Corporate Restructuring

The most important resource, and the one in least supply, is additional time for those involved in restructuring. When implementing change, you must be creative with time, all the plans be perfect however if there is no time for the people involved to come together the perfect plans cannot be executed. Guideline five, acknowledge the emotional reaction to change. When implementing change, you should anticipate emotional reactions to change. The stages of emotions are; uninformed optimism, informed pessimism, hopeful realism, informed optimism, and a sense of rewarding completion. Guideline six, anticipate restructuring problems and identify problem-solving skills. Attitude and emotional issues; process factors such as lack of coordination, planning, or communication; and lack of resources are a few problems that should be anticipated whenever change is being facilitated. Other predictable problems are unanticipated crises, competing demands, limiting physical environments and perceived low or minimal control among those involved in the change effort. Effective problem solving approaches

* Downsizing: Reduction of the business portfolio by eliminating products and businesses units that aren’t profitable.

Is corporate reorganization an available option? If so, how should it be structured? What issues would be associated with this alternative?

2. to avoid the company dwindling away assets and further reducing any return to creditors.

The corporate reorganization should be structured as a divisive “D” reorganization and the restructuring process should conform to section 355 of the tax law in order to minimize the tax consequences of the reorganization.

The work of Kanter (1992) defined organizational change as the behavior of the organization to a certain degree or another. Organizational change has strategic and structural consequences within a given organization. This is because it involves the process of dismantling as well a restructuring of the various structures within a given organization. Several problems can arise due to organizational change (Czerniawska,2005).

While it was foreseen that the company would initially take financial setbacks because of the reorganization, it was not believed that the financial risks would be drastic. However, the impending report that Mr. Elesser has to present to the board will detail a net income that will be nearly 26 million dollars in the red for 2004 (see exhibit 2)3. The blunt force restructuring met resistance on numerous fronts. First of all, the various components of the company did not operate under the same uniformed leadership objectives. Each division was set up to look out for their own interests and markets. When the restructuring plan that focused on a more centralized management process, many of the things that worked for one division did not necessarily work for other divisions of the company. This left some divisions at a severe disadvantage. Another obstacle that worked against the restructuring was the employee unions in which the company had to deal. The unions were not on board with the various downsizing and restructuring methods. In addition, the company had to deal with a couple of different unions which posed a problem with negotiating tactics. Benefit costs were also a significant investment that did not hold up well under the auspice of restructuring.

6. Organization development consultant David Nadler was interested in developing a model of how large companies cope with restructuring in a competitive business environment. With a team of consultants, he followed the restructuring process of Xerox Corporation for two years. He interviewed the CEO and the top managers at Xerox. He observed the behavior and analyzed the speeches of the CEO and the top managers. Nadler and his team collated and interpreted the information they had collected, and wrote up a detailed account of Xerox’ restructuring process,

Reengineering differs from reorganizing, downsizing and other concepts of organizational restructuring because reengineering includes much more than reorganizing, downsizing and other named concepts of organizational restructuring. Reengineering is defined as "the systematic redesign of a business's core processes, starting with desired outcomes and establishing the most efficient possible processes to achieve the outcomes."

Next, I’ll talk about my personal experience of restructuring and destructuring during this quarter. When I learn and pracetise restructuring, at first I felt like it has connections with yoga because all that positions are somehow similar to each other. I always try to find trimmer, but sometimes I can sometimes I cannot. It’s so hard to have a steady status for me. However, when we start to practice destructuring, I start to get the idea that restructuring is prepared for destructuring and they both have connections. Before learning these ideas, I don’t have anything warm up preparation before acting, and I feel I’m lacking something. Now I know what I lack of is restructuring and destructuring, because after doing that I feel like acting

The company may face structural problems associated with the diversification strategy. As the company gets larger and larger and diversify into different product divisions, the organization structure should be changed to fit the diversification strategy. An inappropriate fit may result in low performance and lead to strategic changes.

Many companies look to salaries and benefits as the first places to cut back when looking to make changes that involve cost-saving. When this happens, it is inevitable that some employees will leave the company to seek employment elsewhere. The employees that remain, whether they stay voluntarily or because they could not find employment elsewhere, are often resentful. Motivation decreases, taking job performance along with it. Employees lose their company loyalty and may even become angry enough to purposefully sabotage the company.

In the cases analyzed, we might infer that during a period of economic difficulties companies had gone through deep discontinuity. As such, this determined the need for a turnaround to realign the companies’ strategies with the external and internal environment. These changes impacted the four companies analyzed previously.

The purpose of this report was to examine organization restructuring. Research for the report included literature based on organizational restructuring and the various processes involved in restructuring. The major findings indicate that the two methods commonly used for organizational restructuring to be downsizing and reengineering of business processes(Cummings & Worley, 2008). Downsizing assist the company to reduce its workforce, and this saves cost in terms of payroll reduction. Reengineering allows a company to change and adapt to the way it

The main objective of this report is to gain a better understanding of large scale organizational change. The different changes implemented by General Motors company in an attempt to cope with the economical crisis of 2008 is a perfect example of this concept.