RESTRUCTURING AND EMPLOYEE PERFORMANCE IN PUBLIC ENTITIES IN UGANDA: A CASE STUDY OF NATIONAL SOCIAL SECURITY FUND

Abstract

The study focused on examining the relationship between restructuring and employee performance in National Social Security Fund (NSSF) using three objectives namely to examine the relationship between downsizing and employee performance in NSSF, to examine the influence of job transfers on employee performance in NSSF and to establish the relationship between outsourcing and employee performance in NSSF. The study adopted a descriptive cross sectional survey design complemented with both quantitative and qualitative approaches. A population of 157 NSSF was identified from which 141 respondents were selected to form a sample size. Two data collection instruments namely questionnaires and interviews were used. A 78.6% response rate was obtained from which the study findings indicated a positive significant relationship for downsizing (.563**), job transfer (.358**) and outsourcing (.543**) with employee performance. In the study, it was found out that downsizing was not often chosen as the best restructuring option done and it negatively affects employee morale. In addition, it is noted that job transfers yield good employee performance given exciting challenges that reinvigorate employees; some transfers prepare subordinate employees for job elevation and widens their skills and broadens their knowledge base. The study revealed that outsourcing improves employee performance as employees stay focused on executing critical tasks. The study recommended that NSSF should create a strategic work plan for downsizing, there is need for HR department and department heads to ensure genuine job transfers and need to ensure procuring of other service providers, need to ensure that vendors meet predefined service standards.