AN EXAMINATION OF THE RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT AND EMPLOYEE PERFORMANCE OF MANUFACTURING COMPANIES IN YAOUNDÉ, CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

It is believed that the most crucial practice that sets organizations apart from one another is strategic management. Also, it appears to be the key to accomplishing organizational vision, strategy, and objectives. While, it seems that a lot of big businesses use strategic management techniques to make sure they blend in with their surroundings. Dudin (2019) claims that in the current business climate, companies must contend with intense rivalry both domestically and internationally.Beyond that, Price (2023) breaks down strategic business into its fundamental elements, which are vision, mission, values, objectives, and plans. In a similar vein, Mackie (2018) noted that the term "strategic management" refers to a group of procedures that include developing, implementing, monitoring, and controlling strategies. The process of strategic management is ongoing and cyclical. In addition, it is a series of choices and actions that culminate in the creation of a winning strategy or strategies to assist in achieving business goals in the most competitive manner. Abubakar, Tufail, Yusuf, and Virgiyanti (2021) defined strategic management as the process of making choices and acting appropriately to help an organization reach its long-term objectives. The best way to assess a company's strategic management importance is to look at the correlation between employees performance and strategic management. Furthermore, Mahoney (2022) expounded that strategic management pertains to the structuring of the organization, its assets and proficiencies, and its tactical placement in order to establish, seize, and maintain a competitive edge. Similar to this, Dudin (2019) further described strategic management as a process that takes place in a company and includes establishing the vision, mission, and goals; analyzing the internal and external business environment; choosing a winning strategy; strategic planning; suggesting changes to the organization or administrative structure; establishing controls for the implementation of the strategy; and evaluating the plan. To increase an organization's  performance in today's fiercely competitive globalized market, it is critical to assess, manage, and analyse its strategy (George, 2018).  The goal of strategic management is to govern an organization as a whole in order to shape its destiny and attain its goals. However, these goals are established with the aim of reducing costs, attaining sales targets, expanding the client base, gaining market share, enhancing productivity, improving product quality, and introducing innovative products. The attainment of these objectives can solely be accomplished through employees of the organization. The performance of employees is crucial for organizational performance, which can be achieved through appropriate business strategies.As a result, performance and strategic planning have a crucial relationship. Nevertheless, manufacturing companies that apply and use strategic management techniques reap a number of benefits and features that help them accomplish their aims and objectives and carry out their operations within a strategic range (Dess, Lumpkin, & Taylor, 2018). It seems that there is no consensus or precise description for the elements of strategic management. The study therefore aims to conduct a survey in order to examine the relationship between strategic management and  employee’s performance in manufacturing companies in Cameroon.

1.2 Statement of the Problem

Modern technology, best practices in public relations, indigenous goods and services, and an effective system for attracting and managing human resources are all becoming increasingly apparent to managers in organizations, particularly manufacturing companies as sources of competitive advantage. However, existing studies on challenges facing strategic management on employee performance are lack of rewards and incentives during and after the implementation of strategic management practice, constraints in funding and partnership management. Nonetheless, according to Pearce et al. (2019), the strategic management process holds greater significance than the strategic management plan itself, despite the organization's preparation being essential for guaranteeing the organization's objectives and senior executives' alignment. Furthermore, prior research on manufacturing firms (Ansoff et al., 2018; Eastlack and McDonald, 2022) has shown that strategic planning leads to better performance, as measured by commonly accepted financial indicators such as sales, net income, return on investment (ROI), return on equity (ROE), and return on sales (ROS). Later research (Armstrong, 2019; Greenley, 2018; Akinyele, 2017) has disproven the idea that there is a direct link between strategic planning and improved employees’ performance. Nevertheless, recent studies conducted by Miller and Cardinal (2019) and Schwenk and Shrader (2018) present compelling evidence that strategic planning does, in fact, lead to greater employees performance. The inclusion of characteristics that account for previous study discrepancies, such as methodological errors and robust statistical methodologies, in these studies, further strengthens the support for their conclusions. A particular branch of research on strategic planning has brought up the question of whether the duration of a corporation or employee's involvement in the strategic planning process has any influence on its performance.  Thus, it is in the light of this, the study seeks to examine the relationship between strategic management and  employee’s performance in manufacturing companies in Cameroon.

1.3  Objectives of the Study

The main purpose of this study is to examine the relationship between strategic management and  employee’s performance in manufacturing companies in Cameroon. Specifically, the study will;

Determine the extent  strategic management is adopted by manufacturing companies in Yaoundé, Cameroon

Determine the impact of strategic management on employees commitment 

Determine the impact of strategic management on employees job satisfaction 

Determine whether there is a relationship between strategic management and employee performance

1.4 Research Questions 

The following questions have been prepared for the study:

To what extent is strategic management adopted by manufacturing companies in Yaoundé, Cameroon?

What is the impact of strategic management on employee commitment?

Does strategic management influence employee job satisfaction?

Is there a relationship between strategic management and employee performance in manufacturing companies in Yaoundé, Cameroon?

1.5 Research Hypotheses

H0: There is no significant relationship between strategic management and  employee’s performance in manufacturing companies in Cameroon.

Ha: There is a significant relationship between strategic management and  employee’s performance in manufacturing companies in Cameroon.

1.6 Significance of the Study

With the insights gained from this study, manufacturing companies will be able to enhance their competitive position and achieve long-term sustainability in the market by making investments in certain resources or improving their current strategy. Furthermore, it will serve as a valuable resource for scholars conducting literature reviews in this area, contributing to the academic discourse and serving as a foundational text for future research endeavors. 

1.7 Scope of the study

The scope of this study is boarded on the relationship between strategic management and  employee’s performance in manufacturing companies in Cameroon. Empirically, this study will determine the extent  strategic management is adopted by manufacturing companies, the impact of strategic management on employees commitment, the impact of strategic management on employees job satisfaction and whether there is a relationship between strategic management and employee performance.

Geographically, the study will be delimited to employees in manufacturing companies in Yaounde, Cameroon

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Strategic management: refers to the systematic process of formulating, implementing, and evaluating long-term organizational objectives and strategies to achieve sustainable competitive advantage.

Performance: Performance refers to the ability (both physical and psychological to execute a specific task in a specific manner that can be measured as high, medium or low in scale. 

Employees’ performance: is the degree of an achievement to which an employee is fulfil the organizational mission at workplace (Cascio, 2019).

---

---