Existing literature on organizational turnaround has largely been focused on HR interventions related to good management practices to improve organizational performance. This research suggests that in addition to adopting good management practices, the managers also need to take into account the impact of external environment variables and organizational resistance to change (organizational inertia). These external environment variables are significant and beyond the control of the organizations. Applying this concept to the private banks operating in Pakistan, this study finds that organizational turnaround is influenced by changes in external environmental variables, by changes in organizational inertia, and by good management practices.

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