An assessment of the impact of organisational restructuring on the morale of employees at a selected financial institution

Rising global competition, the influence of advances in information technology and the re-engineering of business processes are some of the imperatives that force organisations to restructure their businesses. In South Africa, the situation is even more compelling, with the recent democratisation of the country that requires companies to implement certain restructuring programmes designed to empower previously disadvantaged individuals. Organisational restructuring is therefore inevitable for any organisation. These changes, however, do affect organisations and employees. Employees become insecure, confused about their jobs, and therefore less productive. To the extent that change can adversely affect both organisations and employees, it becomes critical that organisations should implement it carefully, if they are to survive. To achieve this, requires managers to fully understand drivers of change, the possible consequences of change on both organisation and employees, and to take appropriate actions. The main objective of this study was to identify possible approaches that organisations can pursue in implementing restructuring without adversely affecting the employees. The practical context chosen was an organisation that had recently implemented organisational restructuring. The research methodology for this study entailed the conducting of an intensive study of the relevant literature, to determine what the theory reveals in respect of restructuring strategies that can assist organisations in effectively implementing the restructuring process. Dissertations, theses, research reports and journals were consulted, in an attempt to formulate a theoretical basis for this study. The contemporary literature reveals that there are various strategies that organisations can employ to effectively restructure their organisations with minimal adverse influence on employees. The restructuring organisations should ensure that employees are genuinely involved in the process at the iv outset. The desired changes and the benefits thereof, should be clearly and consistently communicated to the employees at the beginning of the restructuring process. An empirical study was then conducted at the chosen organisation that had recently embarked on an organisational restructuring. The focal point of the empirical study was to determine how this organisation had implemented its restructuring process. The main purpose was to establish the impact that this restructuring had on the morale and motivation of the employees. The final step of this study included an assessment of the findings. This was done so that suitable conclusions could be drawn and appropriate recommendations made. The conclusions revolved around the effects of restructuring on the employees of this organisation. The focus of the recommendations was on what approaches the restructuring organisations should follow to successfully and effectively implement the restructuring process, without adversely affecting the employees