Organizational Restructuring

Organizational Restructuring is when a company’s business model has changed due to internal or external factors and needs to adapt in order to survive and ultimately grow. This may result in a downsize, upsize or reshuffle of staffing requirement.

When a business eliminates layers of management during its restructuring, communication and decision-making often improve. Simplifying management reorders the organizational hierarchy of a company, opening the lines of communication and removing barriers to productivity.

There are so many reasons for business restructuring as shown bellow.

• To reduce costs.
• To concentrate on key products or accounts.
• To incorporate new technology.
• To make better use of talent.
• To improve competitive advantage.
• To spin off a subsidiary company.
• To merge with another company.
• To decrease or consolidate debt.