CONCEPT OF CORPORATE RESTRUCTURING ANDREENGINEERING
DR M.JEGADEESHWARAN M. BASUVARAJ
Assistant Professor Research Scholar
School of Commerce School of Commerce
Bharathiar University Bharathiar University
Coimbatore -646 046 Coimbatore -646 046
Abstract:
The article deals with main concepts of corporate restructuring and reengineering. Firstly, the term restructuring is defined and the concept of corporate restructuring is explained. Secondly, the spheres of corporate restructuring are suggested and discussed. Finally, the term revitalization is cleared and the idea of corporate…show more content… The first stage is to conduct an economic model of the processes of the organization, to give a detailed view of where and how value is created, and to ensure that resources can be provided to different parts of the organization as and when required. Next is the alignment of the physical infrastructure of the organization, and then redesign of the work architecture or processes of the organization. It is also necessary to achieve market focus, invent new businesses and change the rules of competition through technology. The task is also to create a reward structure to provide a powerful motivating force and then to build individual learning - the encouragement for individuals to acquire the new skills necessary for the success of the transformed company. The final stage is to develop the organization which will be able to adapt constantly to changing circumstances. It means that a company restructuring is based on changes touching all spheres of an enterprise life. A company restructuring affects changes in production, enterprise sources, their interconnection and their use and may be followed by an organization architecture changes. The more detailed identification of particular areas of restructuring changes is offered by, who define the restructuring process as follows: “It is a process of assuring sources, introducing innovation changes while creating and mutually…show more content… In terms of the first approach reengineering is understood as a concept contents of which equals the concept of restructuring. The second approach issues from understanding that reengineering represents one of the significant parts of an enterprise restructuring process. For example Robbins a Coulter consider reengineering of processes, together with a vertical levels reduction and changes in particular teams job descriptions, main components of enterprise restructuring. This view is shared enterprise striving for success must: firstly restructure processes (which is understood as a change in the management concept in terms of transferring it from functional management to management of processes; innovation redesign of production, products and activities – for which author uses the expression of reengineering and the aim of which is to increase effectiveness of enterprising activities in a company) and secondly must restructure the enterprise in terms of finance (which means in this concept to change property management aimed at the increase of property effectiveness. The third approach is based on reengineering as a philosophy which should be relied upon by the restructuring process, it is advisable to consider an effective and efficient application of reengineering in terms of a significant trend towards modern management findings utilization during a strategic restructuring. The particular