Restructuring and Institutional Performance Case Study: Nairobi City Council

TABLE OF CONTENTS

DECLARATION ........................................................................................................... ll

APPROVAL ... . ... ..... ... ... ... ........... ... .... .... ... ...... ... ........ ... .... ... . ... . . . .............................. .iii

DEDICATION ............................................................................................................... iv

ACKNOWLEDGEMENT ............................................................................................... v

TABLE OF CONTENTS ............................................................................................... vi

LIST OF TABLES ......................................................................................................... ix

LIST OF FIGURES ......................................................................................................... X

DEFINITION OF TERMS ............................................................................................. xi

LIST OF ACRONYMS ............................................................................................... xii

ABSTRACT ................................................................................................................. xiii

CHAPTER ONE ....•.....••....................•........................................................................... l

1.0 INTRODUCTION ..................................................................................................... !

1.2 Statement of the problem ........................................................................................... 2

1.3 Objectives of the study .............................................................................................. 3

1.3 .1 General objective ..................................................................................................... 3

1.3 .2Specific objectives ................................................................................................... 3

1. 4. Research questions ................................................................................................... 3

1.5. Justification of the study ........................................................................................... 3

1. 6 Scope of the study ..................................................................................................... 4

1. 7 Limitations of the study ............................................................................................. 4

1. 8 Conceptual frame work. ............................................................................................. 5

CHAPTER TWO ......................•.......•...•••..•.................................................................. 6

2.0. LITERATURE REVIEW ...................................................................................... 6

2.2 Theoretical review ..................................................................................................... 6

2.3 Theories that support organizational restructuring as advanced by McCarthy &

Current (1990) are as follows .......................................................................................... 7

VI

2.4 Factors to consider when restructuring organizations ................................................. 8

2.5 Levels ofrestructuring ............................................................................................... 9

2.6 Hurdles involved in privatization ............................................................................... 9

L-. , Conditions tor Success ofPrivatization .................................................................... 10

2.8. Benefits ofprivatization .......................................................................................... 13

2.9 Impacts of Organizational Restrncturing .................................................................. l3

CHAPTER THREE •...................•..•..•..•...•...•.............................................................. 18

3.0 METHODOLOGY .................................................................................................. l8

3 .1 Research design ....................................................................................................... 18

3.2 Population ofthe study ............................................................................................ 18

3.3 Sampling size and procedure ................................................................................... 18

3.3.1 Sample size .......................................................................................................... 18

3.3.2 Sampling procedure .............................................................................................. l9

3.3.3 Data collection methods ........................................................................................ 19

3.3.4 Data analysis and interpretation ............................................................................ 20

CHAPTER FOUR ........................•...•...................•...•.................................................. 21

4.0 DATA ANALYSIS METHOD ............................................................................... 21

4.1.1 Over view ............................................................................................................. 21

4.1.2 Position held by the respondents ........................................................................... 21

4.1.3 Common causes of organization restmcturing ....................................................... 23

4.1.4 Factor that affected restructuring process .............................................................. 24

4.1.5 Common causes of employee resistance toward restructuring ............................... 25

4.1.6 Level of awareness of the restructuring process .................................................... 27

4 .1. 7 Method used in creating awareness on organization restructuring ......................... 28

4.2. Hurdles involved in privation process ..................................................................... 29

4.3. Analysis on the effect of the organization restmcturing ........................................... 30

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CHAPTER FIVE ............................................................................................................ 33

5.0. INTRODUCTION ..................................................................................................... 33

5.1. Conclusions ................................................................................................................ 33

5.2. Recommendations ...................................................................................................... 34

5.3. Further research ......................................................................................................... 35

REFERENCE •................................................................................................................. 36

APPENDIX I ................................................................................................................... 37

QUESTIONNAIRE: RESTRUCTURING AND PERFORMANCE ........................ 37

ABSTRACT A descriptive cross sectional study was carried out in NCC, between the months of December 2006 to February 2007; it involved finding the impact of restructuring of organization and its performance. The objective of the study is to establish the impact of the restructuring on NCC. Restructuring of NCC should result in the following; improved customer satisfaction, staff motivation, improved performance The research designed used is descriptive research design, which is concerned with specific prediction and characteristics of a group. The sample size comprises 40% of the respondents. Data was collected through questionnaires and interviews. The recommendation made, is that any responsible restructuring should be undertaken in a socially responsible manner with the following points well locked into:- Reward employees with a reasonable return over time. Is customer focused. Considers employees as its most important asset, provide meaningful work, fair wage and benefits, ensure their employability and provide an enabling work environment. Contribute to the prosperity and social cohesion of the communities in which it operates. Apply the golden rule "do unto other as you would have them do unto you" to the employee. The above ideas support the view that business has a social as well as an economic mission. This emphasizes that the organization should be responsible also to those who are affected by its decisions and actions.