Challenges of implementation of strategic plan on organization performance:

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.