INFLUENCE OF STRATEGIC EVALUATION ON OPERATIONAL EFFICIENCY OF NATIONAL SOCIAL SECURITY FUND IN KENYA

Abstract

This study evaluated the influence of strategic evaluation on operational efficiency in the National Social Security Fund in Kenya. The specific objectives of the study were to determine the influence of risk mitigation, resource accountability, and learning processes on operational efficiency of the NSSF. The study adopted the value chain and Mintzberg theories. The study adopted descriptive research design and the target population comprised of 74 NSSF managers. Census method was used where all managers were required to participate in the study. Structured questionnaires were used to collect data. The collected data were coded and then analyzed using the Statistical Package for Social Sciences Version 21 software. Various statistical measures including frequencies, percentages, means, standard deviations, correlation analysis and regression analysis were applied. Research hypotheses were tested at 95% confidence level. The study findings were presented using tables. The response rate was 81.08%. It was established that risk mitigation (r = 0.557; p < 0.05), resource accountability (r = 0.446; p < 0.05) and learning processes (r = 0.479; p < 0.05) were positively, moderately and statistically related to operational efficiency of the NSSF. Strategic evaluation explained 35.5% of operational efficiency at the pension fund. Risk mitigation had the greatest effect on operational efficiency at the NSSF. All the null hypotheses were rejected. The study concluded that mitigating risks was likely to result in improved operational efficiency of the pension scheme. It was concluded that accountability of resources was found to be directly proportional to operational efficiency at the NSSF. The results of the study led to the conclusion that enhancing learning processes was likely to results in moderate improvement of operational efficiency of the NSSF. Strategic evaluation was concluded to be positively and moderately related to operational efficiency. The study recommends that the NSSF should always have in place a sound risk identification system. It is advised that all employees should be taken through how they can effectively be accountable to resources entrusted to them. The learning process ought to facilitate more effective and seamless inculcation of employees to the operations and requirements of the NSSF. The study recommended that as part of their strategic evaluation, the management of this pension fund should put great emphasis on how pertinent risks should be mitigated in order to enhance efficiency of operations at the organization.