SELECTED ORGANIZATIONAL RESTRUCTURING STRATEGIES AND EMPLOYEE COMMITMENT AT KENYA REVENUE AUTHORITY
Electine Abilo Nasiru Kwena - Master of Business Administration (Strategic Management Option), Kenyatta University, Kenya
Dr. Abel Anyieni (PhD) - Lecturer, Business Administration Department, Kenyatta University, Kenya
ABSTRACT
Strategic policy makers often neglect the impact of organizational restructuring strategy and employee commitment. The purpose of the study was to investigate how selected organizational restructuring strategies affected employee commitment at KRA. Specifically, the study sought to; establish the effects of change of job description and employee commitment at KRA, determine the effects of grading structure change and employee commitment at KRA and to determine the effects of remuneration structure change and employee commitment at KRA. The study was informed by Resource Dependency Theory, Social Exchange Theory, Human Capital and Expectancy Theories. The study adopted descriptive research design. The target population was 1065 employees from Investigations Enforcement Department, Legal Services and Board Coordination Department, Corporate Support Services Department, Domestic Taxes Department and Customs and Border Control Department. The study employed three sampling techniques; purposive sampling, stratified sampling and random sampling techniques resulting into a sample size of 317 respondents. The study collected primary data using questionnaires. The collected data was analysed using descriptive and inferential statistics. Descriptive statistics included use of means and standard deviation while inferential statistics included use of regression and correlation analysis. The study established that job description change (r=0.5151, p =0.00) had a strong, positive and significant correlation with employee commitment. Grading structure change (r=0.522, p =0.00) had a strong, positive and significant correlation with employee commitment. Remuneration structure change (r=0.429, p=0.020) had a strong, positive and significant relationship with employee commitment. The study concluded that job description changes guided HR managers at KRA during the recruitment process and changes in assignments due to restructuring made employees to be committed to KRA, the grading structure was changed by the management to increase the commitment levels among employees at KRA and career progression at KRA increased staff commitment and improved remuneration package at KRA enhanced employee commitment levels, however favourable terms of employment made staff committed to KRA. The study recommended that job description change should be considered as a critical factor on employee commitment as it will guide HR managers during the recruitment process and changes in assignments during restructuring which in turn will make employees to be committed to the organizations. The grading structure should be changed by the management to increase the commitment levels among employees. Career progression should be increased so as to enhance staff commitment. All organizations in Kenya should have improved remuneration package to enhance employee commitment levels and favourable terms of employment to make staff committed to the organizations.
