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The impact of downsizing on the surviving employees: the case of Kenya Industrial Estates Limited

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dc.contributor.author Malinda, Mathew
dc.date.accessioned 2019-08-01T10:22:10Z
dc.date.available 2019-08-01T10:22:10Z
dc.date.issued 2004
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4714
dc.description A Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement for the Award of the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The objective of this study was to assess the impact of downsizing strategy employees of Kenya Industrial Estates Limited. The study specifically examines a management strategy and addressed the reasons for downsizing. Its further effects of downsizing on the survivors and examined the challenges that fact result of the exercise. The research design for this project was case study of Kenya Industrial Estate study emphasizes the full contextual analysis of fewer events or condition interrelations of a single subject or respondent (Cooper and Schindler 2001) 300 employees from different stations was used. A sample of 50 managers a targeted. Data was collected by the use of a questionnaire. The study employee sampling with a quota sampling method. Data was analyzed using descriptive presented in tables and bar graphs. The data was analyzed with the use of excel spread sheets. The research findings revealed that downsizing as a concept was not fail that survivors never got satisfied with the downsizing package offered. It also came out clear that employees looked at downsizing negatively while it is something organization for survival and to respond to rapidly changing environments. Cost cutting, enhancement of productivity and reduction of bureaucracy were reasons for downsizing. The results further showed that there were significant survivors. These range from feeling of unfair treatment, helplessness, insecurity and loss of self-esteem. There was job stress, feeling of letdown, detachment, fear and burnout. The study also revealed that downsizing paused major challenges to the management a bearing on the performance of the organization. This came in the way of reassignment of duties, retraining for new assignment, reorganization of the work, change in level of responsibilities and accountability, absenteeism and withdrawn employee making mistakes may reduce initiative. Management had to meet higher medical related bills on stress related ailments. There was reduced communication between management and staff and also in adaptability and relationships between staff and managers. There was an increase in grievances and staff morale was reduced. The greatest fear of management was whether downsizing would actually achieve the intended goals and how this would affect performance and survival. The study recommended that for downsizing to be well understood by all the stake holders, there should be pre-downsizing workshops, development of material and the exercise with the organizational objectives. There should be up- down consultation so that at the end of the day everybody owns the exercise. The study recommended that management should downsize as a part of an organizational strategic evaluation so that the actual need is identified and that downsizing opposed to just a trend. It would be reasonable to involve an external party to assist in establishing the appropriate reasons for downsizing. This will remove from employees any feeling of victimization by management. The study further recommended that management should make deliberate efforts to reduce if not eliminate negative effects of downsizing to survivors by preparing all employees in dealing with the changes. There should be a good retraining program to enable workers to perform new assignments. Deliberate efforts must also be made to psychologically assure employees of job security, appreciation and support. This can be done through welfare activities and adequate compensation for additional duties. There should therefore be a human heart in dealing with the survivors so that they will have no fear even if they were to be next to be retrenched. The study further recommended the establishment of a proper strategic plan organization that states the mission, the vision and the objectives of the organization and all activities should be geared towards this. Before downsizing the organization should develop systems, standards and indicators which can be progressively monitored and evaluated. Management should forecast and establish the negatives of internal and external environments and address them in advance by eliminating them or providing necessary cushioning measures. en_US
dc.publisher United States International University - Africa en_US
dc.subject downsizing, Kenya Industrial Estates Limited en_US
dc.title The impact of downsizing on the surviving employees: the case of Kenya Industrial Estates Limited en_US
dc.type Thesis en_US


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