STRATEGIC ORGANIZATIONAL RESTRUCTURING ON ORGANIZATIONAL PERFORMANCE OF KWALE INTERNATIONAL SUGAR COMPANY LIMITED IN KWALE COUNTY
Abstract
The main objective of the study was to examine the effect of strategic organizational restructuring on organizational performance of sugar industry firms. The study employed descriptive research design and the population of interest comprised of 54 senior management staff drawn from KISCOL in Kwale County. Collected data was checked for correctness and analysed quantitatively by use of Statistical Package for Social Science (SPSS) version 25 tool. Descriptive analysis was determined by use of mean and standard deviation while regression analysis was determined by model summary, ANOVA and regression coefficients. The study findings showed that all the predictors had positive relationship with organizational performance. The study results revealed that the company’s hierarchic structures have been flattened to the minimum thus enhancing operational efficiency. Restructuring undertaking at KISCOL has significantly changed the company’s business model enabling operations creativity. In addition, the portfolios of the company have been restructured and that job designs of the company have been restructured to accommodate new changes. The study concludes that KISCOL has carried out financial restructuring with the motive of enhancing its liquidity, lowering its cost of capital, reducing its risk, avoiding loss of control, and improving its shareholder value and that the company has renegotiated existing company debts with all stakeholders. It is concluded that the company, in its endeavor to restructure its financial obligations, have swapped outstanding debts with equity shareholding and that the company has changed its capital structure composition. The study concludes that restructuring at KISCOL has been executed in form of department cutting and combining with a view to make them leaner and responsive. The study recommended that the management of KISCOL should seek to improve operational efficiency by flattening its structures to the core. The company should consider altering its business model to make it more innovative and responsive to changing business environment. The study recommended that the company portfolios should be restructured to attain competitiveness and job redesigned. The study recommended that the company should cut its departments and where possible combine and merge departments to enhance efficiency and minimize costs.
Key Words: Operational Restructuring, Financial Restructuring, Departmentalization, Processes Decentralization
CITATION: Karoyo, K. K., & Koech, P. (2022). Strategic organizational restructuring on organizational performance of Kwale International Sugar Company Limited in Kwale County. The Strategic Journal of Business & Change Management, 9 (2), 678 – 693.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i2.2290
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