Impact Of Organizational Restructuring On Organizational Performance

2604 words - 10 pages

According to Jim Sirbasku the Organizational restructuring strategies help you get the most from people by developing a plan for corporate restructuring, layoffs and mergers. For organizations to develop, they often must experience significant changes in their overall strategies, practices and operational procedures. As companies evolve so must their employees to align with their organization.
Organizations are active systems and they cannot work if any of their systems will not work efficiently and smoothly. Above all understanding the relationship between organizational restructuring and its employees is the key to humanizing your organization’s capability to move through change effectively. In organizational restructuring organizations need insight into where to best utilize the talent. In addition to that organizations need to be able to handle conflict because organizational restructuring brings about stress and conflict. Being able to predict how each employee will respond to stress and conflict is the key to managing change smoothly.
If you aren’t sure about what organizational restructuring management and analysis can do for your company, consider the following questions:
- Would you like to create a benchmark for measuring progress in organizational development activities?
- Do your managers and employees have a misaligned interpretation of the vision, mission and values that are important to the success of your organization?
- Do you have a system to measure management effectiveness?
- Are your internal management practices in alignment with achievement of organizational goals or is there a negative correlation?
- Do the skills of your supervisors contribute to a negative impact on performance for your company?
- Does your organization continually settle for low productivity from some managers that creates a negative profit impact?
According to Boston Consulting Group executives, Martin Koehler, Pedro Esquivias and Raj Varadarajan. Restructuring is a delicate operation which many airlines are being forced to undergo. They explore how customisation of this painful process pays off. The severe drop in demand and the instability in oil prices have mixed the industry's structural problems of overcapacity and increasing market fragmentation. In our current economic climate, managing costs is essential. As one senior airline executive says that: "Cost cutting is a necessity. It has to become a daily routine, like brushing your teeth." So for that reason leaders must walk the talk if they expect the organisation to go along.
Their studies show that change on any level is difficult, but especially so in indecisive times. That is why strong leadership throughout the change process is absolutely necessary. The challenge that airlines face is indeed higher than ever. But they believe that strategic restructuring will heighten the competitiveness of successful airlines and vice versa.
According to Lewin, Jeffrey E.,Johnston,...

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