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Managing Change at Telkom Kenya

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Managing Change at Telkom Kenya MANAGING CHANGE AT TELKOM KENYA BOB O. OCHIENG A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF DEGREE OF THE MASTER OF BUSINESS ADMINISTRATION, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI NOVEMBER 2012 DECLARATION This is my original work and has not been submitted to any institution or university for examination. Signed: ……………………………………… Date: ……………………………… BOB O. OCHIENG D61 / 60149 / 2010 This research project has been presented for examination with my approval as university supervisor Signed: ………………………………….. Date: ……………………………………. PROF. EVANS AOSA SCHOOL OF BUSINESS UNIVERSITY OF NAIROBI ii DEDICATION This research project is dedicated to my dear son Bob Diamond Kodiallah (Junior) who has brought great joy to our family. May you grow to be a God fearing academic giant! iii ACKNOWLEDGEMENT It is a pleasure to thank all those who made this research project possible. My supervisor Prof. Evans Aosa who has been my guide, my 2010 MBA colleagues with whom we have urged each other on and most of all, my family who have understood when I had to work on my project. May the Almighty God bless you all richly. iv ABSTRACT Today's business organizations face an era of continuous change, the sources of which are varied, often unpredictable, and difficult to understand. Companies have had to deal with such changes as dramatic technological shifts (for example, the explosion in electronic capabilities) and deregulation in such industries as banking, telecommunications, Transport and energy. The telecommunications sector in Kenya has faced massive environmental changes in the last decade. Liberalization, technological change and competition are the notable changes. The purpose of this study was to deepen the knowledge on how Telkom Kenya has dealt with changes over the years. The study had two objectives. To determine how Telkom Kenya Ltd has managed the changes that it has implemented and to establish the challenges that Telkom Kenya has encountered in managing the changes that it has implemented. This research problem was solved through the use of a descriptive case study design. The study used primary data which was collected through interviews with four senior employees at Telkom Kenya. The interviews were carried out in the month of July 2012 in the work places of the subjects. The data collected through the interviews was analyzed through content analysis. The notes were expanded and interpretation was in narratives. A discussion of the notes was also done to compare the findings with earlier studies on the subject. Results indicate that changes which have taken place at Telkom Kenya Ltd. include downsizing, acquisition, structural changes and strategic changes. These have been managed through use of consultants, change planning, communication and buy in. The company has changed its organization structure, its strategic focus, its employee size and composition and also its management orientation. The changes have been brought about by competition, market liberalization, technological advancements and more demanding customers. Challenges in implementing changes at Telkom Kenya include the company lacking a clear cut plan in managing the retrenchment, having limited resources to finance the downsizing, resistance to change by employees and the dynamism of the telecoms industry. Others include cutthroat competition, politics and technological advancement. The study findings have the following implications on Telkom Kenya. First, there should be a clear and desirable vision of what the company will be like once the change is complete. Secondly, detailed tactical plans should be decided upon and made available in accessible language to all who participate in the change process. Thirdly, training should be provided for those individuals who do not have the skills for the management of change. Lastly, people affected by change should be involved in planning, changes noted in writing and circulated appropriately. v TABLE OF CONTENTS DECLARATION................................................................................................................ii DEDICATION...................................................................................................................iii ACKNOWLEDGEMENT................................................................................................iv ABSTRACT........................................................................................................................v CHAPTER ONE: INTRODUCTION..............................................................................1 1.1 Background of the Study ...............................................................................................1 1.1.1 Change Management ..........................................................................................2 1.1.2 Telecommunications Sector in Kenya ................................................................3 1.1.3 Telkom Kenya Ltd ..............................................................................................5 1.2 Research Problem ..........................................................................................................6 1.3 Objectives of the Study..................................................................................................8 1.4 Value of the Study .........................................................................................................8 CHAPTER TWO: LITERATURE REVIEW...............................................................10 2.1 Introduction..................................................................................................................10 2.2 Concept of Change.......................................................................................................10 2.3 Organizations and the Changing Environment............................................................12 2.4 Change Management Models ......................................................................................15 2.5 Challenges to Change Management.............................................................................18 CHAPTER THREE: RESEARCH METHODOLOGY ..............................................22 3.1 Introduction..................................................................................................................22 3.2 Research Design...........................................................................................................22 3.3 Data Collection ............................................................................................................23 3.4 Data Analysis...............................................................................................................23 CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND DISCUSSION ....25 4.1 Introduction..................................................................................................................25 4.2 Data Collection ............................................................................................................25 4.3 General Information.....................................................................................................25 vi 4.4 Change Management at Telkom Kenya.......................................................................27 4.4.1 Change Management Processes........................................................................28 4.4.2 Downsizing .......................................................................................................29 4.4.3 Structural Changes............................................................................................30 4.4.4 Technological Changes.....................................................................................32 4.4.5 Communication in Change Efforts ...................................................................34 4.5 Challenges Encountered By Telkom Kenya in Managing Change .............................34 4.6 Discussion of Findings ...............................................................................................37 4.6.1 Discussion In Relation To Theory....................................................................37 4.6.2 Discussion In Relation To Other Empirical Studies.........................................38 CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS.................................................................................................42 5.1 Introduction..................................................................................................................42 5.2 Summary of Findings...................................................................................................42 5.2.1 Changes that have been implemented at Telkom Kenya ..................................42 5.2.2 Challenges Faced ..............................................................................................47 5.3 Conclusions..................................................................................................................48 5.4 Implications of the Study.............................................................................................49 5.5 Limitations of the Study...............................................................................................51 5.6 Suggestions for Further Research ................................................................................51 REFERENCES.................................................................................................................53
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