Optimizing Corporate Performance through Restructuring Strategies in Deposit Money Banks

Abstract

Corporate restructuring has been, and will continue to be used as a turnaround strategy to control costs and to realign internal structure to meet changing environmental conditions. The study examined the effect of restructuring strategies on corporate performance of deposit money banks in Delta State. The cross-sectional survey research design method was adopted for the study. The study employed the stratified random sampling technique. The study used structured questionnaire as instrument of data collection. The descriptive statistics and multiple regression analysis were used. Findings showed that 80% of the change in organizational performance was brought about by corporate restructuring strategies. The study concluded that corporate restructuring strategies have significant positive effect on organizational performance in deposit money banks in Delta State. Outsourcing strategy (ß = .261, P<0.01) and downsizing strategy (ß = .134, P<0.01)have significant positive effect on corporate performance in deposit money banks in Delta State. The study recommended amongst others that corporate restructuring remains a valuable strategic tool that could enhance smooth business operations. Banks should create a more conducive working environment, for both employees and customers to be adequately informed and be aware of restructuring modalities in order to enhance service delivery.