The organisational restructuring process is the process of re-allocating the business structure of a company. It may be undertaken to reduce costs and improve efficiency. The process should involve employees at every level of the organisation and must be supported by management. There are many challenges associated with restructuring a business. A good strategy and adequate time should be allocated to its implementation. However, if a restructuring process is properly managed, it can have significant benefits for a company.
The process of re-aligning the workforce begins with the establishment of a new organisational structure. The new organisational structure will dictate what type of employees a company needs. Small businesses specializing in bespoke materials need fewer, highly skilled workers, whereas large businesses focusing on mass production need a huge workforce and a high skill-level. After determining the type of workforce needed, the company can plan a new organisational structure and re-design roles and responsibilities. After deciding the new organizational structure, it can compare the new roles with their predecessors to identify any differences.
The process of organisational restructuring can be carried out by managers or external experts. However, there are certain steps involved in this process, including an assessment model and methods of implementation. Figure 1 shows a basic concept of an enterprise’s organizational restructuring. The assessment model for the process is shown in figure 2.