what is restructuring?

Question

what factorsmight cause restructuring and how one manage this

Answer 1

In this dynamic world things keep on changing due to technological development. example the ATMs installed in the banks have made the job of cashiers vanish. Similarly the computers are changing the job patterns and hence each organization has to restruture their employees nature of job they have to perform so that the idle labour is weeded out and only people are posted to places where their is work. This naturally results in change of job name , their pay scales etc, etc all this put together is known as restructuring.

Answer 2

Good question, and you got the "politically correct" answers, but the real answer is many times this:

Many times the top executives are paid a bonus on the ending check book balance of the company at the end of a year. It is not easy to sell off capital assets (buildings, inventory, vehicles) in the short run to make the figures they want in the company profits at the end of the year, but what they can adjust almost immediately is labour. People are incredibly expensive to employ, and reducing a labour pool is quick and yields immediate results so short-run figures can be obtained. So in many instances restructures are a way to get rid of employees without using the term lay-off so executives that make seven figure incomes to begin with can get their bonuses. Because they are trying to reach an end-of-year figure, this happens at the end of the year around the holidays. Merry Christmas! Your job is in jeopardy!

It would be nice to think it is for the changing scope of the company, but then why does it always happen before the end of the year? Because it is to make budget - nothing more.

Manage it? Well, watch your P's and Q's. Keep your resume current, and be prepared to possibly loose your job. If you like where you work, take on extra resonsibility. Be a part of the restructure so you find a place to belong when it is complete. Don't be a part of the problem, be a part of the solution. If you are not treated well during the transition, tell the company to shove it and find another company to work for.

I am going to college at night just so I be more competitive in the job market when the time comes again. My current company restructured me at least six times in the last four years and it is getting tiresome. It is disheartening too, because I was a company man and now I feel at odds with them about my job. It is difficult to put pride into your work when you feel there is no loyalty there anymore.

Answer 3

Restructuring is the corporate management term for the act of partially dismantling and reorganizing a company for the purpose of making it more efficient and therefore more profitable. It generally involves selling off portions of the company and making severe staff reductions.

Restructuring is often done as part of a bankruptcy or of a takeover by another firm, particularly a leveraged buyout by a private equity firm. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company.

The selling of portions of the company, such as a division that is no longer profitable or which has distracted management from its core business, can greatly improve the company's balance sheet. Staff reductions are often accomplished partly through the selling or closing of unprofitable portions of the company and partly by consolidating or outsourcing parts of the company that perform redundant functions (such as payroll, human resources, and training) left over from old acquisitions that were never fully integrated into the parent organization.

Other characteristics of restructuring can include:

Changes in corporate management (usually with golden parachutes)
Sale of underutilized assets, such as patents or brands
Outsourcing of operations such as payroll and technical support to a more efficient third party
Moving of operations such as manufacturing to lower-cost locations
Reorganization of functions such as sales, marketing, and distribution
Renegotiation of labor contracts to reduce overhead
Refinancing of corporate debt to reduce interest payments
A major public relations campaign to reposition the company with consumers

A company that has been restructured effectively will generally be leaner, more efficient, better organized, and better focused on its core business. If the restructured company was a leverage acquisition, the parent company will likely resell it at a profit when the restructuring has proven successful.

I hope this information has proven useful to you. Good luck!

Answer 4

In my experience "Re-structuring" is another way of saying "Redundancy". All companies use this phrase and when you hear it you know full well a number of people are going to put out of work. Restructuring comes about when companies want to trim their costs, and the easiest cost to trim is the wages bill. Energy bills can not be trimmed that much because they don't have any control of the costs, plus they still need power to run the business. Material costs come into the same category as fuel. As to how one manages it I would suggest as tactfully and compassionately as possible.

Answer 5

Market demand, overall change in consumer demand, merger with another company, change in core competencies might all cause restructuring.
Managing it will depend on what end of the process you are on...(i.e are you being the one taking the exposure or the one who will allocate the resources after restructuring)

Answer 6

Restructuring is a fancy word companies use when there about to lay people off, trust me, been there done that.

Answer 7

sure, restructure with flexibility in the direction of the destiny. i'm no longer confident that unions are not any extra mandatory. I graduated from college the comparable year as my chum. She's been working as a element-time TEMP ever in view that. there are various such activity openings for human beings to artwork under ninety days for under a 40 hr. artwork week. After ninety days, the organization ought to hire and pay them holiday, holiday and ill days, or permit the worker flow. of direction, they permit them to flow purely below the unemployment qualification term. The media and government have not caught on yet. those are no longer real activity openings, they seem to be a thank you to decrease expenses via reducing corners legally. they seem to be a thank you to get enormously experienced those with a school training at a discount cost. What could make this much extra desirable is the prepare of the comparable organization hiring the comparable TEMP yet they artwork in a diverse branch so as that continues to be criminal because of the fact they are no longer working in the comparable potential. I surely have yet another college pal who landed a job with a particularly enormous organization who does government contracts, finished-time, with each and all the advantages inclusive of 401k and well being plan. whilst the economic equipment tanked, he became "laid-off". Then issues more advantageous, he have been given "referred to as back" offering he artwork as a TEMP (area-time)without advantages, no well being plan and the 401K evaporated. jointly as unions can convey a company down they are in a position to additionally insure honest employment practices. or a chum's dad retired from GM and brags that he retired because of the fact he's earning $72K pension + great well being care coverage, this is extra effective than he became making whilst he became working. this is extra useful? Unions with the flexibility to regulate previous contracts to tournament certainty, no longer generate such great circumstances as to be perpetually binding permitting human beings to earn extra via being retired is a thank you to flow.

Answer 8

Or just for a briefer and more precise explanation restructering is where a bunch of a**holes fire a load of people so they can afford a huge pay rise for them selfs this year. Basically.

Answer 9

A management word for redundancy.