The Effect of Organizational Renewal on the Performance of Lafarge Africa PLC

The Effect of Organizational Renewal on the Performance of Lafarge Africa PLC

IKOTUN, Morenike Abiola¹, BELLO, Sunday Ade², OYEWUSI, Bose Mary³

¹Scholar, Department of Business Management, Northwest International University, Armenia.

²Visiting Professor, School of Business Management, Entrepreneurship and Leadership, Northwest International University, Armenia.

³Doctor and Faculty Member, Department of Business Management, Northwest International University, Armenia.

DOI: https://dx.doi.org/10.47772/IJRISS.2024.807236

Received: 22 July 2024; Accepted: 26 July 2024; Published: 22 August 2024

ABSTRACT

This study focused on examining the effect of renewal on organizational performance in Lafarge Africa Plc, Sagamu, Ogun state, Nigeria. A descriptive survey research design was adopted to source data from respondents with the help of a well-structure questionnaire administered to the staff of Lafarge Africa Plc located at KM 64, Old Lagos-Ikorodu Road, Sagamu, Ogun State, Nigeria. Lafarge’s total staff strength was 254 employees. A sample size of one hundred participants was purposefully selected, although only ninety-seven were able to complete the questionnaire for this study. The study found that renewal has contributed positively (R² = 0.446 and P =.000) to the organizational performance of the firm. Given the strong correlation between renewal and organizational performance, the study recommends that management should strongly encourage its personnel to possess highly competitive organizational cultures for the consistent implementation of organization renewal to achieve its strategic objectives.

Keywords: Organisation Renewal, Firm Performance, Organizational Culture, Lafarge Africa Plc

Word Counts: 145

INTRODUCTION

Organizations are faced with consistent challenges and are confronted with long-term survival in the environment in which they exist. The continuous implementation of organizational renewal initiatives based on standards of excellence, market awareness, people development, and the right balance between the internal and external environments of the organization are necessary. Organizational renewal is a deliberate strategy for organizational performance and long-term survival. Organizations are intricate structures that are vital in forming our civilization. To manage and lead these organizations effectively requires a thorough understanding of the complexities of organizational dynamics. These organizations’ growing complexity has made them extremely competitive. New companies are starting up, established ones are trying to hold onto their top spots in the market, and expanding companies are fighting to keep pace.  While some businesses operate in relatively safe environments, others prosper in highly competitive ones (Osita-Ejikeme, 2021). In today’s complicated and demanding market environment, innovation is required. Self-satisfied organizations are unable to survive the immense external forces operating in the current unstable global economy (Hum & Ana, 2024).

Therefore, an organization’s management style and culture should be able to handle the opportunities and challenges it faces efficiently for it to remain competitive. When conditions change, a management approach that works well in one set of circumstances might not work well in another. Organizational renewal is crucial. A company must constantly adapt to its surroundings to survive in a highly dynamic marketplace. Without continuous renewal in an organization, management might not achieve excellence (Osita-Ejikeme, 2021). According to Steinstra et al. (2004), organizational renewal differs from episodic change, it is a continuous, knowledge-oriented activity. Given the constant changes that organizations encounter, many of which have the potential to have a significant strategic and tactical effect on their operations, organizational renewal should be a continual activity. While in the middle of cyclical renewal, even amidst cyclical renewal, this continuous process adds a crucial element of stability.  For a company to undergo organizational renewal, its senior managers must adapt their mental models to reflect changes in the external environment. Organizational leaders may have little or no control over certain changes once they take place due to internal or external triggers or fundamental causes.

On the other hand, being aware of a possible change or being the innovator who initiates it would assist in lessening the degree of control or lack thereof in the leadership. For instance, the strategy needs to be examined when new technology is approaching to see if and when the organization might benefit from adopting it. After that, a plan needs to be made. How rapidly the technology is implemented may be unpredictable (and possibly even unknown) (Hum & Ana, 2024).

