Challenges of the implementation of restructuring strategy by the national bank of Kenya
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Date
2015-11Author
Odongo, Patricia A
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Restructuring strategy is one significant process that occurs because of the need to
change unit priorities, initiate new programs, enhance effectiveness, address budget
reductions and reduce headcounts among other reasons. The change brought about by
restructuring strategy is not a simple task because the success depends on how well
the employees adapt to the change. This therefore brings about various challenges
during the implementation process ranging from communication, training and
retraining, attitudes amongst others which need to be worked through to ensure the
success of the restructuring strategy and the overall firm. The main purpose of the
study was to evaluate the challenges in implementation of restructuring strategy at the
National Bank of Kenya. This research used a case study approach as the research
design since the unit of analysis was one organization which is NBK. Primary data
was collected using an interview guide with open ended questions to avoid
subjectivity. The method involved personal interactive interviews conducted by the
researcher. The interviews were carried out among 15 independent respondents in
whom a selection criterion of their available experience with the restructuring strategy
implementation was used. The respondents were all at a senior management level
stemming from the Managing Director to Senior Relationship Managers. The
researcher then employed content analysis as a method of data interpretation. The
study grouped challenges under three subtopics namely challenges faced at Board of
Directors level such as political influence, regulations, high and attitudes, challenges
faced at senior management level such as financial issues (inadequate budget), poor
communication, external interference, technological hindrances and skills gap and
challenges at the operational level such as communication, lack of involvement in
decision making and dishonest employees. The researcher went forward to make
recommendations on ways to deal with the challenges of the restructuring strategy.
The implication of the study in policy is that the results will go a long way in ensuring
that after effective policies are developed, even more concentration and effort is given
to the implementation process. In theory, the study illustrated that the Dynamic
Capabilities Theory and Resource Based Theory play a great role in restructuring
strategy implementation effectiveness and therefore the study will guide future
scholars in the advancement of theories. The study in practice serves as a reference
point to organizations involved in restructuring strategy and have the need to know
the “what” and “how” as regards the challenges faced during implementation of the
restructuring strategy and measures to overcome these challenges.
Publisher
University of Nairobi