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When is restructuring better for both company and employees?

When a company has a restructuring plan, most employees get worried. Restructuring means change. Change means uncertainty. Who accept this challenge?

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Question added by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed
Date Posted: 2014/08/04
Vandana Sah
by Vandana Sah , Senior Manager HR , ABC Consultants (previous employer); relocated to Dubai and in search of my next challenge

With changing business environments, more so in the past decade than any other, many organisations have relooked at their internal structures and planned long term changes to suit business requirements. Some have taken an aggressive stance wherein the change has been transformational, whilesome organisations prefer the gradual change management route. Whichever mode your orgnisation is looking to follow, the most important ingredient to the success ofmanaging the change smoothly is communication. Well planned and effective Communication with the stakeholders, with senior management , managers and employees organisation wide - step by step, phase by phase.All employees,irrrespective of level must feelpartofthe chnage process. There will always be difference in opinions and may even be resistance to the changefrom some corner, these are things that must be anticipated earlier on and discussions must be encouraged. Employee opinions given a ear but a respectful communication starting from the head of the organisation organisation wide, percolating down to divisions to departments to teams - if an employee is treated as a partner to the change there is a lot of worry that gets diminished at the very beginning of the process.

Chenna Chakka
by Chenna Chakka , Director of Sourcing & Procurement , Atlas Oil Company

Restructuring work force is necessary if the direction of the company changed such as the company moved away from their traditional core competency and acquired a new business that came through organic growth, then they need to identify the work force (talented one of course!) to see how they can better manage this new business. In a lot of companies there are a core group of people that execute a successful merger/acquisition, these individuals need to be deployed to merge the entities in an effective way. 

Once the merger/acquisition is completed (financially with passing all of the regulatory issues), the company need to restructure the teams to better the business units to make more profits.

Promote safety calture by apply the best leader ship and involve employee to upgrade the walfare mode.

Ziaullah Khan
by Ziaullah Khan , Country Manager HR , Jhpiego (Affiliated with Johns Hopkins University, USA)

There are three critical hurdles or challenges that management faces in any restructuring program:

1. Design. What type of restructuring is appropriate for dealing with the specific challenge, problem, or opportunity that the company faces or employees?

2. Execution. How should the restructuring process be managed and the many barriers to restructuring overcome so that as much value is created as possible?

3. Marketing. How should the restructuring be explained and portrayed to investors so that value created inside the company is fully credited to its stock price?

Failure to address any one of these challenges can cause the restructuring to fail.

kingsley michael
by kingsley michael , Supervisor , Hogan Guard Security Company

it brings about job appraiser and company output

Muhammad Sherif
by Muhammad Sherif , Founder, Managing Director & Sr. Lead Business Consultant , New Directions Consulting, Training & Services

Restructuring is the best for the company when it decided to change its productivity plans or when in losses, it will better for both to accept restructuring.

also, restructuring is very aggressive target especially with staff because it means change for example if the company rely on manpower in some production line and decided to be automation which means we have to select the best and to do a layoff for useless staff

Restructuring is advisable only when a particular company or department is non productive and not yielding results. If the desired results are being achieved then instead of restructuring implementation of improving techniques should be done as there is always scope for improvement

Paolo Borchetta
by Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

I call restructuring the definition of "Late (some times too late) Recognition of the Need for  Changes".

A company with a dynamic, transparent and open approach to corporate control  and market realities should never have to get into a restructuring situation.

In general the need for restructuring implies that some underlying internal, external or both realities have been neglected over a considerable period of time bringing the company to the point where changes (sometime dramatic one) need to be forced upon the organization rather that being embraced as part of the corporate culture.

There are several underlying causes some structural some market driven, however it is always a fundamental lack of perceptive ability of the top management.

Top management primary role is to drive changes in advance in order to preposition the company for financial stability, growth and sustainability. It is also top management responsibility to balance short terms shareholders wishes with short-medium and long terms benefits for the company.

Sometime these three objectives (financial stability, growth and sustainability) can become deeply conflicting one from each other, privileging one over the other create underlying unbalances that eventually in most of the cases result in the need for hastily restructuring.

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

If you have a wise management team, restructuring is never bad, Of course it may have some negatives for both employees and company such as changing working culture, learning new work habits, change,... But still the positives are usually more. 

Restructuring is usually meant to make improvement (including expansion) or to avoid disasters. In both cases, it will not affect only the company but also the employees. Developing company's activities will have its positive effects on its employees. 

Bilal Waheed
by Bilal Waheed , Manager Distribution , National Fertilizer Marketing Ltd

Restructuring is mostly done while change in business environment either for improvements or to avoid potential loss / disaster. In any case when ever restructuring is required, one should plan it properly to minimize the resistance. For that it is necessary that all stake holders are in loop and are well aware about what's coming. The optimal results may be achieved when all stake holders have accepted the change however, the process of change shall not be withdrawn due to the fear of resistance against it. 

Naresh Kumar
by Naresh Kumar , Head Chef , Explosion night club manali

Job changes nature of human ,and quit current organization and join new organization. Mostly company not understand the employee work . Employee work hard and smart , organization not increment that's time . Then employee search job better opportunity . And quit current job . Then organization offer interment for employee .my decision quit the job.and eeject offer

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