ORGANIZATIONAL RESTRUCTURE

1. Why organizational restructuring?

Organizational restructuring is the process of revising the organization’s effectiveness and suitability in relation to strategic objectives and market changes. Restructuring will help businesses improve competitiveness, reduce costs and create motivation for the workforce. At the same time, it helps businesses keep up with changes in the market and create a platform for enterprises to grow stronger in the context of competitive environment.

2. When to restructure organization?

Leaders must make decisions about organizational restructuring when they are aware of organizational weaknesses such as thinking delays, cumbersome machinery, overlapping delays, unaccountable staff, impact negatively affect the performance of the organization, increase costs, customer dissatisfaction, brand prestige deterioration, business loss of competitive position; Or, there are signs of increased employee turnover, loss of market share, declining per capita sales.

When there are manifestations of organizational capacity decline as mentioned above, the restructuring is necessary. Because of the weakness of the organization, it only grows up over time, not itself. Any delay or concealment of the organization’s weaknesses will lead to irreversible consequences, business recession or dissolution.

Restructuring is not only effective when businesses are struggling, but also a necessary solution when businesses expand the field, scale or after a period of hot development.

3. Basic steps of restructuring:

• Corporate overview defines internal issues.
• Determine the scope and level of organizational restructuring.
• Evaluate and re-establish corporate strategic directions and objectives.
• Redesign the organization and adjust the structure in accordance with the strategic requirements.
• Develop management policies, departmental regulations and human resource management tools for developmental training, KPIs performance evaluation, 3Ps treatment system, and core succession systems. in the organization.
• Perfect corporate culture consistent with the new business strategy and context.

4. Method of implementation:

Decisions must be made on the basis of objective and objective assessments. At the same time, the organization only develops and changes when its management team works in close collaboration with the consultant to supplement, improve management capacity and working methods.

On the method of coordination: the two sides will adhere to the principles of: direct exchange, unifying objectives; Jointly develop action plans; Actively implement and respond promptly; Continuous interaction, periodic reporting. Counseling has a supporting role, not a substitute. Organizational capacity of an enterprise grows only when its apparatus and management team develop, through the change of old working methods.

5. Achievements:

After implementing the restructuring program, enterprises will achieve the following results:

• The organizational structure is streamlined, functional and coordinated, with clear regulations, and consistent with the long-term development orientation of the business.
• The organization is consistent in its strategic development objectives.
• Enterprise has an effective human resource system that engages the whole process of attracting, using, developing and maintaining human resources. Employees become competitive advantage, make a difference, help businesses develop sustainably.
• Corporate culture in the company will be clearly defined, corporate identity, the role of attracting and retaining talents, reinforcing the motivation to work, creating a brand imprint in the minds of the customers.