The Influence of Organizational Structure on the Financial Performance of KTDA Factories in Kisii Highlands Region

Abstract

Financial performance is a crucial indicator of an organization's productivity and effectiveness, reflecting its ability to use resources to generate wealth, profits, and returns for stakeholders. Various factors influence financial performance, including resource utilization, employee productivity, and organizational leadership. This study aimed to identify and examine the impact of organizational structure on the financial performance of KTDA factories in the Kisii Highlands Region. A quantitative research method was employed, and a census of 36 respondents was conducted. The study relied exclusively on primary data gathered through questionnaires distributed to participants. To determine the relationship between each organizational factor and the financial performance of tea factories, regression analysis was conducted using SPSS software. The findings revealed that most respondents viewed the organizational structures of the tea factories as highly hierarchical, occasionally hindering and negatively impacting decision-making processes. The study suggested that organizations should aim to maintain streamlined organizational structures to reduce operational costs and improve efficiency. For the tea factories, granting them autonomy from the KTDA parent company could significantly strengthen their positions by relieving them of obligations to the parent organization.

Keywords: organizational structure, performance, financial, Organisations