22 Feb A CRITICIAL EVALUATION OF RESTRUCTURING OF AN ORGANIZATION’S OPERATIONAL ACTIVITES AND THE EFFECT ON THE ORGANIZATION’S FINANCIAL PERFORMANCE. Topic 7
The two main elements that OBU Rap, BSc Applied accountancy, BSc applied accounting, Oxford Brookes project , Research and analysis report demands of are the Evaluation of restructuring of an organization’s operational activities and its effect on the organization’s financial performance. A thorough evaluation of both the elements ensure a good rating in this area.
The article begins with a precise introduction on what is restructuring and its reasons. A possible approach to fulfilling both requirements of the topic from viewpoint of the examiner and a final summary of the key factors ensuring success in this topic.
RESTRUCTURING-why is it done?
Organizational restructuring is an essential part in the journey of any organization. Restructuring could be done in various scenarios, most common of which is when two companies merge. Merging always requires incorporating the cultural aspect, ideologies and values of both the companies and therefore, restructuring becomes necessary. In the process of restructuring, there may be availability of new jobs in case of an introduction of a new department but more often, restructuring leads to personnel lay-offs. Whether restructuring is done during a merger or just by a company on its own as a strategy, the purpose remains the same; to introduce new ideologies in the organization so as to amplify the overall efficacy and effectiveness of its work processes. Revising financial and organizational structure of the company is also referred to as restructuring.
All in all, restructuring may be done in various ways but for the same reason. A student is expected to have a strong cognizance of the concept of restructuring for chapter 1 and 2 for RAP.
As a common requirement of all topics, it is crucial that the objectives of the research are clearly put forth and the research questionnaire is in coherence with the objective. Both of these must also link to chapter 3 of the research paper based on evaluation of the questionnaire. Finally, the conclusion must again summarize and state the objectives of the research, clearly.
RECOMMENDED APPROACH- OBU RAP TOPIC 7
Thorough analysis of the restructuring of any organization will require the use of accurate models. SWOT and Force-Field Analysis are two most recommended models to use for analyzing restructuring in operational activities of a company.
Force Field Analysis is always the first approach when it comes to weighing the requirements for a change in an organization. Force Field Analysis is also known as Kurt Lewin theory which basically lists down the hindering and helping forces towards a goal of an organization and therefore helps in drawing out conclusion about the effectiveness of a particular change.
Needless to say, a strong understanding of these models and their proper application to analyze restructuring shoulders the success of one part of the requirement for this topic.
Financial scenarios after restructuring can be analyzed through industry focus financial ratios. Financial ratios in general are helpful in drawing out accurate understanding of the weaknesses and strengths of the business. After restructuring, this becomes essential to look for the effects of the change, financially. A good approach to financial analysis evaluation is the comparison between the two periods: before restructuring and after restructuring.
A few findings of what is expected of a student for this topic from the viewpoint of the examiner include:
- As a thumb rule, a student must be confident in his understanding about any models and analysis prior to its use in the RAP. A thorough mention of one analytical approach but little to no information of another gives off a bad impression to the examiner. It is assumed that the student has a poor grip on an analytical approach.
- Student must conduct interviews while always keeping the objective of the research in mind. This way deviation from the actual topic while preparing the questionnaire can be easily avoided.
- Diverse sources of interviewee help collect large pool of information to select from. Only information which help bring the student closer to the objective and gives margin to compare and contrast for analysis should be regarded as relevant.
- Important part of information gathering is proper structuring of the questionnaire and choosing the more relevant personnel to collect accurate information.
Topic 7 requires the access to primary information of an organization which in the case of most organizations, is inaccessible. Primary information may include a business’s strategical tools from past and present and are of great importance in this particular topic for analysis. It holds true that in this regard, topic 7 stands as a challenge for mentees. However, official request letters to the company heads and interviews of managers yield a promising output in terms of information needed for further analysis.
In summary, the following key-points should be kept in mind when aiming for high ranks in this topic:
- Clearly stated Aims and Objectives
- Relevant answers and their analysis to research questions
- Apposite methodology which highlights the aims and objectives
- Coherence in the overall text
- Accurate financial analysis and logical discussion with the use of models
- Revision of the expected requirements of the topic
- Comprehensive, lucid and logical conclusion
- Recommendations which are rational and give a final impression of the delicate understanding of the research topic.