The Effect of Formal Strategic Planning on Firm Performance and Job Satisfaction

6378 Words 26 Pages
Introduction

Telekom Malaysia International (Bangladesh) Ltd. (TMIB), established in 1996, is a joint venture company between Telekom Malaysia Berhad (TM) and A. K. Khan & Co. Ltd. It operates under the brand name ‘AKTEL’, which is one of the largest telecommunication service providers in Bangladesh. AKTEL became the first mobile operator to connect Teknaf and Tetulia, the northern and southern most points of Bangladesh respectively. AKTEL was first to provide seamless coverage along the Dhaka-Chittagong highway, and covers all 61 allowable districts of Bangladesh. It has more than six million subscribers nationwide. AKTEL also has the widest international roaming service in the market, connecting 440 operators across 185
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A case study on a US company showed a positive effect of strategic planning on employees’ job satisfaction (Robbins, 2003). However, the focus of such relationships has never been addressed in context of Bangladeshi companies. The present study intends to investigate the effect of formal strategic planning on company performance and job satisfaction, mediated by organization structure and environmental turbulence in context of Telekom Malaysia International (Bangladesh) Ltd.

Review of the related literature

Formal strategic planning: Strategic planning has also been known as “long range planning”, “corporate planning”, “strategic management” (Steiner, 1979; Steiner and Cannon, 1996; Ackoff, 1970; Ansoff, Declerck, and Hayes, 1976). Mintzberg and Lampel (1999) have classified strategic formulation into ten schools: design, planning, positioning, cognitive, learning, power, cultural, environmental, entrepreneurial, and configuration. For this research the researcher will use formal strategic planning to describe an organizational managerial process, which is “defined as the process of determining the mission, major objectives, strategies, and policies that govern the acquisition and allocation of resources to achieve organizational aims” (Pearce, Freeman, and Robinson, 1987). These authors and others (e.g. Mintzberg et al., 1999) point out that the term formal strategic planning refers to the “systematic

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