Organisational learning during the restructuring of a finance-based organisation.

Abstract

Restructuring has become a popular practice for improving organisational performance. Despite the fact that rebuilding is becoming progressively more essential as a standard managerial strategy in organisations, its effectiveness in increasing organisational efficiency remains unknown. Typically, restructuring aims to improve organisational performance by lowering costs, increasing competitive advantage and increasing productivity. In some cases, restructuring has proven to be effective in achieving these goals. However, an increasing number of studies appear to suggest that restructuring results in irrelevant enhancements and, in some cases, a decrease in organisational performance. The study’s main goal was to comprehend the employee experience of organisational restructuring at a finance-based organisation in Sandton, South Africa. Data were gathered using a qualitative research method. The study’s 12 participants were chosen using non- probability sampling. In-depth interviews were used as the data collection instrument. Senge’s Fifth Discipline theory has been used in the study to explain the way in which individuals respond to change. The sample comprised 12 individuals employed by the organisation under study. The in-depth interviews covered various aspects, including biographical information of the respondents, team learning, personal mastery and systems thinking, as well as shared vision. A pilot study was undertaken to ensure the reliability and validity of the research instrument. The study was guided by the following research questions: 1. How did team learning occur during the restructuring process? 2. How did personal mastery occur during the restructuring process? 3. How did systems thinking evolve during the restructuring process? 4. In what ways did systems thinking occur during the restructuring process? 5. To what extent was a shared vision achieved as a result of the restructuring process? The findings of this study revealed that restructuring did affect staff working in the organisation under study. Most of them did not have an issue with transformation per se; however, they were concerned about the way in which it was being implemented at the organisation. The majority of them believed that to achieve transformational goals, the organisation’s leadership should have considered the fundamental requirements of properly evolving systems thinking and taking personal mastery into account. Furthermore, participants confirmed that “unplanned change” was happening too quickly. This, they believed, contributed to a state of confusion, doubt and disorganization. To summarise, broad consultation, active communication, a strong human resource team and a shared vision are required for effective organisational restructuring.