Effects of Cultural Change on Strategic Planning in the Banking Sector: A Case of Commercial Banks in Kisii Central Business District, Kenya

Abstract

The ability of organizations to manage and survive change is becoming increasingly important in an environment where competition and globalization of markets are intensifying. The aim of this study was to research on the effects of organizational change on strategic planning in the banking sector: A case of commercial banks in Kisii Central Business District, Kenya. The objective of this study was to determine the effects of cultural change on strategic planning in commercial banks. This study applied the descriptive research design. The target population was 16 banks comprising of 318 top, middle and lower level management staff. Stratified random sampling method was used to sample 20% (63) respondents. This study utilized a semi-structured questionnaire self-administered through a drop and pick later method. Data was analyzed using the mean score, standard deviation, frequencies, percentages, weighted mean scores and regression analysis. Data was presented using tables and figures. The study found out that cultural change affects strategic planning of commercial banks a great extent. Cultural change affects values and capabilities, attitudes, experiences, habits and relationships, beliefs/norms, corporate mission, vision and goals, selection and implementation of strategies, strengths and weaknesses and opportunities and threats. The study recommends that the banks' strategic planning endeavors should be formulated such that they provide opportunity to involve the various levels of management in the process and ensures that all the different units of the organizations work together towards achieving the same objectives. Banks should accord priority attention to the elements of organizational culture.