Reorganization is the process of changing the structure of an organization through transfer change in identity or even the management. This can be done in order to address major problems in the organization or in order to overhaul its strategy by shifting the market focus, rather by reorganizing the whole management or the administration of the organization hierarchy
More often than not, change in any organization is always faced with resistance by both the managers and the employees. This hinders frequent restructuring of an organization. Cost is also involved in the reorganization and as a result it may hinder frequent reorganization. There are also legal and human resource issues that are related to restructuring of an organization. Therefore, frequent reorganization in any organization may be difficult as it is faced with such challenges.
The employees in an organization are also distracted from their day to day activities in the organization thereby preventing reorganization as their productivity goes down with time. Also, unplanned activities like the unforeseen need to restructure the IT system or the need to pass the information in a number of languages to various employees also disrupt the implementation of reorganization.
When to reorganize in a business.
However despite the challenges faced when reorganizing, there are a times when reorganization becomes necessary. For instances, if a key employee in an organization leaves, there should be reorganization as he leaves a void and also a great opportunity to reorganize the existing structure. (Dan, 2018)
At times in an organization, it is faced by challenges of inefficiency, talents and abilities mismatch, under lapping roles, workload imbalances and a number of other operational issues. As such, reorganization becomes a preliquisite as work end up not being done or not done as it is prescribed. (Dan, 2018). Whenever a new opportunity arises, reorganization is necessary in order to seize the opportunity that has presented itself. Such opportunities include new market, product, or a new service and the organization structure wasn’t prepared or designed to cope with the new change in the business environment. (Dan, 2018)
Frequency of Carrying out Reorganization
Reorganization comes with challenges and most employees and managers dread this restructuring. But to achieve the organization objectives and goals, reorganization should be carried out once in a while in order to meet the market needs and to ensure work is being done in the most efficient manner. Case in point, whenever a key individual leaves a company, it is paramount for reorganization to be carried out in order to fill up the gap left efficiently.
Before any restructuring is done, a cost and benefits analysis of the reorganization should be carried out in order to assess the benefit, the costs, and the time to deliver. The objectives of the reorganization should be as fair, transparent and reasonable as possible. This shall make the employees and the managers also accept and be behind the restructuring while at the same time supporting it. (Stephen & Suzanne, 2016)
Major restructuring should be carried out periodically in order for an organization to meet its obligations. It might involve the refocusing of the company’s mission statement, changing drastically on its marketing strategy, or even laying off of underperforming employees. The merits of restructuring can be very cost effective to the business thereby putting it in the path towards long-term sustainability.
Costs of running a reorganization
Reorganization is a business initiative like any other and therefore before it takes place, one should start by defining the advantages, the costs, and the time it will take to deliver. (Stephen & Suzanne, 2016). Costs involved are not only those of the employees but also the human cost of change of the change that takes place and the disruption it creates in the business. (Stephen & Suzanne, 2016). When this cost is put into place, it may at a time turn out to be very expensive for the organization. Therefore, for a very successful reorganization to take pace, there is need to assess the cost of all that is involved. In a healthcare setting, reorganization of the doctors creates dynamism in antibiotic use which creates a scenario of resistance to the antibiotics. This creates issues in the long-term that leads to emergence of resistance of the antibiotics. This increases the cost of research for new antibiotics as well as costs for the health care plan.
H,Stephen; H, Suzanne. (2016). Havard Business Review. Managing Organizations.
M, D. (2018). Guidelines for Reorganizing Your department or Company. Management and Leadership Skills.
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