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.
