Strategic Planning on Productivity through Leadership Commitment and Employee Involvement

Abstract

Empirical research studies that have examined the relationship between strategic planning and productivity have produced mixed results, with some studies presenting that strategic planning has a significant impact on productivity, while other studies have failed to find the relationship between strategic planning and productivity. This study attempted to clarify and understand the relationship between strategic planning and productivity by including some contingency variables considered relevant in the implementation of strategic planning namely leadership commitment and employee involvement using 156 sample data collected through questionnaire from management employees of Tanzania Zambia Railway Authority. Model fit, validity and reliability were tested using regression analysis, principal component analysis and factor analysis using Jamovi software. The study presents that strategic planning and leadership commitment have a significant impact on productivity and that leadership commitment mediates the association between strategic planning and productivity. This study provides empirical evidence on the nature of the relationship between strategic planning and productivity. This study also gives evidence that leadership commitment is very relevant in strategic planning process at all stages and that no manager should isolate him/herself from strategic planning process.