Selected organizational restructuring strategies and employee commitment at Kenya Revenue Authority
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Date
2018
Authors
Kwena, Electine Abilo Nasiru
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Strategic policy makers often neglect the impact of organizational restructuring strategy
and employee commitment. The purpose of the study was to investigate how selected
organizational restructuring strategies affected employee commitment at KRA.
Specifically, the study sought to; establish the effects of change of job description and
employee commitment at KRA, determine the effects of grading structure change and
employee commitment at KRA and to determine the effects of remuneration structure
change and employee commitment at KRA. The study was informed by Resource
Dependency Theory, Social Exchange Theory, Human Capital and Expectancy Theories.
The study adopted descriptive research design. The target population was 1065 employees
from Investigations Enforcement Department, Legal Services and Board Coordination
Department, Corporate Support Services Department, Domestic Taxes Department and
Customs and Border Control Department. The study employed three sampling techniques;
purposive sampling, stratified sampling and random sampling techniques resulting into a
sample size of 317 respondents. The study collected primary data using questionnaires.
The collected data was analysed using descriptive and inferential statistics. Descriptive
statistics included use of means and standard deviation while inferential statistics included
use of regression and correlation analysis. The study established that job description
change (r=0.5151, p =0.00) had a strong, positive and significant correlation with
employee commitment. Grading structure change (r=0.522, p =0.00) had a strong, positive
and significant correlation with employee commitment. Remuneration structure change
(r=0.429, p=0.020) had a strong, positive and significant relationship with employee
commitment. The study concluded that job description changes guided HR managers at
KRA during the recruitment process and changes in assignments due to restructuring
made employees to be committed to KRA, the grading structure was changed by the
management to increase the commitment levels among employees at KRA and career
progression at KRA increased staff commitment and improved remuneration package at
KRA enhanced employee commitment levels, however favourable terms of employment
made staff committed to KRA. The study recommended that job description change should
be considered as a critical factor on employee commitment as it will guide HR managers
during the recruitment process and changes in assignments during restructuring which in
turn will make employees to be committed to the organizations. The grading structure
should be changed by the management to increase the commitment levels among
employees. Career progression should be increased so as to enhance staff commitment. All
organizations in Kenya should have improved remuneration package to enhance employee
commitment levels and favourable terms of employment to make staff committed to the
organizations.
Description
A research project submitted to the school of business in partial fulfillment of the requirements for the award of the degree of master of business administration (strategic management option) of Kenyatta University July, 2018