For instance, in the past most individuals had never heard of internet shopping and selling when Amazon originally started operations, before it got started it was unimaginable that it would become the standard to be reckoned with in 15 years. Furthermore, at that time there was no indication that connecting individual buyers and suppliers could be a profitable business model. This same scenario can be observed in social media platforms such as LinkedIn, Facebook, Twitter, YouTube, blogs, etc. These platforms are widely used by corporate leaders to communicate with their staff, clients, and other stakeholders.

The Chief Executive Officer (CEO), the board of directors at the corporate level of management, other senior executives, and corporate personnel are required to make strategic decisions regarding organizational renewal for it to be successful. These people have the highest position in the organization’s decision-making hierarchy. The principal general manager is the CEO. Corporate-level managers are responsible for supervising the creation of organizational strategy after consulting with other senior executives (Hum & Ana, 2024). However, there hasn’t been a commensurate rise in organizational renewal to match the growth competitive challenges, and changes from previous studies.  As a result, this mismatch has severely strained the productivity and success of the organization. Managers at all levels should be involved to fix this difficulty, which has prompted the organization’s management to employ several strategies in the form of renewal to preserve the organization’s objective. Furthermore, the researcher has decided to use Lafarge as case study is as a result of it availability and its uniqueness for the study and date generation.

However, many studies have been done on this subject, this study revealed the gap between the previous study’s inability to touch the manufacturing industry and its total coverage in the studied area, in light of the aforementioned research issues.  This study consequently aims to further the understanding of the effects of renewal on organizational performance.

Research Hypotheses

This hypothesis was formulated for this study:

H₀: Renewal has no significant effect on organization performance.

H_01: There is a significant effect of renewal on organizational performance

LITERATURE REVIEW

Overview of Organizational Renewal

Organizational renewal is a deliberate strategy for organizational performance and long-term survival. A change in an organization’s ethics, values, conventions, or structure that doesn’t affect the organization’s core mission or character is referred to as organizational renewal. The paradox of renewal is that while continuity is ideal, it frequently acts as a major barrier to change. The purpose of renewal is to encourage people to re-engage with the organization’s mission and operational procedures (Osita-Ejikeme, 2021). When conditions change, a management approach that works well in one set of circumstances might not work as well in another.

This might be a result of the complexity and rapidity of the modern market environment, which is unlikely to alter (Nkem & Onuoha, 2023). Refocusing on the role of human capital in determining what is required and substantive is imperative for renewal; this involves establishing a clear connection between the direction and purpose of the firm and how each supports the other. It considers the achievements and potential areas for the development of the organization as well as the goals of individuals for their advancement within it (Osita-Ejikeme, 2021). Organizational renewal could occur periodically or constantly. If intermittent, renewal is a sharp, quick reaction to an internal or external transformation, it will necessitate a radical change in organizational leadership right away. To attain both short-term and long-term, sustainable success, it might be necessary to combine tactical and strategic thinking (Nkem, & Onuoha, 2023). Events that happen quickly and drastically due to either internal or external stimuli may necessitate both separate and continual organizational reform. Weather, world events, economic conditions, technological advancements (including the internet and technology products), changes in the political and legal landscape (including deregulation and regulation), sociocultural shifts, terrorism, and/or competition are examples of external triggers of organizational renewal. These outside factors may also affect an organization’s capacity for ongoing self-renewal and development.

Furthermore, internal negative triggers of organizational renewal include other options of losing a big contract, not doing enough succession planning, workplace violence, issues with product safety, losing important personnel, and not following protocols (Ahuja and Lampert, 2001). Positive internal catalysts for organizational rejuvenation do exist, for instance, ongoing improvements in labour, services, and product capabilities may result in ground-breaking inventions that provide the company with a competitive edge (Osita-Ejikeme, 2021).

