Decent Essays
Schumpeter’s says Capitalism as a process of “creative destruction” which is necessarily inherent in business activities in a market economy.
The basic nature of restructuring is a zero-sum game. Strategic restructuring reduces financial losses, simultaneously reducing tensions between debt and equity holders to facilitate a prompt resolution of a distressed situation. Corporate debt restructuring is the reorganization of companies' outstanding liabilities.
When change is not handled well, additional loss of jobs can occur. In addition, demoralization of the work force; increased worker turnover; decreased cooperation and teamwork; and increased levels of stress, anxiety, absenteeism, illness,
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For example, time spent mentoring and coaching staff drops off, staff becomes disengaged, more issues arise due to staff errors and managers end up spending more time resolving them. To ensure management are appropriately loaded, it’s critical to balance three elements:
1. The number of staff directly managed or supervised.
2. Staff ability to perform work without supervision.
3. The amount of ‘own work’ managers have to do on top of their leadership activity. 6. Implement with clarity
Often there is confusion in the first weeks and months after an initial restructure. After all, who is supposed to be responsible for what? The answer is to clarify roles and responsibilities from the beginning, identify all functions (activities, tasks and decisions) that have to be accomplished for effective operation, clarify who should be involved and be specific about accountability.
7. Maintain flexibility
Finally, it is important not to cut your resources too fine. If the organisational change is material, you will need resource flexibility in the first few months. So even as you strive to operate more efficiently, be sure to give yourself some wriggle room in your staffing. Flexibility applies not only to staff members, but to staff capability.
Leave yourself and your leadership team some room to respond to capability gaps in the new
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