Impact of Strategic Planning on Performance Effectiveness in the Public Sector Organizations in Sri Lanka

Abstract

The public sector is the largest employer in most of the countries, it should focus on improving the performance by empowering the employees as whole of approach of the government and this will be a part of an overall growth strategy of a country’s economy. Also improve organizational effectiveness and organizational efficiency in order to improve the ability of the organization to deliver its goods and/or services which the organization competes. The main objective of this study was to investigate the impact of strategic planning on performance effectiveness of public sector organizations. Further, the study measured the key variables in Balanced Scorecard under strategic planning protocol with performance effectiveness in public sector. A structured questionnaire was administered among employees (n=100) working in the public sector organizations in Sri Lanka. The study revealed a significant and positive relationship between strategic planning, employee learning and growth, customer process, financial process, internal business process and organizational performance effectiveness. The findings further revealed that, majority of public sector employees are concerned day to day activities (routine) and it was highly correlated with performance effectiveness. The results suggest that provide financial support and professional training to public sector employees to effectively respond to accountability demands from various stakeholders.  Further recommended that, strategic planning activities should follow through year by year with modifications, by conducting activities based on the organizational goals, developments and consideration the environmental changes as well. It is important to provide new challenges, concern employee motivation and enhance effective rewards and recognitions system to public sector organizations.

Keywords: Strategic Planning, Performance Effectiveness, Public Sector Organizations