How Organizational Restructuring Affects Performance

The Impact of Organizational Restructuring

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Organizational restructuring

Restructuring according to Gowing, Kraft & Quick (2007) involves reposition of the strategic focus for an organization. The restructuring process entails the organization make changes on the key internal structures such as the strategies, operations, ownership and legal structures. This makes it better for the organization to meet its evolving and present needs. SMAC (2010) noted that in most instances, organization restructuring is precipitated by an emergency crisis unexpected or events that forces the organization to quickly respond to prevent is very survival threat, such as insolvency or bankruptcy. Just like in the case study, L&T InfoTech Company restructured itself to stop leakage of its revenues by dividing the business into two clusters; service and industrial clusters. Restructuring of L&T Infotech Company enabled it to tap on the potential…