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.