ABSTRACT
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
organizations.
CHAPTER
ONE
GENERAL
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The 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.
2. The innovative tasks, which creates
the company''s tomorrow; and
3. 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 are
derived 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.
1.2 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.
1.3 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
the fittest.