Write brief notes on Re-structuring.
Answer:
Restructuring is the corporate management act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs.
In a typical organisation, the change in leadership is also called re-structuring. It’s all about reassigning roles and responsibilities in the organisation to handle business more efficiently.
Re-structuring is attempted with change in authority and task relationships of managers. The move from the functional form or a standard division structure to
combine or divide areas of control and authority to facilitate better coordination and/or workflow can be described as restructuring.
Some characteristics during restructuring are:
• Assignment of new roles
• In the process, a few jobs may not be there.
• Few people may have multi-functional activities.
• The main purpose is to reduce bureaucratic costs.
• This is because of a change in strategy.
• Downsizing is also a way of restructuring.
Every organisation must change to survive in a world of cut-throat competition, constant technological progress, and rapid communication. Change is sometimes inevitable but the change becomes effective and beneficial only if it is be driven by knowledge.
Restructuring may occur due to organisational changes because of a set of actions resulting in a shift in direction, attitude or process that affects the way an organisation functions. It can either be an intentional shift as planned by leaders within the organisation or an involuntary reaction to outside situations beyond its control.
An organisation that does not change cannot survive long - much less thrive - in an unpredictable world. Several factors may create the need for an organisational change, including new competition in the marketplace or new demands by customers. These types of external forces may create expectations of improved efficiency, better service, or innovative products. When organisational change is well planned and implemented, it helps ensure the organisation’s continued survival.
Changes become necessary sometimes. Some reasons for change:
• To cope with new challenges
• To introduce new products or services
• To take up new opportunities
• To take on competition
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