A critical analysis of a restructuring process at a higher education institution - a Malaysian case study

The competitive environment facing all industries has forced many organizations to choose strategies that enhance organizational effectiveness and efficiency. Reengineering is one of the tools used in administering productivity improvements, cost control and asset management. This paper examines the reengineering process of a Higher Education Institution (HEI) in Malaysia. The impact of cost reduction strategies linked to the overall performance of the organization was discussed in terms of management system prior to restructuring; vision, mission and strategic direction; core business processes; financial performance analysis; corporate and organizational structure; reorganization of learning centers; courses offered; human resource policies and customers feedback. The data were gathered through an analysis of secondary data obtained from the HEI and interviews with 30 top and middle level managers from various departments. The study found that generally the HEI focused on the cost cutting strategy especially on cost of sales and operational expenses. Consequently the utilization of the learning centers increased from 49 percent to 69 percent, the rate of occupancy of the learning centers increased from 49 percent to 69 percent, the number of home courses offered increased from 39 percent to 45 percent and the number of part time lectures was reduced tremendously. There were also marked improvements in academic networks and partnerships that provide for knowledge exchange and transfer