the organizational structure in relation to strategy implementation
impact subordinate performance.

1.5. Justification of the study

The study may have theoretical value since it will add more knowledge on the theories. In
addition, the study will offer insights as to the determinants of strategy implementation in the
audit firms. In practice, the citizens will benefit from improved services delivery that will
result from better, more practical and feasible strategic plans developed by ministry of
finance. The government will also use the findings to formulate future strategies in improving
service deliveries in the national government in South Sudan. The study will also serve as a
point of reference to researchers interested in this area of study or other related topics.
Besides they can use this study as a basis for further research by filling the gaps in this study.
The study adds to the knowledge bank of students in strategic management and the entire
academia

1. 6 Significances of the study

1.6.1 Significance to the Board Members and Management of Pinnacle audit firm.
The board of directors and the management of Pinnacle audit may use the findings of this
study to develop solutions to the challenges of strategy implementation in the present and
future.
This may result in enhanced performance and serve as a source of reference for future
strategies that will be formulated.
The study was also expected to provide valued information that contributors of from which
they can be able to make prudent decisions about their membership to the fund.
The study findings may help contributors understand and appreciate the internal workings of
Pinnacle audit ltd in delivering their mandate to the members. This is especially Significant
now when the rates are being implemented.

1.6.2 Significance to the Government

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The government and regulators in the audit sector and the insurance sector may also find
invaluable information on how good strategies can be adopted and as a result put in place
policies that may guide and encourage other firms within and without the industry in
implementing their strategies.

1.6.3 Significance to Academicians and Researchers

The findings of this study may be important to current and future scholars who may need to
research on the challenges to strategy implementation within parastatals in Kenya. This may
help them expand their knowledge and also identify areas of further research.

1.6.4 Significance to Employees

The responsibility to implement organization strategy lies with the employees. The
Employees often take the blame and accolade in equal measures when organization
Strategy is properly or poorly implemented. Therefore, the findings of this study may of
importance to employees since it will provide an insight on the determinants of strategy
implementation.

1.6.5 Significance to Customers

The findings of this study may also be significant to the Pinnancle audit customers since they
major players in the smooth running of the organization. Customers may use the findings of
this
Study to understand the sustainability and reliability of the organization to meet their medical
expenses.

1.7 Scope of study

The purpose of the study is to establish the determinants of the Pinnacle audit firm in Kenya
in regard to strategy implementation on To determine the influence of organizational culture
on strategy implementation with the audit firms in South Sudan with a sense to investigate
the influence of organizational leadership on strategy implementation with the audit firms in
Kenya and to examine the influence of resources on strategy implementation and to
determine the effect of organizational structure on strategy implementation at Pinnacle Audit
firms in South Sudan.

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1.7 Assumption of the Study
The nature of the study called for confidential information related to the Pinnacle audit firm
in South Sudan and respondents may feel intruded when requested to complete a
questionnaire which required them to disclose such information.
In order to mitigate this short coming the respondents were assured of confidentiality and
ethical handling of the information. The study was not free of limitations. The nature of the
study called for confidential information related to the Pinnacle audit firm in Kenya.
Respondents may feel intruded when requested to complete a questionnaire which required
them to disclose such information.

1.7 Research limitation

There was challenge in accessing data due to the transformation of the local government and
also due to other occurrences. The respondents were reluctant to providing information of
the study. Due to this the researcher introduced himself as a student and explained that the
research was meant for study and the information was to remain confidential. Respondents
may feel intruded when requested to complete a questionnaire which required them to
disclose such information.

1.8 Research Delimitation

The researcher handled the limitations faced by carrying with him an introduction letter from
the university which was used to assure the respondents that the information they give was to
be treated with confidentiality and it was purely for academic purposes. The researcher issued
the questionnaires by use of drop and picks later method so as to enable the respondents fill
the questionnaire. In order to mitigate this short coming the respondents were assured of
confidentiality and ethical handling of the information.

1.8 Operational definition of Terms

Strategy
Strategy is direction and scope of an organization over the long term, which achieves
Advantage in a changing environment through its configuration of resources and
competences with the aim of fulfilling stakeholder expectations (Johnson, Scholes and
Whittington, 2008).

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Implementation
Implementation was defined as a specified set of activities designed to put into practice an
activity or program of known dimensions, (Meyers, Durlak and Wandersman, 2012).

Strategy Implementation
Strategy implementation was defined as the process that turns plans into action assignments
and ensures that such assignments are executed in a manner that
Accomplishes the plans stated objectives (Noble, 1999).

Organizational Culture
Organizational culture was defined as the company’s prevailing ideas, values, attitudes, and
beliefs guide the way in which its employees think, feel and act (Tharp, 2009).

Leadership
Leadership was defined as a process whereby intentional influence is exerted by one
Person over others in order to guide, structure and facilitate organizational activities and
relationships” (Yukl, 2002).

Organizational leadership
In this study, organizational leadership was defined as the style of leadership applied by the
management in influencing the rest organization towards achieving the goals of the
organization (Chathoth and Olsen, 2002).

Organizational Resources
Organizational resources were defined as all assets, capabilities, organizational processes,
firm’s attributes, information, knowledge, etc. controlled by a firm that enable the firm to
conceive and implement strategies that improve its efficiency and effectiveness (Rose,
Abdullah and Ismad, 2010).

Organizational Structure
Organizations structure referred to how organization arranges people and jobs so that its work
can be performed and its goals can be met (Elsaid, 2013).

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 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction
The main intention of this was to Chapter to understand of what other writters have written
about the factors influencing competitive advantage. This chapter appreciate what other
scholars have writer on current study subject and provides information that could lead to
further research in the study, most importantly the chapter looks beyond to fill the existing
gap other researchers left. The chapter also presents the conceptual and operational
framework of the study variables.

2. 2 Theoretical orientation
A theory refers to a group of interconnected ideas that help in shaping and organizing a
logical and organized view of a phenomenon with an aim of describing and predicting that
(Fox & Bayat, 2007). China and Kramer (1999) define a theory as an expression knowledge,
creative and rigorous structuring of ideas that project a tentative, purposeful and systematic
view of phenomena. A Theoretical frame work provides a particular perspective or less lens
through which to examine a topic.
It supports the proposed study by presenting known relationship among variables and setting
limits or boundaries for the study this study informed by three theories where each
academic discipline contains a number of established theoretical orientations that
have been developed over the history of that discipline. For example, a researcher
writing in the field, Jungian or behaviorist theoretical orientation. Each of these
orientations considers different types of information as important when evaluating
psychological data.
By explicitly identifying his theoretical orientation in his writing, a researcher
allows readers in the field to become immediately familiar with the ideas
underpinning his work. For instance, if an economist identifies her theoretical
orientation as Keynesian, other economists would anticipate that her paper might
concern government regulation of markets. A researcher can also use an orientation
that draws from multiple established frameworks; if this is the case, he will
describe his theoretical orientation as being influenced by multiple disciplines.
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2.2.1 Transformational leadership theory
A theory of transformational leadership posits that the role of a leader in an organization is
the ability to motivate the follower to accomplish more than what the follower planned to
accomplish (Mithas, Krishnan and Fornell (2005). According to this theory, leaders transform
their followers in three ways:

Increasing their awareness of task importance and value, getting them to focus first on team
or organizational goals, rather than their own interests and activating their higher-order
needs.

Transformational leaders use their personal values, vision, commitment to a Mission, and
passion to energize and move others towards accomplishment of
Organizational goals (Arbon, Facer and Wadsworth (2012).

Transformational leaders are proactive in that they can develop followers’ capabilities, help
map new directions, mobilize resources, facilitate and support employees, and respond to
organizational challenge. They consider change whenever it is necessary for the organization
(Kandeke, 2015). They act as agents of change and try to create it. Transformational
leadership has four components: idealized influence, inspirational motivation, intellectual
stimulation, and individualized consideration (Bass, 1985).

