African Journal of Business Management Vol. 6(50), pp. 11916-11922, 19 December, 2012
Available online at http://www.academicjournals.org/AJBM
DOI: 10.5897/AJBM12.1439
ISSN 1993-8233©2012 Academic Journals
Review
An inclusive approach to structural transformation in
organisational restructuring
Johan van Graan
1
and Wilfred I. Ukpere
2
*
1
Department of Police Practice, 403 F-Block, Florida Campus University of South Africa, South Africa.
2
Department of Industrial Psychology and People Management, Faculty of Management,
University of Johannesburg, South Africa.
Accepted 12 December, 2012
Within the current global economy, experts appear to agree that the current unpredictable business
environment requires management to discover innovative ways of organising their activities.
Organisational restructuring is therefore used by management as a strategy to improve their efficiency.
However, it is only advisable for organisations to restructure if there is a guarantee that it will lead to
optimal performance. When members of an organisation do not understand the reason for
restructuring, they may disregard the importance of the process. Hence, it is imperative for the
management of an organisation to motivate the need for a change, as well as strengthen efforts
towards making the difficult terrain of restructuring a success.
Key words: Communication; Organisational change; Implementation; Restructuring; and Transformation
INTRODUCTION
Change in any organisation is unavoidable. Organi-
sations worldwide are increasingly confronted with
several challenges within a complex business environ-
ment. Consequently, these organisations are forced to
review and adapt their organisational structure in order to
address these challenges and to meet up with the needs
of the communities they serve (Ogbonna and Harris,
2003). As the organisational environment becomes
increasingly complex and more subjected to frequent
changes, a need to change the organisation‟s structure
and adjust elements of the existing structure becomes
imperative. Managers are thus challenged with the
demand to introduce various changes during the trans-
formation of their organisations‟ structures (Robbin and
Judge, 2009).
The design of an organisational structure capable of
withstanding the needs of modern businesses has been
one of the most challenging issues facing modern organi-
sations and their managers. Over the past two decades,
organisational structural change has become one of the
most topical issues in management discourse. As a
result, recent research interest has moved away from
*Corresponding author. E-mail: wiukpere@uj.ac.za.
the evaluation of merits and problems of traditional forms
of organising to the investigation of new ways of
restructuring organisations.
Academics and practitioners appear to agree that the
current unpredictable business environment requires
management to discover innovative ways of organising
their activities, in order to maintain a competitive
advantage within a global context (Ogbonna and Harris,
2003:512). According to Bergh and Ngah-Kiing
(2008:594), most research to date has described
restructuring as a purposeful reaction to governance,
strategy and industrial pressure. Some authors, including
Kaplan and Weisbach (1992:107) argue that organi-
sational restructuring is implemented to improve
efficiency. Others have argued that a shift from weak to
strong internal governance is behind most restructuring
efforts, in order to refocus corporate strategies
(Chatterjee et al., 2003:87-96).
Research problem
Modern organisations are buffeted with several challen-
ges within a complex global business environment. Due
to these complexities, organisations are always prompted
to review and adapt their organisational structure to