Dimensions of Organizational Renewal

Organizational renewal can be formulated in the following dimensions:

i. Strategic Renewal

According to Volberda et al. (2001), a firm’s strategic activities to change its route dependence are a reflection of its strategic renewal journey. Both internal and external environmental forces at the organizational and industry levels have effects on strategic actions. Following industry regulations is the outcome of the market’s decision on appropriate strategic renewal, which occurs when the business reacts to the external environment. Given that the term “strategic” is frequently used interchangeably with “plan,” it should come as no surprise that “strategic management” is frequently used interchangeably with “strategic planning” and, to some extent, with “strategic thinking” (Hum & Ana, 2024).

ii. Organizational Culture

Workplaces have a complex and significant organizational culture which include values, norms, beliefs, and presumptions that direct interactions and conduct among employees (Wu, Huang, Huang, & Du, 2019). The languages, rituals, shared beliefs, and symbols that make up an organization’s culture all play a part in determining its atmosphere. Organizational culture can be understood and analyzed using frameworks provided by a variety of theoretical views, such as the functionalist, interpretative, and integrationist viewpoints (Alateeg & Alhammadi, 2024). It is impossible to overstate how much corporate culture influences the attitudes and behaviours of employees. Engagement, dedication, and motivation among employees are enhanced by a pleasant and encouraging culture. Workers are more likely to be content with their work and show higher levels of dedication if they can relate to the organization’s principles and feel like they belong, (Coplan & Evans, 2021). Conversely, a poisonous or dysfunctional culture can cause unhappiness, lower output, and more employee turnover. Another important factor in encouraging creativity inside a business is its organizational culture. Creativity and innovation are typically promoted in cultures that value experimentation, risk-taking, and open communication. Organizations with a strong innovation-oriented culture can remain competitive and adjust to shifting market conditions by fostering new ideas and methods (Grover, Tseng, & Pu, 2022).

Therefore, changing and managing corporate culture is a difficult undertaking. It necessitates employee involvement, efficient communication, leadership alignment, and focused training initiatives. For cultural change projects to be implemented successfully, leaders must support and keep them going over time.  Changing an established culture is a difficult undertaking that takes time and persistence (Nurlina, 2022). The common values, beliefs, customs, and behaviours that influence an organization’s overall perspective and conduct are referred to as its organizational culture. A framework for comprehending and evaluating organizational culture based on four essential dimensions; mission, flexibility, involvement, and consistency was created by Daniel Denison and is known as the Denison Organizational Culture Model Aisyah, Ilmi, et al (2022). An organization’s performance and survival are greatly influenced by its mission and adaptability, the two fundamental aspects of organizational culture (Alateeg & Alhammadi, 2024).

iii. Organizational Processes

Organizational processes are the business process that involves the collection of actions and tasks that, when finished, will achieve an organizational objective. A task that is allocated to a participant is indicated at each stage of a business process. It is the essential building component of several concepts that are related, including process automation and business process management (Business Process, 2024). A group of stakeholders carry out a sequence of tasks or a collection of activities to accomplish an organizational objective, and this is known as a business process. To achieve a predetermined goal, systems or individuals carry out the operations in an organized manner. The growth and success of business operations are directly correlated with the effective and efficient implementation of business procedures (Business Process, 2024).

Therefore, the organizational process involves the operational processes that directly benefit the company and its clients. The main thing they have to do is make money. The order-to-cash procedure, product distribution to clients, and product manufacture are a few instances of operational procedures. The support processes are the procedures that made it possible and assisted the smooth operation of the main procedures. While they don’t generate revenue, they help internal departments establish a cooperative atmosphere that enables the optimization of essential procedures. The Supporting processes include; administration, operations, finance management, human resources, and corporate expansion. The planning, observing, managing, and controlling of the main and supporting processes are the responsibilities of the management processes. These goal-oriented procedures guarantee the smooth and effective running of business activities. Their main responsibilities are to keep an eye on both internal and external company functionalities, assess opportunities and obstacles, and guarantee that all processes are continuously improved (Business Process, 2024).

