ENTERPRISE RESTRUCTURING IN ROMANIA'S TRANSITION ECONOMY. CONCEPT, METHODOLOGY AND MEASUREMENT

This article examines the large-scale corporate restructuring process in Romania that had as objectives to restructure viable corporations, liquidate nonviable ones, restore the health of the financial sector and create the conditions for long-term economic growth. Restructuring involved changes in corporate governance, organizational structure, management, labor, capital, technology, output, and sales. A comprehensive strategy and methodology for restructuring, encompassing both the corporate and financial sectors, was put in place once the economic crisis in Romania of mid nineties was judged to be systemic in scope. The extent of the restructuring, the required resources and timing became the critical issues. These issues were compounded by contention for scarce resources, lack of legal framework, lack of expertise within the Romanian enterprises and inefficiencies resulting from the scope and complexity of the activity being carried out across the economy by various entities. The actions taken that are justified on a cost - benefit basis and measured to ensure that the desired results are achieved within a certain timeframe create the concept of "Efficiency-Based Restructuring". This makes it necessary for the manager to have a well-defined program of actions to be implemented along, a critical path, short term and long term priorities identified. Various performance indicators may measure the results of restructuring in Romania but is required a selection and refined interpretation of facts.