STRATEGIC RESTRUCTURING AND ORGANIZATIONAL PERFORMANCE OF TELKOM KENYA LIMITED
Abstract
This study determined the effect of strategic restructuring on organizational performance of Telkom Kenya. The study was grounded on transaction cost theory, planned change theory, Kurt Lewin Three Stage Model for Change and structural contingency theory. Cross sectional research design is used in the study. According to Telkom Kenya (2023) there were a total of 1072 employees working at Telkom Kenya Limited. Out of this number, there were 109 top and middle level management based in the company’s Head office in Nairobi which forms the unit of analysis for the current study. The study utilized stratified random sampling technique to stratify the target population in to homogenous groups. Then simple random sampling was employed to allocate the sample size for each homogenous group. The study used Slovins sample formula to get a sample size of 86 respondents. Structured questionnaires was employed to collect primary data for the study. Collected data was analyzed by use of descriptive statistics and inferential statistics. The tool used in the analysis was the Statistical Package for Social Sciences (SPSS) version 29. The study findings were presented in frequency and descriptive tables. The study results showed that cost restructuring, process restructuring, management restructuring and cultural restructuring had positive significant effect on organizational performance of Telkom Kenya Limited. Based on the study results, the study concluded that the company had downsized management centers in order to streamline operations and cut costs. The study also concluded that information flow had been improved in addition to decision-making and communication between various departments. The study recommended that the company should establish effective channel to communicate core value of the company to employees. This would put employees on the same pedestal as the organization’s goals. In addition, the company should have accountability systems. Also the company should retrain and re-educate its management staff to keep them a trend changing business environment. The company should reduce management control where necessary and cut bureaucratic tapes in decision making.
Key Words: Cost Restructuring, Management Restructuring, Process Restructuring, Cultural Restructuring
CITATION: Saleh, O. S., & Koech, P. (2024). Strategic restructuring and organizational performance of Telkom Kenya Limited. The Strategic Journal of Business & Change Management, 11 (2), 1050 – 1066. http://dx.doi.org/10.61426/sjbcm.v11i2.2968
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