Influence of Organization Restructuring on Performance of Selected Media Firms in Kenya

Abstract

Purpose: The current study sought to establish the influence of organization restructuring on performance of selected media firms in Kenya. The study specifically sought to establish the influence of cost restructuring, governance reformation, downsizing and processes centralization on performance of selected media firms in Kenya.
 Methodology: The theories that guided the study includes Transaction Cost Theory, Agency Theory, Social Exchange Theory and Planned Change Theory. The study adopted a descriptive research design. The target population of the study comprised of three media firms in Kenya (Nation Media Group, Royal Media Services and Standard Group Limited). A total of 340 employees in the managerial positions of the selected media firms were targeted in the study. The study adopted Yamane (1967) sampling formula in acquiring a sample of 183 respondents. The study used quantitative data that was collected from respondents using 5 point Likert scales questionnaire with closed ended questions. A pilot test was conducted prior data collection to assess the reliability and validity of the questionnaires. Data was analyzed using SPSS. Both descriptive and inferential statistics were used. The study findings were presented in form of tables and figures for easier interpretation.
 Findings: The study established that Cost Restructuring, Governance Reformation and Downsizing positively and significantly influences performances of media firms and that increase in one indicator increases the levels of performances. Process Centralization was found to positively influence performance levels of media firms but to insignificant levels.
 Unique Contribution to Theory Practice and Policy: The study provided recommendations to the media firms to enhance their cost restructuring practices since the practice bears positive influence on performance, to capitalize on reforming their respective governance since the practice bears positive influence on performance, to enhance downsizing activity since the practice bears positive influence on performance and to partly focus on enhancing centralization processes since the practice bears positive but insignificant influence on performance.

Impact of Strategy Implementation on the Performance of Regulatory and Supervisory Agencies in Financial Services Sector in Nigeria

“…The study revealed that nature of formalization and layers in the organizational hierarchy has significant effects on the employee's performance of commercial banks in Anambra state. Other studies establishing the prominence of organizational structure on performance included Kinyua & Kihara (2021) in selected media firms in Kenya, Vithanage & Shyaman (2020) among Small and Medium Enterprises in Sri Lanka, and Funminiyi (2018) in North Central Nigeria among others.…”

The Effect of Organizational Restructuring On Employee Performance Through Job Satisfaction At The PUTR Office In Selayar Regency

“…Organizational restructuring occurred in the private sector and public sector. Research conducted by (Kinyua & Kihara, 2021) examines the effect of organizational restructuring on the private sector, while (Janet & Deya, 2018), (Kadir et al, 2021), (Mithe et al, 2019), and(Notanubun et al, 2019) examine the effect of restructuring on the public sector. This research was conducted in the public sector.…”

Corporate Restructuring

“…The dimensions of corporate restructuring are numerous. Prominent ones are strategy restructuring, process restructuring, organizational restructuring, manpower restructuring, market restructuring, financial restructuring, assets (business portfolio), capital structure, management/organizational, product restructuring, organizational restructuring, external restructuring, internal restructuring, downsizing, down scoping, business process reengineering, cost restructuring, governance reformation, departmentalization, decentralization, mergers, and acquisition ( Kinyua & Kihara, 2021).…”

“…The data were subjected to both descriptive and inferential statistical analysis and it was discovered that the bank's adoption of various restructuring strategies and specifically, the adoption of departmentalization, human resources restructuring, decentralization of processes, mergers, and acquisition had resulted in improved performance. Kinyua and Kihara (2021) examined the influence of organization restructuring on the performance of selected media firms in Kenya in a study designed to establish the influence of cost restructuring, governance reformation, downsizing, and processes centralization on the performance of three media firms (Nation Media Group, Royal Media Services, and Standard Group Limited). Using a total of 131 employees in the managerial positions of the selected media firms, data were analyzed using Pearson's correlation analysis and multiple regression analysis, the results show that cost restructuring, governance reformation, process centralization, and downsizing positively and significantly influence the performances of media firms and that an increase in one indicator increases the levels of performance.…”