Organisations today have entered into a marketplace that is changing very rapidly. They have entered into a new world order where both opportunities and threats are of the same magnitude. But the golden rule to succeed is still remaining the same Darwinian dictum ‘survival of the fittest.’ The key strategy for acquiring this fitness also has not changed.
Restructuring is the ‘mantra’ through which the organisations attempt to adapt themselves to the demands of the turbulent marketplace. The term restructuring has several connotations, such as downsizing, outsourcing mergers and acquisitions, strategic alliances, joint ventures, delocalisation, reorganisation and even closure. Restructuring a corporation is vital. It is vital for maintaining competitiveness, profitability and efficiency. Major Corporation of the world has gone through ups and downs and has restructured to cope up with demands that the changing marketplace makes at them.
Organisations look at restructuring as the strategy that will help them acquire this. The main issues that are at stake in restructuring are the quality or the profit and the cash flow. A number of issues need to be addressed at the same time. There are many other issues that organisations seek to address through restructuring.
“More recently, studies have been carried out seeking to produce relatively precise evidence of the “size-effect” in the industry by using various indicators of conflict and employees’ attachment to their organisations. The main results in this respect have been demonstrated in the findings of various researchers. Akintayo has used a similar index with data collected from a multinational organisation (Shell Petroleum) and shows a direct relationship between colliery size and quit rates among the workers.”
Strategies of restructuring must take into account global competition and must focus on core competence. The idea is to derive competitive advantage, and three factors are particularly important quality technology, and cost. Any restructuring effort must take into account these three factors. In addition, however, human resources’ development has also to be taken care of, or else the whole restructuring exercise will be a failure. There are as many examples of achieving success through restructuring as there are of failures.
Managing restructurings also implies that you have to coordinate with numerous factors, such as different levels of management, employees and their representatives’ unions, subcontractors, public administration, political system etc. Moreover, restructuring can have negative consequences too. For workers, it may mean loss of jobs or relocation etc. Management may face stiff resistance from their side. Restructure is like tightrope walking that has to be done very carefully. Restructuring is usually carried out in a legal, economic, or sociological environment, and the impact of all three has to be faced.
Restructuring and re-engineering taken together are important and legitimate tasks, but they are more concerned with shoring up present business and are no substitute for creating the future. “There was a positive relationship between trust and work satisfaction, and that trust contributed to work satisfaction. Perception of colleagues’ willingness to help solve job-related problems contributed significantly to the strengthening of trust relations among colleagues. Additionally, colleagues and supervisors’ willingness to listen to employee problems contributed significantly to work satisfaction.”
Due to the changes that occurred in the organisation there felt more motivation with our new method so that as per the employees’ concern they may affect positively. Thus, it may help to achieve a positive result in the case of an organisation.