2.2.2 Resources based theory

Resource based theory which is said to originate from Penrose’s idea (1959) of the firm as a
coordinated ‘bundle’ of resources, tackles the question of a firm’s goals and strategic
behavior and has identified the framework that examines if resources are valuable, rare,
costly to imitate and non-substitutable. The resources and capabilities that answer yes to all
the questions are the sustained competitive advantages (Barney, Corte and Sciarelli 2008).
The supporters of this view argued that organizations should look inside the company to find
the sources of competitive advantage instead of looking at competitive environment for it. If
the strategy is a firm’s theory about how to compete successfully (Alvarez and Barney,
2002), the source of the sustainable competitive advantage is the capacity to exploit a bundle
of resources that the business has at its disposal or has access to, which are valuable, rare and
inimitable. The organization, in the widest sense of the term, must favor the coordination and
complete exploitation of the potential of these resources. Mechanisms that block or limit
imitative processes play a decisive role. A business culture, a reputation, and interpersonal
relations between managers may be the result of socially complex phenomena and therefore
difficult to replicate.

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According to research there is a growing instability of the markets which limits the
possibility of developing resources internally; in this case companies can establish a
relationship, not necessarily commercial (alliance), with one or more firms with the necessary
resource, creating a strategic alliance (Ireland, Hitt and Vaidyanath, 2002), to undertake, or at
least facilitate, learning processes and boost internal resources (Nonaka and Takeuchi, 2002)
for strategy implementation. This also makes it difficult for company management to monitor
the evolution of the strategy while it requires the company to develop dedicated resources
and capabilities to manage the cooperation and potential for conflict that coexist in any
agreement (Das and Teng, 2000).

2.2.3 The Agency Theory

According to the agency theory which explains the relationship between the principal and the
agents in organizations. Organization structure is made up of hierarchal levels where
principals and agents interact in their day to day activities in the view of realizing the set
objectives.
An agency relationship arises when one or more principals (manager) engage another person
as their agent (subordinates) to perform a service on their behalf (Audit quality forum, 2005).
Agency theory has been one of the most important concepts of the business areas especially
financial economics. Because of its importance, this theory is included in most of the
introductory chapters of the modern financial economics books and publications. It is
commonly cited as one of the key areas for progress and improvement of the modern
financial economics. Moreover, its assumptions provide wide explanations for crucial
business areas such as: merger activities, dividend policies, capital structure, corporate
restructuring, and executive compensations.
Agency theory defines the company or the firm as “nexus of contracts” between different
resource suppliers. It is centralized on two different parties: principal, who supply the capital,
and the agent who manage the day to day operations for the firm. In other words, it is the
relation between one who determines the work and another who does the work. For example,
in corporations, principals are the shareholders who delegates work to the agent which is the
manager in the company. Agency theory assumes that shareholders and managers are
motivated by their self –interest, thus managers are likely to persist their self-interest goal
that contradicts with the goals of the owner. However, agents are supposed to work for the
self-interest of the principal. This conflict results with a cost called the agency cost. This cost
17
represents the cost of supervising the behavior of the agents as well as the profit loss resulting
from operating policies and restrictions on management. Although the agency theory is
controversial and contradictory, many scientists talked about this concept and explained its
advantages and disadvantages on many business fields’ especially financial economics. The
board of directors and the top management team are central governance structures in the
agency relationship (Daily, Dalton and Cannella, 2003). Agents may have conflicting
motives with those of principal for various reasons; financial rewards, labor market
opportunities, and relationships with other parties that are not directly relevant to principals.

2.3 Theoretical framework

Transformational
leadership theory

Strategy Implementation
Resource Based Theory

The Agency Theory

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2.3 Empirical Review
In today’s competitive environment, auditing firms need more reforms to get competitive
advantage according to Hunger and Wheelen (2003) both managers and employees should
be involved in the implementation decision and adequate communication between all parties
is important for successful implementation. Elements that require consideration during the
implementation process include,

2.3.1 Annual objectives

Managers should look so critical on the issue of annual roles within the organization to
redundancies with the organization.

2.3.2 Policies.
Organization resource allocation, managing resistance to change, and organizational culture
Hunger and Wheelen (2003). Dooley, Fryxell and Judge (2000) further endorsed that there is
a positive association between strategic consensus and firm performance. Effective strategy
implementation is affected by the quality of people involved in the process.

2.3.3 Competency
Claimed the quality of people as skills, attitudes, capabilities, experiences and other
characteristics required by a specific task or position as mentioned by Peng and Little john
(2001).

2.3.4 Staff conflict of interest

Furthermore, conflict management also plays an integral role within the implementation
Process. According to (Meldrums & Atkinson, 2014), there is a need to focus on the
fundamental managerial attributes which they refer as meta-abilities. (Meldrums & Atkinson,
2014) noted that many organizations have tried to overcome this problem through building
the management competencies of their managers. They also noted that what tends to be
absent from the development programmers designed to do this is attention to any higher order
or enabling competencies. They used a case study approach to illustrate the sort of pitfalls
involved and some implications for using management development in this way.

19
 2.4 Conceptualization
Conceptual Frame Work Bryman & Bell, (2015) defines conceptual framework as a concise
description of phenomenon under study accompanied by a graphical or visual depiction of the
major variables of the study. According to Young (2009), conceptual framework is a
diagrammatical representation that shows the relationship between dependent variable and
independent variables. A conceptual framework shows the relationship between independent
and dependent variable. In this study, the dependent variable is determinants of strategy
implementation for pinnacle audit firm in Kenya while the independent variables are strategic
organization culture, leadership, resources and structure. A central tenet of positivism is that
researchers can take a ‘scientific’ perspective when observing social behavior, with an
objective analysis possible (Travers, 2001). Bryman and Bell (2007) caution against
assuming positivism and science are synonymous concepts, noting that there are some
differences between a positivist philosophy and a scientific approach. They also note that
there are some circumstances where an inductive strategy is apparent within positivist
research, with “knowledge arrived at through the gathering of facts that provide the basis of
laws.
Philosophy, objectives, strategies and functional policies. Mead identified three
characteristics of,

Leadership

Organization Culture
Strategy Implementation

Human Resource

Organization Structure

Independent Variable Dependent variable

Figure 2.2: Conceptual Framework
Source Author (2014)
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2.4.1 Organizational Leadership
In this study, organizational leadership is the style of authority applied by the Management in
influencing the rest organization towards achieving the goals of the Organization (Chathoth
and Olsen, 2002). Organizational leadership can also be viewed as a dual focused
management approach that works towards what is best for individuals and what is best for a
group as a whole simultaneously. It is also an attitude and a work ethic that empowers an
individual in any role to lead from the top, middle, or bottom of an organization. Effective
strategy implementation must be spearheaded by strong leadership that is able to consolidate
all the necessary efforts and direct them toward the organization goals.

Organization leadership and strategy implementation cannot be separated because

Organization leadership is supposed to spearhead strategy implementation. Organizations
leadership must co-ordinate resources, people and all the other things necessary for strategy
implementation in an efficient manner.
Increasing their awareness of task importance and value, getting them to focus first on team
or organizational goals, rather than their own interests and activating their higher-order
needs.
(Lin and Germain, 2003), Organizational structure consists of activities such as task
allocation, coordination and supervision, which are directed towards the achievement of
organizational aims where these factors are expected to influence the strategy implementation
in organizations irrespective of whether they are in the public or the private sector.

Intellectual stimulation is defined as having a leader who encourages innovation and

Creativity, as well as critical thinking and problem-solving. Intellectual stimulation
Involves arousing followers' thoughts and imagination, as well as stimulating their ability to
identify and solve problems creatively.
Studies conducted on the influence of intellectual stimulation include that by Jooste and
Fourie (2009) who examined the role of strategic leadership in effective strategy
implementation in South African organizations.

The study found that strategic leadership positively contributes to effective strategy

21
Implementation. The study argued that strategic leadership is supposed to offer strategic
direction and establish balanced organizational controls. The organizational leadership is able
to achieve this managing the organization’s resource portfolio (efficiently), sustaining
effective organizational culture and emphasizing ethical practices.