Defining Strategic Renewal

Strategic renewal is the approach adopted by the top-level management on the accommodation of changes in the operational and strategic activities of the organization. This is to ensure that organizational challenges and competitions are been combated and tacked in other to achieve organizational objectives. It is not intended to adjudicate between the various interpretations of what constitutes a “strategic” approach and “strategy” that exist (Ahuja and Lampert, 2001). Rather, “strategic” will be defined as “that which relates to the long-term prospects of the company and has a critical influence on its success or failure. An extensive array of variables might be classified as potentially crucial for the future of a business (Osita-Ejikeme, 2021). According to Rumelt et al. (1994) company’s objectives, goods, services, rules, and strategies specify how companies compete against competitors in the marketplaces, and more, the range, and variety of enterprises, organizational structure, administrative systems, as good guidelines that specify and organize the company renewal strategy. This list can be expanded to include people (individuals and teams), routines and other procedures, skills, and essential resources (physical and intangible assets) that have an impact on an organization’s future success. The definition accommodates a wide range of potential techniques and paths towards strategic revitalization. Furthermore, the degree of effectiveness of strategic renewal initiatives varies, and the definition does not require a certain result.

The Effect of Organizational Renewal on the Performance

Organizational renewal refers to the continuous process of adaptation and transformation that companies undergo to remain competitive and relevant in an ever-evolving business environment. This concept involves rethinking and reshaping strategies, structures, processes, and cultures within the organization to meet new challenges and seize emerging opportunities. The impact of organizational renewal on performance has been the subject of extensive study, and recent research highlights its significance in driving growth, innovation, and resilience.

Understanding Organizational Renewal

Organizational renewal can manifest in various forms, such as strategic realignment, process reengineering, cultural transformation, and technological upgrades. It often involves:

1. Strategic Renewal: Revisiting and modifying the organization’s mission, vision, and long-term goals to align with changing market dynamics.
2. Structural Renewal: Redesigning the organizational structure to improve efficiency, communication, and decision-making processes.
3. Process Renewal: Streamlining and optimizing business processes to enhance productivity and reduce costs.
4. Cultural Renewal: Fostering a culture that embraces change, innovation, and continuous improvement.
5. Technological Renewal: Adopting new technologies to improve operational capabilities and create new business models.

Challenges of Organizational Renewal

Despite its benefits, organizational renewal poses several challenges:

i. Resistance to Change: Employees and managers may resist changes due to fear of the unknown or disruption of established routines. Effective communication and involving stakeholders in the renewal process can mitigate this resistance.

ii. Resource Constraints: Renewal efforts require significant investments in time, money, and human resources. Prioritizing initiatives with the highest impact and securing executive buy-in is crucial for overcoming resource limitations.

iii. Maintaining Balance: While pursuing renewal, organizations must balance short-term performance with long-term strategic goals. Developing a clear vision and roadmap for renewal can help maintain this balance.

The Impact on Organizational Performance

1. Enhanced Competitiveness: Organizations that proactively engage in renewal activities can better anticipate market trends and respond swiftly to changes, thereby maintaining a competitive edge. A study by Teece (2023) in the Journal of Business Strategy underscores that firms with dynamic capabilities, including the ability to renew themselves, outperform their peers in competitive markets.
2. Increased Innovation: Renewal fosters an environment where innovation can thrive. By encouraging a culture of experimentation and risk-taking, firms can develop new products, services, and business models. A recent article in the Harvard Business Review highlights how organizations like Amazon and Google continuously renew their strategies and operations to stay at the forefront of innovation.
3. Improved Employee Engagement and Retention: Organizational renewal often involves empowering employees and involving them in the transformation process. This can lead to higher levels of engagement, job satisfaction, and retention. A 2023 report by McKinsey & Company found that companies with strong renewal practices had 20% higher employee engagement scores compared to those with static approaches.
4. Operational Efficiency: Process and technological renewals lead to streamlined operations, reduced waste, and lower costs. For instance, the implementation of digital technologies can automate routine tasks, allowing employees to focus on higher-value activities. The Journal of Operations Management published a 2023 study showing that organizations investing in digital renewal saw a 15% increase in operational efficiency within two years.
5. Financial Performance: Ultimately, the benefits of organizational renewal translate into improved financial performance. Companies that adapt and renew themselves regularly report higher revenue growth, profitability, and shareholder value. A recent analysis by Deloitte indicated that organizations undergoing successful renewal programs experienced an average of 10% higher revenue growth compared to their industry averages.

