EFFECT OF DECENTRALIZED TEAMS ON THE PERFORMANCE OF PARASTATALS IN KENYA

Julius Ochieng Olayo

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

Dr. Alice N. Simiyu

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

Prof. Elegwa Mukulu

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

CITATION: Olayo, J., O., Simiyu, A., N., Mukulu, E. (2017). Effect of Decentralized Teams On the Performance Of Parastatals In Kenya. International Journal of Strategic Management. Vol. 6 (7) pp 1- 12

ABSTRACT

As globalization and competition becomes a real phenomenon, there is more emphasis to link strategy and organization performance. To compete effectively, organizations must adopt ways of enhancing their competitive advantage and profitability. This study sought to examine the effect of decentralized teams with both quantitative and qualitative approaches. A population of 9600 was targeted in 32 purely commercial parastatals in Kenya. A sample of 240 respondents was selected from 10 parastatals using cluster random sampling technique. Cluster sampling allows study of parastatals in the clusters as they are involved in different businesses. The respondents included CEOs, senior managers, supervisors and other staff in each of these parastatals. Primary data was obtained from the respondents through self-administered questionnaires and interviews. Questionnaires were administered through drop and pick later method. Interviews were conducted by use of an interview guide. Data was analyzed using both descriptive and inferential statistics with the use of Statistical Package for Social Science (SPSS version 22). Descriptive including mean scores, standard deviations, percentages and frequency distribution were computed to describe the characteristics of the variables of interest in the study. Inferential statistics like linear regression technique was used to establish the nature and magnitude of the relationships between the variables. The results were presented in tables and figures (graphs and pie charts). The study findings indicated that the ultimate performance of the firms increases with the decentralization. As the communication and cooperation of the top level management with middle and lower level management increases, the organization performance increase. The study concludes that the cooperation of top level management with lower level management is much more important. The study recommends that parastatals should embrace the team spirit and ensure that there are decentralized teams that are functional and not based on tribal lines. This is because in team work it is easier for functions coordination and team spirit that enhances performance.

Key Words: Decentralized Teams, Performance, Parastatals

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