restructuring organizations final

7/31/2019 Restructuring Organizations Final

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RESTRUCTURINGORGANIZATIONS


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Members

Anjali Chourasia

Kavish Mishra

Nishiket Rajput

Guranjan Singh Cheema

Chandrakant .N

Saptarshi Majumdar Babita Singh


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WHAT IS RESTRUCTURING OF

ORGANIZATION? Changing the old pattern oforganisations structure due to

changes in technology,increasing global competition

and environment andreorganising the structuralpattern in its best outcome


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Three interventions


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(A) Structural Design


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(1) Functional Structure

President

VP ResearchVP

ManufacturingVP

EngineeringVP Marketing VP Finance

VP HumanResources


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Promotes skillspecialization

Reduces duplication ofscarce resources and

uses resources full time

Facilitatescommunication andperformance

Exposes specialists toothers within samespeciality

Emphasis routine tasks

Fosters parochialperspectives

Reducescommunication and

corporation

Interdepartmental

coordination

Obscures accountabilityfor overall outcome

Stable and certainenvironment

Small to medium size

Routine technologiesand interdependencies

Goals of efficiency andtechnical quality

ADVANTAGES DISADVANTAGES CONTINGENCIES


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(2) Divisional Structure

President

VP Product C VP Product B VP Product A

Manager salesManager

manufacturingManager research


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Recognition sources ofinterdeparmentaldependencies

Fosters an orientation

towards overalloutcomes and clients

Allows diversificationand expansion

Promotes delegation ofauthority andresponsibility

Unstable and uncertainenvironment

Large size

Technologicalinterdependencies

across functions

Goals of productspecialization andinnovation

Less use of skills andresources

Limits careeradvancement

Creates stress due to

demands on people



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(3) Matrix Structure

President


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Specialised knowledge

Maintaining reservoirs

of specialists

Maintaining consistencybetween differentdepartment

Difficulties withoutsupport of top

management

Increased stress anddifficulties

Functioning withoutpowers

Dual focus on uniqueproduct and technical

specialization

High informationprocessing capacity

Pressure for shareresources



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(4) Process Structure


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Focuses resources on

customer satisfaction

Adapt to environmentalchange rapidly

Reduces boundaries

between departments

Longer process

Duplicates scarce

resources

Threat of middlemanagers and staffspecialists

Large size

Uncertain and changingenvironments

Customer orientedgoals



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(5) Network Structure


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Highly flexible

Focus on customer andmarket needs

Permits rapid globalexpansion

Difficulties inautonomousorganization

Sustaining benefits canbe problematic

May give partners

access to priorities

Highly complex

Organisations of allsizes

Worldwide operations

DISADVANTAGESADVANTAGES CONTINGENCIES


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DownsizingReducing the size of the organisation by:

Voluntary departures

Early Retirement Natural attrition

Redeployment

Outsourcing

Delayering


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Steps in Downsizng Clarify the Organisations Stategy (why does

the organisation want to do it?)

Assess downsizing options and make relevantchoices

Implement changes


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Implementing Changes

Top-down

Identify and target specific areas of

inefficiency Any actions must be linked to organisation

strategy

Address the needs for both the survivors andthose who leave

Follow through with growth plans


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Results of Downsizing

The final success of downsizing efforts depends

on how effectively the intervention is applied.(Cummings and Worley, 1997)


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ReengineeringSeeks to transform how organisationstraditionally produce and deliver goods andservices.


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Reengineering

Prepare the organisation Set new goals

communicate why, what and how

Fundamentally rethink the way work getsdone

Identify ad analyse core business processes

define key performance objectives design new processes


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Designing new processes

Needs and wants of customers

Simplify - combine or eliminate

pick out the best in current practice

Do not be constrained by the because wedo

Find the natural order

Assume the work gets done right the firsttime

Listen to the people who do the work


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Restructure the organisation

Redesign structure

Jobs become more multi-dimensional

Controlling -> empowering Shift performance measures and

compensation from activities to results

Adopt a flatter structure

restructuring organizations final

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