Abstract:
The study aimed to examine challenges of implementation of strategic plan on organisation performance a case of
Selian Lutheran Hospital. The specific objective was to determine whether financial resources hinder strategy plan
implementation. Resource-Based Theory was employed. The study adopted a descriptive research design and mixed
research approach. The total population was 237 staff while the sample size was 70 staff. A convenient sampling
technique was used. Data collection methods involved Interview which involved interviewing 8 Hospital
Management Team and Questionnaires for 53 middle-level staff and 9 lower-level staff. Quantitative data was
analysed through descriptive statistics elements of frequencies and percentages with the support of SPSS for
generating analytical data, while qualitative data was analysed through Thematic Method. The study findings
confirm that there is a challenge on the financial aspect and affects performance. The hospital budget depends on
unreliable sources. Plans are not sufficiently allocated money, delay of fund for operational activities, the exact
budget allocated for operational activities is sometimes not received and delay in payment of staff remunerations.
The effects of these challenges on organisation performance are, unattained of some annual plans, re-planning of
some activities, inability to purchase and maintain some machines, unsatisfactory quality service to customers in
some areas. The researcher recommends the hospital management to increase income generation sources, improve
quality of services, have unique services to attract more customers, strengthen and maintain a positive relationship
with current donors and well-wishers and increase funding raised from local and international donors.
