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Strategic Restructuring And Organizational Developments

Strategic Restructuring and Organizational Developments

Introduction

This discussion is directed toward company restructuring and repositioning, specifically my personal experiences in a project dependant industry, and the evolution of a business structure and organizational culture of flexibility and adaptability. Many companies operating in a project specific and contract dependant industry are required to align employees with processes and strategies to ensure smooth transition in an often dynamic and changeable environment. Companies competing in dynamic market environments have evolved and adapted to stay competitive and profitable. It is important to recognize the alignment of company culture toward the employee and the strategic role HRM has in the planning and preparation when restructure process is under-taken. The topics and reflections in discussion, although often specific to experiences in the contract and project environment, are also transferable across other industries.

The Motives for Restructuring

In essence the market environment is what drives changes in organizational strategy and structure. The new economic environment of increased competition and instability has moved organizations toward more responsive business structures. The Petroleum Industry is classic case of economic and market forces which have historically created cycles of high growth and recessional lows. Companies competing in the petroleum industry have evolved and adapted, in a strategic capacity, to stay competitive and profitable (Cibin and Grant, 290).

Organizational change can be said to encompass structural change or strategic change (Lines 2005, 10). Structural change, as defined by Lines, encompasses the merger of two companies, creation of new departments, and delayering or downsizing of an organization. Also restructuring can be strategic, which tends to involve changes in market domain resulting in changes of structure systems and processes. An example...