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Organisation restructuring and downsizing
3
 CHANGE REPORTING STRUCTURE
 DEPARTMENTS- NEWLY CREATED OR DISAPPEAR
 NO NEED FOR EMPLOYEES TO BE HIRED OR FIRED IN AN
ORGANISATION.
4
 WHAT IS THE STRUCTURE OF THE
COMPANY ?
 HAS THE ORGANISATION UNDERGONE
RESTRUCTURING ?
 PROFIT & PRODUCTIVITY
 OPERATIONAL REQUIREMENTS
 CO-ORDINATION, COMMUNICATION AND
ACCOUNTABILITY
 STAFFING
 MORALE
CHANGE IN NATURE OF BUSINESS 6
PURPOSE
 WERE ANY POSITIONS CREATED OR
ELIMINATED DUE TO RESTRUCTURING ?
 WHICH DEPARTMENTS WERE TAKEN INTO
CONSIDERATION ?
ADVANTAGES OF
RESTRUCTURING
 OPERATIONAL COSTS MAY DECREASE. (IF DOWNSIZED)
 COMMUNICATION AND DECISION MAKING OFTEN
IMPROVE.
 MAY ENJOY INCREASED OPERATIONAL EFFICIENCY.
 LIKEWISE, OUTSOURCED OPERATIONS ARE
ECONOMICAL THAN IN-HOUSE LABOR.
DISADVANTAGES OF
RESTRUCTURING
 It may lose highly skilled workers. (IF downsized)
 Added training expenses
 Productivity may suffer while employees learn their new
roles
 May lead to low worker morale poor customer service &
an insecure feeling among them if downsized
Organisation restructuring and downsizing
DOWNSIZING IS REDUCING THE NUMBER OF EMPLOYEES
ON THE OPERATING PAYROLL. DOWNSIZING OCCURS
WHEN A COMPANY PERMANENTLY REDUCES ITS
WORKFORCE.
WHAT IS DOWNSIZING ?
 HAS THE COMPANY UNDERGONE
DOWNSIZING ? IF YES, KINDLY
ELABORATE.
CAUSES FOR DOWNSIZING
 COST REDUCTION
 REDUCE LAYERS OF MANAGEMENT
 LESS PROJECTS
ADVANTAGES OF DOWNSIZING
ORGANISATION
 Less repetition
 Financial saving
EMPLOYEES
 Severance pay
 Alternative
Employment
 WERE ANY BENEFITS PROVIDED TO THE
EMPLOYEES WHO WERE ASKED TO
LEAVE ?
 WHAT WAS THE REACTION OF THE
STAFF ?
 FINANCIAL COST
 DECLINE IN CREATIVITY AND PRODUCTIVITY
 DECLINE IN REPUTATION OF THE FIRM
 LEGAL ISSUES
DISADVANTAGES OF DOWNSIZING
 WHAT WAS THE IMPACT OF
DOWNSIZING ?
 WHAT ARE THE REASONS FOR
DOWNSIZING AND RESTRUCTURING ?
DIFFERENCE
RESTRUCTURINGDOWNSIZING
CONCLUSION
REFERENCES
 http://tejas.iimb.ac.in/articles/16.php
www.threesigma.com/organizational_re
structuring.html
 Shelley Frost- demand media
Organisation restructuring and downsizing

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