Corporate Restructuring And Organizational Performance In Public Institutions : A Case Of Rwanda Development Board

Abstract

The environment in which businesses operate has undergone nothing short of radical change in recent times. Until organizational leaders understand the dynamics of change, develop the capabilities to lead change, and effectively align others around change initiatives, the organization itself cannot declare its ability to navigate change as a core competency. The general objective of the study was to assess the impact of corporate restructuring on organizational performance. The specific objectives aimed at establishing the strategies used in corporate restructuring process, establish the contribution of corporate restructuring on organizational performance; establish the benefits of corporate restructuring in an organization and to assess the obstacles in corporate restructuring process. The researcher used a case study research designed to illustrate the impact of corporate or organizational restructuring on organizational efficiency with central focus on RDB. A target group of 152 respondents who work in RDB was used whereby 1/3 of it were sampled. Stratified sampling was used whereby the researcher grouped the respondents according to their departments and select randomly from all the departments. The researcher used questionnaires and interview in addition to documented evidences to collect the data. Quantitatively the researcher summarized data using descriptive statistics like graphs, percentages and frequencies which enabled the researcher to meaningfully describe the distribution of scores and measurements. The study revealed that: The restructuring was done through two major strategies: Downsizing and Downscoping. Surprisingly the leverage buy out strategy was not employed. This could be due to fact that the policies are against employing foreigners not unless the skill cannot be got from within. The restructuring emphasized more on downsizing as opposed to downscoping with downsizing with 61% while downscoping having 37% and the rest being taken out by leverage buyout strategies respectively.