Organizational Renewal and Performance

Nkem and Onuoha (2023) argue that companies’ performance is intentionally considered, taking into account the increased competitiveness arising from business transformation strategies linked to specific attributes such as strained business groups, technological advancement, fierce competition, and environmental shifts. The primary focus of an organization’s performance is on how well it can use its available resources to achieve goals in line with its predetermined objectives, while also considering how important those goals are to its users. Performance provides management with vital information to monitor report status, improve motivation and communication, and spot problems. People can simplify complex real-world numerical concepts through performance so that they can be easily understood and used. Due to the more complex and uncertain environment in which manufacturing enterprises operate, a growing number of emerging countries are particularly interested in firm performance (Ottoman, 2002). Manufacturing businesses have been found to have turbulent dynamics in most emerging countries. With a basic focus on improving performance through situational product management, this has spurred additional discussion about proactive innovation, taking risks, restructuring, learning, and planning, among other subjects (Osita-Ejikeme, 2021). To stay ahead of the industry’s evolving development trends, manufacturing organizations need to have robust product portfolios that are flexible enough to adjust to changing customer needs. This can only be accomplished by using deliberate rejuvenation techniques. The core principles of the strategy renewal utilized to boost corporate performance can be essentially derived from a complete approach. In a highly competitive corporate climate, the traditional approach to developing and implementing strategies, focused on defensive strategy, is seen as useless because the environment that enterprises must preserve has become dynamic and unstable. Researchers claimed that to survive and prosper in a highly competitive environment, the focus on the false defensive strategic position needs to be abandoned (Nkem, & Onuoha, 2023). Tanriverdi et al. (2010) stated that in a similar vein, companies should adjust to their environment and focus their plans and resources on developing the required capabilities.

Theoretical Framework

Dynamic Capabilities Theory

Dynamic Capabilities Theory (DCT) is a framework in strategic management that explains how organizations can achieve and sustain competitive advantage in rapidly changing environments. Introduced by David Teece, Gary Pisano, and Amy Shuen in the late 1990s, the theory emphasizes the role of an organization’s ability to integrate, build, and reconfigure internal and external competencies to address changing environments. Pavlou and El Sawy (2011) claimed that Schumpeter’s innovation-based competition is the root of the dynamic capabilities approach, wherein competitive advantage is predicated on the inventive repurposing of preexisting resources and their creative destruction to create new operational capabilities. Schumpeter’s understanding of the necessity of resource reconfiguration for efficient response to environmental dynamism contributed to the theoretical development of dynamic capability.  To achieve congruence with the changing business environment, Teece, Pisano, and Shuen (1997) developed the concept of dynamic capabilities, which is the ability of firms to renew competencies through the adaptation, integration, and reconfiguration of internal and external organizational skills, resources, and functional competencies.  According to the dynamic capabilities theory, businesses require two different kinds of capabilities to successfully compete in their markets: “Dynamic” capabilities (DCs) enable organizations to develop new or enhance their “ordinary” capabilities, while “ordinary” capabilities enable them to run their selected business lines profitably and efficiently (Winter, 2003). According to Helfat and Peteraf (2003), the five DCs’ functions are to reproduce, recombine, redeploy, retire, and refresh resources and capabilities. To put it another way, DCs can be utilized to destroy resources when necessary in addition to creating them. According to empirical studies, using DCs is preferable in environments that are changing quickly (Wu, 2010). The company with DCs can adapt to the changes required to create a competitive advantage.

According to Nelson and Winter (2002), the secret to long-term success in the face of fast change is dynamic capability. Because every organization faces a varied environment and recognizes the strategic necessity of change, different DCs exist between organizations (Zollo and Winter, 2002). According to Augier and Teece (2009), dynamic capabilities are composed of three parts: the ability to recognize opportunities, the ability to take advantage of opportunities, and the ability to manage threats by combining, recombining, and reconfiguring assets both inside and outside the boundaries of the enterprise. The theory of dynamic capabilities holds significant relevance in comprehending the effect of renewal on the performance of organizations. According to the study, companies can create long-lasting competitive advantages by acquiring distinctive and flexible skills that let them take advantage of new opportunities and adapt to changing surroundings. In this study, we adopted the Dynamic Capabilities Theory to facilitate organizational renewal and improve performance.

