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Influence of Corporate Restructuring on the Performance of Tier Three Banks in Kenya

“…It depicts that it may take some time for the effectiveness to be felt in large banks as compared with small ones due to their operations and the risks levels involved . Eby and Buch (2018) argue that there is proof that corporate restructuring has benefits beyond the lower cost of operation and enhancing strategy formulation and implementation. According to Kwaning, Churchill, and Opoku (2014), debt restructuring, which is a form of financial restructuring, allows the organization to cut down and renegotiate its persistent debt to improve or restore its liquidity, rehabilitating it that the organization's operations may continue.…”

Developing a framework for responsible downsizing through best fit: the importance of regulatory, procedural, communication and employment responsibilities

“…Such perceptions are shaped by age, gender, tenure and skill level or sectoral norms and values. While best practices in terms of procedural issues such as advance warning periods (Eby & Buch, 1998), severance pay (Garaudel et al, 2016) or employee involvement (Bergström & Arman, 2017;Pfeifer, 2007) exist, not all of them are of equivalent value to employees. A best fit approach can hence explain how the prioritisation of different practices amongst organisations are determined by the variable characteristics of the workforce, as opposed an application of uniform best practices.…”

“…An essential feature of responsible downsizing involves HR and management ensuring employees, and their representatives, are involved in the process. In addition to communicatory practices reinforcing regulatory and procedural responsibilities, such as negotiation processes and consultation periods, a further theme focuses on how communication responsibilities can enhance perceptions of fairness (Bergström & Arman, 2017;Eby & Buch, 1998;Hopkins & Hopkins, 1999;Kernan & Hanges, 2002;Kim, 2009;Pulignano & Stewart, 2013;Stengård et al, 2015;Tanner & Otto, 2016;Tourish et al, 2004). Key to communication is information sharing that ranges from minimal updates to strategic or financial rationales for downsizing.…”

“…A failure to communicate with employees over downsizing may jeopardise procedural and regulatory responsibility, and if critical information is withheld organisations risk being perceived as unethical or irresponsible (Hopkins & Hopkins, 1999). Crucial for responsible downsizing is therefore open communication that eases employee transitions during what can be a tense situation (Eby & Buch, 1998;Forde et al, 2009;Teague & Roche, 2014). However, the dynamics of what a meaningful, interpersonal approach to communication looks like in practice is unclear, despite broad acknowledgement that employees should be permitted opportunities to ask questions and vent personal grievances as downsizing progresses.…”

“…This is especially the case for victims of downsizing, though as noted survivors rarely emerge unharmed. Research has therefore considered the practices taken to mitigate such effects, categorised as an organisation's employment responsibilities during downsizing (De Witte et al, 2005;Doherty et al, 1993;Eby & Buch, 1998;Forde et al, 2009;Kieselbach & Mader, 2002;Kirov & Thill, 2018;McLachlan et al, 2021;McMahon, 1999;Snell & Gekara, 2020;Trevor & Nyberg, 2008).…”