2.4.2 Organizational Culture

Strategy implementation (SI) is the process that turns plans into action assignments and
ensures that such assignments are executed in a manner that accomplishes the plans stated
objectives (Noble, 1999). Strategy implementation is critical to any company's success,
addressing who, where, when, and how to reach the desired goals and objectives. It focuses
on the entire organization. Implementation occurs after environmental scans, SWOT analyses
is a fundamental analysis tool that can assist in the discovery and evaluation phase of
strategic planning. Specifically, SWOT analysis helped in identifying and qualifying
strategic goals by making judgment calls about where the company currently stands
internally, with regard to its development and, externally, with regard to its market and
competition. Because SWOT analysis depends on judgment, input from multiple sources and
departments is necessary to produce a well-formed and comprehensive analysis., and
identifying strategic issues and goals. Organizations and companies that effectively
implement their strategies also realize high performance. For a company to implement its
strategic plans it requires all systems to be place, adequate resources to finance the plan,
skilled human resource and proper and well-functioning structures.
Organizational Culture includes the organization's vision, values, norms, systems,
Symbols, language, assumptions, beliefs, and habits. Ravasi and Schultz (2006) wrote that
organizational culture is a set of shared assumptions that guide what happens in organizations
by defining appropriate behavior for various situations. Organization culture is very
important in strategy implementation because the level of understanding of organizational
core values, objectives, beliefs, expectations plays a crucial role in the people level of
engagement.
Organization culture encompasses basic values, underlying norms, habits and belief that
define an organization. These aspects further define how employees operate, relate and co-
ordinate within the organization. Different organizations have different organization cultures
where people have different perceptions on the path the organization should follow. In an
organization culture where people are open to new ideas and have clear understanding of the
organization objectives implementation of strategy become easy. On the other hand an
22
organization where people are reluctant to change and has a culture of sabotaging efforts to
bring change has a high likelihood of failing in attempt to implement new strategies.
Successful strategy execution depends on doing a good job of working with and through
others, building and strengthening competitive capabilities, motivating and rewarding people
in a strategy- supportive manner, and instilling discipline of getting things done (Arthur and
Boyles, 2007). These sentiments point to the significance of staff involvement in the strategy
implementation process.

McKinsey 7-S framework developed in the early 1980s by Tom Peters and Robert
Waterman working at the McKinsey & Company consulting firm identifies seven internal
aspects of an organization that need to be aligned if it is to be successful. The framework
categorizes the seven elements into “hard” and “soft” elements. The hard elements are easier
to define and identify and can directly be influenced by the management.

They include organizational strategy statements, structure and system. Soft elements on the
other hand are difficult to describe, and are less tangible and more influenced by culture.
They include shared values, skills (employee competencies), style (leadership) and staff
(Kaplan, 2005).
Why the organization was originally created, and what it stands for, (Cameron, 2005 and
Chathoth and Olsen, 2002) used an interpretive multiple case approach to investigate the
links and relationships between strategy and operations in local government improvement
efforts under the umbrella of the Local Government Modernization Agenda (LGMA) in
England. They explored the implementation of structured change methods and performance
measurement and management initiatives that have a linked strategic and operational focus
through to stakeholder Impact. They found that the structured integration of strategic level
policy-setting and its associated operational level activity in local authorities is often obscure
and lacking in cohesiveness.

A result oriented culture is a culture that emphasis on performance and always aim to achieve
the set objectives. This is where employees of an organization will work extra miles to take
the organization to the next level. Organizations that have nurtured such culture are effective
in strategy implementation. Mohamed (2015) noted that as the experience is gained through
implementation of any task, the performance of a worker improves, time taken to perform the
activity reduces and his productivity goes up e.g. as people involved in production become
23
more efficient than before. This improvement in productivity of a worker is due to learning
effect.

Quality staff is a staff that is competent, skilled and focused to execution of responsibilities.
Personality of the employees is one of the primary determinants of
Strategy implementation actions. Judge and Stahl (1995) set up a conceptual model of
implementation effort by middle managers in a multinational context. They refined Guth and
MacMillan’s (1986) insights by identifying the relative importance of the three determinants
of implementation effort: perceived ability, perceived probability of success, and perceived
consistency between personal goals of staff and the strategic change goals. As a further
extension of this theory, they found that the personal characteristics of the managers
influence their perceptions. They also found that national culture characteristics influence the
perceptions of middle managers.

Heracleous (2000) also finds that if middle management do not think the strategy is the right
one, or do not feel that they have the requisite skills to implement it, then they are likely to
sabotage its implementation. He refers to groups within the organization who will inevitably
disagree with the strategy. These groups may sabotage strategy implementation by deliberate
actions or inactions, if implementing the strategy may reduce their power and influence.
Thus, Heracleous also sees the perceived ability and perceived consistency between personal
goals and the strategic change goals as the decisive factor.

Waldersee and Sheather (1996) believe that the approach of matching strategy and
Managers’ style ignores the causal role of the organizational context or the interaction of
personality and context on implementation actions. It is widely accepted that different
strategies need to be implemented in different ways. Their study demonstrates, at least in
manager’s influence their perceptions. They also found that national culture characteristics
influence the perceptions of middle managers.

2.4.3 Resources
Resources can be defined as the inputs used in the production of those things that we
Desire. When resources are productive, they are typically called factors of production
(Kraaijenbrink, Spender and Groen, 2010). Some economists use factors of production and

24
resources interchangeably to mean the same thing. Resources are among the most important
aspects of strategy implementation.
To successful implement strategies organizations need resources both human resources and
financial resources. Organization resources are inputs that are used in production.
Financial resources are about the finance required to fund the budget of implementing new
strategy. Strategy implementation involves organization of the firm's resources and
motivation of the staff to achieve objectives. A number of studies support the need of
adequate financial resources in strategy implementation. According to Bateman and
Zeithman (1993), a strategy is a pattern of actions and resource allocations designed to
achieve the goals of the organization. The amount and nature of resources an organization has
access to and how these resources are allocated has a significant role in strategy
implementation.
Human resources are the manpower required in strategy implementation. Strategy are
implemented by the people therefore, skills, knowledge and experience of the employees of
organization contribute to successful strategy implementation. The importance of human
resources has thus got the central position in the strategy of the organization, away from the
traditional model of capital and land (Purcell and Boxal, 2003). All leading organizations
such as IBM, Microsoft, Cisco, etc put extraordinary emphasis on hiring the best staff,
providing them with rigorous training and mentoring support, and pushing their staff to limits
in achieving professional excellence, and this forms the basis of these organizations strategy
and competitive advantage over their competitors. It is also important for the organization to
instill confidence among the employees about their future in the organization and future
career growth as an incentive for hard work (Purcell and Boxal, 2003).

Shared values which are the core or fundamental set of values that are widely shared in the
organization and serve as guiding principles of what is important; vision, mission, and values
statements that provide a broad sense of purpose for all employees (Kaplan, 2005). All
members of the organization share some common fundamental ideas or guiding concepts
around which the business is built. This may be to improve performance of their organization
or to achieve excellence in a particular field. These values and common goals keep the
employees working towards a common destination as a coherent team and are important to
keep the team spirit alive. The organizations with weak values and common goals often find
their employees following their own personal goals that may be different or even in conflict
with those of the organization or their fellow colleagues (Martins and Terblanche, 2003).
25
2.4.4 Organizational Structure
An organizational structure defines how activities such as task allocation, coordination and
supervision are directed towards the achievement of organizational aims. It can also be
considered as the viewing glass or perspective through which individuals see their
organization and its environment (Porter, 2008). There is several other definition of
organizational structure but they all narrow down on the effectively of the organization
systems.
Organization structure in this context includes board composition, co-ordination and
Supervision and communication structures. Organizations should have properly working
structures for successful strategy implementation.
A study by Gworo, (2012) determined the challenges of the implementation of growth
strategies at Equity Bank Kenya Ltd. The challenges established included resistance on the
part of the staff to accept the new strategy, political and cultural challenges. Gakenia, (2013)
investigated strategy implementation in Kenya Commercial Bank. The study found that
strategy implementation process at KCB follows the basic requirements for a successful
strategy implementation. Amollo, (2013) studied the challenges of strategy implementation at
the Parliamentary Service Commission of Kenya and found that the organization encountered
slow procurement procedures due to among others, bureaucracy in administration. Chege,
(2012) evaluated the challenges of strategy implementation for firms in the petroleum
industry in Kenya and found out that strategy implementation challenges in the petroleum
Industry in Kenya has a relationship to global oil industry factors. The numerous studies on
strategy implementation have however not focus will use on the private sector in Kenya. This
represents a gap in public sector. It is against this background that this study was proposed so
as to critically evaluate the determinants if effective strategy implementation in insurance
companies in Kenya.

