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Process and Barriers of Restructuring - Turnaround Strategies & Corporate Restructuring

   Posted On :  26.06.2018 09:32 pm

According to the American Management Association (AMA) survey, the common process adopted by a majority of the responding units was decentralization of decision making.

Process and Barriers of Restructuring
 
According to the American Management Association (AMA) survey, the common process adopted by a majority of the responding units was decentralization of decision making. Retraining and redeployment of staff was the second most important process of corporate restructuring in the private sector.
 
Flattering of organizational hierarchies was found to be the next important restructuring process adopted by companies. This was of greater importance in the private than in the public sector. The public sector has, because of rigidities due to its ownership, far less flexibility in this action. Along with these were measures to improve quality, creating strategic business units, and creating representation in more market segments. These processes are giving importance. Considered to be of even less importance in the public sector. Other factors revealed by the survey include going for joint ventures, overseas expansion, acquisition of synergistic businesses etc.
 
The major barrier to restructuring has been the cost of doing it. In private sector lack of accountability for key performance indicators is also one reason. Some top managements lacked entrepreneurial skills. Salary structures based on seniority, which need to be changed to performance, related structures are the next immediate barriers. Contrary to general impressions problems of labour are not serious barriers to restructuring 
Tags : Strategic Management - Strategy Formulation
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