Challenges of corporate restructuring at National Oil Corporation of Kenya
Abstract
Modern companies operate within competitive national and international markets and must
embrace change management in efforts to consistently take advantage of opportunities
within their operating environments. Some of these changes have focused on lean
production and efficiency. Many improvement efforts fail because the organization is not
properly geared to support the processes being implemented. The general objective of the
study was to establish the challenges facing National Oil in implementing corporate
restructuring. The research study adopted a case study research design. The researcher used
both primary and secondary data. Primary data was collected using self-administered
interview guides while secondary data was collected by use of desk search techniques from
published reports and other documents. Content analysis was employed. The study found
that the main goal was to change the corporation from a functional structure to one having
different departments being answerable to one divisional head and have a more effective
management model. The study conclude that restructuring in the Corporation was faced by
human resource management, internal communication, organizational culture, and top
management support challenges. The study recommends that management staff should be
equipped with techniques of how to handle organization changes which will enable them to
continue serving in their respective places. By so doing the corporation will mitigate the
challenges inherent in restructuring within the corporation. The organization should include
measures to eliminate communication related challenges within the company since clarity of
the same is not only critical to the success of the process, but also ensures that planned
programmes are executed timely. Consistent engagement with the personnel should be listed
as priority considering that restructuring may lead to loss of employment and therefore
traumatic to the families affected. There should be open, clear, concise and timely
communication to reduce misunderstanding, anxiety, speculation and staff de-motivation,
the policies to be used during the process should be well communicated, there should be
openness about the aims and the consequences behind the restructuring exercise. The study
also recommends that Corporations undertaking structural changes should also consider its
remuneration and training opportunities for its employee to eliminate employee based
challenges like employee turn-over as they seek for greener pastures in other industries.
Based on the limitations of the study, areas for further research have been pointed out.
Publisher
University of Nairobi