STRATEGIC DECISIONS MAKING APPROACHES ON ORGANIZATIONAL PERFORMANCE OF VOCATIONAL TRAINING CENTRES IN VIHIGA COUNTY, KENYA

Abstract

Strategic decisions are vital in the performance of any organization. They help to chart a course based on long-term goals and vision hence, there is a need for managers to be profound in the making of strategic decisions to achieve positive results in their institutions. Globally, Vocational Training Centres (VTCs) play a noble role in the development of the economy. However, the organizational performance of VTCs institutions has been an ongoing trial in an atmosphere of resource shortage, lack of quality infrastructure to support technical training, poor governance leading to embezzlement of funds, weak management resulting in poor strategic decision making thus lack of strategic direction. The focal purpose of this study was to establish the influence of strategic decisions on the organizational performance of VTCs in Vihiga County. Specific objectives were to: determine the influence of analytical decision-making on organizational performance of VTCs in Vihiga County, to establish the influence of heuristic decision-making on organizational performance of VTCs in Vihiga County, to assess the influence of expertise decision making on organizational performance of VTCs in Vihiga County and to establish the influence of random choice decision making on organizational performance of VTCs in Vihiga County. The study was guided by subjective expected utility (SEU) theory, prospect theory, and satisficing theory. The study was guided by pragmatism and adopted mixed method research design where both quantitative and qualitative data were collected. The target population of the study was 120 respondents where simple random sampling was used to get a sample of 60 respondents. Primary data was collected through self-administered questionnaires. Reliability of the research instruments was tested through Cronbach’s Alpha and Construct validity was assessed through factor analysis. Data was analyzed using descriptive and inferential statistics. The results of multi- regression analysis showed that analytical decision making has a significant influence on organizational performance of VTCs with a coefficient of α = 0.301 and p-value of 0.020 which was < 0.05, heuristic decision making had a positive association on organizational performance with a coefficient of α = 0.170 and p- value of 0.015 which was < 0,05 and expertise decision making had a positive significant influence on performance of VTCs with a coefficient of α = 0.591 and p-value 0f 0.010 which is < 0.05.Subsequently, random choice decision making has a negative insignificant influence on performance of VTCs with an α = 0.610 and p-value of 0.072 which is > 0.05. The study concluded that an improvement in analytical decision making, heuristic decision making and expertise decision making influences organizational performance of VTCs by increasing the student enrolment. Top managers in VTCs need to embrace these decision making strategies to improve organizational performance in their institutions. The findings will benefit the Government of Kenya in making policies to ensure prudent management of funds injected in the sector leading to satisfactory organizational performance through increased enrollment. Consequently, managers in VTCs will strategically manage VTCs through developing policies that will enhance the attribute of quality to remain relevant and acquire a competitive edge in the changing times thus ensuring counties appropriately implement the shilling-to-shilling capitation in vocational education and training giving value to funds allocated to the sector.