Oganizational restructuring
- 2. Introduction Change is inevitable for a company’s growth. Human Resource Transformation (HRT) aims at maximizing the competence and efficiency of human resource models and functions.
- 3. Literature review The Twenty-First-Century HR Organization by Dave Ulrich, Jon Younger & Wayne Brockbank The Practice of Organizational Restructuring: From Design to Reality by Julia Balogun Building Sustainable Organizations through Restructuring: Role of Organizational Character in France and India by Ashok Som The Top Best Practices for the High-Impact HR Organization by Stacey Harris The Strategic Objectives for Restructuring HR and Significance of Strategic Role for Future Leaders by Ali Muslim Bin Aqeel, Aamna Shakeel and Ali Naseer Awan
- 4. Nissan Corp. Ltd. Successful Organisational Management Change by Abdel Razzaq A. AbuShahout HR Transformation in India: A case for Business Driven HR Nokia - Restructuring A Giant by Amit Gupta, Ankit Agarwal, Swati Jain, Amit Mantri, Vibhu Manya & Ashish Sahay Reorganization, Restructuring or Downsizing? by Caela Farren & Tom Karl Corporate Restructuring in India with Special Reference to Reliance Industries Limited (RIL) by Santhosh Kumar A.V. & Dinesh N Building the Future: HR’s Role in Organizational Design by Steve Weingarden
- 5. Research Methodology Project Objective • To know what is organizational restructuring. • To find out the ways in which an organization can be restructured. • To understand the background of various companies who have restructured their
- 7. Famework of Organization Restrucruing Reorganisation of assets. • Acquisitions • Sell-offs or divestitures Creating new ownership relationships. • Spin-offs • Split-ups • Equity carve-outs Reorganising financial claims. • Exchange offers • Dual-class recapitalisations • Bankruptcy • Financial reorganisation Corporate Strategies. • Joint ventures • ESOPs • Going-private transactions • Using international markets
- 8. Causes of Organizational Restructuring Changing Strategy • Companies reorganize structure to accommodate the market shifts. • Some companies create new divisions to facilitate new products or product lines. • Some companies trim production staff due to surplus production Changing Structural Types • Companies often rearrange business structure to follow a new business model. • Some companies shift organizational structure to a regional model to assign local managers. • Some companies create a matrix grid to place the key managers over
- 9. Causes of Organizational Restructuring (contd.) Downsizing • Companies commonly downsize to remain functional during a loss of revenue. • Most companies will close departments, drop product lines, lay off managers and sell facilities to keep a company afloat. • Some companies reorganize business structure to meet the needs of the new organization at its smaller size. Expanding • Corporate expansion demands the creation of new departments to accommodate new products or new facilities. • For any expansion companies has to rearrange business structure to include the new staff. • Companies often make changes in the basic organizational structure for any expansion.
- 10. Methods of Restructuring Joint Ventures Mergers and Amalgamations Horizontal Mergers Vertical Mergers Conglomerates
- 11. Acquisitions Management Buyouts Takeovers Strategic Alliance
- 12. Case Studies
- 13. March 2000 - Coca-Cola received news about misconducts in its North India operations. July 2000 - Arthur Anderson appointed to inspect the matter. Findings - North Indian team violated discounting terms + credit policy + unfair cash dealings Solution - Coca-Cola did Performance Appraisal for 560 managers, leading to a mass resignation. July - Nov, 2000 - 40+ managers resigned + few employees were sacked by Coca-Cola January 2001 - 12% of management or 70 managers left/removed Problem Solution Von Bohr(CEO) took steps to ensure smooth relationship with new people in the company Bohr individually met finance head in every territory and made clear the company’s policy to them Coca-Cola made uniform discounting limits and best practices Launched a major IT initiative - to make the entire organization’s functioning transparent
- 14. Nokia-Microsoft Alliance Strategic Alliance Renault – Nissan’s Alliance Strategic Alliance
- 15. Reliance Empire Split - Demerger Reliance Industries Reliance Petroleum Reliance Solar Reliance Logistics Reliance Industrial Infrastructure Reliance Institute of Life Sciences Relicord Reliance Anil Dhirubhai Ambani Group Reliance Communications Reliance Capital Reliance Power Reliance Infrastructure Reliance BIG Entertainment Reliance Health Reliance Insurance
- 16. Findings In Organizational restructuring, the organization makes changes in the personnel department, the way the organization works, the organization structure and all other related fields. Organization Restructuring is a complex matter with create or break consequences for organisations. The benefits of restructuring are cost reduction, helping in forming more effective structures, efficient processing and involved staff. There are various methods of organizational restructuring like Joint venture, Mergers, Acquisition, Strategic alliance, Demerger, etc. that helps the organizations in enhancing their performance. From the cases included in the study, it can be clearly seen that many companies that have used different types of restructuring methods to improve their performance, increase their profitability, or become industry leader.
- 17. Conclusion Organization restructuring is the process of redesigning one or more aspects of a company. Restructuring a corporate entity is often a necessity when the company has grown to the point that the original structure can no longer efficiently manage the output and general interests of the company. Companies like Tata, Coca-Cola, Nokia, Yamaha, Reliace, Harley- Davidson, Dabur and many more have restructured their business in order to gain a competitive advantage over others.
- 18. Thank You