An Investigation On The Impact Of Restructuring On Organizational Performance. A Case Of Telone (Pvt) Ltd

Abstract

Turbulent working environment, increased costs, poor revenue generation and low shareholder wealth, resulted in many organizations ceasing their operation. It is against this background that management of TelOne (Pvt) Ltd decided to restructure the company. For the period 2015 to 2017, the performance of the company was quite low despite its adjustments to governance structure, organizational configuration and strategic reorientation. Most of these strategies could not work as employees themselves did not believe in the changes of ownership and resultant management which came up with new ways of doing business. The researcher aimed to investigate the impact of restructuring on organization performance. A review of existing literature from journals, books, websites and published documents was done and the target population constituted of 40 employees from Finance, marketing, IT, and human resources departments together with management. Descriptive survey was adopted by use of 33 respondents. A stratified random sampling was used. The researcher prioritized convenience sampling by targeting people at the work place once associated with during work related learning. Questionnaires were administered and interviews conducted to gather data. Data was analyzed using descriptive statistical analysis, grouped, sorted using excel and the modal responses drawn. Pie charts, frequency distribution tables and graphs were used to present the data. Data validity and reliable was assured using the concept of triangulation, review of company documents and gathering of data from the most affected departments in the organization. The research findings establishes that the implementation of the restructuring improved market share of the company and assured continued survival in the industry although it did not fully enjoy the benefits of restructuring due to poor implementation measures. The study concludes that management focused much on downsizing among other things which demoralized the employees. The recommendations of the study were that management should engage employees and other stakeholders and inform them whenever there is need for change. Furthermore there must be a restructuring policy, assistance of outgoing employees and exploration of other measures such as business reengineering and down scoping rather than retrenching employees. The study suggested further research of similar study to enable generalization of findings.