EFFECTS OF ORGANIZATIONAL RESTRUCTURING ON FIRM PERFORMANCE: A CASE OF NATIONAL BANK OF KENYA

Author's Name: Isabwa Kajirwa Harwood, Joel Oloishorua Nakola & Derek Nyankuru Nyaana
Subject Area: Social Science and Humanities
Subject Business Management
Section Research Paper

Keyword:

Organization Restructuring, Firm Performance


Abstract

This study examines the effect of organization restructuring on performance of National Bank of Kenya. The specific objectives were to: find out the effects of organizational restructuring on firm performance, determine the relationship between organizational restructuring and firm performance. The study used an explanatory research design in data collection. A target population of 54 respondents was considered in the study. A sample size of 18 respondents was used computed based on Mugenda and Mugenda (2003), 10 - 30% rule and stratified and simple random sampling were used in the collection of data from the sample. Factor analysis was used to test for validity and the test retest method was used to test for reliability. The data was then analyzed using simple linear regression model and Pearson product moment correlation. The study found that organization restructuring positively affects firm performance although not statistically significant (ß =.062, p>0.05). The conclusion of the study was that organization restructuring positively affects firm performance although not statistically significant. The study recommended that National Bank of Kenya should ensure at all times that none of the parts of the organization are significantly over or under staffed, stagnant workforce productivity should be phased out completely. Accountability for results should be clearly communicated and measurable resulting in objective and rational performance appraisals.

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