Impact of Organizational Restructuring on Organizational...

LITERATURE REVIEW When the organizational restructuring is done properly it will lead your organization to give maximum organizational performance. In a research article of William McKinley and Andreas Georg they explored two consequences of organizational restructuring that are usually unforeseen by managers and they are, at organizational restructuring level of producing cognitive order for top executives, while at the environmental level the consequence of environmental instability. Both feed back to promote further organizational restructuring, making restructuring a self-interest sphere. Most of the business press and intellectual writing on this phenomenon are restricted to restructurings anticipated financial and strategic†¦show more content†¦They said that their financial ratios did not provide a consistent set of statistically significant results for any of the organizations they studied. This suggests that studies which test for performance changes using only a narrow base of financial performance measures, notably profitability must be interpreted with care. They also suggested that organizational status changes in the direction of privatization do not appear to guarantee improved performance. According to Perry and Rainey in 1988 the Performance appears to result from a complex set of factors and not simply ownership. Results on tests of performance in productivity, employment, and financial ratios against change in status, competition and internal management failed in most cases to support the research that change in ownership improves enterprise pe rformance. According to authors James G. March and Robert I. Sutton most studies of organizational performance define performance as a dependent variable and seek to identify variables that produce variations in performance. Researchers who study organizational performance in this way typically give little attention to the complications of causal structure of performance phenomena. These complications include the ways in which performance advantage is competitively unstable. Since these complications are well-known and routinely taught so they cannot only be endorsed exclusively to poor training, lack of intelligence,Show MoreRelatedThe Organizational Structure And Performance1674 Words   |  7 Pagesfollowing an organizational performance or production. Positive reinforcement covers anything that increases strength and response and includes thing such as bonuses, raises and promotion and more importantly encouragement or praise. The essence of having reinforcement helps in measuring modifica tions of behavioral that takes place. Organizations structures have an effect employee satisfaction hence production and performance. 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