Restructuring and the performance of public enterprises in Uganda : a case study of Uganda Posts & Telecommunications Corporation, 1996 - 2000

Abstract

The objectives of this study were to establish the objectives for restructuring the UPTC, evaluate the restructuring process, assess the performance of UTL after restructuring, examine the persisting problems and suggest solutions for future restructuring. A case study design was used. Semi structured questionnaires were administered to 100 participants picked using random and purposive sampling of which 76 responded and interviews were carried out with key Government officials and Managers involved in restructuring the UPTC. The data was subjected to quantitative data analysis using Statistical Package for Social Sciences (SPSS) and qualitative data was content analysed. It was established that the performance of UPTC prior to 1996 was inadequate in service delivery and the restructuring objectives included mainly improvement of service delivery, increased investment in new technology and creating positive macro-economic impact. There were differing levels of understanding of restructuring objectives with greater understanding among Government Officials and Managers as opposed to customers and workers which had a bearing on the diagnosis of the interventions. The restructuring process involved relevant stakeholders generally, policy and legal reforms, recognition for the need to privatise, political support, leaner and flatter organisation structures, planning and monitoring, although there were some inadequacies such as insufficient sensitisation, biased retrenchment and domineering role of the Consultants and Government officials. On the effects if restructuring UTL made a profit of 10 billion Ug. Shs within one year of restructuring as opposed to previous loses. There was also geographical spread of services like mobile phones and value added services. The problems that have persisted include low staff morale due to anticipated down-sizing, pilferage, faulty services, billing problems, customer complaints, lack of training and asset stripping. The general observations on restructuring indicated that it is good as it leads to profits, competition for efficiency, creation of innovation, checks corruption, deters Government interference and enhances efficient capital investments. It is recommended that all the relevant stakeholders who affect and are affected by restructuring should be sensitised on the need for change to enhance their participation through various fora. A correct diagnosis of interventions is necessary to consider various restructuring options for optimum benefit. The need to compete effectively should be catered for with well worked-out guidelines for retrenchment including timely payment of terminal benefits.