THE RELATIONSHIP BETWEEN RESTRUCTURING STRATEGIES AND PERFORMANCE: A CASE OF KENYA NATIONAL AUDIT OFFICE
Lillian Akumu - Masters of Business Administration (Strategic Management), Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Joyce Nzulwa - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Organizational restructuring has received much attention because of its suggestions for organizations to regulate strategies concerning to the active business environment, and finally allow organizations to generate and maintain the competitive advantages. The main objective of this study was to analyze the relationship between organizational restructuring strategies and performance of Kenya National Audit Office. The study was guided by the following objectives; business process engineering, outsourcing, delayering and Virtualization. The study targeted 519 employees from Kenya National Audit Office headquarter Nairobi County. Stratified random sampling technique was used to draw the sample elements. The sample size of the study was 157 respondents from KENAO. Questionnaires helped in collection of primary data. The collected data was coded into SPSS and the analysis was done using descriptive and inferential statistics. The analysis of qualitative data was done by help on content analysis. The findings were presented in form of inferential statistics and in tables and graphs. Coefficient of correlation indicated existence of a strong positive correlation between the study variables. Coefficient of determination shows that a large proportion of variations of organizational performance can be traced by outsourcing, business process engineering and virtualization. The study concludes business process engineering positively influenced organizational performance. Business process redesign led to new ways of task organization, reduced overall cost on operation cost. The outsourced clients had delivered quality goods and services. Improved service delivery and improved operational efficiency at KENAO. Increased cost utilization at KENAO. Delayering was not done in line with the law. Delayering process did not consider the training needs of staffs. The study recommends that organizations should have good customer care procedures to attend to customers. Business process redesign aimed at improvement of staffs’ performance and reduction of overall operational costs. Outsourcing should enable the organization to access to highly skilled expertise in different fields. Outsourcing should improve the level of skills and knowledge among in-houses staffs. Delayering process led to reduction in cost, optimal staff utilization and improved staff performance. Virtualizations led to improved employees’ accountability.
