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Posted on April 5th, 2012, by

In the contemporary business environment, organizations are vulnerable to a considerable impact of numerous external factors. In this respect, restructuring and economy are particularly significant because, on the one hand, restructuring implies internal changes within the organization, whereas, on the other hand, economy influences the organizational performance and the organization cannot change the economic situation but needs to adapt to the changed environment using such tools as restructuring as well as other tools available to the organization. In this respect, it is possible to refer to the case of my organization, the pre-k school, which is about to undergo reconstruction under the impact of the current economic situation.

In actuality, the school needs a considerable restructuring because of the poor economic situation. This means that the economic situation has started to deteriorate since the beginning of the economic recession. Steadily, the ongoing deterioration of the economic situation has led to the consistent drop in expenditures on local schools and the pre-k school has become one of many schools which needed the restructuring. To put it more precisely, the school district and the local authorities could not afford maintenance the pre-k school. Therefore, the negative economic trends have led to the restructuring of the school.

At the same time, the problem of my organization is not unique. In this regard, it is possible to refer to the Ozark Health Medical Center. The Ozark Health Medical Center has to restructure to save costs. In such a way, the cause of the restructure is similar to my organization but the solution of the restructure is different for the restructure focuses on cuts of working hours instead of job cuts.

Caci also needs restructuring. However, this organization has the state funding. Therefore, its financial position is stable, whereas restructuring focuses on the improvement of the organizational performance that may be achieved through the employment of new, well-qualified professionals. The necessity to restructure Caci is determined by the current economic recession. In such a way, restructuring of Caci implies the employment of new professionals instead of job cuts and transferring of teachers in my school.

Finally, Linkarezark Medical is another organization that needs restructuring under the impact of the current economic situation. In fact, the organization needs to improve its organizational performance to avoid financial troubles. In such a situation, the restructuring of Linkarezark Medical should involve the focus on the introduction of new managerial approaches and consistent improvement of the quality of services. In this respect, it is important to lay emphasis on the fact that the improvement of the quality of services will lead to the rise of the customer satisfaction. The latter will lead to the rise of the number of loyal customers. In such a way, the company will be able to overcome current economic problems that affect other organizations such as my school, which cannot sell its services but relies heavily on the state funding and public support.

In such a way, the restructuring leads to the improvement of the organizational performance and it may be carried out with the support of the state, other organizations and the public. In contrast, the economy influences the organization and it cannot change the economic situation but the organization can just develop effective ways to minimize the negative impact of economy, such as restructuring.

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