Impact of Corporate Restructuring on Employee Reward and Recognition: A Case Study of Sun Pharmaceuticals & Ranbaxy Laboratories

Abstract

As per current scenario Corporate Restructuring is one of the most widely used strategic tools. Since 1991 the effect of liberalization in the domestic economy has been very strong. The reason behind that is globalization, competition and a dynamic market. Corporate restructuring is an indispensable course of action for the organizations who wants to stay pertinent in the world of business. It is a strategy which encompasses substantial change in the firm’s organizational structure, which comprises of the spreading span of control, corporate governance reformation, reducing product diversification, redrawing of divisional boundaries, downsizing employment, revising compensation, and flattening of hierarchic levels. This restructuring process creates change in the organization which lays adverse effect on employees of an organization. The impact of restructuring is often measured by the financial performance of the organization but it is not measured by assessing its effect on the human resource of an organization. The general purpose of this study is to gain an understanding on the impact of restructuring on employee reward and recognition. For more evaluation of study researcher has taken pharmaceutical industry in which the case of Sun Pharmaceuticals and Ranbaxy laboratories restructuring through acquisition is considered. This study is descriptive in nature. Primary and secondary source of data and information has been used in this study. As per the requirement of research data are taken from websites of companies, literature reviews, journals and survey on employees.