Super Fitness Health BlogWhen Do You Require Organizational Restructuring
The global economic outlook appears to be brightening. On the other hand, organizations need adapting to the general business and commercial environment to be able to be in a position to compete and operate in a highly effective and efficient way. Restructuring organization in reaction to technique or demands involves an important turn-around in focus.
The organizational restructuring procedure involves a fundamental change in mission, critical processes and structures. This includes legal, operational, strategic and often ownership in order to enable it to meet its current and emerging needs. In certain cases restructuring an organization is prompted by a crisis which makes an organization to act fast in order to avert outcomes for example insolvency, bankruptcy as well as in extreme cases liquidation.
On the other hand, organizations don’t have to wait for imminent threats to pass through in order to institute strategic restructuring. However, when organizational restructuring is done when there is absolutely no crisis it offers an excellent opportunity of enriching its strategic value in terms of capability to absorb or deal with perceived economic threats. It is important to note such restructuring cannot totally insulate an organization from adverse effects of unfavorable socio-economic and political influences.
There are numerous signs and arguments which should result in organizational restructuring. It is at such moments that organizations must take prompt action and reorganize their structures and operations. However it ought to be done with a view to enhance efficiency, boost effectiveness and additionally incorporate new and more technologically advanced methods. There are scenarios that are indicators of a need to restructure an organization.
Changing business needs and requirements. The present economic environment changes at a fast rate. Organizations that do not align themselves can certainly become obsolete. Customer preferences are also changing in addition to the capabilities of online marketing competition is very stiff. Organizations have to reach out to new markets , develop new products or services, optimize their production capacity or service delivery as well as shed off production lines that don’t add value All these will need organizational restructuring.
An organization may require downsizing its workforce as a consequence of hard economic times or emergence of more capital intensive and more sophisticated technologies. Some product mix changes can lead to redundant staff. Intense competition may require an organization to lessen its costs in order to adopt leaner and more economical workforce. Job descriptions and responsibilities are streamlined so as to fit environmental requirements.
Where you can find new and cheaper methods to satisfy some organizational requirements it would be prudent to consider them. They include outsourcing, new systems and new technologies, all which may trigger organizational restructuring. Outsourcing non core business processes is gaining momentum as a result of being more effective and dedicated.
Competition can lead to organizations adopting new quality management approaches for example Total Quality Management or Six Sigma. Such ventures require far reaching alterations in a business. In addition, the implementation of quality standards requires alterations in organizational culture and structures and work processes. For example, organizations are merging or just being taken over. This involves or precipitates a change in systems and operations. Incoming management in the event of a takeover may have a totally different view of how things should be done. A business can also be restructured so as to adhere to legal and statutory requirements.
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