Effect of Objectives and Key Results (OKR) on Organisational Performance in the Hospitality Industry

Abstract

The study investigated the effect of Objectives and Key Results (OKR) management technique on organisational performance in the hospitality industry using hotels in Abuja, Nigeria. The study utilised a survey research design; where primary data were collected from a sample of 207 employees of hotels in the metropolis of Abuja. The questionnaires used to collect the data contained closed-ended questions that were rated on a Likert-5-point scale of "Strongly Agree, Agree, Neutral, Strongly Disagree and Disagree." Using factor analysis, the questionnaire was adjudged to have good measurement quality, and thus suited for investigating the study variables. Furthermore, based on the rotated component matrix, the Measurement of Sampling Adequacy (MSA) for all 37 questions was found to be more than 0.7 on aggregate. The data was then analysed with the aid of PSA correlation and regression statistical tool. Arising from the result, the model was significant at 0.000 and the null hypothesis was rejected. The study concluded that OKR has a positive significant effect on organisational performance. From the findings, hotels fulfilled their goals by using OKR practices, which requires managers to collaborate with their subordinates to define and clarify performance goals and key results that are aligned with the work unit's and the organization's overall goals. The study, therefore, recommends the activation and implementation of OKRs in hotel establishments due to its numerous benefits that help to the positive development of the organization's performance.