Strategic Change Management and Performance of National Hospital Insurance Fund in Kenya

Abstract

Change is inherent in contemporary organizations and its management is not only critical to organizational performance and survival but is also at the centre of organization development. Since the performance of organizations is dependent on the fit between them and their environment, any change in environment require firms to adapt to the environment. The purpose of this study was to examine the effect of strategic change management on performance of the National Hospital Insurance Fund in Kenya. The specific objectives of this study were; to establish the effect of technology change management on performance of the National Hospital Insurance Fund, Kenya, to determine the effect of leadership change management on performance of the National Hospital Insurance Fund in Kenya, to assess the effect of culture change management on performance of the National Hospital Insurance Fund in Kenya and to establish the effect of environmental change management on performance of the National Hospital Insurance Fund in Kenya. This study was informed by resource based view theory, theory of reasoned action and change theory. The study adopted descriptive research design. The target population of the study was made up of 200 employees at NHIF headquarter in Nairobi. Census approach was used to study all the 200 employees made up both management employees and junior employees. Before data collection, both validity and reliability testing was conducted to test for the suitability of the research tools. The primary data was collected using structured questionnaires. Pilot study was done involving 13 respondents. Content validity was used to test for validity. Cronbach Alpha coefficient was used in testing reliability. The collected data was analyzed using both descriptive statistics and inferential statistics. Descriptive statistics such as mean and standard deviation was adopted. The relationship between the dependent variable and the independent variables was tested using linear regression model and correlation analysis. The results were then presented in form of figures, tables and chats. The study established that technology change management, leadership change management, culture change management and environmental change management had a positive and significant influence on performance. The study concluded that technology assists organizations with managing changes to operations. Implementing change leadership can make many positive impacts on organizations and aids the management in reaching the organizational goals through problem solving, executing changes such as developing new marketing strategies can build a business's brand and help a business fulfill their mission. Organization culture grows around shared beliefs and attitudes, it is an authentic, and therefore effective, tool in organizations. Environmental change management is a common part of business growth. Regardless of the reason for the change, understanding why companies implement change strategies can help the management navigate fluctuating circumstances in their organization. The study recommended that a technology change management team requires a special combination of skills and personalities. The organization should ensure that their leaders have the right tools to guide them. The organization culture should encompass existing qualities that have been recognized across all levels of the company and then tightly defined, rather than plucked out of thin air and enforced upon the business. The study also recommended that the organization should establish a sense of urgency - inspire people to move, make objectives real and relevant.