Organizational Restructuring Strategies and Performance of the Aga-Khan Hospital Mombasa
Magak, Kimberley Miriam
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Restructuring strategies encompasses the organization to assist people in making successful changes. Organizations therefore must manage the restructuring strategies properly, because this is a very important phenomenon if they want to survive and improve on its performance in the long run. The aim of this research was to examine the influence of Organizational Restructuring Strategies and performance of the Aga-Khan Hospital Mombasa. The following were the specific objectives for the study: To determine the extent to which Downsizing restructuring strategy affects the performance of the Aga-Khan Hospital, To establish the effect of Information Technology restructuring strategy on the performance of the Aga-Khan Hospital, To evaluate the effect of Down scoping restructuring strategy on the performance of the Aga-Khan Hospital and To find out whether Turnaround restructuring strategy affects the performance of the Aga-Khan Hospital in Mombasa. Performance of the hospital was measured in terms of efficiency, effectiveness, market share and lastly the customer’s satisfaction. The study was anchored on: The Lewin’s Change Management theory, Kotter’s change Management theory and ADKAR model. Descriptive study design was used. The study sought to address the gap between how the restructuring strategies will influence the performance of the hospital. Target population for the study was 78 management staff from the hospital. To ensure efficiency, validity and reliability of the data collection instrument was tested. Reliability was measured using Cronbach Alpha. A pilot study was conducted in the Aga-Khan hospital so as to ensure reliability of the research instruments. Data was collected using primary source with the aid of Likert scale questionnaire, which were grouped in relation to its themes of studying organizational restructuring strategies and hospital performance. Collected data for analysis was supplemented by the multiple regression analysis model using the “Statistical Package for Social Sciences.” Simple random sampling technique was employed for the study. Findings showed that IT, Downsizing and Downscoping, were positively correlated with performance of the hospital. Turnaround strategy on the other hand was found to be negatively correlated with the performance of the hospital. The study found out the hospital faced challenges of the employees resisting change in how they do things, which caused about the negative effect of the Turnaround strategy. The study recommended that the management of the hospital should motivate its employees with incentives, so that they can work harder and improve on the performance. It was also recommended that the hospital should train its employees so as to increase their skills when working. A further recommendation was given that further studies should be conducted by other researchers and scholars, to come up with other study variables that will help the hospital to improve on its performance.