Strategic change management practices and performance of staff at national hospital insurance fund, Kenya
Abstract
Strategic change management has become a worldwide and a compulsory practice. This
is because it enables organizations to be responsive to environmental needs and changes
that affect their operations. Successful organizations recognize the importance of strategy
as a tool in management and realize that their survival is dependent on a how well they
adopt new strategies or enhance existing strategies in an attempt to respond to changes
brought about by the turbulent environment. The world today is going through massive
change and this is indicated by organizations redesigning, restructuring, merging and
downsizing. As a result of these changes, strategic change management has become
increasingly of interest to the management of organizations. The National Hospital
Insurance Fund (NHIF) is the oldest government insurance scheme in Africa and in
Kenya. NHIF was set up in 1966 under Cap 255 of the Laws of Kenya as a department
under the Ministry of Health. Its establishment was based on the recommendation of
Session Paper no. 10 of 1965: African Socialism and its Application to Planning in
Kenya. The original act was revised and currently, the Fund derives its mandate from the
NHIF Act no. 9 of 1998. As the primary provider of health insurance in Kenya its
mandate is to provide access to quality and affordable health care for all Kenyans. NHIF
membership is compulsory for all salaried employees but optional to those who are not
employed. Having existed for long, the organization has been undergoing and
implementing some strategic changes. This study sought to determine the strategic
change management practices adopted by NHIF and how the changes affected staff
performance. The study applied case study research design where only one organization
was involved. The study used both primary and secondary data. Primary data was
collected through face to face interviews using interview guide with top and middle level
management from various departments at NHIF. Secondary data was collected through
review of the contents of various relevant publications and reports at National Hospital
Insurance Fund including the Strategic Plan, strategic review and other relevant
materials. Collected data was analyzed using content analysis and presented in prose
format. The study established that some of the strategic change management practices
adopted by NHIF included: changes in the top management like appointments of new
CEO and board of Governors, introduction and upgrade of technology, change in polices
and rules and organization restructuring. NHIF used several communication modes to
pass the message of change across all stakeholders. The change management program
had several objectives to operate more effectively and efficiently, to offer quality services
and to deliver on its Vision and Mission. The various strategic change management
practices adopted had more positive than negative impact on staff performance thus was
necessary to be implemented. The organization faced challenges during the change
management process which include resistances to change due to lack of clear
understanding of need for change. However these challenges were dealt with through
trainings and proper communication on the need for change. The study concluded that
strategic change management practices adopted by NHIF were indeed important and
necessary for the progress and quality service delivery by the organization. Finally the
study recommend that the organization should strive and invest more on staff training to
be able to acquires the necessary skills to implement, sustain and manage the change
program.
Publisher
University of Nairobi