26
 Figure 2.3: Operational framework

-Achieve objectives

Strategic organization -Strategic Issues

culture -Nature and development

Strategy Implementation
 Objectives achieved
 Strategies met
within time frames
-Expectations
-Mission & Vision
Strategic leadership
-Concept and opinions
-Needs assessment
Resource Allocation
-Responsibility
-Fundamental cocept

Organization Structure -Goal assessment

Dependent variable
Source: (Research, 2020)
Independent Variable
-Audit procedures
-Internal and external
-Value of money
-Environmental
Parameter factors
Parameter

27
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
The purpose of this study was to establish the determinants of strategy implementation at
Pinnancle audit Ltd. This chapter presented a review of the research methodology that was
adopted in this study. Specifically, the chapter discussed the methods and procedures that
were used in the research. These included, research design, the population of the study, the
sample size, the sample design, data collection instruments, research procedure, ethics and
the data analysis approach to be taken.

3.2 Research Design

The researcher will use descriptive research design. Descriptive study is concerned with
finding out who, what, where and how much of a phenomenon, which is the concern of the
study. Sekaran, (2013) observes that the goal of descriptive research is to offer the researcher
a profile or describe relevant aspects of the phenomena of interest from the individual,
organization, industry or other Perspective. In addition the design best fit in the ascertainment
and description of characteristics of variable in this research study and allows for use of
Questionnaires, interviews and descriptive statistics such as frequencies and percentages. In
addition a descriptive design was appropriate since it will enable the researcher to collect
enough information necessary for generalization.

3.3 Target Population

Population refers to the entire group of people or things of interest that the researcher wishes
to investigate (Bryman & Bell, 2015). The population for the study is 340 officer of Pinnacle
Audit firm working in various departments. Target population refers to the entire group of
individuals or objects to which researchers are interested in generalizing the conclusions. The
target population usually has varying characteristics and it is also known as the theoretical
population (Bryman & Bell, 2015). The study targeted assistant managers, supervisors and
officers since they are ones responsible for strategy implementation. This will comprise of 60
assistant managers, 100 supervisors and 140 officers and the city council has a total of 20
around all the city.

28
Table 3.1 Target Population___________________________________________________
Level
Target Population___________________________________________________________
Assistant Managers 60
Supervison 100
Officers 180
TOTAL 340

3.4 Sampling procedures

Kothari & Gang, 2014) was used to the group to asserts that part of the statistical practice
concerned with the selection of individual or observations intended to yield some knowledge
about a population of concern, especially for the purpose of statistical Inferences. They
advised that a researcher would have to use 30% of the total target population as a sample for
it to be accepted as a good representative sample. Random sampling techniques was
employed to draw the sample since it gives each and every member of the target population
known and equal probability of selection. Therefore random sampling gave each respondent
chance to respond to questionnaires. Where time and resources are available, a researcher
should take a big sample as possible (Mugenda Mugenda, 2003). Hence the sample size was
arrived by using the solvin’s formular. Based on Gozhali (2006) slovin’s formula is used If a
sample is taken from a population, a formula must be used to take into account confidence
levels and margins of error. When taking statistical samples, sometimes a lot is known about
a population, sometimes a little and sometimes nothing at all. For example, we may know
that a population is normally distributed, we may know that there is a bimodal distribution or
we may have no idea about how a population is going to behave. Slovin's formula is used
when nothing about the behavior of a population is known at all and is used to calculate the
size (n) given the population size (N) and a margin error (e) it is computed as n = N/(1+ne) 2
102 as shown in table 3.2.

29
Table 3.2 Sample Size______________________________________________
Level Target Population Percentage % Sample Size
Assistant
Managers 60 30 18

Supervisor 100 30 30

Officers 180 30 54
TOTAL 340 102

3.5 Sampling Techniques

Sampling has been defined as the process of selecting a number of individuals or objects
from a population such that the selected group contains elements representative of the
characteristics found in the entire population. The questionnaires were self-administered. The
structured questions were used to measure subjective responses. Sample has a small group of
objects or individuals selected or drawn from a population in such a manner that its
characteristics represent population characteristics (Bryman & Bell, 2015). Stratified random
sampling method will be used to select relevant respondents from various departments of
Pinacle audit ltd. (Sekaran, 2013) argue that stratified random sampling has been where a
given number of cases are randomly selected from each population sub-group. It thus ensures
inclusion in the sample of subgroup which otherwise could be omitted entirely by other
sampling methods. In this case stratification was used based on department from which
employees come from them. Stratified sampling enabled the population or respondents to be
divided into three segments (relevant departments within Pinacle`) called strata namely,
assistant managers, supervisors and officers. Simple random sample is then drawn from each
stratum, and then those sub-samples joined to form complete stratified samples. In addition
proportional allocation is done, where each stratum contributed to the sample a number that is
proportional to its size in the population. 29

3.6 Data Collection instruments

The researcher used primary data. Primary data collection instruments were in form of
questionnaires and interview. Questionnaires were used because all the respondents in study
30
were literate and capable of answering the items adequately. The questionnaires consisted of
structured and unstructured questions. Unstructured questions gave the respondents the
freedom of response (Mugenda, 2003). The questionnaires were administered to school
administrators, teachers and students. All the questionnaires for the three categories of
respondents had four (4) parts aimed at eliciting information as par that category. The
questionnaires were self-administered. A questionnaire with high reliability would receive
similar answers if it is done again and again or by other researchers (Bryman & Bell, 2015).
In addition the questionnaires are convenient for the task in that they can be easily and
conveniently administered with the study sample. The use of questionnaire is cost effective,
less time consuming as compared to the use of interview. Data was collected through the use
of well-structured questionnaire is easy to analyze. The questionnaire will use Likert scale
because it requires respondents to respond to a series of statements by indicating whether he
or she agrees to a great extent or no extent. Structured questionnaires are used to collect
primary data from respondents. The questionnaire was self-administered to the respondents
and will be collected after three days.

3.7 Data Collection Instruments

The researcher used structured questionnaires to collect primary data from Pinnacle Audit ltd
insurance respondents. A questionnaire with high reliability would receive similar answers if
it is done again and again or by other researchers (Bryman & Bell, 2015). In addition the
questionnaires are convenient for the task in that they can be easily and conveniently
administered with the study sample. The use of questionnaire is cost effective, less time
consuming as compared to the use of interview. Data was collected through the use of well-
structured questionnaire is easy to analyze. The questionnaire will use Likert scale because it
requires respondents to respond to a series of statements by indicating whether he or she
agrees to a great extent or no extent. According to Mugenda and Mugenda (2003), reliability
is a measure of the degree to which a research instrument yields consistent results or data
after repeated trials. The research instrument was pre-tested to some selected subjects with
the outcome being used to improve it. The researcher further used split half method as
recommended by Mugenda and Mugenda (2003) for measuring reliability of a test. This
involved splitting the instruments into two: one half of even numbered items and the other
half of odd numbered items. The scores of all the odd and even numbered items for each of
the respondents in the study were computed separately. The scores of all the odd and even
numbered items for each of the respondents in the study were computed separately.
31
Inferential statistics was used which included regression. Computer software and statistical
packages for sciences (SPSS).

3.8 Data Collection Procedure

The researcher used primary. Structured questionnaires are used to collect primary data from
respondents. The questionnaire was self-administered to the respondents and were collected
after three days.

3.9 Pilot Testing

The questionnaire was pilot tested before the actual data collection. This involved a few
respondents from Pinacle audit Ltd to ascertain its effectiveness. The researcher was
interested in testing the reliability of the research instruments, the questionnaire hence
validity of data collected. Data validity was the accuracy and meaningfulness of inferences
which are based on the research results (Bryman & Bell, 2015) asserts 30 that reliability is
done using Cronbach’sAlpha Model on SPSS. (Kothari & Gang, 2014) assert that reliability
is the measure of the degree to which research instrument Yields consistent results or data
after repeated trials. The researcher used pilot test with 10 % of respondents before
distributed the questionnaire. The purpose was to ensure that those items in the questionnaire
are clearly stated and have the same meaning to all respondents.

