| dc.description.abstract | Organizations are being faced with rapidly and constantly changing technologies, customer expectations, rules and regulations. This means that the same organizations
have to constantly change the way they operate in order to remain relevant and
competitive through corporate restructuring. Restructuring poses challenges to the
firms implementing it. Corporate restructuring is the process of reorganizing or
redesigning the organization structure. This study was conducted to identify the
challenges of corporate restructuring at Lake Basin Development Authority, Kenya,
and the measures to deal with the challenges of corporate restructuring. The study was
conducted through case study research design, primary data was collected using
structured interview guide from the managers while secondary data was gathered
from the Lake Basin Development Authority strategic plans. Data was analyzed using
content analysis.The study established that challenges faced during restructuring
included: financial constraints, misunderstanding and lack of trust, lack of constant
monitoring in order to identify flaws that may be present in the current program and
that need correct them early, poor communication, loss of key personnel, poor
leadership and lack of continuous training and sensitization. The study concluded that
organizations will only adapt to the changing environment by creating different sets
of resources and organizational capabilities to as to continue being relevant and keep
up with competition. The way they restructure is influenced by the pressures of the
various rules and norms, therefore an organization should restructure based on the
current situation it is facing. Challenges during and after restructuring needed to be
addressed by proper planning for restructuring, two way communication and staff
involvement in order to achieve the main goals of restructuring, which is to
effectively and efficiently attain the goals of organizations. It was evident that most of
these challenges affected the employees of an organization. The study recommends
that the organization need to provide attractive reward packages, involve in
participative management, provide accurate and timely communication. The study
had a limited scope, time constraints and since it was a case study, the findings could
not be generalized to a wider population. Similar study can be conducted in future to
investigate the effect of corporate restructuring on different aspects of performance or
the role of employee involvement during restructuring at Lake Basin Development
Authority in order to eliminate the limitation of scope of the study. Further research
can be carried out on the other forms of restructuring such as portfolio and financial
restructuring to determine if they have the same challenges while implementing them.
A similar study can also be done on challenges of corporate restructuring within
Regional Development Authorities in order to take into consideration the issues of
different organizational cultures, different management styles and different resource
capabilities. | en_US |
