The human factor in implementation of strategic change within large manufacturing firms in Nairobi

Abstract

Drastic and fundamental changes are increasingly occurring in the environment in which firms operate. An obvious manifestation of the responses towards this turbulent environment has been mergers, acquisitions, restructuring, downsizing Corporate shake-ups and organizational change which have become the norm and rather than exception. These changes have presented the firms with unbearable competitive pressures. The motivation of the study was the fact that long term success and survival of any organization especially in a turbulent environment, like the one currently being experienced in Kenya, depends entirely on how strategically prepared the organization is. Organizations therefore have to implement and manage change programs to achieve strategic fit within the prevailing environments. Organizations who successfully manage change are those which have integrated their human resource management policies with their strategies and the strategic change process. The human resource management must critically be concerned with the way employees relate to the nature and direction of the firm, and as such they can both block strategic change and also be significant facilitators of the very same. The research focused on analyzing the attention the Kenyan manufacturing firms are giving people concerns during their change initiatives. The main objectives investigated during the study were: 1. To establish the people management practices used by large manufacturing firms in Nairobi that has implemented strategic change. 2. To identify those factors that influence the choice of people management practices 111 within manufacturing firms in Nairobi. A sample of 33 respndents was used in the study. The data collected was presented using tables and analysed using descriptive statistics. Proportions, percentages and modes were used for analysis the data. The major findings were Change implementation in the manufacturing firms ignores the important details and use of proper communication strategies. They underestimate the need to gain behavioral alignment and development of trust. Organizations don't develop structures to capture and to handle with sensitivity, employee emotional reactions. General conclusions drawn are that there is very little awareness of how employees are impacted emotionally by organizational changes especially those involving loss of jobs. Employers have not felt the need to assist people handle these emotions. Recommendations made were that, there must be mechanisms to monitor the employee responses to organizational change since this has an effect on the employer-employee trust relationship and that trust is crucial for organizational success. The leaders should address both the emotional and practical issues through the hard and softer human resource practices. Strategies that provide the opportunity to build trust and commitment within the newly restructured organization should be used.