3.10 Data Processing, Analysis and Presentation

(Kothari & Gang, 2014) argues that data collected has to be processed, analyzed and
presented in accordance with the outlines laid down for the purpose at the time of developing
the research plan. Data analysis involves the transformation of data into meaningful
information for decision making. It involves editing, error correction, rectification of
omission and finally putting together or consolidating information gathered. The collected
data was analyzed quantitatively and qualitatively. Descriptive and inferential statistics is
done using SPSS version 22 and specifically multiple regression model is applied. Set of data
is described Using percentage, mean standard deviation and coefficient of variation and
presented using tables,charts and graphs. (Bryman & Bell, 2015) argue that regression is the
working out of a statistical relationship between one or more variables. The researcher used
multiple regression analysis to show the effect and influence of the independent variables on
the dependent variable. Data collected was checked for any errors to be editing before actual
data analysis. Through editing of the raw data, errors and omissions detected were corrected.
32
This was aimed at increasing the level of accuracy and make analysis of the data easier.
Qualitative data was then analyzed and presented in a way that is simple and easy to
understand. Statistical Package for Social Science software was used in processing data from
the questions, (Pallant, 2011). The processed data was used to generate frequency, percentage
tables and graphs for comparison purposes. The information was then presented in form of
pie charts and tables. The presentation was in a narrative form describing the research‟s
objectives and then presented in textual form. Descriptive analysis enabled the researcher to
summarized and organize data in an effective and meaningful way (Nachmias, 2004). A
multiple regression was developed and employed to analyze the data at a level of statistical
significance test. The model specification as follows;

Y = β0 + β1X1 + β2X2 +β3X3 +β4X4 + ε

Where Y represents Effective Strategy

Implementation (dependent variable),
X1 = Strategic organization culture,
X2 = Resource Allocation,
X3 = Strategic Leadership,
X4 = Strategic organization structure,

Β0 is Constant Term, β1, β2, β3 and β4 are

Regression coefficients and ε are the disturbance/error term.
The assumption of this model was that the independent variables were linearly independent
and normally distributed, the sample was representative of the population for inferences
prediction and error was random variable with zero.

2.11 Research ethics

Ethics are broadly the set of rules, written and unwritten, that govern our expectations of our
own and others’ behavior during this research and the following are the most ethical codes
cover the following areas:

2.11.1 Honesty and Integrity

33
As researcher this means that I need to report my research honestly, and that this applies to
your methods (what you did), my data, my results, and whether i have previously published
any of it.

2.11.2 Objectivity
This research aim to avoid bias in any aspect of my research, including design, data analysis,
interpretation, and peer review. For example, I should never recommend as a peer reviewer
someone I know, or who you have worked with.

34
 CHAPTER FOUR

DATA ANALYSIS, RESULT AND DISCUSSION

4.1 Introduction

This chapter presented analysis and findings of the study on Pinnacle Audit firm in Nairobi.
The implementation challenges. The data was analyzed using descriptive statistics by use of
implementation challenges.

4.1.1. Response Rate

Data was collected between December 2018 and May 2019 using a questionnaire.

The response rate was therefore ninety nine (99%) questionaires were issued. Seventy two
(72) were returned representing seventy two points meaning seven percent response rate
(72.7%).

Table 4.1: Response Rate

Frequency Percentage

Questionaires Issued 99 100.0%

Questionaires Returned 72 72%

Response Rate (%) 72.7%

The response rate is considered adequate since Mugenda and Mugenda (2003) advise on
response rates exceeding 50% and Hager, Wilson, Pollak and Rooney (2003) recommend 50.
Saunders, Lewis and Thornhill (2009) suggest a 30-40% Percent response rate.

4.1.2 Test of Instrument

a new set of questionare had resulted after the pre-test sessions. To ensure that the measures
developed in the instrument were relevant and appropriate, the instruments were tested for its
validity and reliability.

35
 Reliability and Validity of instrument

The validity and reliability of the tools resulted from the extent to which responses of the
filed reflected theories and empirical evidence of other scholars who have studied similar
variables. The main tool of data collection used was the Likert-Scale questionnaire. The
instrument was reviewed and tested bu University experts in statistics and strategic fields
using Cronbach’s Alpha test. Nachmias and Nachmias (2006) have explained that a
Conbrach’s alpha test confirms the reliability and consistency of a DCI. The result of the test
are summarized in table 4.2.

Table. 4.2: Reliability Results

Variables Cronbach’s Alpha No. of

Items
Strategic organization culture 0.748 6
Organization leadership 0.713 5
Resource allocation 0.822 4
Organisation structure 0.743 5

From Table 4.2 the questionnaire instrument consistently returned high scores averaging 0.7
which is the highly acceptable since Cronbach’s alpha coefficient of over 0.7 qualifies an
instrument as reliable and consistent (Nachmias and Nachmias, 2006; Kothari 2004; Sekaran,
2006).

4.2 Background information

This section includes descriptive statistics of response rate and demographic information such
as highest level of education and duration on current post.

4.2.1 Working Experience

The study sought to find out the working experience of the respondents, the results are shown
in Table 4.3.

Frequency (F) Percentage %

Less than year 8 11

36
 1 year to 3 years 24 34

3 year to 5 years 7 10

Over 5 years 32 45

Total 72 100

Most of the staff 39 (45.0%) has served their institutions a their current post for the three
years and above. Only a few 8 (11%) consisted of newly recruited staff having served the
institutions for less than 1 years. About 55% of staff has served the institutions for more over
3 years which indicates stability of staff in the private sector which is a positive context in
growing an audit firm.

These findings concur with the study by Arbon, Facer and Wadsworth (2012) on the role role
demographic characteristic in auditing among the managerial staff within the auditing firms
which revealed that over 50% of the staff had for 3 years and above. The implication of these
findings is that in terms of auditing it is translated into ability to experience the
implementation growth staratgies within the auditing firm in the medium and in the long
term.

4.2.2 Highest level of Education

The study sought to establish the hihest level of education attained by the respondents.

The results are shown in Table 4.4.

Frequency Percent

Undergraduate 47 65.3

Master’s degree 25 34.7

Total 74 100.0

Majority 47 (65.3%) of the respondents had bachelor’s degree and while only 25 (34.7%) had
master’s degree qualification. This finding conforms to the study by Gicuhi (2014) which

37
 revealed that more than 60% of the respendents at managerial level in auditing fimrs had
bachelors’s degree.

4.2 Description Analysis

Frankfurt – Nachmias and Leon-Guerrero as cited in Kamau (2014), Descriptive analysis

involves use of statistical procedures that are used to describe the populations one is studying.
This section has the responses to each of the items of the variables and the means and the
standard deviation of the items. Fritz as cited in Kamau (2014) reiterated the importance of
descriptive statistics which rest in the utility as tools for interpreting and analyzing data. Data
is presented in form of tables and percentages.

4.2 Oranization culture

In order to investigate the problems that the audit firms face the respondents were asked to
give their opinion and the finding are captured in Table 4.5 where it indicates the strategic
implementation challenges as viewed by the respondents. Their responses were captured via
Likerts scale ranging from 1 – “Strongly agree” with a score of 1 point to upper end of the
scale as 5 – “Strongly agree” with score of 5 points.

Table 4.5: Descriptive Analysis for organization Culture

1 2 3 4 5 Mean Std
dev
Open and start up a new branch n 7 20 21 10 14 3.5 1.27
% 9.7 27.8 29.1 13.9 19.4
Expansion of operations n 12 14 20 23 3 2.9 1.16
% 16.7 19.4 27.8 31.9 4.2
Discontinue service from n 5 26 20 7 14 3.2 1.25
a market % 6.9 36.1 27.8 9.7 19.4
Acquisition and mergers n 6 17 19 15 14 3.2 1.25
% 8.3 23.6 26.4 20.8 19.4
Change the strategy in n 16 11 13 24 8 3.0 1.36
an operational % 22.2 15.3 18.1 33.3 11.1
Average 3.0

38
On either their firms had opened and start up a new branch, twenty (29.2%) did not give any
opinion, 20 (27.8%) disagreed, 14 (19.4%) strongly agreed with the sentiment. On whether,
the firm allocates high levels of expansion operations, 26 (36.1%) disagreed, 20 (27.8%)
were neutral and only 14 (19.4%) agreed that their firms has high level of expansion in
perations. As the firm firm’s acquisition and mergers, 24 (33.3) agreed, 16 (22.2%) strongly
disagreed that they change the strategy in an operational that both existing and new markets
while 13 (18.1%) did not give any opinion.