Key Concepts

1. Dynamic Capabilities: These are the organization’s processes that use resources—specifically the processes to integrate, reconfigure, gain, and release resources—to match and even create market change. Dynamic capabilities are about the firm’s ability to achieve new forms of competitive advantage.

2. Ordinary Capabilities vs. Dynamic Capabilities: Ordinary capabilities refer to the basic administrative and operational functions necessary for an organization’s day-to-day operations. Dynamic capabilities, on the other hand, go beyond these basic functions to enable the organization to adapt, innovate, and remain competitive in the face of environmental shifts.

3. Sensing, Seizing, and Transforming:

1. Sensing: involves identifying and assessing opportunities and threats in the environment. This includes market research, competitive analysis, and technological scouting.
2. Seizing: refers to mobilizing resources to capture value from identified opportunities. This can involve developing new products, processes, or business models.
3. Transforming: involves continuous renewal of the organization, including reconfiguring organizational structures and processes to maintain alignment with the market.

Importance of Dynamic Capabilities

1. Adaptability: In fast-changing industries, such as technology or pharmaceuticals, the ability to adapt quickly to new trends and disruptions is crucial. Organizations with strong dynamic capabilities can pivot more effectively in response to environmental changes.
2. Innovation: Dynamic capabilities facilitate continuous innovation by enabling organizations to develop new products and services and improve existing ones. This helps firms stay ahead of competitors and meet evolving customer needs.
3. Competitive Advantage: By constantly reconfiguring their resources and capabilities, organizations can maintain a competitive advantage. This is especially important in industries where competitive advantages are fleeting due to rapid technological advancements and market shifts.
4. Resilience: Organizations with robust dynamic capabilities are more resilient to shocks and disruptions, such as economic downturns or sudden changes in regulations. They can reconfigure their operations and strategies more effectively to withstand and thrive through such challenges.

Applications of Dynamic Capabilities

1. Technology Organizations: Companies like Apple and Google exemplify the use of dynamic capabilities. They continuously sense new technological trends, seize opportunities by developing innovative products, and transform their organizational processes to stay competitive.
2. Pharmaceutical Industry: Organizations in the pharmaceutical industry often rely on dynamic capabilities to manage the lengthy and complex process of drug development, which involves sensing new scientific discoveries, seizing opportunities through research and development, and transforming processes to bring new drugs to market efficiently.
3. Automotive Industry: The shift towards electric and autonomous vehicles has forced traditional automotive companies to develop dynamic capabilities to sense market trends, seize new technological opportunities, and transform their manufacturing and business models.

Criticisms and Challenges

1. Measurement: One of the key criticisms of DCT is the difficulty in measuring dynamic capabilities. Unlike tangible assets, capabilities are intangible and embedded in organizational processes and culture, making them hard to quantify.
2. Implementation: Developing dynamic capabilities requires significant investment in organizational learning and change management, which can be challenging for organizations with rigid structures and cultures.
3. Overemphasis on Flexibility: Some critics argue that an overemphasis on flexibility and change can lead to a lack of focus and strategic coherence organizations need to balance dynamic capabilities with stability to ensure long-term success.

Dynamic Capabilities Theory provides a valuable lens for understanding how organizations can achieve and sustain competitive advantage in turbulent environments. By focusing on the processes of sensing opportunities and threats, seizing opportunities, and transforming, organizations can navigate complexity and maintain their competitive edge. Despite the challenges in measuring and implementing dynamic capabilities, their importance in today’s rapidly changing business landscape cannot be overstated.

METHODOLOGY

For this study, survey research was adopted to source data from respondents with the help of a well-structure questionnaire administered to the staff of Lafarge Africa Plc of Nigeria located at KM 64, Old Lagos-Ikorodu Road, Sagamu, Ogun State, Nigeria. The total staff strength of Lafarge was two hundred and fifty-four, (254). A purposeful sample was used to derive a sample size of One hundred (100) members of staff who were selected for this study. However, only Ninety-seven (97) questionnaires were successfully retrieved. A statistical data processing package called SPSS V22 was used to analyze the data obtained from the respondents. Regression analysis was used to determine the effect of renewal on organizational performance in Lafarge.

