Question

Lisa started her laundry business 20 years already, but now she face a lower sales and did not gain profit. So she think she need to change her business model that is provide drive thru and delievery service. Discuss specific steps to re-organize Lisa's business. (Step by step)

(700words)

Answer 1

Reorganization of business-

Step 1= Understanding the company’s strategic construct & organizational traits-

Corporate restructuring initiative in a firm aspiring to stay competitively superior to its competitors for times to come must start with appraising the existing mission, vision goals & strategies, procedures, structure, management, organizational ethos and human & monetary resources so as to ascertain their sufficiency to cope up with any environmental developments.

Step 2=Evaluating necessity of change-

Before any move to deal with the change requirements, the management must discover what sparks off the change. There may be slew of pushes which call for departure from the prevailing state of affairs.

Obviously, the most robust push which triggers reaction is the change in the environment which exists external to the organization. Even forces within the corporation may also compel change. Deep comprehensions into these forces & their implications may signal the requirement for restructuring.

Step 3=Determining what should be modified-

Having got in-depth comprehension of the prevailing construct of the company & its fundamental characteristics, the management has to decide whether there’s a requirement to alter the contemporary vision of the corporation in the changed scenario.

To enhance value, a firm must examine the extent to which prevailing processes add value to the service/ product. The management should detect the processes having the maximum impact on the firm’s product/service & consumer’s choice & the procedures which don’t add value / are in deep trouble need to be fixed . Every process may also be assesses to determine whether its conducive to functioning as an integrated process.

Sufficiency of present organizational architecture with regard to departmentalization of activities, roles & accountabilities of various functionaries, line & staff relations, level of decentralization, skills of the organizational people, co-ordination of actions, communication pattern, etc. to cope up with the change in strategy should also be assessed.

Any change in strategy, procedure and structure isn’t possible without complete co-operation & support of the persons. For organizational restructuring, people’s attitudes & beliefs need to be changed. This isn’t a simple task, especially in powerful cultures.

Step 4=Comprehending organizational reactions & assessing them-

Persons normally react differently to change depending upon their viewpoints, circumstances & comprehension of the process. Generally, 3 types of reactions to any restructure initiative are observed- alliance, conformity & defiance.

Persons opposing change clearly require rapt attention. Even persons who support the change must be managed appropriately. The management must find out why persons are opposing change / not supporting it overtly.

Step 5=Approach to Restructuring Program-

There are 2 broad approaches to shape restructuring program- tactical & strategic. Tactical approach incorporates education & communication, participation , facilitative & emotional support, manipulation & co-option, incentives & compulsion .

Strategic approach comprises organizational development (OD). Its a planned process of change in a firm’s culture thru the use of behavioural science technique, research & theory.

This is a problem-solving approach of coping with the threats & prospects in the external environments & concentrates upon changing certain facets of propel & these changes are based upon an overview of architecture, technique & other organizational elements.

It lays stress on participative & cooperative management & emphasis upon changing the organization’s ethos. The techniques utilized by OD approach comprise task-technology intervention, structural intervention & people- oriented intervention.