Influence of Organization Structure On the Organizational Performance In Kenyan Cement Manufacturers

Abstract

On the surface strategy implementation may appear a simple practice, however, the process of strategy implementation is complex and requires the right environment to be executed execution whereby, the right resources, an aligned organizational structure, and procedures. Cement manufacturing companies in Kenya operate in a highly competitive environment and therefore require an organization that makes appropriate changes to keep up with ever changing customer demands, comply with the regulatory environment and keep up with intense competition from competitors. This paper sought to determine the influence of organizational structure as one of the drivers of strategy implementation on the performance of cement manufacturing companies in Kenya. The study applied a descriptive design, with the unit of analysis being 5 major cement manufacturing companies in Kenya. Senior managers of the cement manufacturing company provided data for the study which was obtained through the physical administration of questionnaires. Data analysis was done by descriptive and simple regression analysis. The findings of the stud revealed a β of 0.716, t=7.228, and a p-value of 0.001 between organizational structure and performance of cement manufacturing companies in Kenya. The study concluded that organizational structure had a positive and significant influence on the performance of cement manufacturing companies in Kenya. The study recommends that cement manufacturing companies come up with favorable organizational structures that align with the strategy being implemented to improve their performance. Favorable organization structures encourage employees to work harder and also build customers’ confidence and relations. Therefore, organizations should have structures that promote feedback, open communication, and transparency.