EFFECT OF ORGANIZATIONAL RESTRUCTURE ON EMPLOYEE PERFORMANCE
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EFFECT OF ORGANIZATIONAL RESTRUCTURE ON EMPLOYEE PERFORMANCE
Chapter one
INTRODUCTION
1.1 Background for the Study
The success of any organisation is largely determined by internal and external factors. The workforce is the most fundamental and crucial component of an organization’s competitiveness.
Human resources are an organization’s most valuable asset and contribute significantly to its growth. Organisations must completely optimise their resources and workforce. As with many private organisations around the world today, activities inside the federal government are undergoing substantial changes as a result of budget cuts and technology advancements.
These changes must be managed successfully so that employees and management can adapt and develop new methods to work effectively in a changing environment.
Katherine Mezei (Personal Communication, November 1, 1995), a consultant in Humber College’s Professional Development Department, says, “Organisations are great at change, but lousy at transition.” People may ‘drop off’ during the implementation of organisational change since their losses and grief as a result of the change are not addressed.
Changes such as mergers, reforms, restructurings, and downsizings are frequently planned and implemented before people affected are even told. As with any organisation, this has created significant feelings of mistrust and apprehension among employees.
A research done at Sir Sanford Fleming College in June 1994 to establish full-time support staff attitudes during an organisational transformation confirmed these unfavourable reactions (Milroy, 1995).
The rapid pace of technical change, along with the necessity to implement cost-effective programmes, has led to a growth in the usage of computerised services. These shifts in direction necessitate additional demands on government staff. Some skill sets will become obsolete, while others will evolve.
If change is not managed effectively, the objectives it was designed to achieve are jeopardised. People develop resistance to it, productivity suffers, costs rise, and the reform itself may be abandoned (Bridges 1988). The impact of taking on greater duties and seeing fewer staff doing the same or more work is exacerbated by “survivor’s syndrome”.
sensations of guilt can exacerbate intense sensations of change-induced anxiety. Administrators and managers are frequently unprepared for these responses.
While companies may have hired an outplacement firm to deal with the trauma of displaced personnel, they frequently overlook the emotional needs of the remaining employees. This can result in much lower morale and production, leaving the organisation worse off than before (Noer, 1994).
Recently, due to the harsh competitive climate, organisations have experienced significant changes, increasing competition for income and growth. The concept of organisational change is primarily concerned with organizational-wide transformation, which includes changes in the organization’s mission, operations, mergers, key collaborations, and other aspects.
Some academics argue that organisational change entails organisational transformation. Value is the most significant factor in implementing quality standards because it establishes the true beliefs necessary to achieve team performance and provide exceptional customer service to clients.
When change begins to manifest, leaders have the opportunity to lead their staff in a better direction. Employees’ obligations are required to propel the organisation forward.
1.2 Statement of Problem
Organisational restructure is the reorganisation of company operations to attain higher levels of operating efficiency. Downsizing is common in organisations today, however studies have found that these initiatives, while intended to create beneficial results, cause more harm than benefit to the organisation and its personnel (Cascio, 1993).
The harm caused by the organisational restructure affects not only employee performance and organisational profitability, but also the learning process. Employee performance refers to the overall production of employees while at work.
Employee morale directly affects productivity. individuals that are dissatisfied or negative have low morale regarding their work environment, whereas positive or extremely confident individuals are joyful and positive.
Redeploying personnel due to poor performance, automation of processes, and redundancies create a work climate in which people are anxious and unclear about their future in the organisation. Insufficient preparation and an unrevealing approach during restructuring have a detrimental impact on employee performance at work.
Employee morale suffers as a result of the restructuring plan in any business, as they endure layoffs and experience anxiety and resentment (Decenzo et al, 2010). The question is not whether corporations must downsize or remove positions;
rather, how they can do so strategically in order to get the desired benefit while maintaining the morale of the surviving employees. The purpose of this study is to explore the influence of organisational restructure on employee performance using Continental Reinsurance Plc. as a case study in Lagos State, Nigeria.
1.3 Research Objectives
The study has both general and specialised objectives. The overall or primary goal of this research is to look into the impact of organisational restructuring on employee performance utilising Continental Reinsurance Plc. as a case study in Lagos State, Nigeria. The precise aims include:
i) To investigate the impact of organisational restructuring on employee performance.
ii) Identify the causes for organisational restructuring.
iii) To investigate the attitudes of workers of Continental Reinsurance Plc about organisational reform.
1.4 Research Questions.
The following are some of the questions that this study aims to answer:
i) What is the impact of organisational restructuring on employee performance?
ii) What are the causes behind organisational restructuring?
iii) What are Continental Reinsurance Plc employees’ opinions towards organisational restructuring?
1.5 Research Hypotheses.
The following are the research hypotheses that will be tested in this study:
i) No significant association exists between organisational restructuring and employee performance.
ii) Organisational restructuring has a significant influence on employee morale.
1.6 Significance of the Study
The study is useful for policy formation because it will serve as the foundation for organisational restructuring methods. It establishes the attitudes and performance of unaffected personnel during downsizing, as well as how to maintain their motivation and morale.
It also helps to comprehend the issues associated with downsizing and the appropriate processes of organisational restructuring that consider employees’ well-being.
The study also contributes to theory by offering information on numerous conceptions of strategy in the banking industry and the broader business sector, which provides value.
The data presented in this paper will also be useful in giving empirical evidence on the impact of restructuring as a strategy and how it affects employee morale in diverse institutions. It will be useful in further studies on strategy.
This study contributes to the importance of additional research, superior performance, and industry growth by providing a modern restructuring model that may be employed in a variety of institutions without compromising employee morale.
The findings of this study may also be extended to other organisations in the service business, as restructuring is widespread in many organisations.
1.7 Scope of Study
The primary focus of this study was on the impact of organisational restructuring on employee performance, with Continental Reinsurance Plc. Lagos State, Nigeria as a case study. This research will consequently be carried out at Continental Reinsurance Plc in Lagos, Nigeria.
1.8 Limitations of the Study
Due to time and cost constraints, this investigation will only look at Continental Reinsurance Plc. At their headquarters on Lagos Island, Lagos State, a research need was detected. It will also be unable to gather data from all of the employees of the above-mentioned organisations;
hence, the study will only take a sample of a few employees who will be able to provide the necessary information from each of those organisations, thereby best representing the full population of the study.
The researcher will also confront the challenge of getting accurate data; in some cases, secondary data will be unavailable since it is considered confidential; in order to find data, the researcher will need to use online resources such as organisational websites and the Google search engine.
1.9 Definition of Terms
The following terms were utilised throughout this study:
Employee morale refers to an employee’s job satisfaction, perspective, and overall sense of well-being in the workplace. It is one of the foundations of business, having been shown to have a direct impact on productivity.
Employee performance refers to how well a worker performs job-related responsibilities. Many firm personnel directors evaluate each employee’s performance on a yearly or quarterly basis to discover areas for improvement.
Organisational restructuring is a corporate management phrase for reorganising a company’s legal, ownership, operational, or other structures in order to make it more lucrative or better organised for its current needs.
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