All the measures of the recent decisions implemented scored means ranging between 2.9 and
3.1 thus emphasizing the variations in extent to which firm’s employ organization leadership.
Looking at the mean, the study infers that “Firm has opened more than one decisions (mean
of 3.10) and “the firm allocates discontinue servivice in a market (mean of 3.85). These
findings imply that local auditing firms in Kenya have low organization culture implemented
and are avoiding high level of discontinue service in a market.

Further the respondents were asked to give their suggestions on what should be done to
improve the organization culture in order to ace improvement in the strategy implementation
within the auditing firms majority of the respondets cited local auditing firms in Kenya
should expand their operations and allocate high level of discontinue service from a market
through acquisition and merging strategies.

4.3 Oraganization leadership

Here the study sought to establish the respondents’ level of agreement with statement about
leadership in their organization. A scale of 1 to 5 was used where 1 was strongly disagree, 2
was disagree, 3 was neutral, 4 was agree and 5 was strongly agree.

The results are presented in Table 4.6.

39
Table 4.6 Descriptive Analysis for organization leadership
1 2 3 4 5 mean Std
Dev
We are active in n 5 26 20 7 14 3.0 1.24
Identifying new market % 6.9 36.1 27.8 9.7 19.4

We establishing n 11 16 20 20 17 8 1.24
Auditing new market % 15.3 22,2 27.8 23.6 11.1

New decision has n 9 17 15 20 10 3.1 1.27

Been implemented % 12.5 23.6 20.8 27.8 13.9

We respond to the n 8 19 19 15 11 3.1 1.24

Acquisition and mergers % 11.1 26.4 26.4 20.8 15.3

We are active in n 11 15 14 25 7 3.0 1.26

Changing our operational
Plans quarterly % 15.1 20.8 19.4 34.7 9.7
Average 3.0

The respondent were asked if they are active in identifying new audit market, 26 (36.1%)
disagreed, 20 (27.8%) did not give any opinion while 14 (19.4%) strongly agreed with the
sentiment. As to whether the audit firms established a new market for either existing or
modified plans, 20 (27.8%) did not give any opinion, 17 (23.6%) were in agreement while a
few 8(11.1%) strongly agreed. Regarding the question whether disagreed with the sentiment.
However 10 (13.9%) strongly agreed, Lastely, the question as whether the firms were active
in identifying new operational techniques, 25 (34.7%) agreed, and only 7 (9.7%) strongly
agreed. Fourteen (19,4%) did not give any opinion.

All the measures of leadership organization scored means ranging between 2.9 and 3.1 thus
emphasizing the variations in extent to which audit firm’s employ the leadership
organziation. Looking at the mean, the study infers that “we establish new audit market place
position in a new existing or slightly modified techniques “ ( Mean of 2.9). We are active in
identifying new market position (mean 3.0) and “we respond to new new audit market and

40
obtain a change in firm operational techniques. (Mean 3.0). this findings imply that majority
of local audit firms in Kenya are not active in identifying new audit markes or establishing of
audit market position.

Further more the research were asked a question to give their suggestions on what should be
done to improve in time that to be taken for strategy implementation in order to improve their
operations, majority of respondents cited that their firms should be active in identifying new
audit markets.

5.2.3 Resource allocation

the study sought to establish the respondents’ level of agreement with statement about
allocation of resources in thier audit firms. A scale of 1 to 5 was used where 1 was strongly
disagree, 2 was disagree, 3 was neutral, 4 was agree and 5 was strongly agree. Result
arepresented in Table 4.7.

Table 4.6 Analysis showing resource allocation

1 2 3 4 5 mean Std
Dev
This firm generate n 7 17 14 24 9 3.02 1.21
New audit techniques % 9.7 23.6 19.4 33.3 12.5

We establish auditing n 11 13 23 15 10 3.5 1.26

Avenue % 15.3 18.1 31.9 20.8 13.9

We have started better n 9 23 14 16 10 2.9 1.27

With decissions % 15.3 31.9 19.4 22.2 13.9

New techniques from n 11 17 20 13 11 2.9 1.29

mergers are in use % 15.3 23.6 27.8 18.1 15.3

Openning audit n 9 20 14 20 9 3.0 1.26

Training center % 12.5 27.8 19.4 27.8 12.5

Have started brining n 9 16 27 19 1 2.8 1.01

In new experts % 12.5 22.2 37.5 26.4 1.4

41
Average 3.0

The respondents were asked whether they develop mitigation to the resource allocation in
order to generate new audit techniques, 24 (33.3%) agreed, 14 (19.4%) were neutral and 17
(23.6%) disagreed with the sentiment. On whether the firms explored new audit avenues
outside the industry, 23 (31.9%) did not give opinon 15 (20.18%) agreed with the sentiment
while 13 (18.1%) disagreed. On whether the firms had started exhausting new plans from
mergers, 23 (31.9%) were in disagreement with the sentiment, 16(22.2%) were in agreement
and a few 10(13.9%) strongly agreed.

All the measures of resources scored means ranging between 2.8 and 3.2 thus emphasizing
the variations in extent to which firms employ political factors that as a result impacting their
strage implementation.

Looking at the mean, the study infers that “ we have started using strategic decisions’’ (Mean
2.9) We have started new techinques from the mergers (mean 2.9) “ We have started opening
audit training center (mean 2.9) “We have started bringing new experts” (Mean 2.9).

Further the respondents were asked to give their suggestions on what should be done to
improve reources, majority of the respondents cited that firms should firms should seek new
ways of exploring new audit avenues such as opening training center to strengthen the staff.

4.2.4 Oragnization structure

The study sought to establish the respondents’ level of agreement with statement about
organization structure more especially in co-ordination of responsibility that was sufficiently
not effective in their organizations. A scale of 1 to 5 was used where a was strongly disagree,
2 was disagree, 3 was neutral, 4 was agree and 5was strongly agree. Result are presented in
Table 4.6.

Table 4.6 Analysis for Organziation structure

1 2 3 4 5 mean Std
Dev
The effective information n 17 11 12 20 12 3.0 1.21
generated for goal assessment % 23.6 15.3 16.7 27.8 16.7

42
We establish auditing avenue n 8 20 14 19 13 3.2 1.26
Avenue for all staff % 8.3 27.8 19.4 19.4 26.4

The decisions made among the n 10 19 18 12 12 3.0 1.23

seniors about audit procedures % 13.9 26.4 25.0 16.7 18.1

New techniques from mergers n 9 20 15 20 8 3.0 1.23

Not shared if internal or external % 12.5 27.8 20.8 27.8 11.1

Dessermination of audit n 10 19 18 12 13 3.0 1.23

Of environment Factors % 13.9 26.4 25.0 16.7 18.1
Average 3.0

The respondents were asked whether the they were active with the effective information
generated for use, 20 (27.8%) agreed, 12 (16.7%) agreed another 12 (16.7) did not give any
option while 17 (23.6%) disagreed with the sentiment. On the question “ we establish
auditing avenue for all staff, 20 (27.8%) disagreed while 19 (26.4%) were in agreement with
the sentiment. The respondents were asked whether they were approached or share for the
new mergers techniques, 19 (26.4%) disagreed while 13 (18.1%) strongly agreed over the
same statement.

All the measures of organization structure scored the means ranging between 3.0 and 3.2 thus
emphasizing the varriations in the extent to which firms employ coordination but not
sufficiently enough for all the staff, looking the mean, the study infers that “The effective
information generated in use, (Mean 3.0) “ We established training avenue for all staff,
(Mean 3.0) “The decisions were made within senior managers, (Mean 3.0).

These finding imply that majority of the local audit firms in Kenya are not exercising
coordination within staff as an issue related to the organization structure which result to
weakneses of some organizations suborninant.

Further more the respondents were asked to give their suggestions on what should be done to
improve coordination among them majority of the respondents cited that the firms should be
active in developing coordination among the staff members, that firms should collaborate
with different experts and commit themselves for technical resources and finance.

