Restructuring Organisations and Employee Involvement

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Restructuring Organisations and Employee
Involvement

• Maylene Kufe
• University of Ballarat.

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Global Operations
Environment
Structural Design
Organisation Size
Organisation goals
Technology
Fig 14-1 Cummings Worley (1997)
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Structural Design

• Traditional Structures
• Functional Departments
• Self-contained units
• Matrix Structures
• Emerging Structures
• Process Based
• Network Organisation

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Downsizing

• Reducing the size of the organisation by
• Voluntary departures
• Early Retirement
• Natural attrition
• Redeployment
• Outsourcing
• Delayering

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Steps in Downsizng

• Clarify the Organisations Stategy (why does the
  organisation want to do it?)
• Assess downsizing options and make relevant
  choices
• Implement changes

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Implementing Changes

• Top-down
• Identify and target specific areas of
  inefficiency
• Any actions must be linked to organisation
  strategy
• Address the needs for both the survivors and
  those who leave
• Follow through with growth plans

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Example
MET V/LINE PTC
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Results of Downsizing

• The final success of downsizing efforts depends
  on how effectively the intervention is applied.
• (Cummings and Worley, 1997)

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Reengineering

• Seeks to transform how organisations
  traditionally produce and deliver goods and
  services.

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Reengineering

• Prepare the organisation
• Set new goals
• communicate why, what and how
• Fundamentally rethink the way work gets done
• Identify ad analyse core business processes
• define key performance objectives
• design new processes

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Designing new processes

• Needs and wants of customers
• Simplify - combine or eliminate
• pick out the best in current practice
• Do not be constrained by the because we do
• Find the natural order
• Assume the work gets done right the first time
• Listen to the people who do the work

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Restructure the organisation

• Redesign structure
• Jobs become more multi-dimensional
• Controlling -gt empowering
• Shift performance measures and compensation from
  activities to results
• Adopt a flatter structure

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Leadership rather than management

• Facilitate
• Information sharing
• Support
• Problem solving

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Example
Centrelink