This research work was investigating the effect of
cooperate restructuring on employees in an
organization using Nigerian Breweries as a case study. The study focuses on the corporate activities in human
resources as a critical factor in
terms of strategy put in place to maintain their organization
position by ensuring their survival in the emerging economic integration. The
researcher made use of personal interview and questionnaire and observation in
the collection of primary data and information needed for the research work. The
method of study referred to some of the workers of Nigerian Breweries Plc. This consisted of a combination of staff
with different educational
qualifications. In this study, the major
sampling and statistical tool employed for data analysis were the use of
percentages, tables and chi - square (X2). The percentages is used
to analyze data elicited from selected respondents. In the same vein, the Chi
-square (X2) was used to test the hypothesis formulated. The main aim of this research is to explore, assess and
evaluate the effective or impart of corporate
restructuring on employees in organizations. The research has also drawn up
some recommendations on the issues with cooperate restructuring in
TABLE OF CONTENTS
GENERAL INTRODUCTION 1
to the Study 1
of the Problem 4
of the Study 4
of the Study 5
1.5 Justification of the Study 5
of Study 6
Research Questions 7
Research Hypothesis 7
Scope and Limitation of The study 7
REVIEW OF RELATED
2.1 Introduction 9
2.2 Business Organization as a Concept 10
2.3 Organizational Control 11
2.4 Concept of Restructuring 13
2.5 Organizational Change and Management 15
2.6 Corporate Restructuring 19
2.7 Human Resources or Human Relations 23
2.8 Human Resources Management 25
2.9 Assuring Restructuring Objectives 29
DESIGN METHOD AND METHOD OF STUDY 32
3.0 Introduction 32
of the Study 32
Sampling Tool 34
Methods of Data Collection 36
3.7 Limitations of Study 36
ANALYSIS AND PRESENTATION 37
4.1 Introduction 37
4.2 Demographic Characteristics of the Sample 37
CONCLUSIONS AND RECOMMENDATIONS 57
5.1 Summary 57
5.2 Conclusions 60
5.3 Recommendations 61
5.4 Suggestion for Further Studies 62
1.1 Background to the Study
sources of changes are diverse, well known and, most times, irreversible. They include
technological innovation, deregulation, and inauguration of the computer information age, changed
consumer demands, globalization, and the rush toward democratization, among others. These changes are impacting seriously on
the environment of business. Yet it
looks as if the coast is not clear, as these changes are most likely to
stretch into the next millennium and beyond long as the indices keep swinging.
In the economic sphere, Nigeria has been
swimming in economic recession in the past two decades or more. It is
not that economic recession is a recent phenomenon. In fact, Fajana
and Osigweh (1993) did record that the world had passed through many phases of recession,
beginning in the 1920s. But the economic recession in Nigeria is a reflection that
the economy is fully plugged into the international economic system, which has
also been characterized by deep economic changes.
Responses to the economic changes in Nigeria have been
varied with various Nigerian governments applying different measures,
many of which are short-term and clearly depicting the understanding
and character of those administrations.
However, the most long- term and comprehensive of this
economic measure was the Structural Adjustment Programme, SAP,
introduced in 1986 by the Babangida administration. SAP was
designed to restructure Nigeria's economic and also promoting viability
in fiscal and balance of payment policies. The success or otherwise of SAP is not
the primary concern of this study.
The responses of businesses to economic,
political, technological and social changes have been as varied as
those of government. They have regularly altered their management strategies
to be able to adapt to realities in their task environment. Such strategies
range between long-term contracts, joint ventures, mergers,
downsizing acquisitions, etc.
What the rapidity of change has done to business is that
it has made business leader and managers to think of more
effective methods of planning and implementing changes that are
necessary for the growth and survival of their organizations. This is because,
during the past couple of the years in which changes have
occurred rapidly, many managers have found to their chagrin
that the rules have changed; traditional methods of building businesses
have failed to work as planned. Also, many well-designed career path has turned
into a dead end.
The unavoidable consequence of this is the need to
restructure corporately so that their companies can regain
competitiveness. Corporate restructuring obviously demands skills, creativity, decisiveness
and .pourage. In adopting and applying any of the doses of restructuring, alternatives re-capitalization,
divestitures, and acquisitions each of which they're own primary assumption.
Core area of any businesses usually consider
restructuring or responding to changes in the task environment its
human resources utilization and management is borne out of the fact that the human
factor plays a critical role in the success or otherwise of any organization. Peter Drucker (1974) recognized this
when he said that building a new structure
or organization requires three-difference kind of work:
1. The operating task, which is responsible
for producing the results of today's business.
The innovative tasks,
which creates the company's tomorrow; and
The top management task,
which gives vision, directs and sets the course for the business
of both today and tomorrow.
According to Gail Pollano et al, (2000), since obtaining
competitive advantage through corporate restructuring represents a
major concern of business managers, human resources rules cannot be
underscored. Besides, competitive advantage distinguishes one firm from
another, provides positive economic benefits and, according to Pfeiffer (1994) cannot
be readily duplicated. Thus, business have discovered that although at a huge
cost, traditional sources of success, product and process
technology, protected or regulated markets. Access to
financial resources and economies of scale, no longer provide much competitive
leverage as in the past. Instead, organizations culture and capabilities, which
from how people are managed, is proving to be a more vital factor in corporate survival.