DATA ANALYSIS AND DISCUSSION OF FINDINGS

Descriptive Statistics

Table 4.1

Source: Field Survey, (2024)

The Table above shows the characteristics of employees in Lafarge Africa Plc of Nigeria located at KM 64, Old Lagos-Ikorodu Road, Sagamu, Ogun State, Nigeria, using frequency and percentage tables. The study shows that 46 staff in Lafarge Africa Plc of Nigeria are within the age bracket of 20 – 35 years. This number represents about 47.4% of the sampled population. While 32 of them, representing 30% fall within the age bracket of 36 – 56 years, 19 of the staff are 57 years and above. This figure represents 19.5% of the total staff studied. A good number of young staff are in the company. The number of single staff in the service was 36, representing 37.1% of the total number sampled. Married staff constitute 44.3% of the total sample while those who are either divorced or separated represent 7.2% of the sample. However, 4.1% of the staff claimed they were widowed. Again, single and married staff represent a good number of managers in the service in Ogun state. On educational qualification, 22 of the staff are O’level Certificate holders, majority of the participants attained HND/BSc education. While 14, representing 14.4% hold MSc. The Table above further revealed that 52 staff representing 53.6% are First Line Managers, 35 staff representing 36% are Middle-level Managers, and 10 staff representing 10.3% Top Manager.

Hypotheses Testing

The study employed regression analysis to investigate the effects of renewal on the organizational performance. The model summary, ANOVA, and regression coefficient tables are among the tables under regression.

 Table 4.2. Model Summary

*, ** and *** indicate significant at 10%, 5% and 1% level respectively

SOURCE; Author’s computation with the aid of SPSS version 23(2024)

Table 4.3. Coefficientsa

a.     Dependent Variable: Organizational Performance

*, ** and *** indicate significant at 10%, 5% and 1% level respectively

SOURCE; Author’s computation with the aid of SPSS version 23(2024)

Table 4.4.ANOVAa

*, ** and *** indicate significant at 10%, 5% and 1% level respectively

SOURCE; Author’s computation with the aid of SPSS version 23(2024)

Interpretation

The model summary table above demonstrates the extent to which renewal explains the variance as it affects the organizational performance and also the personnel who work in the organization. From the results above, it can be seen that renewal has a significant impact on organizational performance involved in the production process (R²= 0.446, P= 0.000) and (adjusted R2 = 0.440).

These results show that when it comes to organizational performance, renewal is important (44.6%). Furthermore, the F-value statistics of (76.335) indicate that the whole equation is significant (Significant level = 0.000; P=0.05). As a result, the null hypothesis (H0), stating that renewal has no substantial effect on organizational performance, is rejected, and the alternate hypothesis is accepted.

CONCLUSION, RECOMMENDATION, AND SUGGESTIONS FOR FURTHER STUDIES

The implementation of renewal requires both top-down and bottom-up consultation, as well as the general involvement of the workforce in the organization. For organization and business performance, the renewal is crucial to effective organizational success which requires careful consideration of both the top and front-line managers, the use of strategic renewal at the top level of the organization is essential for the strategic optimization of its objective. A company with a weak renewal culture will undoubtedly perform badly for its entire workforce as well as for individual employees.

Recommendations

Based on the above conclusion the following are recommended:

1. Given the strong correlation between current renewal and organizational performance, management should strongly encourage its personnel to possess highly competitive organizational cultures for the consistent implementation of renewal to achieve its strategic objectives.
2. Before going global, organizations should ensure that the organizational processes and procedures are been followed and practiced when carrying out their operations both internally and externally, to further overcome the competitive challenges that can be posed by going global.
3. The use of organizational renewal tools, like the processes and procedures adopted and emulated from the global practice of organizational culture, will, therefore, assist in repositioning the organization.

Suggestion for Further Studies

The implementation of renewal involves the workforce; hence, further studies can be carried out on the role or relevance of employees in renewal.

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