43
 4.3 Inferential Analysis

The section describe inferential analysis of data, Inferential statistics try to infer information
about a population by formation of conclusions about the difference between populations
with regard to any given parameter or relationship between variable.

This study only used correlation analysis and regression analysis.

4.3.1 Pearson Correalation Coefficient matrix

The study conducted a correlation analysis of the varriables of the study: organization culture
Organziationa leadership, Resource allocation, Organization structure. To quantify the
strength of the relationship between the variables, the study used Karl pearson’s coefficient ot
correlation. A 2-tailed pearson correlation test was done at 99% and 95% condidence levels
and analysis presented in Table 4.7.

Table 4. 7: Pearson Correlation Coefficient Matrix

MP Pdev Div MD
MP Pearson 1 644 (**) .346 .074
Correlation .000 .052 .686
Sig. (2-tailed)

Pdev Peason Correation .644(**) 1 .509(**) .237

Sig. (2-Tailed) .000 . .003 .192

Div Pearson correlations .346 .509(**) .1 -051

Sig. (2-Tailed) .052 .003 . .784

MD Pearson correlations .597(**) .268 .136 -395(*)

Sig.(2-Taild) .000 .138 .456 .043

** Correlation is significant at the 0.01level (2-Tailed) N= 72

Key: MP = Organization culture; Pdev = Leadership; Div = Resource allocation; MD =
Organization structure.

44
 The result is Table 4.7 indicate that there is a positive and significant relationship between
time taken in within the culture of the organization over instrategy implementation and
organization structure (r=0.339, p < 0.00), there is a positive and significant relationship
between resource allocations in the strategy implementation and the structure for the
organization over strategy implementation (r = 0.224, p < 0.224).
And lastely, the results indicate that there is positive and significant relationship between
resources and the organization structure (r = 0.430, p < 0.05).

4.3.2 Regression Analysis

This section presents the result after perforiming a multiple regression analysis, regression
analysis is a set of statistical process for estimating the relationship among varriables.

4.3.2.1 ANOVA Analysis for the overall Model

The ANOVA analysis in Table 4.8 presents the influence of all the independent variables on
all the strategy implementation challenges with the audit firms in South Sudan. The results
presented a p-value of 0.000 which was less than0.05. This indicated that the model was
statistically significant combined effects on the auditing firms in Kenya. The model was for
estimation of the contributions of the independent varriables on auditing firms in South
Sudan.

Table 4. 8: ANOVAb
Model Sum of Squres df Mean square F Sig
1 Regression 85.182 4 1.295 63.819 .000
Residual 21.689 67 .3237
Total 108.871 71

4.3.2.2. Goodness of fit model summary

the significant of the model was reaffirmed by the goodness of fit tests in Table 4.8, whereby
the coefiicient of determination (R Square) of 0.797 confirmed that the model explained
89.3% of the variation or change in the dependent varriables. The adjusted R squre did not
make a significant different since the model now explained 78.5% of the variations. The
coefficient of determination (R square) of 0.797 indicated that the linear model was a good fit
in explaining the relationship between the dependent and independent varriables. A further
20.3% of strategy chalnges to other factors not investigated in this study.

45
Table 4.9: Fitness Test for the Overall model
Model R R Square Adjusted R Square Std.Error of the
Square Estimated
1 .893(a) .797 .785 .57765

Coefficient of determination
The study conducted a multiple regression analysis and from the above regression model,
holding (Culture, Leadership, resources and organization resources,) constant at zero, the
organization structure will be 1.147. A one percent (1%) Organziation culture will head to
zero point four eight eight (0.488%) variation in the structure from implementing decision,
also a one percent (1%) changes in audit development strategy adopted will lead to zero point
two six nine perct (0.269%) variation in the organization culture. Furher, a one percent (1%)
change in the leadership adopted will lead to zero point three eight four percent (0.384%)
variation In the structure and lastely one percent (1 %) in reosurces adopted will lead to zero
positive relationship between (Culture,leadership, Resources) and the structure from
implementing.

Table 4.10: Regression Analysis Results

Unstandardized Standardized
Coefficient Coefficient t Sig.
B Std.Error Beta
(Constant) 1.147 3.93 2.915 .000 .000
Culture .488 .255 .663 .1.908 .001

Leadership .384 .106 .397 .3.608 .001

Resources .221 .115 .192 .1.991 .003

46
Adependent Vairrable: Organization structure

The results alos show the unique contribution to the explaining of independent variable.
Standard coefficients assess the contribution of each independent variable towards the
prediction of dependent variable, since they have been converted in the same scale to show
comaprision.
The result indicate the organization culture having the highest beta 0.663 has the largest in
organization structure from strategy implemention. The second most important variable was
resources allocation with a beta of 0.397. The third important variable was leadership with
beta of 0.387. The least important predictor of these four varriables is culture with a beta of
0.192. the t-test statistic shows that all B coefiicients of leadership (Since p < 0.05).

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS.

47
5.1 Introduction

This chapter provide the of the findings, the conclusions and recommendation of the study
based on the objectives of the study, The purpose of the study was to investigate the
challenges affecting strategy implementation in audit firms in Kenya. The focus on
establishing the factors that affect strategy implementation and this was done by determinant
effect organization culture, organization leadership, resource allocation and organziation have
on stiring and influencing up of strategy implementation

5.2 Summary.

This study showed the summarized findings of the study on the basis of specific research
objectives of the study.

5.2.1 Organizational Culture

The study sought to establish the respondents’ level of agreement with statement about
organization structure more especially in co-ordination of responsibility that was sufficiently
not effective in their organizations. The study indicates that the challenges faced by the small
and large audit firms in Kenya a very similar.

5.2.2 Organizational Leadership

In this study, organizational leadership is the style of authority applied by the Management in
influencing the rest organization towards achieving the goals of the Organization.
Organizational leadership can also be viewed as a dual focused management approach that
works towards what is best for individuals and what is best for a group as a whole
simultaneously.
5.2.3 Resource allocation

The study sought to establish the respondents’ level of agreement with statement about
allocation of resources in thier audit firms. A scale of 1 to 5 was used where 1 was strongly
disagree, 2 was disagree, 3 was neutral, 4 was agree and 5 was strongly agree.

5.2.4 Oragnization structure

The study sought to establish the respondents’ level of agreement with statement about
organization structure more especially in co-ordination of responsibility that was sufficiently

48
not effective in their organizations. A scale of 1 to 5 was used where a was strongly disagree,
2 was disagree, 3 was neutral, 4 was agree and 5was strongly agree.

5.3 The conclusion of the study.

This study conclude that, Organization culture encompasses basic values, underlying norms,
habits and belief that define an organization. These aspects further define how employees
operate, relate and co-ordinate within the organization. Different organizations have different
organization cultures where people have different perceptions on the path the organization
should follow. In an organization culture where people are open to new ideas and have clear
understanding of the organization objectives implementation of strategy become easy

The analysis of data for the audit industry shows the firms are not only technical efficient but
have also embraced technology in their operations. Audit firms face challenges when
implementing strategy mostly due to insufficient practices of its culture.

The study concludes that leadership, influences organziation’s strategy implementation

Organizational leadership can also be viewed as a dual focused management approach that
works towards what is best for individuals and what is best for a group as a whole
simultaneously. It is also an attitude and a work ethic that empowers an individual in any role
to lead from the top, middle, or bottom of an organization. Effective strategy implementation
must be spearheaded by strong leadership that is able to consolidate all the necessary efforts
and direct them toward the organization goals.

The study conclude that, Organization leadership and strategy implementation cannot be
separated because organization leadership is supposed to spearhead strategy implementation.
Organizations leadership must co-ordinate resources, people and all the other things
necessary for strategy implementation in an efficient manner.

The study further conclude that, When resources are productive, they are typically called
factors of production. Some economists use factors of production and resources
interchangeably to mean the same thing. Resources are among the most important aspects of
strategy implementation.

49
The study conclude that, To successfully implement strategies organizations need resources
both human resources and financial resources. Organization resources are inputs that are used
in production.

It further conclude, Financial resources are about the finance required to fund the budget of
implementing new strategy and Strategy implementation involves organization of the firm's
resources and motivation of the staff to achieve objectives.

