impact of corporate restructuring on Organizational Performance

Remedan Feki Hasseno (
Management, Addsi Ababa
July, 2013


In recent years, corporate restructuring has become a common practice undertaken by firms for surviving an increasingly fierce business environment. In the present time, corporations found in Addis Ababa undertake restructuring without full understanding of the strategies. Thus these variations call for the assessment of impact of restructuring on organizational performance. This research seeks to highlight the purposes of business restructuring and some of the techniques adopted to restructure ailing businesses through exploring related reviews and academic theories on corporate restructuring. With the scope of this research, performance and efficiency was studied as a measure of the impact of corporate restructuring. A radical structural re-organization of the companys operations, involving downsizing, organizational restructuring and other cost-cutting measures were employed by the companies. The objective is to identify the rationale for the restructuring exercise and its impact on performance of the company prior to and after the restructuring. Data collected for the research was by means of conducting survey questionnaires and a personal interview addressed to the employee of selected corporation. It was found out that, the restructuring has impacted positively and negatively on the employees who were not affected by the downsizing exercise; corporate restructuring has a rippling effect on performance and overall operations.

Keywords: Corporate restructuring, Downsizing, Efficiency, Organizational restructuring Outsourcing, Productivity, Reengineering