The Effect of corporate restructuring on employee performance: a case of the NCBA merger

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dc.contributor.authorMakau, C.
dc.date.accessioned2024-07-30T06:53:24Z
dc.date.available2024-07-30T06:53:24Z
dc.date.issued2024
dc.descriptionFull - text thesis
dc.description.abstractCompanies are implementing restructuring strategies to enhance their competitive position and boost shareholders' wealth in response to heightened competition and evolving operational conditions. Research has demonstrated that corporate restructuring not only improves financial performance but also enhances employee performance in terms of productivity, efficiency, effectiveness, and the creation of a positive customer experience. Corporate restructuring significantly improves performance, particularly in highly competitive areas, by increasing employee productivity and their contribution to corporate success. This could elucidate the reason behind NCBA's investment in employee learning hours experiencing a significant surge of 300% by 2022, subsequent to the initiation of its restructuring process. Hence, this study has a strong focus on examining the impact of corporate restructuring on employee performance, specifically in the context of the merger between NIC and CBA Banks. The study's specific objectives centred on examining the impact of cost restructuring, governance reformation, and downsizing on the employee performance of NCBA Bank. NCBA bank has a total of 42 branches in Nairobi. The focus of the analysis was on the employees, specifically the departmental managers. Given that each branch consists of six (6) departments, a total of six (9) departmental managers were examined in the firm. Therefore, the study's target population consisted of a total of 252 respondents. A total of 190 respondents were selected at random to compose the sample design for the study. Data collection from the appropriate respondents at the bank was conducted using structured questionnaires that contained closed-ended questions. The analysis involved the utilization of multiple linear regression in the SPSS software. The researcher ensured the participants' privacy and confidentiality, as well as the secure sharing of any sensitive data. The regression analysis revealed that implementing cost restructuring has a positive impact on employee performance in the merger between NIC and CBA banks. As a result of cost restructuring, which included reducing indirect costs, bringing in-house activities instead of outsourcing, and cutting operational costs after the merger, employees became highly productive, creative, efficient, quick learners, and self-driven. The findings also indicated that implementing governance reforms enhances employee performance in the merger between NIC and CBA banks. Consequently, the reformation of governance, which involved altering the top management, restructuring the management hierarchy, and modifying the remuneration system for top executives, resulted in employees displaying high levels of productivity, creativity, efficiency, adaptability, and self-motivation. The research discovered that downsizing enhances employee performance in the merger between NIC and CBA banks. As a result of downsizing during the merger, which involved reducing bank departments and the number of supervisors per managerial unit, employees became highly productive, creative, efficient and self-driven.
dc.identifier.citationMakau, C. (2024). The Effect of corporate restructuring on employee performance: A case of the NCBA merger [Strathmore University]. http://hdl.handle.net/11071/15513
dc.identifier.urihttp://hdl.handle.net/11071/15513
dc.language.isoen
dc.publisherStrathmore University
dc.titleThe Effect of corporate restructuring on employee performance: a case of the NCBA merger
dc.typeThesis
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