The Reorganization Theory

The Reorganization Theory suggests that when organizations face challenges or decline, restructuring their internal systems—such as changing leadership, altering processes, or shifting resources—can restore performance. It emphasizes that intentional, strategic changes within an organization can improve efficiency, adapt to new environments, and support growth. Essentially, it views organizational decline as a problem that can often be addressed by thoughtful internal reconfiguration, rather than external factors alone, leading to renewed stability and success.