The effect of restructuring business units on organisational climate

Abstract

The purpose of this study was to determine whether organisational restructuring of business units within a South African Fast Moving Consumer Goods company had any effect on the organisational climate of the organisation. An organisational climate survey was used before and after the restructuring over a two-year period. Five manufacturing plants formed part of the study; with four plants undergoing the restructuring (experimental group) and one plant being the control group, where no organisational restructuring took place within the two-year period under review. The total population consisted of 3700 employees. The samples for 2010 and 2011 were drawn from the population of the five manufacturing plants’. The sample of employees that took part in the survey from the five manufacturing plants was, in 2010, 778 versus a headcount of 1802, yielding a response rate of 21.02%, and in 2011, 904 versus a headcount of 1736, yielding a response rate of 24.43%. The research results show that organisational restructuring did have a significant impact on organisational climate; with a drop in the organisational climate from 2010 prior to the organisational restructuring, to 2011 after the organisational restructuring at four of the manufacturing plants (experimental group). Interestingly, the control group (the 5th manufacturing plant) also showed a significant drop in its organisational climate scores from 2010 to 2011; without organisational restructuring taking place.