Organisational Restructuring

• Organisational restructuring


  Changing the way that organisations are managed and structured to improve efficiency, quality and other performance-based outcomes
• Factors that drive organisation restructuring


  • Legal
  • Economic
  • Environmental
  • Technology
• Legal factors


  • Organisational restructuring could be a result of a new government legal or statutory requirement
  • Examples: employee opportunities laws, equal opportunity laws, WHS laws
• Legal factors


  • Government regulations requiring internet service provider (ISP) providers to provide data on those customers who are illegally downloading television shows, films, music illegally using their connection
• Economic factors


  • Organisations may find that the products they have produced for many years have become obsolete
  • Competition from competitors who may adopt a low-price strategy may force an organisation to adopt measures to cut costs and achieve process efficiency
  • Organisations need to continuously research to improve existing products or experiment to create new products or look at ways of finding new customers
  • One common reason for restructuring an organisation is when they need to downsize their workforce
• Environmental factors


  • Legal obligations on businesses to comply with environmental requirements
  • Product/source may no longer be viewed as environmentally friendly
  • Change in public perceptions may drive the way they produce product/service
  • Improvements in environmental impact could be achieved through technology
• Technology as a factor


  • Ongoing advances in technology may require an organisation to restructure in order to keep up with its competitors
  • Technology has enabled fast and reliable information exchanges among organisations, and resulted in flatter organisational hierarchies, which has allowed an increase involvement by employees in the decision-making processes of the organisation
  • Technology has also supported new means of interaction between the organisation and its consumers, with significant implications for organisational structure
• Positive Impacts of Organisational restructuring On employees

  •opportunity for multi-skilling and upskilling

  •develop new technological skills

  •jobs can become more secure

  •a shared goals process

  •improved ethical workplace practices
• Positive impacts of Organisational restructuring on Workplace culture

  •improved workplace efficiency

  •improved ethical work practices

  •employees included in decision-making and goal setting

  •better prepared for challenges and pressures

  •morale boost through better structure.
• Positive impacts of Organisational restructuring on Industries

  •better understanding of ethical practices

  •improved understanding of legal frameworks

  •opportunity to innovate•operational efficiency

  •workforce become better trained and more flexible

  •more responsive to economic conditions.
• Negative impacts of Organisational restructuring on Industries

  •legal restrictions can be arduous

  •costs of meeting environmental standards

  •can’t keep up with innovation and technology

  •increased spending on training

  •can’t match global competition.
• Negative impacts of Organisational restructuring on workplace culture

  •a culture of uncertainty may emerge

  •workforce becomes overburdened

  •lack of loyalty from employees and employers due to uncertainty and change

  •work reduced to functional purpose.
• Negative impacts of Organisational restructuring on employees

  •extra work-load

  •could face redeployment

  •could be made redundant

  •job security could be threatened

  •possible resistance to change

  •career opportunities might decrease.