INFLUENCE OF ORGANIZATONAL RESTRUCTURING ON PERFORMANCE OF TELECOMMUNICATION INDUSTRY IN KENYA: A CASE OF AIRTEL KENYA LTD.

Abstract

Turbulent working environment has stressed the businesses resulting to failure of performance. It is evident that most of them are restructuring to turn around this situation. Restructuring enhances the prospects for improved performance for firms via strategic reorientation, organizational configuration and governance structure adjustment. First it provides an opportunity to transfer assets to higher valued users hence recapturing competitive advantages that have been dissipated from over diversification. The current level of performance of Airtel Kenya Limited is quite low. With the constant changes in ownership and resultant management teams which always comes with a myriad of new ways of doing things. Most of these new strategies have not performed well in the market because the employees themselves do not believe in them and will therefore not perform optimally to meet this goal. The general objective of this study was to establish the influence of restructuring on organizational performance in telecommunication industry in Kenya. The target population was 315 senior and middle level management of employees of Airtel Kenya. The study adopted a descriptive survey by use 176 respondents. A stratified sampling technique method was used. Secondary data was obtained from published documents such as journals, periodicals, magazines and reports to supplement the primary data. A pilot study was conducted to pretest the validity and reliability of instruments for data collection. Data was analyzed by use of both qualitative and quantitative methods with the help of Statistical Package for Social Sciences (SPSS) version 21 and excel. The multiple regression analysis was used to establish the direction and strength of the relationship of the variables at 5% level of significance. The correlation and regression analysis was used to establish the direction and strength of the relationship of the variables. The regression analysis showed that business engineering had the strongest positive (Pearson correlation coefficient =.789) influence on performance of telecommunication industry. In addition, downsizing, rightsizing and downscoping were positively correlated to performance of telecommunication industry with Pearson correlation coefficient of .600, .687 and 511 with p-values of 007<0.05, .004<0.05 and .009<0.05 respectively. The study established that business engineering was the most significant factor. The study recommends for similar studies t…