Thus, recruiting, utilizing human resources, as a success
factors in corporate restructuring is now a major challenge in
today's competitive market place. This is simple because today's employees are
"new breeds" with different values, inspirational needs and motivation from his predecessor. Also, he is
better educated being the produced being the product of the knowledge expansion, more aware politically, socially
and economically and therefore, more
demanding and less easily managed by traditional controls of all these, utilizing an organizations skilled human
resources as a driving force in business strategy is also a major
challenge. For instance, many organizations that have gone through
restructuring or turn around, aimed at increasing their competitiveness and ensuring adaptability in order to avoid the fate
of the legendary dinosaur, in the past few years have done so with their people (human resources).
This fact is clearly buttressed by the
existence of a body of research, which stress that human
resources management policies are not only action producing but also affect the
implementation of business- strategies. John Butler (1988) studies
various human resources management options and pointed out how a
successful combination of human resources options facilities
the exploitation of market opportunities.
Statement of the Problem
While strategic management is being applied
in liberal doses in business organizations in such areas as
productivity improvement and balancing of business portfolios, the strategic possibilities
in human resources management are frequently ignored. Apparently, they should
not be. The result of ignoring the potentials of human resources are employee turnover,
sudden hostility, strikes, decreased output, low morale, etc, and the business
is worse for it.
Purpose of the Study
The approaches emerging today is to use
growing ideas of management techniques to solve problems facing
organizations and which also arises as a result of the dynamics and
competitiveness to today's turbulent business climate.
The purpose of the study is focused on today's business
environment, the change forces and restructuring alternatives, hi view
of this, the purpose of this study is in analytical approach
to the strategic employed by organization to ensure their continuing survival
in the emerging world market that promises survival only to
Objectives of the Study
The main aim of this research is to explore, assess and
evaluate the effective or impart of corporate restructuring on employees
To achieve the above aims, the following
objectives are evolved.
identify the methods and processes involved in the corporate restructuring,
examine of the attitude and perception of employees toward the restructuring process,
assess of how the employees view the methods and procedure of the corporate restructuring
Justification of the Study
The business world today is turning up many challenges
and opportunities, these could either be internal or external to a
business, redefining business practices and the way people view
businesses. As a result of the pervasive forces of change, drive toward
quality, increasing government regulations, environmentalism, democratization,
etc, businesses are today more volatile than ever before. And yet, the lucrativeness
and attractiveness, which businesses hold for individual and corporate investors, have not made
them totally unable to adjust to change forces in their environment (Gail Pollano et al, 2000)..
While business firms continue to seek a maximization of
their profit in a changing and dynamic task environment, they have also not underscored
the relevance of human resources as a critical success factor for survival in a
turbulent business climate. Consequently,
the prudent management of both their human and material resources, also
requires an equally corresponding efforts to manage the human resources that is a critical factor if the company
goals of a business are to be realized in
consonance with the foregoing, it becomes extremely imperative for business managers to appreciate the congruency that is
involved in the management of funds. Provision
of goods and services and the maintenance of human resources, so that none of
the necessary resources serves as a hindrance to the other in the course of business operation.
Furthermore, today there is a growing realization that
the human factor is a very critical factor in the success of a
business organization, particularly competitiveness in a competitive market.
To this end, business are not only spending an ever-increasing amount of money to select, train, retrain and retain their
skilled personnel, they now regard
personnel as business assets and, therefore, put them on their balance sheet.
Relevance of Study
The study is considered significant because its findings
will provide useful ideas on the effect of corporate restructuring
on employees in organizations. The findings will also reveal the extents and constraints in
successful corporate restructuring in organizations,
with a view to making adjustments where necessary to achieve a more effective
of corporate restructuring on employees in organizations. The findings may also; serve as useful source of data for future
researchers in this field of study.
The following research questions are raised in the study.
Is there any factor which
determines if restructuring is necessary for employees' productivity?
can restructuring be used positively to influence employees' productivity in
there is a correlation between the survival of a company and the restructuring pattern?
there a correlation between employees' productivity and the organization survival?
1.8 Research Hypothesis
is a means of improving employees' productivity and organization's
Ho: Restructuring is not a means of improving
employee's productivity and Organization's
H1: The survival of a company in the new
millennium depends on its responsiveness to the challenges of the
Ho: The survival of-a company in the new millennium does not depend
on its responsiveness to the challenges of the time.
1.9 Scope and Limitation of The study
This study shall concentrate on the corporate activities
focusing on human resources as a critical factor in terms of
strategy put in place to maintain their organization position
by ensuring their survival in the emerging economic integration. However, the
study may be limited by possible low response rate.
1. Limited literature, since much has not been written on the
challenges of new millennium in terms of restructuring.
Financial resources and
employment of questionnaires as a method of gathering information from the respondents is somewhat
tasking as they are prone to treating such enquiries unserious, thus resulting in the delay in filling them on time for
processing of the information got.
4. Secondly, the discouraging attitude of the
average manager or director of an organization
who treat such research casually and see it as a waste of company time and the researcher as one who should not be
allowed to meddle in company affairs
proved a major impediment.
The scope of this study is limited to examining selected
organizations in the Lagos metropolis that
have restructured in recent times and the role human resources played.