An evaluation of the restructuring exercise of local governments on employees’ performance : a comparative study of Mukono and Rukungiri districts

Abstract

The purpose of the study was to evaluate the effects of restructuring exercise on the performance of employees in the local governments of Mukono and Rukungiri. It seemed that the restructuring exercise was being undertaken in reaction to external pressures rather than from a proactive approach. The problem is that when restructuring is mishandled it could lead to counterproductive impact on organizational work performance. Using a case study involving 112 respondents, the study evaluated the relationships among the variables of organizational restructuring, survival syndrome, leadership styles, management policies, organizational commitment and work performance. The study using a cross-sectional survey design, involved the development and use of instruments (self-administered questionnaires, focused discussions and oral interviews) to measure the aforementioned variables that were used in the study on a five Likert scale. The researcher collected divergent information across the strata of the employees in the six affected departments of administration and support services, community based services, 4finance and planning, education, technical services and natural resources using a disproportionate stratified random sampling technique. Analysis tests were also carried out in the study using frequency distribution, chi-square tests, Pearson’s correlation, t-test and regression analysis. Findings of the study revealed significant positive correlation and thus relationships between; organizational restructuring and work performance (r =0.0318, p<0.05); management policies and work performance (r =0.346, p<0.05); leadership styles and management policies (r=0.272, p<0.05); organizational commitment and work performance (r=0.435, p<0.05). The study also established using regression analysis a significant positive relationship between organizational commitment and work performance (Beta=.0296, t=2.222, sig=0.004). However, organizational restructuring, survivor syndrome, leadership styles, management policies and organizational commitment predicted up to 24.9% of the variance in work performance in the two districts of Mukono and Rukungiri. In conclusion, it can be stated that all the study variables were statistically significant predictors. However, management policies and organizational commitment were the most significant predictors of work performance