Organizational Management, in the Context of Change Management and Performance of Companies Listed in Nairobi Securities Exchange in Kenya

Abstract

Companies are faced with turbulent and chaotic business environment which has a significant effect on organizational performance. Notably, majority of organizations are unable to effectively manage operations/processes in the face of the changing organizational management, which has had an impact on their competitiveness. In Kenya, there are a number of companies that have either collapsed or stagnated as a result of their inability to manage change and adopt a suitable organizational management effectively. The purpose of this study was to establish the effect of organizational management, in the context of change management and performance of companies listed in NSE in Kenya. The theories that underpinned the study were; three-step change theory, open systems theory and industrial organization economics theory. The study objectives sought to assess the effect of organizational management on performance of companies listed in NSE. A cross sectional survey design was used on 64 companies listed in the NSE in Kenya. The sample size was 38 companies from (2013-2017) as at 30th June, 2017. Purposive sampling technique for 4 senior managers namely, Chief Executive Officers, divisional heads in Human Resource, Finance and Marketing in the listed companies in NSE were targeted with a sample size of 152 managers. Pilot study was conducted on 15 respondents and reliability coefficient(r) was above the recommended threshold of 0.7.The study used five point Likert Scale to measure change management and performance. Secondary data was obtained from published sources and primary data from the semi-structured questionnaire. The analysis comprised descriptive statistics, Pearson’s correlation, hypotheses testing and regression analysis using ANOVA Descriptive statistics analysis assessed that there was a positive effect of organizational management on performance of companies listed in NSE to a large extent. There was a significant moderate positive correlation between organizational management and performance of companies. The null hypothesis was rejected and the alternative hypothesis was adopted. The regression showed that there was a significant positive relationship between organizational management and performance of companies. The study concluded that there was an effect of organizational management, in the context of change management and performance of companies listed in NSE. The study recommended that managers should get recent and relevant information that exists to ensure that wastage of resources is minimized. Further studies may re-look at the role of both middle and lower level employees as regards organizational management in the organization.