The Role of Corporate Restructuring as a Strategy For Organisational Performance of Companies in Kenya: A Case Study of Safaricom

Abstract

Organizational restructuring is a value tool for an organization to use in an attempt to redefine their goals and objectives, the choice of which strategy to use depending on which area the company wants to improve, profitability, performance, or operation. The purpose of this study was to examine the part corporate restructuring plays on the performance of organizations in Kenya using Safaricom as a case study. A descriptive research design was appropriate for this study. A target population of 500 employees was used. Probability sampling technique was used. A probability proportionate was used to reach the respondents. The researcher collected data from both primary and secondary sources. The tools of primary data collection were essentially structured questionnaires. Data collected for this study was measured and analyzed with the use of both Microsoft Excel spreadsheet and the Statistical Program for Social Scientists (SPSS) for statistical analysis. The study found that the approach used during the restructuring process in the organization was re-engineering/ product redesign, divestiture and downsizing. The outcome of the restructuring process was successful. Moreover, the respondents agreed that there is a positive relationship between corporate restructuring and performance. The study concludes that Safaricom used re-engineering/ product redesign, divestiture and downsizing during the restructuring process. It concludes that corporate restructuring strategies improved managerial efficiency and response to the changing business environment and was important for managing internal operations better. It should reengineer its processes to enable it become more customer-centric, cost efficient, and eliminate duplication of roles and functions through optimum use of resources.