The study conclude that, number of studies support the need of adequate financial resources
in strategy implementation. According to Bateman and, a strategy is a pattern of actions and
resource allocations designed to achieve the goals of the organization. The amount and nature
of resources an organization has access to and how these resources are allocated has a
significant role in strategy implementation.

It finally concludes, Human resources are the manpower required in strategy implementation.
Strategy are implemented by the people therefore, skills, knowledge and experience of the
employees of organization contribute to successful strategy implementation. The importance
of human resources has thus got the central position in the strategy of the organization, away
from the traditional model of capital and land.

This study concludes that, Organization structure in this context includes board composition,
co-ordination and Supervision and communication structures hence it should have properly
working structures for successful strategy implementation.

It further conclude,South Sudan has a relationship to global oil industry factors. The
numerous studies on strategy implementation have however not focus will use on the private
sector in Kenya meaning it is against this background that this study was proposed so as to
critically
evaluate the determinants if effective strategy implementation in insurance companies in
Kenya.

5.4 Recommendation.

50
This part represents the recommendations made for policy and practice and for further
research.

5.4.1 Recommendations with policy implication.

This research found out that the main challenges audit firms faced in strategy implementation
was inadequate financial resources, it is therefore recommended that the government and the
standard governing entitites and regulators try in reducing cost by coming up with policies of
harmonizing varienerous new laws, regulations and standard that govern financial reporting
auditing thereof,

Secondly the government needs to restructure the financial management bill. While they are
positive in the fianancial management bill in the management of auditing in Kenya.
It does away with statuory audit with both small and medium enterprises.This will affect the
cash flow prosepect of the audit firm. The research found that audit firms are facing severe
challenges in financing their businesses and this is further shown by the low employment
rates in this firms.

The Institute of Certified public Accountants of Kenya should take this into consideration
and champions the need of accountants from this end.

5.4.2 Recommendations for further research.

This research found that audit firms are undertaking various intiative in response to the
implementation of strategy challenges it is advisable for one of this study the response
strategies to implementation challenges.

The population of this research was limited to Kenya only it is therefore recommednded that
further research is done to other parts of East Africa.

51
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APPENDICES
Appendix 1: LETTER OF INTRODUCTION

To: Chief Executive Officer,

Pinnacle Audit Ltd,
P.O Box 7410-011,
Nairobi, Kenya.
Dear Respondent,

Ref: Academic Data collection.

I am a student from the Kenya Methodist University, pursuing a Master degree of
Business Administration (MBA) with concerntration in strategic management. I am carrying
out research on ‘‘determinants of Strategy implementation for Audit firms in South
54
 Sudan’’. This is in partial fulfilment of the requirement for the degree of Masters degree of
Business Administration at the Kenya Methodist University, Kindly take a few minutes of
your time to fill in this questionnaire to the best of your knowledge. Results from this study
will be of importance to future and current Business Automation project team members as it
will provide valuable information of how to avoid certain obstacles when it comes to project
implementation and ensures that they meet project timelines.

Your co-operation will be highly appreciated.

Your sincerely,

Francis Ayume Chrarles

Appendix IV: Budget

Research Budget
Date Item description Location Unit Qty Unit price Ksh Totoal

Transport Nairobi Trip 6 20,000 120,000

Printing cost N/A Pieces 50 5000 25,0000

Accommodation Night 10 3,000 90,000

TOTAL 460,000 Ksh

55
Appendix III: QUESTIONNAIRE

This questionnaire has statements regarding the determinants of strategy implementation at

Pinacle South Sudan. Kindly take few minutes to complete the questionnaire as guided. Your
responses will be handled confidentially and ethically.
Thank you for agreeing to participate in this academic study.

SECTION A: GENERAL /DEMOGRAPHIC DATA

Kindly tick () on the option that best applies to you
1. Kindly indicate your gender
a. Male ()
b. Female ()
2. Please indicate the highest level of education you have ever attained

56
a. Secondary level ()
b. College level ()
c. University level ()
d. Master degree level ()
e. PHD level ()

3. What is your job level?

a. Top Level Management ()
b. Mid-Level Management ()
c. Operation Management ()
d. Low Level Management ()
4. How long have you been working at your organization?
a. less than 5 year ()
b. 6 to 11 years ()
c. 12 to 17 years ()
D. 18 to 23 years ()
E. over 24 years ()

Section 2: This Sub-section Focuses on leadership

f) What other attributes of organization leadership affects strategy implementation in your

organization?
Not at all ( ) Little extent ( )

Moderate ( ) Great Extent ( )

Very Great extent ( )

g) Please indicate your level of agreement with the statement given below.
Where: 5 g4 – Agree 3 – Neutral 2 – Disagree 1- strongly disagree.
1 2 3 4 5
1 Communication of responsibility and accountability by the
leaders over decision implementation
2 Poor coomunication feedback hinders proper strategy

57
 implementation
3 The reporting relationship hinders effective implementation
4 Leader are committed to the strategy implementation
5 Leaders ability in promoting team work spirit
6 Effectiveness of implementation strategic audit plans is
affected by the capability of leaders
7 The informations sharing between auditors and the senior
finance manager
8 Are you afraid when seeing auditors approaching you for
audit when you your boss is not available
9 Top management support overcomes resistance to
implementation of strategic plans within organization

Section 3) This Sub – Section focuses on Organization Culture

h) To what extent does your organization culture influence implementation of strategic audit
plan in your organziation?
Not at all ( ) Little extent ( )

Moderate ( ) Great Extent ( )

Very Great ( )

i) Please indicate your level of agreement with the statement given below.
Where: 5 g4 – Agree 3 – Neutral 2 –
Disagree 1- strongly disagree.

1 2 3 4 5
1 The existing organization culture is supportive of strategic
change of implemetation
2 The vission of the organziation has been widely share by the
employee
3 The existing culture do facilitate organizational decission
making and control regarding implementation
4 Does the existing culture generate high level of coorperaton
and commitment
5 Shared believes and values does not interfere with the

58
 implemetation of any audit plan
6 The existing is consistent with the strategic audit plans
7 Does the existing culture exercise team work consultation

Section 4. This sub-section focuses on organizational structure

j) To what extent does organizational structure influence implementation of strategic audit
plans in your organization?

Not at all ( ) Little extent ( )

Moderate ( ) Great Extent ( )

Very Great ( )

1 2 3 4 5
1 Does the existing organization structure allows for decision
flow
2 Does the existing structure deploy accountability which enable
the organization to achieve it its goals and ultimate mission
3 There is division of labour in the process of implementation

4 Task and responsibility are adequately define

5 Does county organizational structure acceptable to all
employees
6 Formal organization structure often conflict with the informal
social group
7 There is understanding among employees
8 Are there available institutional policies and procedures in
place

Section 5. This sub-section focuses on human resources

m) To what extent does human resource influence implementation of strategic audit plans in
your organization?

59
Not at all ( ) Little extent ( )

Moderate ( ) Great Extent ( )

Very Great ( )

Where: 5 – Agree 3 – Neutral 2 – Disagree 1- strongly disagree.

2- Disagree 1- Strongly Disagree.

1 2 3 4 5
1 The available human resource enhance implementation of
strategic plans within the organization
2 The organization uses key performance indicators to assess
employees’ perfomanace against the firm’s e.g in relation
to handling customer complaints.
3 The organization does tests in order to monitor employees
continueing competence
4 Technical knowledge is continuesly encouraged and
instilled in the staff aimed at enhancing implementation of
strategic plans
5 The organization ensures continueing employees
professional development by encouraging them to e.g
reading and organizations training events
6 Appropriate and adequate human capital with goodwill
enhance implementation of strategic plans

Section 6) This sub-section focuses on implementation of strategic plan

n) please indicate your level of agreement with the statements given below.
Where: 5 = Very great extent; 4 Great extent; 3 = Moderate extent; 2 = Low extent and
1 = Not at all.
1 2 3 4 5
1 How is the impelementaion of strategic plans at your
department

60
2 Achievement of goals of strategic plans
3 Achievement of improvement of human resource
development, proper organization structure and culture
4 Generally, to what extent has the implementation of
strategic plans been succesful

Thank you

61